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PathwaystoAccelerateSocialEnterprisesthatuseMobileInformationCommunicationTechnology

HaleyHarada

May25,2018

ThesisAdvisor:KeithWarnerOFMThesisReader:AlBruno

Specialthanksto:

CassandraStaff,MillerCenterforSocialEntrepreneurshipChiefOperatingOfficerAlexPan,GlobalSocialBenefitInstituteSeniorProgramManager

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ExecutiveSummaryMobileinformationcommunicationtechnology(ICT)isadisruptiveforceinthedevelopingworld,bearinggreatpotentialforpovertyreductioninthebaseofthepyramidmarketsdueofitsreachintourbanandruralcommunities.Thistechnology’spotentialcanberealizedwhenentrainedininnovativesocialenterprisebusinessmodelstoincreaseaccess,reach,andconsumerengagement.Socialimpact,however,isnotassuredwithoutadisciplinedstrategicfocusemployedbysuccessfulsocialenterprises.SocialenterprisesthatusemobileICTmustunderstandhowmobileICTapplicationscanbeintegratedintotheirbusinessmodelfunctionstoservetheirmissions.Apurposefulcasestudyofthe2016GlobalSocialBenefitInstituteacceleratorcohortrevealsthatinstitutionalaccelerationprogramsthatuseabusinessmodelcenteredapproach,liketheGlobalSocialBenefitInstitute(GSBI),effectivelysupportmobileICTenabledsocialenterprisesonapathtowardsscaling.GSBIspecificallyleveragesthetechnologyandbusinessmodelinnovationoftheSiliconValleycombinedwithstrategicallyselectedlearninggroupstopositionsocialenterprisesonapathtoscale.Increasedsmartphoneintegrationinthedevelopingworld,entailingaccesstomobileinternetandmobileapps,presentsnewopportunitiesandchallengesforsocialentrepreneurs.Additionalresearchinsmartphoneintegrationcombinedwithcontinualunderstandingofbeneficiaryneedsandcapabilitiesarenecessarytoensurethatsocialentrepreneurseffectivelyandinnovativelydeploymobiletechnologyasacatalystforwidespreadprosperityinthedevelopingworld.

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TableofContentsI.TableofContentsII.IntroductionIII.Background A.WhatisSocialEntrepreneurship? B.HowMobileTechnologyisDisruptingtheDevelopingWorld C.ICTandSocialEntrepreneurshipIV.Chapter1–LiteratureReview

A.Summaryof“TheRoleofICTinScalinguptheImpactofSocialEnterprises”Depthvs.BreadthFrameworkanditsShortcomingsB.Proposal:A“businessmodelfirst”improvementonRamon’sinterpretiveframework.

V.Chapter2–Datafrom2016cohortVI.Chapter3–RealizingthepotentialofmobileICTembeddedinSocialEnterpriseBusinessModelsVII.ConclusionINTRODUCTIONThisthesisexaminesthepotentialfortheGlobalSocialBenefitInstitute(GSBI)toscalesocialenterprisesusingmobileinformationcommunicationtechnology(ICT).ThispotentialisonlyrealizedafterevaluatingwhethersocialenterprisehastheabilitytouseICTreducepovertyinthedevelopingworldandcanbescaledupeffectively.However,modernICTisbroad,all-encompassingtoolthatisappliedacrosscountlessorganizationsandgeographies.AlthoughevidenceshowsthatICTcanhelpbusinessesachieveefficiencies,thearbitraryapplicationofthistechnologyisinsufficient,especiallyinsociallyorientedbusinesses.Rather,thepurposefulapplicationofICTinthecontextofinnovativebusinessmodelsiscriticaltoscalingsocialimpact.Amongdevelopingworldsocialenterprises,mobiletechnologytransformsICTpotential,butthatpotentialisonlyrealizedinthecontextofinnovativebusinessmodels.Businessmodelsconveysocialdimensions,includingsocialneedunderstandingandsocialimpact,whichareessentialtochanginglivesandmakingapositivesocialchange.Yet,socialenterpriseswithinnovativebusinessmodelsthatdonotpositionthemselvestofullyutilizeICTpotentialinrelationtothesocioculturalcontextofbeneficiarieswillnotfullyabsorbtheimmensescalingpotentialassociatedwithICT.Therefore,itisthisdynamicinteractionofmobileICTandthebusinessmodelthatpushforwardscalingpotential.Aligningthesetwoelementscanleadtobehavioralshiftsthatreducepovertyandexclusioninthedevelopingworld.Throughacasestudy,thisthesiswillshowthattheGSBIacceleratorprogrameffectivelyscalesICTenabledenterprisesbyutilizingthetechnicalandentrepreneurialinnovationintheSiliconValleytoeffectivelyacceleratesocialbusinesses.

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BACKGROUNDWhatisSocialEntrepreneurship?In“SocialEntrepreneurshipandtheNon-ProfitSectorinDevelopingEconomies,”Stecker,Warnecke,andBresnahan(2017)definefour“pillars”ofsocialentrepreneurship.Accordingtotheauthors,asocialenterpriseis(1)aninnovativeentrepreneurialventure(2)withmeasurablesocialimpactthatis(3)sustainableand(4)replicable.AccordingtotheDeesdefinitionorsocialentrepreneurship,socialenterprisesadopt“amissiontocreateandsustainsocialvalue(notjustprivatevalue)”(Dees,1998).Socialenterprisespursueamissiontogenerateapositive,measurable,socialoutcomethatcannotbereducedtoprivatebenefits,suchasfinancialreturnsorconsumptionbenefits,forindividuals(Dees,1998).Althoughgeneratingprofit,creatingwealth,andfulfillingconsumerdemandplayaroleinsocialenterpriseactivities,socialentrepreneursapproachtheseactivitiesasameans,ratherthananend,togeneratingsocialimpact.Socialentrepreneurs“recognizeandrelentlesslypursuenewopportunitiestoserve[theirenterprise]mission”(Dees,1998).Theypersistentlyseektheirvisionforchangeanddevelopstrategiestosupportandreinforcetheirmissions.Innovationisatthecoreofsocialentrepreneurship.Socialentrepreneursdepartfromtraditionalthinking“engaginginaprocessofcontinuousinnovation,adaptation,andlearning”(Dees,1998).Innovationmayincludeinventingsomethingcompletelynew,applyinganexistingideainanewsituation,creativelystructuringcoreprograms,orutilizingresourcesininventiveways.Continuousinnovationrequiresmitigatingrisks,managingfailure,andhandlingambiguity.Entrepreneursmustwillinglyadjusttheirapproach,whennecessary,toachievethedesiredsocialresult(Dees,1998).Deesexplainsthatsocialentrepreneurs“actboldlywithoutbeinglimitedbyresourcesinhand”(Dees,1998).Socialentrepreneursarenotboundbytraditionalsectornorms.Theyinnovatetodomorewithless,usingscarceresourcesefficientlyandexploringvarioustypesofcommercialandphilanthropicfunding.Entrepreneursmustorganizetheirbusinessmodelstoeffectivelyutilizeresources,includingtechnology.Ifnecessary,enterprisesmustrecruit,train,andmotivateemployeesandmanagersinthedevelopingworld,whichcanvaryindifficultydependingonorganizationaldesignandgeographicalproximityofvariousworkplaces(Fisac-Garcia,2013).Toachievetheirarticulatedmissions,socialentrepreneursworktofundamentallychangetheunderlyingcausesofasocialissue,ratherthantreatitssymptoms.AccordingtoMartinandOsberg(2015),socialentrepreneurshipisthebottom-upmarketapproachtodisruptingunjustequilibriumsinordertocontributetoglobalsustainabilityandcombatissuessuchaspovertyandsocialexclusion,whichareinextricablylinkedtoenvironmentaldegradationandunsustainableconsumptionpatterns.(Martin&Osberg2015).Socialentrepreneurshipdisrupts

