Social Enterprise Devel Pmt

8/12/2019 Social Enterprise Devel Pmt

1/7Electronic copy of this paper is available at: http://ssrn.com/abstract=983155

SOCIAL ENTERPRISE DEVELOPMENT

B65.2128.30 -- 1.5 credits

Spring 2006

Instructor: Adjunct Professor Bill Shore

Founder, Executive Director, Share Our StrengthChairman, Community Wealth Ventures

Phone: (212) 998-0078Email: [email protected]

Office Hours: Mondays 5-6pm, or by appointment

Instructor: Adjunct Professor Sarah Chiles

Director, Satter Program in Social EntrepreneurshipPhone: (212) 998-0055Email: [email protected]

Office Hours: Mondays 12-2, or by appointment

Prerequisite: Foundations of Entrepreneurship (B65.3335) or professor approval

Course Description:

Becoming sustainable or profitable is often the top concern for social entrepreneurs.

Management teams of start-ups spend an exorbitant amount of time focused on furtheringtheir business models. However, the social capital markets lack the efficiency of the

traditional capital markets, making the process of capital raising a challenge for both

nonprofit and for profit social ventures. Concurrently, scarce philanthropic, governmentand investment dollars have caused nonprofits to innovate new revenue generating

businesses to augment their budgets. Nonprofits, struggling to survive in an increasingly

competitive landscape, are working to become more efficient by adapting businessmodels to their organizational needs. Trends in philanthropy have also forced the social

sector to adapt. Some in the philanthropic sector has adopted venture capital principles to

become more highly engaged with their grantees, and they now expect a higher level ofperformance. This rise of venture philanthropy has forced nonprofits to develop

performance measurement tools and improve accountability within their organizations.

As many nonprofits work to become more self-sustaining by diversifying their revenuestreams beyond traditional foundation and government support, organizations are creating

business ventures and corporate partnerships. This course is designed not only to educate

students about the models and practices currently being pursued by these organizations,but also to provide practical tools that foster new innovations in this area.
mailto:[email protected]:[email protected]:[email protected]:[email protected]


2/7Electronic copy of this paper is available at: http://ssrn.com/abstract=983155

Professor Shore is the founder and executive director of Share Our Strength and the

chairman of Community Wealth Ventures.

After running Earth Tones The Environmental Phone Company, Professor Chiles

initiated and currently directs NYU Sterns Stewart Satter Program in Social

Entrepreneurship.

Course Objectives:

1. To introduce you to the best practices, successes and failures, opportunities andconstraints in developing new social enterprises

2. To provide you with the tools and conceptual framework to launch a new socialenterprise or make funding decisions related to the field

3. To provide new perspectives on the opportunities for leveraging an MBA toimpact the social sector

Course Content:

The course is organized into 6 modules:

Social Enterprise Defined andModels of Social Enterpriseexamines the differentdefinitions of the term and looks at models of social purpose businesses, earnedincome strategies and corporate partnerships

Creating and Evaluating Opportunities for Social Enterprise Developmentdescribes the process of analyzing an organizations current assets and

competitive advantage for opportunities for earned income and venture creation

Enterprise Plan and Business Models describes how to develop the ventureconcept to reach social and financial impact goals

Acquiring Necessary Resourcesexamines strategies for obtaining neededfinancing and human resources not previously under ones control

Managing the Growing Venturelooks at the challenges of launching and scalingfrom the concept stage

Public Policy Issueslooks at tax and regulatory issues and ethical questions

Readings:

1. RequiredKelvin Shawn Sealey, Jerr Boschee, Jed Emerson, Wendy Sealey, AReader in Social Enterprise, Pearson Custom Publishing, 2000.2. Required Community Wealth Ventures, Powering Social Change: Lessons on

Community Wealth Generation for Nonprofit Sustainability, CWV, 2003.

3. Highly Recommended J. Gregory Dees, Jed Emerson, & Peter Economy, StrategicTools for Social Entrepreneur: Enhancing the Performance of Your EnterprisingNonprofit, Wiley, 2002.

4. Optional Bill Shore, Cathedral Within


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5. WEBAs noted, select articles can be found onlineCourse Requirements:

1. Participation 30%Students are expected to be actively engaged in the classroom discussion. Yourparticipation grade will be based on the quality (not quantity) of your contributions to

class discussion, and on the insights and original thinking that you bring to the

discussion. Contributions that illustrate the connections between presentations, andthat place learnings in the context of the philosophy that underlies social enterprise

will be highly valued, as will challenges to conventional wisdom.

2. Writing Assignments 30%Students are expected to complete two writing assignments, each worth 15% of their

final grade. The papers are 2-4 pages each answering the discussion questions for

any 2 of the sessions, due prior to the class discussion. (Please see below for

additional details.)

3. Final Project 40%Students have the choice of several options for their final project, which is due the

final class session. (See below.)

Course Assignments:

To be submitted via email to Professors Chiles and Shore

1. Discussion Questions: 2-4 pagesChoose 2 classes to hand in a paper answering 1 to 3 of the discussion questions

assigned for the section. Please email your papers to both professors prior to the class

the discussion questions are assigned.

