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Institute for Social Entrepreneurship in Asia
Marie Lisa Dacanay, PhDPresident, Institute for Social Entrepreneurship in Asia
3RD NATIONAL SOCIAL ENTERPRISE CONFERENCE IN CAMBODIAOCTOBER 25, 2013
� Introduction
� SE and the Poor: Some Cases from a
Developing Country Context
SE and the Poor: Stakeholder Engagement
Social Enterprises in Developing Countries: Social Enterprises in Developing Countries:
Investing in the Poor as StakeholdersInvesting in the Poor as Stakeholders
� SE and the Poor: Stakeholder Engagement
Models
� Concluding Remarks and Suggested
Workshop Reflection Questions
� Context of many developing countries �
widespread poverty, worsening inequality amidst
economic growth
� Social enterprises
◦ �may be characterized as responses to this
IntroductionIntroduction
◦ �may be characterized as responses to this
development crisis
� People that many social enterprises are most
concerned with: poor and marginalized
� Share results of research involving SEs in the Philippines � effective and ineffective ways on how
social enterprises engage the poor or marginalized
as stakeholders in a developing country context
Poor as suppliers Poor as workers Poor as clients
Alter Trade
**landless beneficiaries of agrarian reform ����
organic sugar farmers
(820)
PWD Fed
**unemployed
persons with
disability
(1,250)
Lamac MPC
**entrepreneurial
poor; upland
farmers; informal
sector & migrant
workers (35,040)
(820) (1,250) sector & migrant
workers (35,040)
Upland Marketing
**small producers of food
(3,000): organic rice,
muscovado sugar, other processed food products
Tahanan
**unemployed
persons with disability (273)
CARD MRI
**landless rural poor;
economically
disadvantaged
women & families
(over 1 million)
Initiation Stage Development
Stage
Renewal Stage
Alter Trade Organized
supplier-partners
in fair trade value
chain
Self-determining
partner producer
organizations
Federated self-
determining
partner producer
organizations
Upland Supplier-partners Supplier-partners Upland
Marketing
Supplier-partners Supplier-partners
in value chain
management
PWD Fed Empowered
worker-owners
Empowered
worker-owners +
Empowered
worker-owners ++
Tahanan Worker-partners in
rehabilitation
Passive worker-
beneficiaries
Worker-partners in
SE management
Lamac MPC
CARD MRI
Client-partners
Client-partners
Client- partners
Empowered
client-owners
Group of SEs engaged in sustainable
agriculture & fair trade
Annual Revenue:
PhP202.8 M Age: 21 years
trade
820 sugar workers-turned Agrarian
Reform Beneficiaries
18 organized supplier groups federated into
Negros Organic Fair Trade Association
Foundation providing producers of processed food access to
Age: 17 yrs Annual Revenue:
PhP32 Maccess to supermarkets
3,000 small producers in upland, lowland, coastal communities
60 Community Based Enterprises
Federation of PWD cooperatives
producing school chairs+ � gov’t as main market
Age: 15 yrsAnnual Revenue:
PhP48 M
main market
1,250 Persons with Disability (PWD)
15 primary coops nationwide�
employment and empowerment of
PWDS
Foundation providing rehab & employment for PWDs� 273 PWD employees, workers
Age: 36 yrs; Annual Revenues: PhP24M
workers
Sheltered workshops: educational toys +
majority of supervisors and managers now
PWDs
Cooperativeproviding poor access to credit, insurance and other services
Age: 17 yrs Annual Revenue: PhP101.4 M
other services
35,040 mostly entrepreneurial
poor
Access to financial and social
protection services
Group of SEs providing
microfinance & social development services to poor
Age: 26 yrs
Loan Portfolio: PhP6.3 B
99% repayment
Assets: PhP14.1 B
Outreach:
>1 million landless rural poor/economically challenged women
>7 million insured
Represented in CARD MRI Boards
35,000+poor women part owners of CARD Bank; CARD MBA fully owned and governed by poor
women
◦ Roles performed by
poor involving
exchange of goods
or services for money
◦ Roles performed by
poor as conscious
agents of change to
improve their quality
of life and that of
their community,
Transactional Transformational
◦ market-driven
services
their community,
sector or society as a
whole
◦ Primary-stakeholder-
driven services
Transactional &Transformational Services Provided by CARDto Economically and Socially Challenged Women & Families
TRANSACTIONAL TRANSFORMATIONAL
Marketing
Agricultural
Trading Program
Value chain
financing
Business
Credit with
Education Program
Balik Eskwela si
Nanay (Mothers’
Back to School