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astable,yetunjust,equilibriumbyshiftingbehaviorstointentionallycreateanew,stable,andmorejuststate.Toinitiateanequilibriumshift,entrepreneursmustuncoverandchangetherootofsuffering,ratherthansolelyaddressitssymptoms.ThesystemschangeframeworkdistinguishesMartinandOsberg’sdefinitionfromotherdefinitionsofsocialentrepreneurship.InChapter6oftheirbookcalledGettingBeyondBetter,MartinandOsbergemphasizetheimportanceofscalablechangeratherthanlimitedpositive,yetlocal,activities.Recognizingtheinterconnectivitybetweenpeopleandsocialissues,socialentrepreneurswillnotbesatisfiedwithlocalchange,butratheraspireforholisticandsustainedglobalparadigmshiftsthroughreplicableandscalableactions.Inthisway,socialenterprepreneursintendfortheireffortstobelastingandsustainableoverthelongterm(Dees,1998).Relativetotop-downeconomicdevelopmentinitiatives,bottom-upinitiativesdirectlyaddresstheneedsofthepoorandoperateonadeepunderstandingoflocalcontextsandcultures.Asuccessfulsocialenterprisemustunderstandthelocalsocialcontextsinwhichitoperatesinordertoeffectivelyaddressitsintendedsocialissue.Socialentrepreneursensuretheyarecreatingvaluebyestablishingasoundunderstandingofthevaluesandexpectationsoftheirintendedbeneficiaries.Theymustcorrectlyassesstheneedsofthecommunitiestheyintendtoserve.Anorganizationmustdefinethesocialstructuresandcircumstancesthatwillgiverisetowhatitdefinesassuccess.Thisrequiresculturalcompetencyandahuman-centeredapproachtoproblemsolvingandbusinessmodeldevelopment.Manysocialenterprisestargetbaseofthepyramid(BoP)markets.Inthepast,traditionalbusinessesthinkingindevelopedmarketeconomiesneglectedthepotentialofBoPmarketsbyrelyingondominant,yetfalse,assumptionsthatthepoorcannotaffordproducts,thattheydonothaveauseforthem,orthattheycannotappreciateorpayforinnovations(Prahalad,2005).Socialenterprisessubvertthesenotionsbyrecognizingtheimmenserevenueandgrowthpotentialinbottomofthepyramidmarkets,drivenbytheirsizeanduntappednature.Unlikedonor-drivenICTsolutions,whicharerarelycost-effectivetoaddressingpoverty,bottom-upinitiatives,likesocialentrepreneurship,moreeffectivelygeneratinglasting,financiallysustainableimpactbuiltonadeepunderstandingoflocalcontexts(EuropeanParliamentaryResearchServices(EPRS),2015).Concurrently,socialentrepreneursmaintainaccountabilitytotheirinvestors.Investorsarethosethatinvestmoney,time,orexpertisetohelpthembyprovidingattractivesocialandfinancialreturnsthroughmarket-likefeedbackmechanisms(Dees,1998).WhatisICT?AccordingtotheEPRS,informationcommunicationtechnology(ICT)referstoalargenumberoftechnologiesincluding“hardware,software,networks,andmediaforthecollection,storage,processing,transmission,andpresentationofinformation(voice,data,text,andimages)aswell

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astherelatedservices”(EPRS,2015).ICTsarecommonlydifferentiatedbetweentraditional(includingradio,landlines,andTV)andmodern(includingcomputers,internet,andmobilephone)technologies.Thisthesiswillanalyzetheeffectsofmodern,ratherthantraditional,ICTs.

Thus,unlessotherwisementioned,readersshouldassumethatICTreferstomodernICT.Itshouldbenoted,however,thatthetechnologiesarenotcompletelyindependentduetotheconvergenceoftraditionalandmoderntechnologies.Researchersdescribethisphenomenonin“ICTinthedevelopingworld”explaining,“thedigitizationofcommunicationandthefallingcostsofcomputingpowerandmemoryisgraduallybringingoldmediainmoderndevices(e.g.aradiointoasmartphone,acomputerthatisusedasaTV).”(EPRS,2015).

ItisimportanttounderstandthatICTisatool,ratherthananinherentlygoodorbadsolutioninandofitself.Thus,althoughhistorically,ICThasbeenusedforgoodandbadpurposes,intentionalhumanactiondetermineswhethertheuseofthistoolyieldspositiveornegative,ethicalorunethical,outcomes.Itishumandecisionsthataffectthegoodandorbadintentionsofthesetechnologies,notthetechnologiesinandofthemselves.

ICTintheDevelopingWorldPeoplelivinginBoPmarketsincreasinglyconnectwithintechnologicalnetworksthroughwirelessmobile,internet,andpersonalcomputer(PC)integrationandusethemtocommunicatewitheachotherandaccesstheworldaroundthem.Inthedevelopingworld,modernICTshaveexperiencedtremendousgrowthsincethelate1990’s,particularlyduetotherapidincreasetoaccesstowirelesstechnologyandliberalizationoftelecommunicationnetworks(EPRS,2015).IncreasingvolumeandrateofconnectionprovestheexistenceofsocialandeconomicmarketopportunitiesfortheimplementationofICTatthebottomofthepyramid.WirelessMobileMobilephones,rangingfrombasicfeaturephonestosmartphones,haveandcontinuetoberapidlyadaptedbythedevelopingworld.Manydevelopingcountrieslackinfrastructureforreliablefixedlandlineconnections,andconsumersadaptmobilephonetechnologyinlieuofwaitingforlandlineaccess.AccordingtotheEPRS,threequartersofallmobilephonesubscriptionsareinlowermiddleincomecountries(EPRS,2015).Figure1:fromaEPRSresearchstudy,showsthegrowthinmobilephonesubscriptionsbyregionin2005and2014.IntheAfricanandAsia&Pacificregions,whereonly29%oftheroadsarepavedandcountrieslackofphysicalinfrastructurewhencomparedtootherregions,accesstoanduseofmobiletelephoneshavedramaticallyincreased,exhibitingthegreatestrelativegrowth(EPRS,2015).

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Figure1:ICTbyglobalgeographicalregions,(EPRS)Smartphoneintegrationinthedevelopingworldisincreasing.Asmartphoneisamobilephonethatcanaccesstheinternetoruseanapp,examplesbeingiPhone,AndroidorWindowsphone.Inspring2014,thePewResearchCenterreported24%percentofphonesalesinemerginganddevelopingmarketsweresmartphones,meaningthatdespiteloweringcosts,smartphoneswereonlyaccessibletoasmallportionofthedevelopingworldconsumers(PewResearchCenter,2015).Yet,theGlobalSystemforMobileCommunicationsAssociation(GSMA)reportedtwoyearslaterin2016thatsmartphoneadoptionindevelopingmarketswas47%andexpectedtoriseto62%by2020(GMSA,2016).Thisincrease,however,isdisproportionatelyprevalentamongstyoung,urbanandeducatedindividuals(PewResearchCenter,2015).Alongwithmobilecalls,76%ofcellphoneownersinemerginganddevelopingmarketsusetheircellphonestosendtexts,makingtextingthemostpopularnon-callingfeatureofsmartphones(PewResearchCenter,2015).Amedianof55%ofthoseinlowermiddleincomecountriesusemobilephonesascamerastotakepicturesorvideos(PewResearchCenter,2015).Additionally,wirelessmobilephonesareusedtoaccessmoresophisticatedapplicationsenabledbyincreasedaccesstobroadband(EPRS,2015).Currently,mostapplicationsofICTinlovermiddleincomecountriesareinthefinance,health,andagriculturalsectors(EPRS).AlthoughICTreacheswealthyurbaneducatedgroupsfirst,urbanandruralpoorincreasinglyparticipateandintegrateintothemobilerevolution.Commentingonthespeedymobileintegrationofdevelopingeconomiesinhis2005bookTheFortuneattheBottomofthePyramid,Prahaladexplainsthatmovingtowirelessfromnothingiseasierthanmovingfromwirelessfroma“long-standingtraditionofefficientandubiquitouslandlines”(Prahalad,2005).Inessence,BoPmarketsgenerallyshowmorewillingnessto“adoptnewtechnologiesbecausetheyhavenothingtoforget”(Prahalad,2005).Evensomepreviousexposuretorelated

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technologiesdoesnothinderspeedyintegrationbecausesuchexposureisusuallylimitedandlessengrainedintolongstandingtradition.SpeedymobileintegrationisaidedbyICTdisseminatorscreationofthecapacitytoconsumetechnologyattheBoP.Thismaymeanintroducingthetechnologythroughanon-groundnetworkoralteringpaymentstructuresothatmoreuserscanaccessorconsumethecompany’sofferings.Inthecaseofinnovativepurchasingschemes,increasedaffordabilityshouldnotnecessarilyentailadecreaseinqualityorefficacy(Fisac-Garciaetal.,2013).Forexample,payperminutecallingcardscreatethecapacityforuserswithsmallerincomesandlesssavingstopurchaseandusemobiletechnologywithoutexperiencingdiminishedquality(Fisac-Garciaetal.,2013).Thepoorareconnectedtocommunicationnetworksandareabletoreapbenefitsofmobileand,sometimes,internetinterventions.However,EPRSnotesthatalthoughmobilephonesarenow“vitalinstrumentsofthepoor,”they“willbelesseffectiveinmovingpeopleoutofpoverty”solongastheiruseis“limitedtoprovidingcommunicationservices”(EPRS,2015).Evidenceshowsthataccesstomobilephoneinternetlikelyamoreeffectivedriverofsocio-economicdevelopment(EPRS,2015).TheICTlandscapeindevelopingcountriesisrapidlyevolvingtomeetspecificneedsoflocalusers(EPRS,2015).Mobiledeviceshaveenableduserstoaccessneworexistingproductsorservices.Useofmobiledeviceapplicationssuchasmicropaymentsandmicrocreditonmobiledevicesisbecomingincreasinglypopular,especiallyinAfricawherethereislimitedaccesstophysicalbankingchannels.Indevelopingcountries,M-Pesa,offeredbySafaricomandVodaphone,enablesuserstomakepayments,transfers,anddepositsthroughmobilephones(Fisac-Garciaetal.,2013).PersonalComputersDuetohigheraccessibilitycostforbothsuppliersandconsumers,computerownershiphasnotexperiencedtherapidgrowthrateofmobilephoneownershipinthedevelopingworld.Although,computeraccesshasincreasedoverthelastdecade,anestimated60%ofthoseindevelopingcountriesstilllackaccesstotheinternet(statista.com,2017).Additionally,unlikemobilephones,whichhaveinfiltratedBoPmarkets,computerownershipisdirectlycorrelatedwithincomelevelandsecondaryeducation,meaningthatBoPcustomersareunlikelytoownoraccessacomputer.Asaresult,assmartphoneownershiprises,smartphoneswithinternetcapabilitiesandmaybethemostaccessiblewayfordevelopingworldandBoPcustomerstoaccesstheinternet.ICT&SocialEntrepreneurship

