ENTR4800 Class 10: The Enabling Environment for Social Entrepreneurship

ENTR 4800: Social Entrepreneurship

Class 10: The Enabling Environment for Social Entrepreneurship

Monday, November 22, 2010

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Instructors: Norm Tasevski ([email protected])

Karim Harji ([email protected])

© Norm Tasevski & Karim Harji

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Agenda

•  Unreasonable Institute •  What did we learn – last week? •  Preparing for your Pitches •  The international enabling environment for SE

–  Guest speaker – Elisha Muskat

•  The Canadian enabling environment for SE –  Guest speaker – Allyson Hewitt

•  Review of the course •  Next week

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Last Week – What did we learn?

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Your Investment Pitches…

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Pitch guidelines

•  Due Dates –  Social Pitch: Midnight on Saturday, Nov 27 –  Angel Pitch: Midnight on Saturday, Dec 4

•  Format –  PowerPoint deck –  1 page Précis

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

warnings –  10 min Q&A

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

•  Feedback from Judges –  Norm/Karim will email our/judges feedback shortly after the

class to integrate into angel investor pitch 6


Timing

•  Arrive by 8:00!!

•  We will go in order – Group 1 goes first, Group 2 goes second, etc

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

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

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Advice for your pitches

•  Focus on the key components of the business model, and highlight the key financial #s –  Can you clearly explain how your business works? How it

makes money? How it generates social/environmental change?

•  Comfortably stick to the time allotment –  In your practice, aim to deliver your presentation in 10-11

minutes

•  Anticipate the investor questions –  If you were investing your own money into the business,

what would you care to know about the business model?

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Social Investment Pitch…

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•  Overview and mission •  Management and

Advisors •  Problem

–  social issue being addressed

•  Size of the problem –  how big is the social issue

•  Solution –  Here’s how it works…

•  Value proposition –  Inc. social benefit

•  Business model •  Competitive advantage •  Collaboration/

partnerships •  Marketing and Sales •  Financial projections •  Financial requirements


Angel Investment Pitch…

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•  Overview and mission •  Management and

Advisors •  Customer problem •  Market opportunity/size •  Solution

–  Inc. social issue being addressed

•  Value Proposition •  Competitive advantage •  Where the solution fits

•  Business model •  Marketing and sales •  Financial projections •  Financing requirements


PowerPoint tips

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The International Enabling Environment…

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A Growing Ecosystem

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An Evolving Field

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“Developing the Field of Social Entrepreneurship” -‐ A Report from the Center for Advancement of Social Entrepreneurship (CASE)


As It Evolves…

•  Definitions •  Who’s in or not? •  Expectations vs. reality •  Demonstrating impact •  Scalable business models •  Mission or market? •  Developing and harnessing talent •  Access to finance •  Policy levers and constraints •  Individual vs organizational capacity •  Education – academic, mainstream

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Elisha Muskat

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Watch these videos!!!

•  http://vimeo.com/2307567 •  http://www.ted.com/talks/

katherine_fulton_you_are_the_future_of_philanthropy.html •  http://www.ted.com/talks/

jacqueline_novogratz_on_patient_capitalism.html •  http://www.ted.com/talks/

melinda_french_gates_what_nonprofits_can_learn_from_coca_cola.html

•  http://www.ted.com/talks/bjorn_lomborg_sets_global_priorities.html •  http://blog.ted.com/2010/09/18/tackling-the-mdgs-an-introduction-

to-tedxchange/ •  http://www.youtube.com/v/QgzlmKPoMEo?

f=videos&app=youtube_gdata&title=Tonya%20Surman •  http://www.ted.com/talks/

tim_jackson_s_economic_reality_check.html

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Break

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Allyson Hewitt

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Course Summary…

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Motivation

Innovation

Resourcefulness

Risk Taking

How is Social Entrepreneurship Different?


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What Motivates The Social/Environmental Entrepreneur?

“…it was an epiphanal experience…” Ray Anderson, Interface Carpets

“I heard the same story again and again. Someone had experienced an

intense kind of pain that branded them in some way. They said, ‘I had’ to do

this. There was nothing else I could do.”

Jody Jensen, Ashoka

“I was teaching in one of the universities while the country was suffering from a severe famine. People were dying of

hunger, and I felt very helpless. As an economist, I had no tool in my toolbox to fix that

kind of situation.” Mohammed Yunus, Grameen Bank

“…that made a real impression on me…”

Jeff Skoll, eBay, Skoll Foundation, etc.


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-Coffee -Food -Merchandise

-Coffee shops

-Kiosks

-Personal (Baristas) -Online, print

ads -Adults that want a place to

relax, work quietly, meet

friends, etc

-Locations -Coffee making

equipment -Baristas

-Coffee roasting/brewing

-Processing

orders

-Farmers -Suppliers

-Staff training

-Asset acquisition -Marketing

-In-store Purchases


Tip…

•  Be a Business Model “Alchemist” – You need to go through the business model process many times in order to figure out which model best fits

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Cost Drivers and Revenue Sources !

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-???!

-???!


Where does HR Fit?

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Where does Marketing Fit?

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Embedding “Social” across the Business Model

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For-Profit Corporation!

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Non-Profit Corporation!

Charity!Partnership!

Sole Proprietorship!

Co-Operative Corporation!


MORE DEBT-LIKE

34 Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx

Financing Options – Over the Social Entrepreneurship “Life Cycle”

IDEA DEVELOPMENT PROOF OF CONCEPT START-UP SCALE REPLICATION EXIT

GRANTS

MORE EQUITY-LIKE

SOCIAL VENTURE CAPITAL FUNDS

ANGEL INVESTMENT VENTURE CAPITAL

PROGRAM-‐RELATED INVESTMENT/RECOVERABLE GRANTS

FORGIVABLE LOANS

SOCIALLY RESPONSIBLE INVESTMENT FUNDS

BELOW-‐MARKET DEBT

MARKET-‐RATE DEBT


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Aligning Supply and Demand

Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx


Lessons from the “Live Cases”

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Lessons from Guest Lecturers

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Next Week

•  Be here for 8:00am!!

•  Deliverables –  Pitches due at Midnight

Saturday –  1 page Précis by

Midnight Saturday

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ENTR4800 Class 10: The Enabling Environment for Social Entrepreneurship

Business

Transcript of ENTR4800 Class 10: The Enabling Environment for Social Entrepreneurship