1 irex social enterprise development familiarization training gbanga, liberia may 13 th – 17 th...
TRANSCRIPT
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IREX Social Enterprise IREX Social Enterprise Development Development
Familiarization Training Familiarization Training
Gbanga, Liberia May 13th – 17th
Kim Alter Virtue Ventures LLC
Be clear about the purpose Be clear about the purpose
• Solve a social problem?• Earn money to fund social costs or overhead?• Strengthen organizational capacity?• Create entrepreneurial culture?• Diversify funding?• Hire and retain staff?• Attract new donors?• Sharpen mission?• Strengthen community relations?• Improve service and program delivery?
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Social Enterprise Design ProcessSocial Enterprise Design Process
2. Theory of ChangeIdea Generation
5. FeasibilityStudy & Refine
concept
6. Business Plan
4. Draft business concept & models
1. Identify market failure / social
problem
3. Screen and select ideas
© Virtue Ventures
Ideas for potential business solutions to social problems
Pre-qualified SE concepts w/compelling
ToC
SE concepts which captures social &
business components
Spurs problem analysis
Validates feasibility of SE
concept
Process Result
Plan to implement
7. Implement Social enterprise
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Inception and DirectionInception and Direction
The problem is the social enterpriseopportunity
The vision is the image of successfully solving the social problem
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• Mission• Objectives• Theory of Change• Social criteria• Financial criteria• Assets and resources• Market information• Operating environment• Organizational factors• Stakeholders• Preferences
Informs DesignInforms Design
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Objectives are AlignedObjectives are Aligned
Vision
Social ImpactObjectives
Social ImpactObjectives
Financial ObjectivesFinancial Objectives
Mission
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ImpactImpact
GoalsGoals
Local business -Opportunities
Women -Gender roles
Community -EmpowermentChildren -Education
Environment -Renewable
Farmers -Markets
Local NGO -Engagement
Workers -Employment
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Principles of Design - 1Principles of Design - 1
1. Social Aspects Start with the social problem Needs or special conditions of your
clients that must be factored into enterprise design
Social market analysis Determine stakeholders and their roles
related to the social enterprise Identify social stakeholders and their
needs and wants
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Business Aspects Financial criteria Assets (have) Resources (needs) Market information Strategic environment Organizational factors Stakeholders (customers
and business relationships)
Preferences
Principles of Design - 1Principles of Design - 1
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Social Market LandscapeSocial Market Landscape
• “Beneficiaries” of impact Client Community Environment Public
• Competitors Direct competitors
Role of subsidies in the market
Substitutes
• Collaborators Strategic alliances and
partners
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Strategic Environment Strategic Environment
• Opportunities• Threats• Barriers• Industry dynamics• Demand• Market Segments &
Size• Trends• Competitors
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Social CriteriaSocial Criteria
• Special design considerations or attributes required to achieve social impact objectives.
• Social Criteria often hinges on special needs or limitations of clients and/or beneficiaries.
• Social Criteria can impact: Operations Productivity Financial results Choice and type of enterprise
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Assets IdentificationAssets Identification
• Tangible People Land Money
• Intangible Reputation / brand Methodologies Relationships Skills and expertise
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Organizational FactorsOrganizational Factors
• Core competencies • Capacity
Human Resources Financial
• Stakeholder buy-in• Risk Profile• Preferences• Competitive advantages• Culture
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Financial Aspects Financial Aspects
• Cost structure• Revenue structure• Subsidies• Opportunities for financial leverage
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Resource StrategyResource Strategy
• Driven by resource requirements• Strategies
Earned income Grants In-kind subsidies Equity Soft loans /patient capital (below market
rate) Commercial loans
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Personal FitPersonal Fit
• Passion and Commitment Commitment to realizing social mission
• Qualifications/experience Maximise resource utilisation
• Stage of life Avoid burn-out
• Time/activity Matches preferences
Prioritize Screens Prioritize Screens
• Prioritizing screens depends on: What are you trying to achieve? What you have? What you don’t have? Organizational culture/priorities? Financial needs? Costs and cash flow?
Scoring OpportunitiesScoring Opportunities
Opportunity Enterprise
idea
Fit with
Mission
Fit with Social
Criteria
Fit with Organization
Fit with Assets
Fit with financial criteria
Market Potential
Fit with preferences
Create a custom scorecard based on your organization’sSocial enterprise criteria, priorities, purpose
Enterprise Idea Evaluation Enterprise Idea Evaluation • What is the mission; how does the social enterprise help to
accomplish the mission?• What is the social theory; how social enterprise social impact
goals be achieved? • What are the financial goals?• Social enterprise’s community and environmental impact goals?• What are the human resource needs for running the social
enterprise?• What specific characteristics/needs of the clients must be
considered in the social enterprise? • Timeline for implementing the social enterprise? • Is there stakeholder support for the enterprise?• What is the best type of business model to achieve social and
business goals?• What are the critical factors for ensuring social enterprise
success? • What’s it going to cost?• What biz attributes/characteristics are preferred?
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Clarify enterprise conceptClarify enterprise concept In addition to solving a social
problem, is this a real business idea?
Quick and dirty qualification of enterprise concepts:
Products or services? Customers? Demand? Business model? HR requirements? Cost? Operational requirements? Positive impact on organizations
and clients? Risks and threats?