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Beyondluxuryorleisure,ICTapplicationshavethepotentialtogeneratesocialgoodandethicaloutcomes,creatingopportunityforsocialentrepreneursoperatinginthedevelopingworldtoshapetheuseofthistechnologytoserveBoPbeneficiaries(Fisac-Garciaetal.,2013).Toensureethicallyacceptableoutcomes,socialentrepreneursareresponsibleforregulatingparticipants,determiningwhoandmayaccesstheirgoodorservice,anddecidingtowhatextentorinwhatcontextparticipantswillengage.Chapter1outlinesthepotentialusesforICTinsocialenterprises.CHAPTER1LiteratureReview:Breadthvs.DepthframeworkforScalingPotentialofICTIn“TheRoleofICTinScalingUpthePotentialofSocialEnterprises”Fisac-Garcia,Acevedo-Ruiz,Moreno-Romero,andKreinerproposeadepthvs.breadthframeworktoexplorethebeneficialeffectsofICTtodevelopmentstakeholders.Theauthorsexplainthatsocialentrepreneursscaletheirimpactthroughtwotypesofscaling,depthandbreadthscaling.Breadthscalingincreasesthenumberofbeneficiariesreachedbyanorganizationsothatitcanprofitfromthecreatedsocialvalue.Depthscalingenhancesalreadyexistingsocialvaluepropositionsbyincreasingeffectivenessofexistingofferings,addingadditionalfeaturesandbenefits,orincreasingoperationalefficiency(Fisac-Garciaetal.,2013).Inaperfectworld,socialenterpriseswouldbeabletodeeplyimpactalargenumberofbeneficiaries.Inpractice,however,opportunitycostcanleadtoatradeoffbetweendepthandbreadthscalingafteracertainthresholdofimpact.Enterprisesmustdecidetheextenttowhichtheyarecommittedtoacertaingoalwithoutsacrificingtheoverallqualityoftheirbusinessactivities.TheauthorsproposetenwaysinwhichICTcanhelpenterprisesscale,fivefordepthscalingandfiveforbreadthscaling.TheseapplicationsareoutlinedinFigure2.RoleofICTinDepthScaling Explanation

Accurateandfastneedsrecognition

Speed• Recognizebeneficiary/consumerneedsfasterto

provideaquickresponsetoproblemsAccuracy

• GatherBigDatatoaccuratelyforecastnegativeeffectsorbetterunderstandtrends/problems

• Gainbetterinsightintolocalmarkets,culturaltraditions,contextualfactorstobettertailorproducts/services

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Opportunitiescreation

JobCreation• MoreICTbasedjobs

Accesstobeneficiaries• Increasedinformation&educationflowtopoor

throughonlineplatformsdissemination

Productsandservicesadaptation

LowCostàAdaptability• Reducedinfrastructure,manufacturing,and

distributioncostsmakeadaptingtechnologymoreaffordable

Inclusionandsocialcapitalcreation

InclusiontoBeneficiaries

• Technologycanleadtogreatercommunityparticipationfordisadvantaged

• Communityownershipàmoreeffectivescalingandtemporalresilience

Informationdisclosureandfairermarketsconstruction

Advocacy

• Promotepublicpolicy • Promotecultureofsocialentrepreneurship

RoleofICTinBreadthScaling Explanation

Accesstonewresources

Accesstoorganizationalresources

• Crowdfunding • Volunteers

Synergiesandnetworksconstruction

Collaboration&Communication

• Improvedcommunicationwithclientsandcustomers

• Increasedcollaborationinsocialimpactecosystems

Organizationalefficiency

Communication

• Improvedcommunicationwithbeneficiaries,clients,suppliers

LowCost

• Laborintensivecostsbecomefree HighVolume

• Largeamountsofsmalltransactionspossible

Improvedvisibility Lowcost

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Clearmessage• Bettercommunicationwithdonors,funders

Viral• Messagescanrapidlyreachlargescaleaudience

Newaccesschannelstobeneficiaries

AccesstomarketsAccesstoisolatedcommunities

Figure2:ICTforDepthandBreadthScalingofSocialEnterprises,adaptedfrom“TheRoleofICTinScalingUpthePotentialofSocialEnterprises”byFisac-Garcia,Acevedo-Ruiz,Moreno-Romero,andKreinerAlthoughFisac-Garciaetal.identifythetechnologicalfactorsthatcanhelpsocialenterprisesimprovetheirperformance,acriticalanalysisofthedepthvs.breadthframeworktheyuserevealsafailuretoaccountforthekeyrolethatbusinessmodelandmissionplayintheeverydaydecisionmakingandscalingofsocialenterprises.Whilethedepthvs.breadthframeworkiscommonlyusedinacademiatodiscussscaling,theframeworkdoesn'tnecessarilyreflecttherealityofsocialenterprises.Thisframeworkimpliesafalse“either/or”viewofscaling,when,inactuality,neitherdepthnorbreadthscalingcanexclusivelygeneratesustainableimpact.Ratherthetwoaremutuallyinterdependent.Socialenterprisesmakebusinessdecisionsbyassessingtheirrespectiveneedsandobjectivesaccordingtotheirbusinessmodel.Focusonthebusinessmodel,aheadofICTapplications,isessentialtounderstandingtherolethattechnologycanplayinscalingandenterprisesmission.Additionally,thisframeworkisnotthemosteffectivewaytoviewspecificallymobileICTapplications.Proposinga“businessmodelfirst”interpretiveframeworkforunderstandingmobileICTapplicationsBasedaroundamoreaccuraterealityofsocialenterprises,thissectionproposesanewinterpretiveframeworkforunderstandingmobileICTthatprioritizesthebusinessmodel.AlthoughmuchthisinformationisembeddedintowhattheFisac-Garciaetal.contendintheirarticle,itisaslightlydifferentwaytothinkconceptualizetheimpactofmobileICT.ThismodelseparatesmobileICTapplicationsbasedonfunctionsthatimproveoperationalefficiencyandfunctionsthatscalebeneficiaryengagement.UsingmobileICTtoincreasebeneficiaryaccessandengagementchangesindustrynormsbyredefiningtraditionalmarketconnectionsandintegratingmarginalizedpopulations.ThisuseiswheremobileICThasthegreatestpotentialasatransformationaltoolfordevelopmentandpovertyreduction.OperationalEfficiency

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SocialenterprisesevidentlyhaveanallyinmobileICTasatooltoimproveoperationalefficiency.Anytypeofsocialenterprise,orbusinessforthatmatter,canutilizemobileICTasatooltoincreasetheiroutput(whetheritbeproduct,service,oractions)whilereducingcosts(time,money).

DecreasedCostsMobileICTenabledinfrastructurereduces,oreveneliminates,theneedforinventory,physicalinfrastructure,orphysicalassets,therebyreducingfixedcosts.Technologyalsoallowsfordecreasedtransaction,distribution,andcreationcosts,whichreducemarginalcosts(VanAlstyneandParker).ThroughtheuseofICT,laborandtimeintensivetaskscanbecomenearfree.

Althoughalmostanydigitalbusinesscanrealizethesetypesofreducedcosts,platformbusinessesinparticularexhibitpotentialtoexponentiallyscaleasaresultoflowcostofcreation.Costofcreationreferstothecostofincreasingnewusers.Forexample,atraditionalhotelwouldneedtobuildmoreroomsandhireadditionalserviceemployeestoincreaseitscapacity,increasingbothitsfixedandmarginalcosts.Incomparison,aplatformcompany,suchasAirbnb,couldincreasecapacitywithnear-zeromarginalcosts(VanAlstyneandParker,2017).Amplifiedbynetworkeffects,theselowercostpotentialsrepresentamajorscalingopportunity.

IncreasedVolumeThroughtechnology,largeamountsofsmalltransactionsbecomepossible.Atlowcost,theseincreasesintransactionsmakeincreaseacompany’sefficiencybyincreasingoutputsofproductsorservices.

IncreasedQualityInaddition,mobileICTleadstofasterandclearercommunicationwithbeneficiaries,clients,suppliers,investors,andstakeholders,meaningthatqualityorefficacyisnotnecessarilyreducedwithincreaseinscale.

Increasingoperationalefficienciesintheseways,however,doesnotlenditselfdirectlytopovertyreduction.ItisimportanttonotethatthesebenefitscanberealizedbyanybusinessusingmobileICTandarenotparticularlyuniquetosocialenterprisesandtheirmissions.IncreasingConsumerEngagementorAccessAssuccinctlystatedbyFisac-Garciaetal.,“lackofaccesstocredit,basicservices,healthcare,andinformationaresomeofthemaincausesofexclusionandpersistentpovertyinthedevelopingworld”(Fisac-Garciaetal.,2013).Thus,thegreatestpotentialformobileICTinreducingpovertyinthedevelopingworldisusingittoincreaseaccessandconsumer

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engagementatthebottomofthepyramid.MobileICTenabledenterprises,particularlythosecapitalizingonmobilephoneaccessandusetointerveneinhealth,education,agriculture,ormicrofinancecandirectlyimpact,oreventransform,lifeforpeopleatthebottomoftheincomepyramid.Theseapplicationsdirectlyimpactthepoorbyprovidingpreviouslyunavailablegoodsorservicesthroughthecreationofnew,potentiallybi-directional,channelsofaccess.Whereaspreviouslyaccesstoruralorlast-milecommunitieswasconsideredtooexpensiveordifficult,affordableICTintheformofmobiletechnologyisgeneratingsystematicchangeintraditionalinteractionsbetweenbusinessesandbeneficiaries.

