understanding the landscape of social entrepreneurship
TRANSCRIPT
Understanding the Landscape of Social Entrepreneurship
SOCIAL ENTERPRISE
SOCIAL ENTERPRISE
SOCIAL ENTREPRENEURSHIP
SOCIAL ENTERPRISE
SOCIAL ENTREPRENEURSHIP
SOCIAL BUSINESS
SOCIAL ENTERPRISE
SOCIAL ENTREPRENEURSHIP
SOCIAL BUSINESS
SOCIAL INNOVATION
SOCIAL ENTERPRISE
SOCIAL ENTREPRENEURSHIP
SOCIAL BUSINESS
SOCIAL INNOVATION There are a lot of
terms flying around the field of social
innovation.
Even the experts are still debating what it means or doesn’t mean to be a social enterprise or a social
entrepreneur.
It is understandable to have a lot of questions and confusion around this!
Even the experts are still debating what it means or doesn’t mean to be a social enterprise or a social
entrepreneur.
Awareness of the field of social enterprise and social entrepreneurship has been
growing exponentially in recent years.
For example, the now well-known Grameen Bank, which provides microcredit loans to the poorest of the poor in
Bangledesh, took root over 40 years ago.
But, people have been practicing social entrepreneurship
for ages!
Social Innovation Defined
Let’s start with
Social
Innovation
Social Innovation Defined “… a novel solution to a social problem that is more effective, efficient, sustainable, or just…
…the value created accrues primarily to society
as a whole rather than private individuals.”
- Stanford Centre for Social Innovation
Let’s start with
Social
Innovation
IDEAS
SOLUTIONS
PROCESSES that integrate
private, public & philanthropic sectors
So it’s a fairly broad term!
“Social Innovation focuses attention on the ideas and solutions that create social value—as well as the
processes through which they are generated, not just the individuals and organizations.”
- Stanford Centre for Social Innovation
PROCESSES þ IDEAS þ ] Social
Innovation
PROCESSES þ IDEAS þ PEOPLE ? ORGANIZATIONS
] Social Innovation
So if Social Innovation covers ideas and processes, then how do we talk
about people and organizations?
SOCIAL ENTERPRISE SOCIAL ENTREPRENEURSHIP
SOCIAL BUSINESS
The words we use to describe people and
organizations working in Social Innovation are
mainly:
SOCIAL ENTERPRISE SOCIAL ENTREPRENEURSHIP
SOCIAL BUSINESS
How do these ideas
differ?
Non Profit For Profit
I’m sure you have seen this spectrum before.
Non Profit For Profit
Society often makes distinctions about organizations by saying they are for-profit or non-profit, and you immediately have an idea of what type of work that organization might be doing.
I’m sure you have seen this spectrum before.
Non Profit For Profit
But what else distinguishes between people and organizations practicing social innovation?
Non Profit For Profit
But what else distinguishes between people and organizations practicing social innovation?
There is another key continuum we need to think about when understanding
this landscape!
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
There is another key continuum we need to think about when understanding
this landscape!
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
To what extent does an organization
create wide-scale systems change?
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
To what extent does an organization
create wide-scale systems change?
To what extent does the organization place emphasis on the sale of goods and/or
services? (more so than wide scale
disruption of social systems)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship = People & Organizations Who
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
1 - Identify a stable but unjust equilibrium
Non Profit For Profit
Social Entrepreneurship = People & Organizations Who
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
1 - Identify a stable but unjust equilibrium
Non Profit For Profit
Social Entrepreneurship = People & Organizations Who
In other words:
Identify unjust suffering
in a population lacking
the resources to lift
themselves out on their
own
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
1 - Identify a stable but unjust equilibrium 2 - Develop an innovative social value proposition
Social Entrepreneurship = People & Organizations Who
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
1 - Identify a stable but unjust equilibrium 2 - Develop an innovative social value proposition
Social Entrepreneurship = People & Organizations Who
A SOLUTION!
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
1 - Identify a stable but unjust equilibrium 2 - Develop an innovative social value proposition 3 - Forge a new equilibrium that stops suffering
Social Entrepreneurship = People & Organizations Who
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
1 - Identify a stable but unjust equilibrium 2 - Develop an innovative social value proposition 3 - Forge a new equilibrium that stops suffering
In other words: Social entrepreneurship creates wide-scale, lasting systems change for the
benefit of society.
