SOCIAL ENTREPRENEURSHIP

Adjunct Professor: Jim Sanders Jsanders@rhsmith.umd.edu (410) 531- 7559

BUMO758D, Section DC06Spring 2007, Reagan Building3/31, 4/14, 4/28, 5/12 8:30 to 6:30

Course DescriptionThis course is about using entrepreneurial skills to craft innovative responses to social problems. Entrepreneurs are particularly good at recognizing opportunities, exploring innovative approaches, mobilizing resources, managing risks, and building viable enterprises. These skills are just as valuable in the social sector as they are in business. Social entrepreneurship applies to both profit and non-profit firms who have programs designed to create social value.

Educational Objectives This course has three primary educational objectives: 1) To examine the challenges and rewards of entrepreneurship and management in creating and

developing social purpose organizations; 2) To build the knowledge, skills, and attitudes necessary for responding successfully to the challenges, 3) To provide an appreciation of the relative strengths and weaknesses of different organizational forms,

nonprofit and for-profit, in providing social goods and services.

Course Content and Educational Methods Social entrepreneurship focuses on how to bring and adapt business skills to the social sector. It provides a conceptual framework for thinking strategically about innovation in the social sector. The primary education method will be case studies and lectures from practitioners in the field.

The course is organized around the following themes: Start-Up and Early Stage Ventures deals with the issues an entrepreneur faces in creating and

sustaining a nonprofit organization. Innovations in the Social Capital Markets looks at utilizing financial markets to obtain social

outcomes. Achieving Social Objectives with Commercial Ventures examines a number of creative

approaches organizational structures used by for-profit companies to address social issues Crafting Alliances among nonprofits and with for-profits is covered in this module. The Legal Context of Social Entrepreneurship covers the range of considerations concerning the

startup and operation of social entrepreneurship ventures Managing Growth and Performance explores the distinctive challenges associated with growing a

social enterprise. Appropriate and Sustainable Funding Strategies explore the methods of funding social

enterprises.

Readings: Required :

o coursepack available through Xanadu.como readings on Blackboard.

Recommended : How to Change the World: Social Entrepreneurs and the Power of New Ideas, by David Bornstein (Oxford) Classic. Any edition. Widely available.

Course Requirements

I. Participation: 20% of the class grade.The following factors will be considered in the participation grade: attendance, quality of class participation, contribution of resources (articles, websites, people), collaboration with class participants.

Social Entrepreneurship Spring 2007 JSanders

II. Topic Analysis: 20% of the class grade.Students will be asked to conduct a literature review of one relevant topic and work either independently or as a member of a team to write a summary article that can serve as a resource to fellow classmates.Due: April 12th (before 2nd weekend)

III. Final Project: 60% of the class grade.The project is to be completed in self-selected, small groups (no more than four students per group). Individual projects will be accepted only with the instructor's approval. One-page proposals are due 4/16 final project is due 5/20. The project may take one of the following forms:

a business plan, marketing plan, or strategic plan for a new or existing social enterprise; a business plan for a social venture fund or other form of capital market activity which has an

identifiable social outcome a proposal to a foundation requesting funding for a social enterprise; a critical assessment of an existing social enterprise with recommendations for improvement; or a case study of social entrepreneurship in action along with a possible teaching plan.

Students are free to select organizations of their own choosing, as long as they represent examples of social entrepreneurship.

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Day 1: March 31st.

1. Defining Social Entrepreneurship. Identifying Areas for Engagement

Creating Social Value What Makes a Successful Social Entrepreneur? Introduction to Social Enterprise: Creating Social Change

Core readings Dees, "The Meaning of Social Entrepreneurship,

http://www.fuqua.duke.edu/centers/case/documents/dees_sedef.pdf Boschee & McClurg, “Toward a Better Understanding of Social Entrepreneurship: Some Important

Distinctions,” draft 2003, available through the Social Enterprise Alliance, see http://www.se-alliance.org/better_understanding.pdf

Suggested Bornstein, “Changing the World On a Shoestring” The Barefoot Bank with Cheek,” The Atlantic

Monthly, January 1998 Drayton, Bill. “Everyone A Change Maker – Social Entrepreneur’s Ultimate Goal” Innovations, Winter

2006, http://www.mitpressjournals.org/doi/pdf/10.1162/itgg.2006.1.1.80?cookieSet=1 J. Austin, Howard Stevenson, Jane Wei-Skillern “Social and Commercial Entrepreneurship: Same,

Different, or Both?” Entrepreneurship Theory and Practice January 2006

2. Startup Mechanics

Mechanics of Startup Identifying a Focus Putting Your Values in Action What are you Building: For-Profit, Nonprofit or Hybrid? Business Models

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Social Entrepreneurship Spring 2007 JSanders

Case: Steve Mariotti NFTE (HBS 9391169)

Core: The Process of Social Entrepreneurship: Creating Opportunities Worth of Serious Pursuit.

Aysey Guclu & J. Gregory Dees and Beth Battle Anderson, Center for the Advancement of Social Entrepreneurship, November, 2005 http://www.caseatduke.org/documents/seprocess.pdf

Social Entrepreneurship is About Innovation and Impact, Not Income www.fuqua.duke.edu/centers/case/articles/1004/corner.htm

If the shoe fits: Nonprofit or For-Profit? The Choice Matters Roberts Enterprise Development Fund, April 28, 2006 www.redf.org/download/other/REDF_If_the_Shoe_Fits_FINAL.pdf

Suggested: RISE For-Profit Social Entrepreneur Report: Balancing Markets and Value

Survey of U.S. for profit social ventures, focusing on emerging companies. http://www.riseproject.org/rise-sep-report.pdf

Business Planning for Nonprofits- What it is and why it matters http://www.bridgespan.org/PDF/BusinessPlanningforNonprofits.pdf

Day 2: 3. Business Models

What is the social problem? Is the mission clear and the vision compelling? What social value are we creating and by what theory of change? Is it an innovative and feasible

solution? Is it a sustainable model? What is the funding model? What is the role of corporate sponsors?