ICThasthegreatestpotentialtoalleviatepovertyinthedevelopingworldwhenusedtocreatesystematicchangethroughcustomerengagementandinclusion.Thistypeofchange,ratherthanoperationalefficiency,isatthecenterofthedefinitionofsocialentrepreneurshipandthewaythatitsimpactismeasured.EnterprisescancapitalizeonICTinnovationandtechnologytofacilitateequilibriumshiftsbyinitiatinginnovativecommunicationpatternsandinformationgatheringtechniques,andfacilitatingnewaccesstomarketsandpeople.

ProvidingBeneficiarieswithIncreasedAccesstoInformationMobiletechnologiesareaninexpensivewaytocollectanddisseminateunbiasedinformationfromtoandfromgrassrootsbeneficiaries.Informationaccesstopreviouslyunreachablecommunitiesinurbanandruralareascreatesopportunityforchangebecauseitintegratesmarginalizedandoftenisolatedpopulations.Someorganizations,providetechnologytoothersociallyorientedbusinessesusingabusinesstobusinessmodel.Forexample,Awaaz.Deprovidesvoice,SMStext,mobileapps,andwebcontenttobusinessesworkingacrosstheeducation,agriculture,health,andfinancialservicessectors,andEngageSPARK,specificallyfocusesonautomatedcallsand2-waySMStechnologies.Inamoredirectbusinesstobeneficiarymodel,socialenterprisesprovidehealthcare,agricultureandeducationinformation.InMyanmar,KoeKoeTechprovidesdoctors,midwives,andmotherswithaccesstomaternalandchildhealthinformationandtelemedicineservicesprovidedthroughanapplication,calledMaymay.InGhana,Farmerlinedisseminatesinformationtosmallholderfarmersregardingagriculturalsystems,supplychains,andmarkets.Thoughmostapplicationsprovideinformationregardingfinanceandhealth,thereisopportunitytodevelopmobilelearningunitstoprovidetechnicaleducationthroughdownloadablemobilelearningmodules.

FinancialMarketInclusionthroughMicrofinanceMobilebankingredefinesfinancialmarketconnectionsbyenablingmicropaymentsandmicrocreditsinareaslackingphysicalchannels.Userscanpayments,transfers,ordepositsbyusingtheirphoneasanelectronicwallet(EPRS,2015).AccesstofinancialservicesallowsBoPusersexcludedfromthetraditionalbankingsystemtosavemoney,

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whichprovidesfamilieswithaddedsecurityandassistswithlong-termpurchasing.Additionally,forthosewhohavelimitedaccesstotraditionalbankingduetogeographicaldistancetophysicalinfrastructure,mobilemoneyoffersamoreconvenientoption.WithmillionsofusersacrossAfrica,M-Pesa,offeredbySafaricomandVodafone,isthemostsuccessfulmobilemoneyandmobileinsuranceproviderinthedevelopingworld(EPRS,2015).

CHAPTER2:DATACaseStudyMethodThereisnostandardmethodologyforassessingtheimpactofmobileICTonreducingpovertyorimprovingqualityoflifeforthepoor.However,usingcasestudieshasemergedasviablemethodoftrackingprogressandcommunicatingvalue.Thismethodologyisthe“mostwidelyused”approach“tounderstandthelinkagesbetweenICTandpoverty”(EPRS,2015).CasestudiesidentifiedinthissectionwillillustratethesuccessfulapplicationofmobiletechnologyintransformingthelivesofthepoorthroughincreasedparticipationandbenefitfrommobileICT.Usinganactualcohort,wheremultiplebusinessmodelsaretakingadvantageofmobileICT,thisstudywilltesttheeffectivenessoftheGSBIacceleratorthroughthelensoftheproposedconceptualframework. AboutGSBIAcceleratorTheGlobalSocialBenefitInstitute(GSBI)istheMillerCenterforSocialEntrepreneurship’ssocialenterpriseacceleratorthatfacilitatessocialchangebyscalingthemissionsofparticipatingenterpriseorganizations.MillerCenter’smissionistoendpovertyandprotecttheplanetbysupportingorganizationsthatcombatpovertyandsocialexclusion,whichareinextricablylinkedtoenvironmentaldegradation.GSBIselectssocialenterprises,whoseprimarymissionisdeliveringgoodsandservicestobeneficiariesinneed,toparticipateinitsacceleratorprograms.(SeeAppendixCforadescriptionofGSBI’sselectionprocedure).GSBIselectsthehighestpotentialcandidatestoparticipateinitsprograms,whichincludeanonlineaccelerator,in-residenceaccelerator,andBOOSTprogram.Todate,theGSBIcapacitybuildinghasimpactedover800enterprises,workingacrossawiderangeofsectorsandgeographicallocations.GSBIusesabusinessmodelcentricapproachtohelpenterprisesscaletheirmissionandleveragestheknowledgeandskillsetofSiliconValleymentors.SiliconValleyisaninnovativehubforbothentrepreneurialbusinessmodelsandtechnology,makingittheideallocationfortheaccelerator.MeasuringSocialImpactSocialimpactcanbedefinedinasimplisticwayusingthefollowingequation:

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Socialimpact=valueproposition*numberofbeneficiariesValuepropositionreferstoopportunitiescreation,adaption,needsrecognition,fairermarketbuilding,inclusionandsocialcapitalrecognition.Numberofbeneficiariescanbeincreasedbynewchannelstobeneficiaries,synergiesandnetworkcreation,accesstonewresources,increasedvisibilityandorganizationalefficiency(Fisac-Garciaetal.,2013).Thesuccessofenterprisesisinterpretedbyspecificapplicationsoftheirbusinessmodelstoaddressmeaningfulsocialproblems.Unliketraditionalbusinessesthatrelyonstandardizedassessmentslikereturnoninvestment(ROI),profitmargins,andrevenue,additionalkeyperformanceindicators(KPI’s)aresetbytheindividualenterprises.Understandingtheimpactafirmhasonitsbeneficiariesiscriticaltoimprovingorexpandingitsimpact.Impactcanbequantitativelyorqualitativelymeasuredinunitsdeterminedbytheenterpriseandisaconsiderabletask,whichissubjecttomultiplechallengesincluding:

IncomparabilityImpactunitscanbeincomparableacrossbusinesses,makingimpactassessmentchallenginginthesocialenterprisesector.Becauseofthis,enterprisesmustbereadytosupportandexplaintheirimpactperformanceindicatorsinordertocommunicatethereachandthoroughnessoftheirwork.Abilitytocommunicateindicatorsiscriticalwhenobtaininginvestment(Fisac-Garciaetal.,2013).

Multi-causalityEffect

Anothercomplicationinsocialimpactassessmentisthemulti-causalityeffect,whereimprovementscanresultfromvariousdirectandindirectfactors,makingitdifficulttoattributecertainadvancementstospecificinterventions(Ramon).Afirmmustconsideritsinternaloperationsinrelationshiptoitsdirectbeneficiariesaswellastheexternalinwhichitoperates.Insomesectors,afirm’soutputsmaybeindependentlylinkedtoitsimpact,resultingclearcausality.Forexample,peopleandcommunitiesservedbyonesocialenterprisearelikelytoreceiveservicesbyothermeans,sometimesreferredtoasattributionerror.Inothers,outputsoccuralongsideexistingpolitical,legal,sociocultural,economic,ecological,ortechnologicalfactors,resultinginmulti-causality(Fisac-Garciaetal.,2013).

TemporalityofImpact

Timevariesbetweentheactualinteractionbetweentheenterpriseandbeneficiaryandmeaningfulimpactrealized.Forexample,impactmaydirectlyandimmediatelylinktoanenterprisesoutputs.inthecaseofinformationdisseminated,healthcareservices

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delivered,orproductssold,immediateimpactisrealized.However,impactmayalsooccurmanymonths,years,orevendecadesafterfirmbeneficiarycontact.Inthesecases,impactisdifficultandevenimpossibletomeasure(Fisac-Garciaetal.,2013)..

CostofImpactAssessmentEffectiveimpactassessmentiscostlytodevelop.Determiningthemostefficientwaystodisseminateandcollectimpactinformationtakesconsiderablethoughtandunderstandingofbeneficiaries.Additionally,implementingtheassessmentmethodispotentiallycostly,laborintensive,andtimeconsumingforthefirm.Firmsmustweighthebenefitsofimpactassessmentwiththeeffort,cost,andbureaucracyofimpactassessmenttomakedecisionsinitsbestinterest(Fisac-Garciaetal.,2013).