Program)
Scholarship
Program
Group/center
organizing and
Value chain
development
Trading Program
Loan products
Savings products
Business
Development
SupportMicro-insurance
(life and non-life)
Health Protection
Program
Lakbay Aral (Study
Visits)
Organizing and
leadership
development for
participation in
CARD MRIs
Program
Asset and capacity
building to
lead/own
community
development
enterprises
organizing and
development
◦Control
◦Collaboration
◦ Empowerment◦ Empowerment
� Differentiating Elements
◦ Managerial orientation towards poor
◦ Key engagement processes
◦ Nature of roles and capabilities developed among ◦ Nature of roles and capabilities developed among
poor
◦ Nature of programs/services and delivery systems
involving the poor
◦ Impact on poor
Model/Dimension
Control Collaboration Empowerment
Orientation towards poor
Poor as passive beneficiary
Poor as transactional partner
Poor as transformational partner
Impact on poor Limited to negative
Increased incomes, access to services ����social inclusion
Significant outcomes in overcoming capability deprivation & income poverty
Model/Dimension
Control Model Collaboration Model
Empowerment Model
Nature of roles and capabilities developed among poor
Passive workers, suppliers or clients
Pro-active workers, suppliers or clients; nominal
Empowered workers, suppliers, clients; full-fledged owners engaged among poor clients clients; nominal
owners
Partners in social enterprise management or value chain management
owners engaged in social enterprise governance
Organized partners in poverty reduction and community, sector and/or societal transformation
Model/Dimension
Control Model
Collaboration Model Empowerment Model
Nature of programs/services and structures/delivery systems
Limited to fee-based transactional services
Transactional services include capacity building to ensure performance of transactional roles (fee-based and non-fee based)
+Dedicated programs to enable poor’s performance of transactional and transformational roles
systems involving poor
based)
Delivery system of transactional services integrated into operating systems
Transformational services directed at promising individuals
+Distinct delivery system for transformational services directed at poor as organized groups
+Distinct structures and systems set up to enable poor’s performance of transformational roles
◦On empowerment model:� Poor as transformational partners
� tend to have significant qualitative impact on
poverty reduction.
◦On collaboration model:◦On collaboration model:� Poor as transactional partners
� tend to reach bigger number of poor with less
qualitative impact on their poverty situation
� best with poor’s participation as partners in
social enterprise or value chain management
◦ managers & programs oriented towards poor as
transformational partners
◦ dedicated structures & systems to deliver ◦ dedicated structures & systems to deliver
transformational services
◦ dedicated structures and systems as venues for
performance of transformational roles
� Poor as passive beneficiary
� tendency to foster subservience
and dependency leading to
negative social inclusion or negative social inclusion or
hardening of social exclusion
� associated with mission drift
�may be unintended
� Entails a combination of
TRANSACTIONAL AND TRANSFORMATIONAL SERVICES
for poor to effectively play
TRANSACTIONAL ROLES ���� as effective workers, suppliers, clients
Concluding Remarks: Investing in the Poor as Concluding Remarks: Investing in the Poor as
Stakeholders of Social Enterprises in Stakeholders of Social Enterprises in
Developing CountriesDeveloping Countries
���� as effective workers, suppliers, clients
and TRANSFORMATIONAL ROLES ���� as full fledged owners and decision makers in SEs;
as partners and actors in their own development
and the development of their communities, sector &
society as a whole
� Are these findings on transactional/transformational
roles and services as well as stakeholder
engagement models relevant to social enterprises
in Cambodia? Why or why not?
� If relevant:
Suggested Workshop Suggested Workshop
Reflection QuestionsReflection Questions
◦ What are the implications of these findings for social
enterprise practitioners, supporters, resource institutions and
scholars in Cambodia?
◦ How would these findings improve or enhance your
perspectives and practice of social enterprise development
in Cambodia?
THANK YOU!THANK YOU!
www.iseawww.isea--group.netgroup.netldacanay@[email protected]