Case: Kaboom (HBS 9303025)

Core: Should Nonprofits Seek Profits? Harvard Business Review. Dees, Sources of Funding for New Nonprofit Ventures Harvard Business Review Dees, Enterprising Nonprofits. Harvard Business Review.

Suggested: Powering Social Change- Lessons on Community Wealth Generation for Nonprofit Sustainability

Community Wealth Ventures, 2003 www.communitywealth.org/Powering%20Social%20Change.pdf

J. Austin, “Strategic Alliances,” Stanford Social Innovation Review, Summer, 2003. Weisbrod, B. (Winter 2004), “Pitfalls of Profit”, ‘Stanford Social Innovation Review’.

http://www.ssireview.org/pdf/2004WI_feature_weisbrod.pdf Kim Alter. Social Enterprise Typology www.virtueventures.com/setypology/semg.aspx?id=PROLOG&lm=1

(summary); www.iadb.org/sds/doc/228070wc.socialenterprise.pdf 93p. (Full paper)

4. Performance Measures

Topics How do we measure performance? Criteria for internal and external measures Balanced score card for social entrepreneurship

Case: New Profit, Inc.: Governing the Nonprofit Enterprise, HBS 9-100-052

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Social Entrepreneurship Spring 2007 JSanders

Core: Kaplan, “Strategic Performance Measurement and Management in Nonprofit Organizations,”

Nonprofit Management & Leadership, Spring 2001 Gair, “A Report from the Good Ship SROI,” Roberts Enterprise Development Fund, 2005.

http://www.redf.org/download/sroi/goodshipsroi2.doc

Suggested: J Emerson "The Blended Value Proposition: Integration of Social and Financial Returns,"

California Management Review Summer 2003. http://www.blendedvalue.org/media/pdf-proposition.pdf

See Jeff Emerson’s website and additional information on blended value. http://www.blendedvalue.org/

Guidelines for Social Return on Investment. . California Management Review.  Spring 2004.

Day 35. Venture Philanthropy

Case: New Schools Venture Fund (A), Stanford Business School, SI-07A

High-Engagement Philanthropy: A Bridge to a More Effective Social Sector June 2004http://www.vppartners.org/learning/reports/report2004/report2004.pd

Venture Philanthropy 2000: Landscape and Expectations www.vppartners.org/learning/reports/report2000/full_rpt.pdf

Lessons from Our First Five Years www.vppartners.org/learning/perspectives/first-five-years.html

Suggested Gleason, “Raising Money from Double Bottom Line Investors: An Entrepreneur’s View,” from

website of the Research Initiative on Social Entrepreneurship, Columbia Business School, see http://www.riseproject.org/gleason1.htm.

Clark & Gaillard, RISE Capital Market Report: The Double Bottom Line Private Equity Landscape in 2002-2003, Columbia Business School, see http://www.riseproject.org/uzrise_capmkt_rpt_03.pdf .

6. Community Venture Funds

Case: Boston Community Venture Fund (CDVCA 805-003-1)

Articles: Community Development Venture Capital Assn /www.cdvca.org/media/press.php

Angelides, Philip. “Double Bottom Line Investment Initiative Five Years Later: Delivering on Both Bottom Lines,” 2006. http://www.treasurer.ca.gov/publications/dbl/five_years.pdf

Rubin , Julia Financing Rural Innovation with Community Development Venture Capital: Models, Options and Obstacles Community Development Bank of San Francisco 12/06 www.frbsf.org/publications/community/review/122006/rubin.pdf

7. Microfinancing

Core: Microenterprise Development in the United States: Current Challenges and New Directions

Lisa J. Servon ECONOMIC DEVELOPMENT QUARTERLY, Vol. 20 No. 4, November 2006 351-367 Tapping the Financial Markets for Microfinance. Grameen Foundation October 2004

www.gfusa.org/docs/programs/GFUSA-CapitalMarketsWhitePaper.pdf

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Social Entrepreneurship Spring 2007 JSanders

Suggested Microcredit Summit Campaign http://www.microcreditsummit.org/

The Virtual Library on Microcredit. Information about Microcredit programs and practices. http://www.gdrc.org/icm/

MIX Market global information exchange site for the microfinance industry. http://www.mixmarket.org/en/home_page.asp

8. Course Conclusion and Sharing of Venture Ideas

Venture fair type presentation to the class.

*******************************************************************************************************CLASS RESPONSIBILITIESPlease use a name tent until I learn your name.

The University’s Code of Academic Integrity is designed to ensure that the principles of academic honesty and integrity are upheld. All students are expected to adhere to this Code. The Smith School does not tolerate academic dishonesty. All acts of academic dishonesty will be dealt with in accordance with the provisions of this core. Please visit the following website for more information http://www.inform.umd.edu/CampusInfo/Departments/JPO/AcInteg/code_acinteg2a.html

Special needs: any student with special needs should bring this to the attention of the instructor as soon as possible, but not later then the second week of class

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