MeasuringGSBI’sImpactItisimportanttounderstandtheMillerCenterindirectlyeffectsmarginalizedbeneficiariesthroughsocialenterpriseacceleration.Assuch,itssuccessisdeterminedbytheextenttowhichithelpsprogramparticipantstoscaletheirmissionsandreachtheirgoals.Using“livesimpacted”asaprimaryindicator,thisstudyevaluatesthescalingpotentialofICTenabledsocialenterprisescomparedtoothernon-ICTenabledenterprisestotesttheeffectivenessofGSBIonICTenabledenterprises.Foranalysis,theselecteddatasampleisthe2016GSBIcohort.Graphinglivesimpactedbefore,during,andaftertheacceleratorwillexhibitwhethertheacceleratorprogramhelpedtheenterprisestoscaletheirimpactandreachtheirgoals.BecauseimpactnumbersarereportedwithinoneyearofGSBIparticipation,itcanbereasonablyassumedthatparticipationintheacceleratorprogramcontributedtothereportedoutcome.APurposefulSampleStudy-2016GSBIAcceleratorCohortByselectinganindividualcohort,theGSBI2016in-residencecohort,thisstudyreducesthestatisticalpopulationtoamanageableandcomparablesizeforanalysis.Byisolatingarecentcohort,thisstudyattemptstofactoroutotherinfluencingfactorsandmeasurethedirectimpacttheGSBIacceleratorhasonitsparticipants.Additionally,byusingenterpriseschosenbytheGSBIselectionstaff,thestudyensuresthatbusinessesanalyzedalreadyhavesociallyorientedmissionstoendpovertyandprotecttheplanet.AmorethoroughexplanationoftheGSBIselectionprocesscanbefoundinAppendixC.The2016GSBIcohortconsistedof14socialenterprisesworkingintheagricultural,health,artisan,education,water,andcleanenergysectorsandimpactingbeneficiariesinNorthAmerica,Africa,andAsia.Briefdescriptionsofeach,providedbytheMillerCenterforEntrepreneurshipAlumniDatabase,canbefoundinappendixA.

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Thespecificgoalsforthe2016GSBIcohortweretoselect18-20establishedsocialenterpriseswithscalablemodelsthatservepeoplelivinginpoverty.Ofthe343applicationsstarted,240werecompleted.Of41semifinalists,20finalistswereselectedfortheacceleratorprogram.TheGSBIselectionprocedure(AppendixC)wasutilized,withnospecificpreferencegiventomobileICTenabledbusiness.AsshowninFigure3,ofthefourteenparticipants,fivewereICTenabledandninewerenot.MorespecificdescriptionsofeachenterprisecanbefoundinAppendixA.Morespecific2016acceleratorcohortcharacteristicscanbefoundinFigureAppendixB.ICTEnabled NotICTEnabledAwaaz.DeCareNXInnovationsEngageSPARKFarmerlineLtd.KoeKoeTech

AlashanekyaBaladyAssociationforSustainableDevelopment(AYB-SD)AllAcrossAfricaCantaroAzulLivelihoodsNationalUnionofCoffeeAgribusinessesandFarmEnterprises(NUCAFE)NooraHealthPollinateEnergySolubriteVavaCoffee

Figure3:2016GSBIAcceleratorProgramParticipants,GlobalSocialBenefitInstituteAlthoughinpreviousyears,GSBIexclusivelyadmittedenterprisesthatdirectlyworkwiththepoor,the2016GSBIcohortincludedenterprisesservingothersocialenterprisesorNGOsthroughICTenabledtechnologies.Awaaz.DeandEngageSPARKhaveB2Bmodels,whileFarmerlinehasbothB2Bandbusinesstofarmer(B2F)models.Inthepreviousframework,thethinkingwasthatbecauseGSBIisalreadyanintermediary,indirectmodelswouldproveunsuccessful.However,consideringthescalingpotentialofmobileICTenabledB2Bmodels,whichcoincidewiththematuringnatureofthesocialenterpriseecosystem,thesebusinesseswereselectedforparticipation.HypothesisGSBIcanprovideICTenabledenterpriseswiththetoolstoscaletheirimpactandmeettheirgoalsbecauseGSBIispositionedtoleveragethetechnologicalandentrepreneurialinnovationintheSiliconValley.Asaresultofitslocationandbusinessmodel-centricmethodology,GSBImentorseffectivelyunderstandthedynamicrelationshipbetweenICTandbusinessmodels.

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ThisisparticularlyimportantforscalingenterprisesthatutilizeICTtoreduceexclusionofmarginalizedpopulationsbyincreasingconsumerengagementandaccess.GSBI’ssuccessinhelpingthesetypesofbusinessesshouldbeindicatedbyanincreaseintherateoflivesimpactedpostaccelerator.DataUsinglivesimpactedasevidenceofscaling,enterprisereportedvalueswereplottedovertimeforanalysis.ICTenabledenterprisesareindicatedbyasolidline,whileothertypesofenterprisesareindicatedwithadottedline.

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Figure4:2016GSBIcohortLivesImpactedData,DatafromGSBIThedatashowsthatmobileICTenabledbusinessesincreasedlivesimpactedaftertheacceleratorprogram.FourofthefivemobileICTenabledenterprisesexhibitthereverse-Lshapetrend.Inthreeofthoseenterprises,Awaaz.de,Farmerline,andEngageSPARK,thisL

0

200000

400000

600000

800000

1000000

2015 2016 2017

LivesImpacted

Year

LivesImpactedBefore,During,andAfterAccelerator

AlashanekyaBaladyAssociationforSustainableDevelopment(AYB-SD)

AllAcrossAfrica

Awaaz.De

CantaroAzul

CareNxInnovations

engageSPARK

FarmerlineLtd.

KoeKoeTech

LivelyHoods

NationalUnionofCoffeeAgribusinessesandFarmEnterprises

NooraHealth

PollinateEnergy

VavaCoffee

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shapeisclearlydefined,whereasitislessdefinedforKoeKoeTech.ForCareNX,thereisnotenoughdatatodeterwhethertherewouldbeareverse-Lline.However,iftherewereaslightreverse-Lshape,itwouldlikelybesubtleorunrecognizable.Thereverse-Lshapecurvesindicatethat,postaccelerator,GSBIacceleratedICTenabledenterprises’impactbyincreasingrateofgrowthoflivesimpacted.Thissuggeststhattheacceleratorprogramwaseffectivefortheseorganizationsandhelpedthemtoreachtheirgoals.ImplicationsAsshownby“livesimpacted”metrics,GSBIeffectivelyacceleratedICTenabledenterprises.Thisisforavarietyofreasons.Firstly,SiliconValleyisauniquelocationfromwhichtooperate.Asahubforinnovativetechnologyandinnovativeentrepreneurship,thevalleyprovidesawealthofknowledgeandresourcestoleverage.Secondly,GSBIprioritizesthebusinessmodelsofthesocialenterprisestheyaccelerate.ThecasestudyrevealstheimpracticalityoftheframeworkinitiallyproposedbyFisac-Garciaetal.duetoitsfailuretoreflectreallifethoughts,actions,ordecisionsthatsocialentrepreneursexperience.Instead,theenterprises’businessmodelshouldbeparamountwhenconsideringthepotentialofICTtoscaleitsmission.Thirdly,theacceleratorfurtherincreaseseffectivenessbyachievingoverlappingefficienciesthroughsynergisticcohortlearninggroups.Indoingso,iteffectuallyutilizestheknowledge,resources,andcapabilitiesofmentorstothefullest.Thebusinesseswereabletoreceivesupportandfeedbackontheirimpactandbusinessmodelsinthesamegroupenvironment,enablingthemtolearnfromtheirpeers’feedbackaswell.Whenusingchangeinlivesimpactedasanindicatorofsuccess,ittheacceleratorbetterpositionedICTenabledenterprisestosucceed.However,itisuncertaintowhatdegreetheincreaseinlivesimpactedresultedfromthescalingpotentialofthetechnologyplatformsthemselves,particularlyB2Bmodels.CombinedwiththeleveragedexperiencesandcapabilitiesofGSBImentorsaswellasthesynergisticefficienciesofgroupingthesebusinessestogetherduringtheaccelerator,ICTenabledenterprisesprovedtobesuccessfulcandidates.LivesimpactedsignificantlyincreasedforAwaaz.de,Farmerline,andEngageSPARK,whichallusedB2Borpartnershipmodelstodisseminatetheirtechnologiestootherorganizationsorcauses.Incomparison,KoeKoeTechonlyuseditsplatformtoengagedirectlywithitsbeneficiariesanddidnotfollowthistypeofbusinessmodel.ThelackofasignificantincreasepostacceleratorforCareNXcouldbeduetothefactthatitdoesnotintegrateICTatalllevelsofitsbusinessmodel,butratherusesICTintheformofamobileapptosupportsomeofitsbusinessfunctions.

