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© 2004 by the Schwab Foundation for Social Entrepreneurship. This presentation was used by the Schwab Foundation for Social Entrepreneurship foreducational purposes. It does not constitute a complete documentation of the teaching unit. The Foundation wants to stimulate thinking and discussion aboutsocial entrepreneurship. Thus, the presentation may be duplicated for personal use as well as for teaching, provided it is properly cited. However, this materialis copyrighted. Any use for commercial purposes other than teaching requires prior written permission from the Schwab Foundation for SocialEntrepreneurship.
Social Entrepreneurship: PromotingEntrepreneurial Solutions for Social Change
AIESEC Workshop
Dr. Maximilian Martin, Head of Research, Schwab Foundation for Social Entrepreneurship
HEC Geneva, 10 March 2004
Agenda
• Setting the Stage: Context and Concepts
• The Work on the Ground: Select Social Entrepreneurs
• Promoting Social Change: The Work of the Schwab Foundation
• So, What Do You Think? Discussion Assignment
Con
text The Demand Side: Why Do We Need New
Approaches and Partnerships?
Macro-level: Cooperation between governments, business,and civil society to create enabling conditions and frameworks
Local level:Change agents who have innovative ideas and practical solutions
Environmental damageHIV/AIDS,other diseases
Migration
Sub-optimal employment levels
Poverty & inequality
Demographic transformation
Pressure on social protectionsystems
Social exclusion
Challenges in a globalizing world
Con
text The Supply Side: The Weaknesses of
Established Modes of Intervention
“Crisis of the welfare state”“Crisis of development”
• A few poorcountries havebecome rich• By and large,convergence is nothappening• Due to populationgrowth andresource depletion,we may not evenbe keeping up witha moving target• Needed: newparadigm
• Long-termstructural forcescreate new welfareproblematics forchildhood, worklife,retirement
• But normativecommitments tosocial justicedifficult to finance
• Needed: large-scalewelfare reform
Addressing the Challenges:A Structured PerspectiveC
once
pt
We need new policy frameworks. And we also need change agents who ...
Innovation
Identity
Wed performanceorientation with acommitment tosocial valuecreation
Innovate tocreatesystemicchange
Leadership
Exercise trueleadership,mobilizinggroups to tackletheir adaptivechallenges
Per-formance
Deliver publicand privategoods efficientlyand effectively
Division of Labor: The Roles of the PrivateSector and Civil SocietyC
once
pt
Corporate Social Responsibility
Actor: established businessDefinition: “achievingcommercial success in waysthat honor ethical valuesand respect people, com-munities, and the naturalenvironment” ( BSR)Often used interchangeablywith business ethics,corporate citizenship,corporate accountability,sustainability
Social Entrepreneurship
Actor: grassroots leadersMay set up businesses, butnot with a primary profitmotivationRather, social enterprisesmay be the most effectivevehicle to achievetransformational changeWe will look into examplesto illustrate this
The Case for Corporate Social ResponsibilityC
once
pt
Why do companies give? Four models
Profit motive
Altruism
Ethical/altruisticmodel: Company isgiven power by societyand has a responsibilityto benefit society
Neoclassical/corporateproductivity model:corporate givingimproves financialresults
Stakeholderengagement
Stakeholder model:Company ascomplex entity withmultiple constituentsto be satisfied
Power
Political model:Company buildsrelationships withNGOs to maintaincorporate power
Source: Young, D.F., and Dwight Burlingame. 1996. “Paradigm Lost.” In Corporate Philanthropy at the Crossroads, D. F. Burlingame and D.R.Young, eds. Blomington, Ind.: Indiana University Press.
Change Agents on the Ground:Social EntrepreneurshipC
once
pt
Social entrepreneurs are …
Driven by a mission to create social value. To devise practical solutions forthe pressing social problems of our times, they found companies andorganizations.Opportunity-oriented. They focus on the new possibilities globalization andthe communications revolution generate.Innovative. They develop new products, services or frameworks.Resourceful. Social entrepreneurs think economically—but operationalefficiency aims at maximizing social rather than financial value.Accountable. They look for lasting benefits for their constituencies.Social entrepreneurs operate in all sectors: education, environment, health,microfinance, human rights, enterprise development, and so on.In short, social entrepreneurs are practical visionaries.
Source: Dees, J. Gregory. 2001. Social Entrepreneurship. In: Enterprising Nonprofits: A Toolkit for Social Entrepreneurs, J. GregoryDees, Jed Emerson, and Peter Economy, eds., pp. 1-18. New York: Wiley.
