An introduction to Social Entrepreneurship workshop presented by Stephen Carrick-Davies
An introduction to social entrepreneurship
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Transcript of An introduction to social entrepreneurship
An IntroductiontoSocial Entrepreneurship
RAF VLUMMENS MFIN CRAENTREPRENEURIAL COACH
(c) Raf Vlumm
ens 2016
An Entrepreneurial Revolution
1 million new ventures a year in U.S.85% of the new jobs in SME’sProduct/service introduction rate
higher than ever beforeRate of wealth creation
explodingAnd it’s a global revolution
(c) Raf Vlumm
ens 2016The New Buzzword:Social Entrepreneurship
(c) Raf Vlumm
ens 2016
Social Entrepreneurship
a social enterprise is an organization that trades for a social purpose.
Sometimes social enterprises are described as 'not for profit' as any profit or surplus generated is used to further the social objectives of the business.
(c) Raf Vlumm
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Social Entrepreneurship
The only big difference between commercial and social entrepreneurship:
Attribution of the bottomline
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Social Entrepreneurship Traditional Business – one bottom line
Social Enterprise – up to 4 bottom lines
Social: improving the quality of life, access to services, and so on for communities
Environmental: minimising the enterprise’s own negative impacts, making improvements
Economic: increasing employment rates, income levels, business start-ups, etc
Financial: generating income and profits to be invested in the other bottom lines
(c) Raf Vlumm
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The Cooperative and Social Entrepreneurship
Ownership
Members of the coop are the owners
ManagementBoard of Directors are Members
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The Cooperative and Social Entrepreneurship
the cooperative structure is the
ideal ‘corporate’ structure to realize social objectives
OwnershipManagementAllocation of the bottom line
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ens 2016
The Process of Social Entrepreneurship?
1. Find an opportunity2. Develop a business concept3. Figure out what success means
and how to measure it4. Acquire the right resources5. Launch and grow6. Attain goals
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Three characteristics of Social Entrepreneurship
Social entrepreneurship meets needs unmet by commercial markets and (usually) the government
Social entrepreneurship is motivated by social benefit
Successful social entrepreneurship usually works with, not against, markets
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Other definitions of Social Entrepreneurship
Social Enterprises have social and/or environmental objectives. Social Enterprises are businesses looking for
financial independence.A Social Enterprise cannot be the subsidiary of
a public sector body.Social Enterprises are driven by values – both in their mission and business practices
(c) Raf Vlumm
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Social Entrepreneurship
Environmental factors• Social climate conducive to social
entrepreneurship• Political climate that facilitates
social innovation
Availability of financial and nonfinancial resources
Perturbation of the environment• Political change• Cultural change• Economic change
Entrepreneurial personality traits
Preparation to exploit opportunities
• Education• Experience
Social entrepreneurshipprocess begins
External forces
Internal forces
Environmental factors• Social climate conducive to social
entrepreneurship• Political climate that facilitates
social innovation
Availability of financial and nonfinancial resources
Perturbation of the environment• Political change• Cultural change• Economic change
Entrepreneurial personality traits
Preparation to exploit opportunities
• Education• Experience
Social entrepreneurshipprocess begins
External forces
Internal forces
(c) Raf Vlumm
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Social Entrepreneurship
Innovativeness
Education and experience
Achievement orientation
Independence
Sense of control over destiny
Low risk aversion
Tolerance for ambiguity
Entrepreneurialorientation
Community awarenessAnd social concern
Socially-entrepreneurialorientation
Innate characteristics
Innovativeness
Education and experience
Achievement orientation
Independence
Sense of control over destiny
Low risk aversion
Tolerance for ambiguity
Entrepreneurialorientation
Community awarenessAnd social concern
Socially-entrepreneurialorientation
Innate characteristics
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Social Entrepreneurship
Opportunities for social entrepreneurs look like threats and tragedies to others
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Myths about Social Entrepreneurship
Social entrepreneurs are anti-business The difference between commercial and social
entrepreneurship is greed Social entrepreneurs are nonprofit managers Social entrepreneurs are born, not made Social entrepreneurs are misfits Social enterprises usually fail Social entrepreneurs love risk
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Social Entrepreneurship and Cooperatives
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Social Entrepreneurship and Cooperatives
Grameen Danone Foods Ltda Social Business
in Bangladesh
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Social Entrepreneurship and Cooperatives
Grameen – Danone Foods a social business Joint-Venture
Grameen Bank – prof Mohammud YUNUS Danone Foods - France
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Social Entrepreneurship and Cooperatives
Grameen – Danone Foods Bangladesh
14 % has an income > 4.1 EURO/day (212 Pesos/day) 11 % has an income between 2.9 and 4.1 EURO/day 16% has an income between 2 and 2.9 EURO/day 37 % has an income between 1 and 2 EURO/day (50-100 Pesos) 22 % has an income < 1 EURO a day
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Social Entrepreneurship and Cooperatives
Grameen – Danone Foods : Objectives:
To bring health through nutrition at very affordable price for all Bangladeshi children
To improve living conditions of the poorest of the community by involving them in all stages of the business model (supply, production, sales), creating jobs and improving local competencies
To preserve non-renewable resources as much as possible
To be profitable to ensure economic sustainability
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Social Entrepreneurship and Cooperatives
Grameen – Danone Foods : a ‘bumpy’ road….
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Social Entrepreneurship and Cooperatives
Conclusion
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Social Entrepreneurship and Cooperatives
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Health Education Religion Socialwelfare
Arts andculture
Subsector
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Social Entrepreneurship and Cooperatives
Main Challenges for the Future
Money Competition Demonstrating effectiveness Technology Trust Human resources Public-sector relations
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Social Entrepreneurship and Cooperatives
Main Opportunities for the Future
Demographic shifts New philanthropy Heightened awareness of sector Increased social welfare spending through sector
Entitlement expansion Welfare reform
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Social Entrepreneurship
Raf Vlummens Mfin, CRAEntrepreneurial [email protected]