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BecauseICTbusinesses,especiallythosewithB2Bmodels,tendtobemoreindirectandbreadthdrivenmethodsofimpact,livesimpactedmaynaturallybegreaterforICTenabledcompanies.Othermetrics,includingpercentagechangeinrevenuegenerated,investmentgenerated,and#ofemployeesmaybeusedtoprovideadditionalcomparablemetricsthatindicatetheextenttowhichtheGSBIAcceleratorhelpsICTenterprisesmeettheirgoals.CollectingmoreconsistentdataforotherindicatorsofenterprisesuccesstomeasuretheacceleratoreffectivenessmayhelpGSBItomakeinformeddecisionsaboutcohortselectionandevenwhichprogramtypestocontinuepursuing.UnderstandingtheimplicationsofthisdatacouldopenupanalysisfordeepercomparabilityacrossICTvs.non-ICTenabledbusinesses.ThecurrentGSBIdatabasedoesnotincludeenoughdatatomakeanyconclusionsaboutgrowthintheseareasforthe2016cohort.Duetolackofdatathisanalysisis,therefore,beyondthescopeofthisstudy.Despitethisevidenceofscalingthroughlivesimpacted,therearealsootherqualitativemetricstheorganizationshouldconsiderwithregardstoimpact.While“livesimpacted”isakeyperformanceindicatorsummationforquantity,itdoesnotreflectqualityofimpactormoredetailed,nuancedeffortsofenterprises.Quantifyingandarticulatingdepthofimpactisexpensiveandreliesgenerallyonqualitativestorytellingthatshowshowenterpriseshaveimprovedsincetheacceleratorprogram.CHAPTER3:FUTUREPROSPECTS&CONCLUSIONSFutureProspectsofMobileICTintheSocialEnterpriseEcosystemAccesstotheinternetandmobileappswilltransformthewaysocialenterprisesengagewithBoPbeneficiaries,presentingnewopportunitiesandchallengesforsocialenterprises.Assmartphonesbecomeincreasinglypervasiveindevelopingworldmarkets,mobileICTenabledsocialenterprisesmustunderstandhowthisphenomenonaffectstheirbeneficiaries.IfthespeedygrowthoffeaturephonemobileintegrationinBoPmarketsinthepast10yearsisanyindicatoroffuturesmartphoneuptake,socialenterprisesmustpreparetoadjustandadaptwithdynamicchangesintechnologyandindustrynormstogeneratelastingimpact.Assuch,socialenterpriseswillneedtocontinuouslyinnovateandunderstandthecultures,needs,andcapabilitiesoftheirbeneficiariesthroughhumancenteredapproaches.RealizingthepotentialofMobileICTembeddedsocialenterprisebusinessmodelsrequiresthecontinuousinnovation,missiondrivendecisionmaking,heightenedaccountability,andresourcefulnessofsocialentrepreneurs,asdescribedbyDees.ContinuingtheAccelerationofMobileICTEnabledSocialEnterprises:GSBI-specificRecommendations

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Asthenumberofsocialenterprisesincreases,alargerquantityofenterpriseswilllikelyapplyfortheGSBIacceleratorprogram.Anincreaseinthenumberofqualifiedenterprisesthatapplyisalsopossible.Reachingtheimpact,maturity,andscalabilityrequirementsoftheacceleratorwillstillrequireconsiderablepreparation,skill,andexecution.However,additionalsupportforearlystageenterprisesinthecurrentsocialenterpriseecosystemmayresultinalargernumberofenterprisesreachingthisphase.Todate,acceleratorcohortshavebeenchosenwithoutmuchneedtothinkaboutthecohortasawholebecauselessthan20candidatesusuallyqualifyfortheindividualenterprisegoals.Inthefuture,ifthenumberofqualifiedenterprisesgrow,thecenterwillneedtodevelopstrategiesthatbalancethetypesofenterpriseswithinthecohort,consideringfactorssuchasthepotentialfortheenterprisetoleverageacceleratorresourcestoscaleandmeetgoal,whichcanbeevaluatedbymetricsincludingbutnotlimitedtotheonesexploredinthisstudy.Asthesocialentrepreneurshiplandscapechanges,theMillerCentermayconsidercollectingmoredatatobetterunderstanditsimpactonitsenterpriseparticipants.Collectingdatapointsnotcurrentlyavailabletothecenterincludingchangeinrevenuebefore,during,andaftertheaccelerator,investmentgeneratedwithinayearafterparticipation,andgrowthofnumberofpaidemployees.Additionally,thecentershouldcontinueitscollectionofqualitativemetricsthatmeasureparticipantsatisfactionbecausethesemetricsremainreliableindicatorsofthequalityofparticipantexperiences.Anenterpriseinthe2018acceleratorcohort,TaroWorks,worksusesCRMandamobileapptohelpenterprisescollectfielddataandimpactmetrics,withouthavingdirectcontactwiththepoor.AcceptingTaroWorksindicatesGSBI’scontinuedwillingnesstoworkwithB2Bmodelbusinesses.Itispossiblethatthecentershouldcreateaframeworkfordecidingtowhatextent.AccordingtoCassandraStaff,GSBImustmaintainitsfocusonprovidingvaluetothepoor,whileconsideringtheextenttowhichitbelievesthatacceleratingenterpriseswithoutdirectbeneficiarycontactwillresultinmeaningfulimpact.Conclusion#1:MobileICThasthegreatestpotentialtoreducepovertyinthedevelopingworldwhenusedtoincreaseaccess,reach,andconsumerengagement.SubstantialevidencerevealsthepervasivenessofmobileICTinthedevelopingworldandsuggestsfuturepotentialforfurthermobileICTintegrationinBoPmarkets.ForsocialenterprisesthatuseICTtoreachandengagewithendbeneficiaries,mobileICTisthemostpromisingformoftechnologyduetoitsgeographicreachandwidespreaduse.However,widespreaduseandimplementationdonotnecessarilyimplypovertyreductionthroughsocioeconomicinclusion,andarbitraryapplicationsofICTareinsufficientmeansofachievingsocialimpact.SocialenterprisesmustintentionallyapplymobileICTinthecontextofaninnovativebusinessmodelcenteredaroundincreasingaccessandinclusionforthemarginalized.

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Increasedinclusionforthemarginalizedanddisadvantagedthroughtheuseoftechnologyisessentialtogeneratingsocialchangethroughpovertyreduction.MobileICTcansupportsocialenterprises,whichpursueinitiativesthatreducepovertyandexclusioninthedevelopingworld,toachievegreaterimpactbyincreasingoperationalefficiencyandaccessibilitytobeneficiaries.AlthoughmostbusinessuseICTtosomeextent,thosewhoplaceitatthecoreoftheirbusinessmodelasamajorpartoffulfillingtheirmissiondosowiththeintentofincreasingbeneficiaryaccess.Embeddingimprovementsinaccessibilityintheenterprises’businessmodel,showsthemostpromiseforcombatingpovertyinthedevelopingworld.Therefore,mobileICTenabledsocialenterprisesmustunderstandthedynamicinteractionbetweenthebusinessmodelandthetechnologytobestservebeneficiariesandscale.InstitutionalsupporthelpsICTenabledsocialenterprisestogrowthisunderstandingandscaletheirmissionsbyfosteringasupportiveandinformedmentorshipenvironment.Conclusion#2:AccelerationprogramssupportMobileICTenabledsocialenterprisesonapathtowardsscalingByparticipatinginacceleratorprograms,suchasGSBI,mobileICTenabledsocialenterprisesrealizescalingpotentialoftheirinnovativebusinessmodels.Illustratedbyapurposefulcasestudy,resourcesprovidedbytheMillerCenterforSocialEntrepreneurship’sacceleratorprogrampositionmobileICTenabledsocialenterprisestoeffectivelyscaleandgeneratelargelivesimpactednumbers.Asevidencedbythecasestudy,specificallytargetingenterprisesthatuseMobileICTinthecontextofinnovativebusinessmodelsthatarecenteredfirstaroundservingthepoor(regardlessofindividualdepthorbreadthpreferences)theacceleratorprogramisbetterpositionedtohelpthesebusinessesoverothernon-ICTenabledenterprises.Currently,thetypesofenterprisesbestsuitedtogeneratemeaningfulandmeasurableimpactarethosethatutilizemobileICTtoincreaseaccessibilitytobeneficiaries.AsdoneintheGSBIselectionprocess.Theseenterprisesarebestidentifiedbyevaluatingtheirbusinessmodels.Conclusion#3:FurtherMobileICTresearchisnecessaryassmartphoneintegrationincreases.Furtherresearchisneededacrosssocialenterprisesectorstomonitorthemobileintegrationofinternetaccessandsmartphoneapplications.Specifically,health,educational,agricultural,andfinancialsocialenterprisesmustresearch,understandandideatethepotentialforICTintheirrespectivesectors.Additionally,acceleratorprograms,likeGSBIshouldunderstandandtrackthisprogresstocontinueeffectiveaccelerationofacceleratorparticipants.

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AppendixACompany Area(s)ofImpact ICT?AlashanekyaBaladyAssociationforSustainableDevelopment(AYB-SD)

Egypt No

Theorganizationisservingyoungpeoplefrom21to35yearsoldwithlimitedaccesstocapacitydevelopmentprogramsand/oreconomicopportunitiesthroughinterpersonalandtechnicaltrainings,coachingandmentoringsessions,job-matchingservices,andfinancingmechanisms.Theattentionisgiventoyoungpeoplefromunderprivilegedfamilieslivinginpoordistricts,whilejobseekersareprovidedwithwage-employmentopportunities,andentrepreneursareofferedsupporttostarttheirmicro-andsmall-businessestobecomeself-employed.Themodelisbasedonimprovingemployabilityskillsandprovidesmarketaccessthatincreasesandstabilizesincome.AllAcrossAfrica Rwanda,Uganda,Burundi,Kenya No

AllAcrossAfrica(AAAor?theCompany?)isaninnovativecompanythatdesignsandproducesdistinctivehandmadeproductsfortheUShomedecorandjewelrymarkets,whilecreatingcrucialemploymentacrossruralregionsofAfrica.TheCompanyhasbuiltasustainableandscalableworkforceofartisansinruralAfricabyestablishingalargecottageindustrythatutilizesacooperativegoverningstructureandlocalleadership,whilecontrollingtheentirevaluechain.AllAcrossAfricahasimplementedaninnovativemodelthatcombinestrendingdesignwithtraditionalAfricanartisantechniquesandpatterns,allowingfortrulyuniqueandqualityproductlines.TheCompany’stieredcollectionscreatetheflexibilityandfreedomtoofferarangeofproductsandpricepointsadiversecustomerbase,rangingfrommorethan200boutiquesacrossthecompanytoretailerslikeTJMax,Costco,andEthanAllen.Awaaz.de India,Bangaldesh,China,Mexico,Brazil