Social Entrepreneurship = People & Organizations Who
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007)
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
1 - Identify a stable but unjust equilibrium 2 - Develop an innovative social value proposition 3 - Forge a new equilibrium that stops suffering
Social Entrepreneurship = People & Organizations Who
Standford Social Innovation Review Sally Osberg & Roger Martin
(2007) They could be for-profit or nonprofit and could even be funded entirely by
donations and grants!
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship Social Business
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship
For-profit company with a social
mission at the heart of its operations
Social Business =
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship
For-profit company with a social mission
at the heart of its operations
Majority of earnings are reinvested back
into company for growth and expansion
Social Business =
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship
For-profit company with a social mission
at the heart of its operations
Majority of earnings are reinvested back into company for
growth and expansion
Social Business
This means limited or no dividends returned to shareholders!
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship Social Business
Social Enterprise
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship Social Business
Social Enterprise =
Using the market to help social mission
organizations achieve their social impact
goals
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
Social Entrepreneurship Social Business
Social Enterprise =
In other words: A for profit or
nonprofit organization that
has a social mission and sells goods or services to offset part or
all of it’s expenses
Using the market to help social mission
organizations achieve their social impact
goals
And what holds true
ALL of these ideas?
Social Business
Social Business
In all of these cases the common thread is that social impact is central to the organization’s
decision making.
Social Business
Depending where an organization falls on the spectrum, social impact may have different weight
in the decision making process.
Social Business
But to be considered social enterprise an organization must have social impact
at the heart of it’s operations!
Wide Scale Disruptive Systems Change
Offset expenses through sale of goods/services
Non Profit For Profit
TOHL
Ten Thousand Villages
Reforest Patagonia
Teach for
America
Wide Scale Disruptive Systems Change
Non Profit
Teach for
America
Wide Scale Disruptive Systems Change
Non Profit
Founded in 1989, Teach for America is a nonprofit in the
United States that is disrupting the way education is delivered
across the country.
Teach for
America
Wide Scale Disruptive Systems Change
Non Profit
They strive to close the education inequality gap by recruiting
motivated college graduates to teach America’s neediest schools and inject new enthusiasm and
innovation into the school system.
Teach for
America
Wide Scale Disruptive Systems Change
For Profit
TOHL
Wide Scale Disruptive Systems Change
For Profit
The way water pipelines are currently installed by digging ditches the ground, it can be very costly and time consuming to
lay water pipelines to remote areas.
TOHL
Wide Scale Disruptive Systems Change
For Profit
TOHL has taken the complex task of fluid pipelines and transportation and simplified it
in a way that is much more cost-effective, efficient, and scalable than current
alternatives. They have developed technology using a helicopter to lay flexible pipeline from
the air, laying pipe on top of tree canopies and rough terrain in a matter of hours.
TOHL
Wide Scale Disruptive Systems Change
For Profit
There are commercial and industrial applications for TOHL’s solutions within
industries like forest fire fighting, mining, and military but TOHL is developing this technology for the purpose of providing
permanent humanitarian rural water access and for disaster relief temporary applications.
TOHL
Offset expenses through sale of goods/services
For Profit
Ten Thousand Villages
Offset expenses through sale of goods/services
For Profit
Ten Thousand Villages has been established for 65 years. This organization was born from the
realization that sustainable economic opportunities could be created for artisans in developing countries by
selling their products in North America.
Ten Thousand Villages
Offset expenses through sale of goods/services
For Profit Growing to reach sales of $20 million in
2006, Ten Thousand Villages was a pioneer in the Global Fair Trade
movement. Artisan suppliers are paid a fair price, with up to 50% cash
advance provided to the artisan upon placing an order, with the remaining
paid promptly upon shipment.
Ten Thousand Villages
Offset expenses through sale of goods/services
Non Profit
Reforest Patagonia
Offset expenses through sale of goods/services
Non Profit
Reforestemos Patagonia is a non profit that is funding its social mission of reforesting
degraded ecosystems in Patagonia through the sale of trees. This has been a successful project with over 250 thousand trees planted to date. They are now over 25% of the way
towards their goal of planting 1 million trees.
Reforest Patagonia
Offset expenses through sale of goods/services
Non Profit The concept is simple. Citizens pay $4 USD per tree planted and this covers a portion of
the organization’s operating costs. In exchange for buying a tree they receive the exact coordinates for where their tree was planted in Patagonia. Trees can be bought
and given as gifts or received as gifts in place of wedding gifts for example.
Reforest Patagonia
Ok, now!
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