Agenda
• Setting the Stage: Context and Concepts
• The Work on the Ground: Select Social Entrepreneurs
• Promoting Social Change: The Work of the Schwab Foundation
• So, What Do You Think? Discussion Assignment
Gisèle YitambenASAFE
StrategyTarget group: Women micro-entrepreneurs
Objective: Seize newly emergingopportunities and empower womeneconomically through business education,micro-finance, and business advice
Programs: Microfinance and savingsprograms, Cisco Networking Academy andgraduate placement center, web agency
Snapshot
Established in 1989
Non-profit based inDouala, Cameroon
5,000 members
Works in Cameroonand adjacent Africanstates
www.asafe.org
Focus: Helps disadvantaged women and youth become successful entrepreneurs
Cam
eroo
n
Rodrigo BaggioCommittee for the Democratization of
Information Technology (CDI)
Strategy/ProgramsFranchise model to promote the socialinclusion of low-income communities byusing information and communicationtechnologies
Leverages business partnerships andprovides hardware, software andtechnical assistance
Combines IT and citizenship classes
Charges symbolic student fees
Snapshot
Established in 1995
Based in Rio deJaneiro, Brazil
19 Brazilian states,Japan, Chile, Honduras,Guatemala,
Focus: Information Technology, Education, “Digital Divide”
Bra
zil Rodrigo Baggio
Committee for Democracy inInformation Technology (CDI)
StrategyFranchise model: Computer schools inslum areas
Partnership with companies to mobilizesoftware, hardware, and technicalassistanceCurriculum combines IT skills withgeneral education
Students pay course fees
Snapshot
Established in 1995
Based in Rio de Janeiro
More than 700 centersin 19 Brazilian statesand in Japan, LatinAmerica, SouthernAfrica
Web site:www.cdi.org.br
Bra
zil
Focus: Democratizing information technology, promoting citizens rights
Martin Fisher & Nick Moon ApproTEC
StrategyDevelop low-cost capital equipment andmass market it to the rural poor, who starthighly profitable new businesses
So far 35,000 new micro-enterprisescreated in East Africa
US$ 36 million/year in profits and wages
Revenues equivalent to 0.5% of Kenya’sGDP and 0.2% of Tanzania’s GDP
Snapshot
Established in 1991 inKenya
Also income-taxexempt 501(c)(3) non-profit in the U.S.
Budget: US$ 2.2million (2001)
80 employees
www.approtec.org
Focus: Enabling wealth creation through appropriate technology
Ken
ya
Rory StearFreeplay Energy Group
StrategyDevelop range of self-powered products:radio, cell phone chargers, flashlight
Achieve financial sustainability through salesin industrialized country markets
Partner with international organizations to getproducts to the rural poor. Access toinformation can provide a lifeline, especiallyin complex emergency settings. Mozambicanflood (2000): 7,120 radios donated
Snapshot
Established in 1994
Company + foundation
So far, 3 mn radiossold. 50,000 radiosdonated to the poor,touching 1 mn people’slives
Sales: 7.5 mn $ (2003)
www.freeplay.net
UK
Focus: Providing access for all to energy and information at all times
Agenda
• Setting the Stage: Context and Concepts
• The Work on the Ground: Select Social Entrepreneurs
• Promoting Social Change: The Work of the Schwab Foundation
• So, What Do You Think? Discussion Assignment
The Work of the Schwab Foundation
ProfileFounded and endowed by Klaus and Hilde Schwab in 1998
Complementary to World Economic Forum activities:Social Entrepreneurs provide practical solutions on the ground
Operational since August 2000; so far 71 social entrepreneurs selected
Legally and financially independent from the World Economic Forum
StrategyPromotes social entrepreneurship by creating a network of “OutstandingSocial Entrepreneurs”
Inte
rven
tion
Accelerating the diffusion of innovation through strategic network insertion
Selection Criteria for “SchwabEntrepreneurs”
Direct positive social impact
Innovation
Sustainability
Reach and scope
Scalability
Role model
1
2
3
4
5
6
Inte
rven
tion
1) Build legitimacy2) Establish relevant contacts with business and politics3) Secure financial and in-kind support
What Does the Schwab Network Offer?
SocialEntrepreneurs
Summit
World EconomicForum meetings:
- Davos- Regional meetings
Mobilization ofsocial investorsand technical
advice
Resource centeron social
entrepreneurship
Objective: Address social entrepreneurs‘ primary needs
Inte
rven
tion
Challenges for the Future
Community-Building: Identify and connect many moreoutstanding social entrepreneurs
Scale: Broker partnerships between social entrepreneurs undcompanies to scale the initiatives
Awareness: Make Social Entrepreneurship known to a wideaudience
Performance: Empirical analysis of success factors and furtherdevelopment of the field of “Social Entrepreneurship”
Pros
pect
s
Agenda
• Setting the Stage: Context and Concepts
• The Work on the Ground: Select Social Entrepreneurs
• Promoting Social Change: The Work of the Schwab Foundation
• So, What Do You Think? Discussion Assignment
Discussion Group 1: Social Entrepreneurship
Take ApproTEC as an example
What does “thinking like a business” mean in the social sector?
Should ApproTEC produce in China?
Why or why not?
Pros
pect
s
Discussion Group 2: CSR
“The only social responsibility of business is to increase profits”(Milton Friedman)
Do you agree?
Why or why not?
What is the proper role of business?
Pros
pect
s
Discussion Group 3: Policy Frameworks
In Europe, many argue that we need a new social contract
Which strategies can you think of to:
(1) Invest in children, families and women?
(2) Address problems with working life and social exclusion?
(3) Devise a new social contract for the elderly?
Pros
pect
s
Discussion Group 4: Personal Perspective
How have you given back to society so far?
Why did you choose this form of intervention?
How do you plan to give back later in your lifecycle?
Please be as specific as possible!
Pros
pect
s
Discussion Group Format
You have 30 minutes for the discussion
Please designate a moderator and a notekeeper who will also bethe rapporteur
Please go around the table and share views for 20 minutes
Please use the remaining 10 minutes to agree on what the groupwould like to convey to the plenary
The rapporteur reports back to the plenary (max. 5 minutes)
Pros
pect
s
For additional examples of Schwab Entrepreneurs,please refer to
http://www.schwabfound.org
For additional examples of Schwab Entrepreneurs,please refer to
http://www.schwabfound.org