EthiopiaYes

Last-milecommunicationisabigchallengefororganizationsacrosssectorswhoneedtoeffectivelydisseminate,collect,andanalyzeinformationfromlow-incomeorruralpopulationsatscale.Awaaz.De’seasy-to-use,communicationanddatacollectiontoolscutacrosslanguage,literacy,andconnectivitybarriersthroughinnovative,customizablevoiceandmobile-basedcontent.Awaaz.Dedevelopssolutions(withcapabilitiesspanningIVR,SMS,mobileappsandweb)fororganizationsacrossmultiplesectors:education,agriculture,health,andfinancialservices.Wehavehundredsofclients,includingmicrofinanceinstitutions,socialenterprises,non-profits,andresearchinstitutions.CentaroAzul Mexico No

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CantaroAzulworksinruralandsemi-urbancommunitiesinMexico,wherethereislackofaffordableaccesstosafedrinkingwaterduetohighmonetaryandlaborcosts.After10yearsofsuccessfulexperienceasanon-profitorganizationbringingsafewatertomorethan100marginalizedcommunitiesacrossMexico,CantaroAzulisnowlookingtooperateitssocial-franchisemodelasafor-protenterprisetoserveitstargetmarketinbothruralandurbanareas.Witheasilyadaptabletechnologicalsolutions,wedevelopedsmallwaterpurificationanddistributionbusinessesoperatedbyentrepreneurialwomen.Basedonafranchisemodel,womenuseourtechnologyandbrandtoproduceanddistribute20-literwatercontainersatasellingpriceof$0.40USD,20-45percentlowerthanthepriceofcommercialvendors.Asthefranchisor,CantaroAzulreceivesamonthlyfranchisefee,whichcomprisesafixedpaymentfortheuseofthelicensedbrandandtechnologicalknow-how,andavariablefeeasashareofthewaterbusinesssalesinordertocoverouroperatingexpenses.CareNXInnovations India Yes?

CareNxoffersapregnancycaresolution,theCareMother,whichconsistsofaportablekitwithmedicaldevicesconnectedthroughamobileapp.Ourtargetcustomersareruralprivatehospitals,governmenthospitals,andhealth-careagenciesworkingwithgovernmentinIndia.WeofferCareMotheratafixedprice,andourrecurringrevenuecomesfromat-doortestsofferedduringtheninemonthsofpregnancy.CareMotherenablescustomerstoincreasetheirpatientoutreachthroughhealth-workersat50percentlowercostcomparedtoexistingmobilehealthvans.Furthermore,ithasimprovedefficiencyandsocialrecognitionforhealthworkers.Afeatureof“Earlydetectionofhigh-riskPregnancy”inourapphelpdoctorsearlyinterveneandreducethehealthcomplicationsformothers.engageSPARK Africa,Asia,LatinAmerica Yes

EngageSPARKempowersorganizationstobuildautomatedcalls(IVR)and2-waySMSprogramstoengagethepoorindevelopingcountries.WearedemocratizingthistechnologytoempowerIT&non-ITstaffatanysizenon-governmentalorganizationtomaximizetheirimpactbyinteractingwithanyonewhohasaccesstoamobilephone.Automatedcalls(IVR)and2-waySMSarethemostefficient,scalable,andaffordablemeansforNon-GovernmentalOrganizationstointeractwiththeirbeneficiariesandstaff,andimpactfulprogramscanbebuiltinminutes.engageSPARKhasintegratedwithtelecomsworldwidetosendandreceiveinanyof200+countries.Ourpricingmodelisdisruptive,asit’stheonlyoneinthemarketthatissolelyusagebasedandfullyinclusiveoftelcofees,butwithoutcontracts,implementationfees,orsubscriptionplans-makingitaffordableforanysizeNGOanywhere.Farmerline Ghana,SierraLeone,Cameroon,Malawi,

NigeriaYes

Farmerlineisafor-profitGhanaiancompanythat,overthepastthreeyears,hasbuiltasocialbusiness,softwaretechnology,andpartnershipnetworkthathasreachedover200,000farmersinfivecountries.Ourmissionistotransformmillionsoffarmersintoempoweredentrepreneurs.Todothis,Farmerlinecreatestechnologiesthatcollectanddisseminateprofit-generatingcontenttofarmers’fingertips,andthathelpmodernizetheagriculturalsystems,supplychains,andmarketsaroundthem.KoeKoeTech Myanmar Yes

KoeKoeTechisaYangon-basedhealthITsocialenterprisethathascreatedmaymay,amaternalandchildhealthappthataimstoreducematernalandunder-5mortalityratesinMyanmar,byprovidingaccesstoqualitymaternalandhealthinformationandtelemedicinewithdoctorsandmidwives.Themaymayappprovides(1)gamified,informationalmessagestimedtotheweekofuser’spregnancyortheageoftheuser’schild;(2)adoctorlookupwhereuserswillbeabletosearch10,000+Myanmardoctorsbyspecialtyandlocation;and(3)telemedicineenablinguserstospeakandtextwithPopulationServicesInternational(PSI)doctorsandnurses.NationalUnionofCoffeeAgribusinessesandFarmEnterprises

Uganda,Kenya,Burundi,Rwanda,Tanzania No

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TheNationalUnionofCoffeeagribusinessesandfarmEnterprises(NUCAFE)isanumbrellaofnationalcoffeefarmers?organizationsfoundedin1995asalimitedcompanybyguaranteewithoutsharecapital.NUCAFEhasgrownandevolvedasavibrantprivate-sector-ledfarmerorganizationformedtoserveandpositionfarmerswellintheliberalizedcoffeevaluechaininUganda.Weoperateagloballyprovenbusinessmodel,theFarmerOwnershipModelthatenablescoffee-farmingfamiliesforthefirsttimetoownavaluableformofvalue-addedcoffeethatimprovestheirhouseholdincomesbyover30percentperkg.NooraHealth Uganda,Kenya,Burundi,Rwanda,Tanzania No

AtNooraHealth,ourmissionistoimprovehealthoutcomesformarginalizedpeople.Weachievethisbyengagingpatientfamiliesinthecareoftheirlovedones.Weturnhospitalhallwaysandwaitingroomsintoclassroomswherewetrainfamilieswithhigh-impact,hands-onhealthskillstoimproveoutcomesandsavelives.Indoingso,weenablefamilymemberstoprovidecareinthehospitalandathome.Wetapintoanavailable,highlycompassionate,andwillingresource,thefamilymember.Aftertrainingforrecoverycareinhospitals,familiesreturnhomewithconfidence.Asaresult,wereducereturnhospitalvisitsby24percent,lowertheincidenceofpreventablecomplications,andreplaceanxietywithconfidenceforthecaregiver,resultinginasixtimesreductioninanxiety.PollinateEnergy

India No

PollinateEnergytrainsandempowerslocalentrepreneurstoestablishsustainablemicro-businessesthatprovidelife-changingproducts-likesolarlights,waterfilters,andsolarfans-toIndia’surbanslums.Thisprovidesemploymentopportunitiesforlocals,whileimprovingqualityoflifeinslumcommunities.Weofferpaymentplanstomakeourproductsaffordableforourcustomers,andourdefaultrateontheseplansislessthan1percent.OurPollinatorsalsoprovidepost-saleservicingandsupporttoensurethatourproductsareusedonalong-termbasis.Solubrite

Panama,Nicaragua No

Foundedin2013,Solubriteisasocialenterprisededicatedtoprovideclean,affordablesolarenergytooversevenmillionindividualslivingwithoutelectricityinCentralAmerica.WehaveofficesinPanamaandNicaragua.Ourfocusisinlast-milesales,finance,marketing,distribution,andcustomerservice.Solubriteofferslow-incomeruralfamiliesinCentralAmericaacleanandaffordablesolarenergysolution.Throughanecosystemofregionalbranches,localsalesagents,andcommunityentrepreneurs,SolubritesellsPayAsYouGo(PayG)enabledsolarhomesystemsinalease-to-ownfashion.Thismodelallowsrural,off-gridfamiliestheabilitytopurchasesolarenergyinamannerthatbestfitstheirirregularincome,payinginsmallincrementaltopupsuntiltheyowntheproduct.VavaCoffee

Kenya No

VavaCoffeeisagroupofpassionateindividualsandfarmersworkingtowardsonegoal:usingcoffeetoempowercommunities.In2009,VavaCoffeewasstartedasasocialenterprisewhosemainaimwastocontributetobetterfutureprospectsforlocalcommunitiesandthecoffeeindustryasawhole.Thecompanyensuressustainablelivelihoodsforthepeopleandcommunitiesinwhichitworks.Ratherthangivehandouts,VavaCoffeegiveshopeforabettertomorrowtothoseitworkswithaswellastheirfamiliesbygivingthemachancetoearnalivingandgetoutofpovertybyengagingtheminworkactivitiestheyareskilledinperforming.VavaCoffeenotonlyworkswithsmallholderfarmersindifferentcoffee-growingregionswithinKenyabutalsohasitscoffeegiftbagsmadebygroupsofwomenintheinformalsettlementssurroundingKenya’scapital,Nairobi.LivelyHoods Kenya No

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AppendixB2016CohortCharacteristics

LivelyHoodstrainsandemploysyouthandwomeninKenyanslumstosellproductslikeclean-burningcookstovesandsolarlamps,door-to-doorintheirowncommunities.Weuseahub-and-spokedistributionmodel,withbranchesinslumcommunitiesthatserveastrainingcentersandinventorystockpointsforoursalesagents.Thisiscomplementedbyadailyconsignmentmodel,whichensuresthatoursalesagentsdonotgointodebtorrisktheirownlimitedcapitalbutcanearnanincomeandgainvaluableworkexperience.Ourcustomersvaluetheconvenienceofoursaleschannel,thecost-savingsandhealthbenefitsofourproducts,andtheafter-salesserviceprovidedbyouragentsandbranches.Suppliersvaluetheaccesstohard-to-reachslummarketsthatourdistributionchannelcreatesfortheirproducts.

