APS1015 Class 11: Emerging Issues in Social Entrepreneurship

APS 1015: Social Entrepreneurship

Class 11: Emerging Issues in Social Entrepreneurship

Wednesday, July 17, 2013

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Instructor: Norm Tasevski ([email protected]) Karim Harji ([email protected])

© Norm Tasevski & Karim Harji

Agenda

•  Guest Speaker – Joyce Sou (MaRS Centre for Impact Investing)

•  Break •  Course Recap •  Reminder on Final Presentations

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Guest Speaker – Joyce Sou

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Course Summary…

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Class 1 – Intro to Social Entrepreneurship

In the beginning…

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Then…

Private Sector

•  Earn $ •  Pay tax •  Donate to charity

Public Sector

•  Collect tax •  Run programs •  Grant to charity

Nonprofit Sector

•  Receive donations/grants

•  Run programs

Nonprofit Sector •  Donations

•  Grants

•  Sustainability

Response? Nonprofit Sector Private Sector Activities


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Class 2 – Systems Mapping

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Poverty

Result Effect

Hunger

Cause (Proximate)

Can’t grow enough food

Cause (Ultimate)

Bad soil?

Soil erosion?

Not enough water?

Not enough labour?

Over-used soil?

Don’t know how to

prevent it

Rains too hard

Changing rain

patterns?

No irrigation resources?

People sick?


Class 3 – Gap Analysis

•  Current State vs. Future Stage –  Current State: The amount of “stock” between two

elements in a system –  Future State: The ideal level of stock between elements in a

system

•  Inflows vs. Outflows –  Inflows: An increase in stock –  Outflows: A decrease in stock

•  Correcting Loops –  The mechanisms for controlling the inflows and outflows

within a social system to maintain an ideal state

•  Parameters –  Factors that affect inflow and outflow

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Class 3 – Gap Analysis

•  PESTEL Analysis –  Political: The degree to which government intervenes in a

system –  Economic: The degree to which economic factors affect a

system –  Social: Cultural factors that affect a system –  Technological: Technological factors found in a system –  Environmental: Ecological and environmental factors in a

system –  Legal: The man-made laws governing a system

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Class 4 – Intervening in a System

Leverage Point: An intervention that addresses a gap in a system Types:

1.  Slowing down or speeding up a correcting loop that already exists in a system

2.  Building resiliency in a system through self-organization

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Class 5 – Idea Jam

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Class 6 – Market Validation

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Idea Brainstorm

Internal Screen

External Screen

Validated Solution

# Ideas = Dozens

# Ideas < 10

# Ideas = 1 to 3

The Idea Funnel



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Call key industry players (suppliers, competitors, etc)

Search databases (industry, scholastic, etc)

Conduct web search (Google, etc)

Ask people!!! (friends, potential customers, etc)



Leverage Point: An intervention that addresses a gap in a system Types:

1.  Slowing down or speeding up a correcting loop that already exists in a system

2.  Building resiliency in a system through self-organization

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Class 7 – SE Considerations

Business Model Generation



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ID office building to serve as a

“Delivery Hub”

ID merchants within the “Delivery Zone”

Merchants market the service to

customers

1st 2nd 3rd

Professionals in Sick Kids will have access to the delivery service

Professionals at Sick Kids can receive deliveries from the hot dog vendor, Subway and Starbucks, but not Freshii or Tim Hortons

We Deliver!

An SSO delivery person picks up and delivers the food to the professional

Storyboarding



For-Profit Corporation!

Non-Profit Corporation!

Charity!Partnership!

Sole Proprietorship!

Co-Operative Corporation!


Class 8 – SE Workshop

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Class 9 – Managing for Impact

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+

+

-‐

-‐

$


Class 9 – Managing for Impact!

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1.  Identify your social goals –  Theory of Change (defining your social value) –  Embed them within/across your operations

2.  Measure the social value created –  How do you measure your goals? –  Address the common challenges in measurement

3.  Communicate your impact –  Know what to say and who your audience is –  Be creative around your message


Class 10 – Scaling SE

The point in time when you have a critical choice: grow substantially larger, stay purposely small, or quit

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The Scale Opportunity


Class 10 – Scaling SE

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IDEA DEVELOPMENT PROOF OF CONCEPT START-UP SCALE REPLICATION EXIT

•  Few/no critical decisions made about business model

•  Pre-revenue (no product, no customers)

•  Timing – typically a few months

•  Preliminary business model identified, but may change quickly/fundamentally

•  Pre-revenue (product to be validated, customers to be validated)

•  Timing – typically <1 year

•  First business model decided upon (but could still change)

•  First revenues (first product launched, first customers ID’d)

•  Timing – 1-2 years (or more)

•  Business model solidifies (& new business opportunities emerge)

•  Stable revenues (product established, mature understanding of customers)

•  Timing – ongoing

•  Business model in flux (minor/major changes made regularly)

•  Revenues in flux (inconsistent) •  Timing - ??? (varies)

The Scale Opportunity


Guest Speakers

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Reminder – Your Presentations…

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Presentation guidelines

•  Due Dates –  Investment Pitch: Midnight on Sunday, July 21st

•  Format –  PowerPoint deck

•  Time Allotment –  12 min presentation (strict) – will give you 5 and 2 minute

warnings –  6 min Q&A

•  Grading –  To be done by Karim and Norm –  Judges will inform me, but not assign your grades

•  Feedback from Judges –  Norm will email his and judges’ feedback shortly after the

class to integrate into angel investor pitch

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Timing

•  Arrive by 6:30pm!!

•  Group order will be assigned on the Monday prior to the presentation

•  At the end of the pitches, the judges will deliberate (for 10 minutes)

•  Judges will then provide feedback to the entire class (and I will provide individual group feedback)

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APS1015 Class 11: Emerging Issues in Social Entrepreneurship

Business

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