2. Final ProjectThe Final Project is organized to allow students the greatest flexibility to pursue their

areas of interest. Its purpose is to provide students with a capstone project that usesthe tools and concepts discussed throughout the course. Or, if you have a project

youd like to pursue that does not fit into these three options, please discuss with

either professor for approval. You may work in groups of no more than 4 students,or you may choose to work alone.

Deliverables:

February 28th: 1 page summary proposal of final project due, to be approved

before work on final project commences.

March 28th: Final project due please bring 2 copies to class and email to

Professors Chiles and Shore.


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Students are free to choose whatever organizations interest them, as long as they

relate to class discussions. Students may choose from one of the following threesuggested projects:

1. Write a business plan for a new or existing social enterprise;2. Describe a business Stern itself could get into i.e. what assets does it have

(besides the future wealth of its students) that are leverage-able into revenue

generating opportunities, what are the market opportunities, resources needed,what are the obstacles, constraints, etc.

3. Complete a consulting project for an existing social enterprise and submitdeliverable. This may take the form of a critical assessment of an existing

social enterprise, including recommendations for improvement. Please see

Professor Chiles for organizations interested in working with students.

COURSE OUTLINE

Session 1 (February 7): Social Enterprise Defined andModels of Social Enterprise

Readings:

Strategic Tools, portions of Chapter 9: Developing Viable Earned IncomeStrategies pp 191-216 (skim)

A Reader, Ryan, William, The New Landscape for Nonprofits PSC, Insights on the Field

Questions to consider for Class Discussion: What are examples of earned-income strategies for nonprofits? What historic trends and factors led to the emergence of social enterprise

development?

What are some advantages and disadvantages to social enterprise?

Session 2 (February 14): Creating and Evaluating Opportunities for Social Enterprise

Development

Presenter: TBD

Readings:

(TEXT) Strategic Tools, Chapter 2 Competitive Environment pp 19-44 (skim) A Reader Tony Proscio, Jed Emerson, A Double Bottom Line, Lessons on

Social Purpose Enterprise from the Venture Fund Initiative

A Reader Vince Stehle, Putting Charities in Business, The Meaning of SocialEntrepreneurship

PSC Mike Burns, Charles King, and Rosanne Haggerty


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Questions to consider for Class Discussion:

How does an organization identify and leverage its assets to create a profitableenterprise?

What are some sectors and industries conducive to social enterprise? What are the principle obstacles to creating and launching a venture? How is market opportunity defined and assessed? What, if any, organizations are not right for social enterprise?

FEBRUARY 21: NO CLASS PRESIDENTS DAY

Session 3 (February 28)Corporate Partnerships

Deliverable: One page summary of final project to be submitted via email for

professor approval

Presenter: Ken Pucker, COO Timberland

Readings:

PSC, Neighborhood Reinvestment Corporation and Washington Mutual &Special Olympics and Cingular Wireless

Strategic Tools, Ch 3 Cooperative Strategy and Partnerships, pp 45-70 (skim) A Reader, Profits for Nonprofits: Find a Corporate Partner Alan Andreasen Handout, Timberland Case


How do you prove that social purpose ventures and/or partnerships create valuefor shareholders?

How do corporate partners add value to nonprofits beyond financial support? What are examples of long-term sustainable social purpose ventures and

corporate-nonprofit partnerships?

What internal obstacles do CEOs face in pursuing social purpose partnerships? How do mission and market forces support and also compromise each other?

Session 4 (March 7):Enterprise Plan and Business Models

Presenter: Julius Walls, CEO, Greyston Foundation

Readings:

Strategic Tools, portions of Chapter 9: Developing Viable Earned IncomeStrategies pp 216-234 (skim)
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A Reader The Entrepreneurial Organization: Launching New Services PhilipKotler

Bill Shore, The Cathedral Within, Introduction and Chapter 5 optional PSC Julius Walls and Survey Results

Questions to consider for Class Discussion: Identify critical success factors for developing social enterprise. How can you measure the social impact of social enterprise? What kinds of fair competition issues arise from social ventures and how should

they be addressed?

What are the values and limitations of a business plan?

Session 5 (March 21):Acquiring Necessary Resources

Presenter: Clara Miller, President and CEO, Nonprofit Finance Fund

Readings:

Strategic Tools, Ch 8, Performance Information that Really Performs pp 161-188(skim)

(CP) Gregory Dees and Nadine Dolby, Sources of Financing for New NonprofitVentures, Harvard Business Review, July 1996

A Reader Christine Letts, William Ryan, Allen Grossman, Virtuous Capital:Investing in Performance


What are the key sources of financing for a social venture? How could the social capital market be made more efficient? What cultural issues must be overcoming in introducing social enterprise into a

nonprofit organization?

What does a prospective funder or investor look for in an investment?

MARCH 14: NO CLASS - SPRING BREAK


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Session 6 (March 28):Managing the Growing Venture

Deliverable: FINAL PROJECT

Presenter: TBD

Readings:

PSC, TROSA Strategic Tools, Ch 5, Managing Your Board Effectively

Topics to consider for Class Discussion:

What are the key factors for managing your board effectively? How do you create an organizational culture that blends the multiple missions of

the social enterprise and the nonprofit parent?

What are some of the challenges that can arise as the social enterprise grows?How can you mitigate them?

Documents

Social Enterprise Devel Pmt