what is social business?
DESCRIPTION
Social Business presentation for JCI Latvia on 26 May 2010. Full explanation and more on http://whowalksthedog.com/?p=52TRANSCRIPT
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What Is Social Business?
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Agenda for today
StoriesExamples
DefinitionsConclusionRequestFun
Challenge
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Meet Muhammad Yunus
19831976
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Micro Finance Invented
Action research programme to “examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor”
The Grameen Bank Project was transformed into an independent bank by government legislation.
During the past 12 months (from May’09 to April '10) Grameen Bank disbursed US $ 1222.39 million.Grameen Bank also operating outside Bangladesh now;Joint ventures with companies like Intel and Danone
Muhammad Yunus and Grameen Bank are awarded the Nobel Peace Prize “for their efforts to create economic and social development from below”
20062010
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Seven Prinicples of Social Business
Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization
Financial and economic sustainability
Investors get back their investment amount only. No dividend is given beyond investment money
When investment amount is paid back, company profit stays with the company for expansion and improvement
Environmentally conscious
Workforce gets market wage with better working conditions
...do it with joy
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Meet Jacqueline Novogratz
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Patient Capital
Long time horizons for the investment
Risk-tolerance
A goal of maximizing social, rather than financial, returns
Providing management support to help new business models thrive
The flexibility to seek partnerships with governments and corporations through subsidy and co-investment when doing so may be beneficial to low-income customers.
Bridges the gap between the efficiency and scale of market-based approaches and the social impact of pure philanthropy.
The Acumen Fund is currently investing in over 30 enterprises, helping more than 36 million people making choices in dignity
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Some Social Business Examples
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Defining Social Business / Social Entrepeneurship
Entrepreneurs are essential drivers of innovation and progress. In the business world, they act as engines of growth, harnessing opportunity and innovation to fuel
economic advancement. Social entrepreneurs act similarly, tapping inspiration and creativity, courage and fortitude, to
seize opportunities that challenge and forever change established, but fundamentally inequitable systems.
Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change.
A social business is a non-loss, non-dividend company designed to address a social objective. The profits are used to expand the companyʼs reach and improve the product/service.
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Social Business Is...
... from a mom-and-pop business to a multi-million dollar global operation and anything in between.
... demanding a broader vision on doing business than a tunnel vision of making as much money as you can, or giving away as much money as you can.
... finding a sustainable way of solving a social problem by using your business expertise and methods.
... putting your place in society, and your responsibility towards it, on the top of your priority list.
... everywhere: not only in the US, or India, but really it can be everywhere, also in Latvia.
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A Request...
If you have any other examples of social businesses, here in Latvia, in the Baltic states or anywhere in the world, please share them with me:http://facebook.com/whowalksthedog
(or use your own blog, twitter, facebook, etcetera.)
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Intermezzo
(TED talk Derek Sivers: How to start a movement, http://www.ted.com/talks/lang/eng/derek_sivers_how_to_start_a_movement.html)
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... And A Challenge
You probably have had an idea on how to build a business around solving a social issue. Or you will get one in the future. And it probably seemed too crazy, or too hard, or too impossible to realize. Please rethink that, and share your idea. Find your first follower, and start a movement...
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Thank YouFor Your Attention
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A Who walks the Dog Presentation
More information:
http://whowalksthedog.comhttp://twitter.com/whowalksthedoghttp://facebook.com/whowalksthedog
Arjan [email protected]
http://twitter.com/arjantupan+371 27 44 88 11
Sources used for this presentation, and suggestions for further reading can be found at: http://delicious.com/whowalksthedog/social-business
Who walks the Dog provides strategic advise on using innovative ways to optimize your business, focusing on the human factor.
We specialize in social media, CSR and Lean Management.
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Credits
TED talk Derek Sivers: How to start a movement
Courtesy of TED, under creative commons license by-nc-nd
http://www.ted.com/talks/lang/eng/derek_sivers_how_to_start_a_movement.html
Photograph Muhammad Yunus
Courtesy of the Yunus Center
http://www.muhammadyunus.org/Photo-Gallery/
Photograph Jacqueline Novogratz
©Joyce Ravid, courtesy of Acumen Fund
This presentation has been prepared with care, and without direct commercial gain. I have tried to use copyright free imagery, or made an effort to obtain permission of use. However, if you feel that any photo, picture or text in this presentation infringes your copyright, please inform the author at [email protected].
This presentation itself is licensed under creative commons license by-nc-sa.
All logos of companies used in this presentation are copyrighted by the respective company.