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AppendixCGSBIAcceleratorCandidateSelectionProcedureGSBI’ssocialenterpriseselectionmethodology,inadditiontoitsstagespecificprogramsandexecutivelevelmentoring,isakeyaspectofitsoperations.Thereisnopredetermined“target”foracohortasawholeasfarasbreadthordepthofimpact,regionofimpact,orsector.Instead,eachenterpriseisindividuallyevaluatedandscoredbasedonpredeterminedselectioncriteria.Althoughtherearenoparticularrequirementsforanacceleratorcohortasawhole,theMillerCenterhasforthepast3-4yearsarticulatedtwooverarchinggoals–womenrisingandclimateresilience–thathaveactedas“strategicfocusareas”forselection.Thatis,allotherthingsequal,femaleledenterprises,enterprisescontributingtowomen’seconomicempowerment,orenterprisesthatcontributetoclimateresiliencewilltakeprecedenceoverorganizationsthatdonotengagewithanyofthoseinitiatives.AccordingtoCassandraStaff,ChiefOperatingOfficeroftheMillerCenterforSocialEntrepreneurship,articulatingthesestrategicfocuscriteriahavenotoperationallychangedthecenter’sselectionprocess,asmostofitsselectedcandidateswerealreadydoingthesetypesofactivities.Rather,formalizationofstrategicinitiativesresultedinmoreclearcommunicationofMillerCenter’svaluesandgoals.Attheapplicationsubmissiondeadline,programstaffreadcompletedapplicationsandtrackresultsonaspreadsheetusingsimplescoringonascaleof1-3,where1isa“definiteyes”,2isa“let’sdiscuss”,3“definiteno”.Togainoverlappingefficiencies,qualifiedcandidatesforboththein-residenceandonlineacceleratorareselectedduringthisprocess.Selectioncommitteesinitiallyevaluatecompaniesonthreequalifyingfactors:impact,maturity,andscalability.Impactqualificationconsiderswhetherthecompany’smissionistoservethepoor,basedonitsbusinessmodelandactivities.Organizationsthatdohaveotherpriorities,for

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exampleorganizationswithcompletelyenvironmentallyorientedobjectives,arenotconsideredarightfitforGSBIprograms.Maturityisfurtherdifferentiatedonthecompany’sstageofdevelopment,early,mid,orlaterstage.Mid-stageorganizationsmaybeselectedfortheonlineaccelerator,whileonlylaterstageorganizationsqualifyforthein-residenceaccelerator.Lastly,scalingpotentialisdeterminedbasedonhighevidence,someevidence,andnoevidenceofscaling.Enterprisesthatshowlittletonopotentialtoscale,servicebasedorganizationsthatrelycompletelyonthegoodwilloflocalvolunteersorexpensiveyetlowROIinputsforexample,willnotqualify.Program Offerings EnterpriseCharacteristics

Impact,Maturity,ScalabilityIn-residence 10daybootcamp

10monthmentorship11HighpotentialscalingcandidatesInbusinessfor5+years.

Online 6monthonlineprogram SomeevidenceofscalingpotentialandsocialimpactInbusinessfor1-5years

BOOST 3dayworkshop Local,earlystageenterprisesFigure__:GSBIAcceleratorProgramsAftertheinitialscreening,candidatesselectedtomoveforwardwillparticipateina15-minutephonecallwithaprogramstaffmember.Duringthiscall,aprogramstaffmemberverifiesinformationontheapplication.Thisincludesfinancialstatementclarificationorverification.Anenterprises’cashonhandshouldbeenoughtooperateforatleast6monthssothatentrepreneurswillbeabletoprioritizeGSBIoverimmediatefundraisingneeds.Additionally,the15-minutescreeningisusedtoensurethattheapplicantistheCEOorthefounderoftheenterprise,ratherthananotheremployeeorvolunteeractingontheirperson’sbehalf.ThisistoensurethemotivationsforenterpriseparticipationdirectlyalignwiththeresourcesGSBIisabletoprovide.Afterthe15-minutephonecall,semi-finalistsmoveontoa30-minuteinterviewcallwithapanelofjudgesthatincludeprogramstaffaswellasGSBImentors.Panelistsrankenterprisesusingascorecard,assigningrelativenumericvaluestoevaluatetheenterpriseson7criteria:

1. DepthofSocialImpact2. Viablebusinessmodel3. Scalablemodel–throughbusinessgrowthorreplication

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4. Blueprint/Validatestage5. Financials–costandrevenuedrivers6. QualityofSE7. GSBIprogram/curriculummapstosocialenterpriseneeds/goals–whetherthe

socialenterprisehasthetimetocommittoGSBIThroughouttheinterviewprocess,withoutaskingdirectquestionsaboutthis,panelistsalsoevaluatethequalityofthesocialentrepreneur.Highqualityentrepreneursthatwillmostlikelysucceedintheacceleratorprogramareactivelistenersthatarepunctual,reliable,coachable,andarticulate.Duringthefinalselectionmeeting,theprogrammanagerconsolidatestheforcedrankingsfromthepanelist’sscorecardstodevelopavisualmatrix.Thematrixvisuallyexhibitswhereeachcandidatestands.Thismatrixguidesthefinalnegotiationsofsemi-finalistsuntilthefinalcohortisselected.AccordingtoAlexPan,SeniorProgramManagerattheGlobalSocialBenefitInstitute,historicallytherehasbeenexcesscapacitywithinacohortduetoalackofqualifiedapplicants.Thecenterhasnotneededtonecessarilyweighoneenterpriseagainstanothertodeterminequalificationbecauseofthehighindividualstandardstowhichthecenterholdsparticipatingenterprises.GSBI’sImpactMeasurementBreadthAspreviouslydiscussed,socialimpactcanbecostlytomeasureanddifficulttocompareacrossbusinessesbecauseimpactdependsonthenatureofthecompany’sspecificbusinessmodelandthesectorinwhichitoperates.Afterparticipation,GSBImeasuresalumnidatausingelectronicsurveys.Currently,thekeymetriccollectedtomeasurebreadthimpactislivesimpacted,witheachenterprisedefiningtheframeworkbehindthenumericfigureprovided.Dependingontheenterprise,livesimpactedmayencompassmorespecificimpactstatistics,suchaswagesprovided,jobscreated,servicesdelivered,orpeopletrained.LivesimpactedisaconsistentstatisticcollectedfromGSBIparticipants.ParticipantsreportthisdatabeforetheincubatoronGSBIapplications,duringtheincubatorthroughvariousdeliverables,andaftertheincubatorviaelectronicallydisseminatedalumnisurveys.Forthe2016cohort,thesemetricswerecollectedin2015,2016,and2017respectively.Becausesomeenterprisesdonotrespondtoalumnisurveysand/ortheydonothaveimpactdataonhand,notallofthe14enterpriseshavelivesimpacteddataforallthreeyears.However,comparedtoothermetrics,livesimpactedisthemostconsistentlycollectedandrecordedimpactdataamongstthiscohort.

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ThegraphbelowrepresentscumulativeGSBIacceleratoralumniimpactintermsoflivesimpacted.Evaluatingthedata,itisclearthatasmallpercentageofenterprisesmakeupforthemajorityofthetotallivesimpactedstatistic.Outofthealumnifromwhichdatawascollected,7%makeup80%oftotallivesimpactedand35%makeup99%oftotallivesimpacted.ManyofthemajorcontributingenterprisestothetotallivesimpactedmetricareICTenabled.Thoughparticipantsdefinetheframeworkbehindtheirindividuallyreportedlivesimpactedmetrics,thefigurefailstorepresentdifferencesindepth.Althougheverylifethatis“positivelybenefitted”isclearlynotaffectedtothesamedegree,livesimpactedprovidesmorecomparabledatathancompletelyqualitativemetricsforinstance.

Figure__:Graphshowingthe%ofalumnicontributingto%oftotallivesimpacted

DepthTheMillerCentercurrentlyevaluatesitsdepthimpactusingthevolumeofimpactframeworkshowninFigure__.Thoughuseful,thisframeworkleadstovariousquestions.Theoretically,isa3-pointscaledescriptiveenough?Shouldthemeasurementconsiderotherrelevant,yetunmeasuredfactorssuchasduration,contribution,population,orrisk?Practically,howandwhenshouldthe“changed,”“transformed,”or“saved”depthlabelsbeassigned?Whoshouldhavetheauthoritytodeterminetheseclassifications?TheMillerCenterisconstantlygrapplingwiththesetypesofquestions,whichthisstudyhopestofurtherdiscussandilluminate.Inadditiontothisframework,thecenterusesqualitativestorytellingtocommunicatedepthimpact.

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Figure__:DepthImpactMeasurementFrameworkusedintheMillerCenter

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