Social business

Social Entrepreneurship

Why?......bcoz India is already

one of the biggest players….

• http://www.openaction.org/aylluinitiative/#

http://www.openaction.org/aylluinitiative/





• Muhammed Yunus - Social Business.mp4

Muhammed Yunus - Social Business.mp4










What Is Entrepreneurship?

Process of creating value by bringing

together a unique package of

resources to exploit an opportunity

Defining „social entrepreneur‟

– Development change agent working in the

market as an arena

– Innovative, opportunity-seeking,

resourceful person, group or institution

– Leads creation of enterprises, enterprise

systems or enterprise development

programs demonstrating positive

development impact

The New Buzzword:

Social Entrepreneurship

So, is social entrepreneurship

basically entrepreneurship

regardless of the context?

Or is “social entrepreneurship”

something truly different?

What Is Social

Entrepreneurship?

Nonprofits making money

What Is Social

Entrepreneurship?


For-profits doing things to show they

are not evil

What Is Social

Entrepreneurship?


For-profits doing things to show they are not evil

Process of creating value by bringing together a unique package of

resources to exploit an opportunity, in pursuit of high social returns

The only big difference between

commercial and social entrepreneurship:

Denomination of the returns

Social and commercial

entrepreneurship have most of the same

characteristics

Do Social Entrepreneurs “look”

like Any Other Entrepreneur

Social concern, but also:

Innovativeness

Achievement orientation

Independence

Sense of control over destiny

Low aversion to risk

Tolerance for ambiguity

Traits of a successful social

entrepreneur

• Willingness to self connect

• Willingness to share credit

• Willingness to break free of established

structures

• Willingness to cross disciplinary

boundaries

• Willingness to work quietly

• Strong ethical impetus

The Main Difference: The

Measurement Problem

• What is bottomline? Economic profit?

Or something more?

• How do we count it?

• What is “social return on investment”

for venture philanthropists?

• Can we compare investments?

Focusing on Social Impact

Social entrepreneurs are driven by a social mission, implying that:

Success is defined by creating the intended social impact, not simply by Economic value creation for owners, managers, and employees, or Consumption value for customers

Success in achieving this impact is both Hard to measure in timely, reliable, cost-effective ways, and Open to dispute due to value differences

• Social Entrepreneurs_ Pioneering Social

Change.mp4

Social Entrepreneurs_ Pioneering Social Change.mp4









So why does social

entrepreneurship matter?

What Solutions do we have Today

• Government – alone is not the answer

– Inefficiencies, slow, bureaucratic, prone to corruption….

• Nonprofit Orgs. – inadequate

– dependent on donations (uncertain, demand far exceeds supply)

– “compassion fatigue”

– Raising money takes time and energy, which can be spent

planning growth/expansion

• Multilateral Institutions (World Bank…) - ineffective

– Conservative, slow, under-funded, unreliable

– Success is measured by

a) GDP (might not be helping poor)

b) Volume of loans negotiated (not measuring impact)

– Exclusively work with the government

• Corporate Social Responsibility – still evolving

– “as long as it can be done without sacrificing PROFITS”

New kind of Business

Social Business Enterprise

– Creating business models revolving

around low-cost products and

services to resolve social problems

– Social business is for „more-than-

profit’ as it combine revenue

generating business with a social-

value-generating structure

– Have 2 characteristic • Unlimited potential for scalability

• Limited capital requirement

How can you do business and serve social goals?

Why is profit-making not conflicting with social objectives?

Profits -

– Promotes R&D, innovation, new technologies

– Increases efficiency

– Enables penetration to new geographical areas and serve

deeper layers of low-income people

– Helps recover costs and pay back investors, thus encourages

investments

PMBs (profit max. businesses) vs. SBs (social businesses)

How they are same yet different

– Employ workers, create goods & services for consumers

– Must recover full costs

– Profits are important

– YET objective is to create social benefit and not limited to

personal gains

Can there be a HYBRID i.e.

60% PMB and 40% SB??

Social Entrepreneurship Is a

National Priority

• Continued prosperity requires private

solutions to social problems and

unmet needs

• Social ventures

• Private support for these venture

Contrast with Business

Businesses also create social impacts, both positive and negative, typically

– As unintended side-effects that

– Play a relatively minor role in organizational decision making

Their social benefits result from an “invisible hand,” not by design

Success is commonly defined in terms of private value creation (usually profit)

Market discipline helps to reinforce private value creation

Limits of Market Discipline

Social sector customer and capital markets are less effective at ensuring intended social impact as:

Intended beneficiaries frequently do not pay full cost

Payers cannot easily assess the social impact or the efficiency of operations

Comparisons across organizations are inherently problematic

Rewards to resource providers are not reliably correlated with performance

Thus, Social Entrepreneurs . . .

Adopt a mission to create sustained positive social impact

Relentlessly pursue opportunities to serve this mission

Continuously innovate, adapt, and learn

Act boldly, not constrained by resources currently in hand, and

Exercise self accountability for cost-

effectively serving the social mission

Growing Need for MBA Skills

Used wisely business skills can:

Create more sustained impact

Shift philanthropic resources to more appropriate uses

Leverage those resources

Improve financial strength and capacity of social sector organizations

Enhance efficiency and effectiveness

MBAs Can Add Value, but….

It is crucial to

Respect the work of those in your field

Be sensitive to the limits of markets and business methods

Manage potential risks and challenges

Prepare for resistance and skepticism

Learn your chosen field well

Consider blended /hybrid solutions

Follow your passion!

• TAPMI Leadership Lecture 2011 - Harish

Hande.mp4

TAPMI Leadership Lecture 2011 - Harish Hande.mp4







Social business

Documents

Transcript of Social business