Manu Mayank

Manu Mayank

What is Social Entrepreneurship?n. 1. Recognizing and resourcefully pursuing opportunities to create social value 2. Crafting innovative approaches to addressing critical social needs Social entrepreneurship is the process of recognizing and resourcefully pursuing opportunities to create social value. Social entrepreneurs are innovative, resourceful, and results oriented.

"What business entrepreneurs are to the economy, social entrepreneurs are to social change.” -being a social entrepreneur is doing business with a conscience.

Manu Mayank

What solutions do we have today?

• Government – Alone is not the answer [Inefficiencies, slow, bureaucratic, prone to corruption]

• Non Profit Orgs – Inadequate- Dependant on grants [uncertain, demand>supply]- “Compassion Fatigue”- Fundraising takes time & energy, which can be spent planning

growth/expansion

• Multilateral Institutions like World bank – Ineffective - Conservative, slow, under-funded, unreliable- Success is measured by (a) GDP [might not be helping poor] (b) Volume of loans negotiated [not measuring impact]- Exclusively work with the government

• Corporate Social Responsibility – Fundamentally Flawed- “As long as it can be done without sacrificing PROFITS”

Manu Mayank

SE Quadrant• Quadrant I: traditional NPO;

Foundations, trusts, charities; dependant on grants. Birthplace of modern SE

• Quadrant II: Tipping point; for-profit; promise of economic transformation

• Quadrant III: Transient Org; market driven but not profit oriented; defined path towards solution of complex social problems, but may not have a defined path for growth

• Quadrant IV: Conventional Business; Profit oriented and market driven; Socially responsible business models

Manu Mayank

Forms of SEs• Cooperatives: associations to meet common

economic and social needs through jointly owned enterprises

• Trusts: actors in community-based regeneration• Social Firms: mainly focus on creating employment

& training for the disadvantaged• Community Enterprises: strong geographical

definition with a focus on local markets & services• Nonprofit Trading arms: enabling nonprofits to

meet their objectives in innovative ways, like fair trade companies

• Credit Unions: providing access to finance• New age SEs: For profit companies with a focus on

creating socio-economic and/or environmental benefits

Manu Mayank

Characteristics of SEs

• Enterprise Oriented: directly involved in production of goods and services to a market

• Social Aims: explicit social aims such as job creation, capacity building, provision of local services, etc. Accountability towards social, economic and environmental impacts

• Social Ownership: autonomous organizations with a governance and ownership structure based on participation by wide stakeholders. Profits shared or used for the benefits of the community

Manu Mayank

SEs Vs. Conventional BusinessS.No

.Parameter

sSimilarity Difference

1 Management Requires similar mgmt. practices; SE managers need to be skilled in more than one mgmt function

BoD is structured differently and usually includes non executive members as well; lack of well defined roles for managers [jack of all, master of few]

2 Marketing Like CBs, SEs too sell their products & services in the market, and thus need to develop good marketing skills

Community loyalty & trust helps SEs in difficult times. Such loyalty and trust does not substitute for providing good products at good prices

3 Finance Balance sheets looks similar in most of the ways as any CB

Investment instruments are different. Profits in full or parts may be used for community benefits. Access to finance is difficult.

4 Organizational Structure

Operational structures are similar, with a emphasis on teamwork

More focus on capacity building, team work, and participatory structures

5 Legal Framework

All the same regulatory frameworks, esp. for a profit-oriented SE. Common regulatory framework for SEs & CBs in countries like USA, UK, Australia, etc.

Incorporation may be different, and thus taxation.

Manu Mayank

Social Innovation & Enterprise• Innovation is invariably a

cumulative, collaborative activity in which ideas are shared, tested, refined, developed and applied. Social innovation applies this thinking to social issues: education and health, issues of inequality and inclusion.

• Be You. Be New.• Innovation rocks.

Improvisation doesn’t always suck.

• More social entrepreneurs = more social enterprises + well managed growth of social enterprises = more social impact

Biz Ecosystem

Improvised Biz

Innovative Biz

Cheap Imitations

Manu Mayank

Case Discussion

• Green Livelihoods, Hyderabad [http://greenlivelihoods.org]

• Acumen Fund [http://acumenfund.org]

• Husk Power Systems [http://huskpowersystems.com]

Manu Mayank

Lets plan our own SE

1. Lets list top 10 ideas2. Discuss their merits/demerits3. Select best 3 SMART ideas based on

feasibility, impacts, and sustainability

4. Lets VOTE to choose the winner idea!

5. SE Planning & Strategy: Next session

Manu Mayank

Thank you for your enthusiasm

Connect me at:

Blog: http://manumayank.wordpress.com Twitter: manumayank

E-mail: mmayank@stratessence.com