INSEAD Social Entrepreneurship Initiative

ISEP 2009 Report and Evaluation

(Fontainebleau 16-20 November 2009, Singapore 30 November-4 December 2009)

Leadership skills and effective frameworks to grow social entrepreneurship organisations

14 January 2010

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ISEP 2009 Report and Evaluation

“The classes at ISEP were amazing and highly dynamic with world-class lecturers, some of the best I have encountered anywhere. I found the classes tailored to me and fit the needs of a social entrepreneur.”                                                      Veronica Colondam, Founder and CEO, Yayasan Cinta Anak Banesa, Indonesia 2009 ISEP Participant

Executive Summary

The fifth year of INSEAD’s Social Entrepreneurship Programme (ISEP) continued reflect the growing demand for the value INSEAD brings to the dynamic field of social entrepreneurship. This year’s programme, held in Fontainebleau and Singapore, generated high demand from top-level leaders in the field as well as high ratings from participants with an overall satisfaction rating of 4.6 across the two sessions. Both the Fontainebleau and Singapore sections were full bringing together 64 social entrepreneurs from 30 countries. They included some of the most respected leaders in the field as well as its newest innovators. Waiting lists for both programme sections reflect a strong pipeline of applicants for ISEP 2010. Sessions to introduce the social entrepreneurs attending the programme to INSEAD MBAs proved so popular that supplementary sessions had to be scheduled. Course content incorporated two new cases and findings from on-going research on leadership and scaling social innovations. The diverse experience of the participants combined with top-level INSEAD faculty created a dynamic learning environment exemplary of the best INSEAD has to offer and continues to set the standard for top-tier education in this field. During the past year, our team has sought to extend the value of the ISEP network by creating links with INSEAD’s overall educational activities. Through the participation of ISEP graduates at INSEAD alumni events, round table discussions, and MBA club events, and through the development of new cases for other executive programs (IEP) as well as an innovative MBA field project course, we have ensured synergies and learning across INSEAD. For 2010 our team plans to continue developing research capabilities at INSEAD on social entrepreneurship and leveraging new knowledge into our educational activities. In particular, in addition to our ongoing research on scaling and business model innovation, we aim to explore further the areas of venture philanthropy and social impact assessment. Based on the material and expertise developed with ISEP, new course offerings on social entrepreneurship are being developed for the MBA and EMBA programs. We look forward to continue working with our partners and sponsors to bring clarity and value to the social entrepreneurship field and to strengthen the position of INSEAD as the leading business school in this important area.

Filipe Santos, Academic Director for Social Entrepreneurship filipe.santos@insead.edu

Hans Wahl, Senior Associate Director for Social Entrepreneurship hans.wahl@insead.edu

(ISEP Co-Directors)

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Programme Purpose and Objectives

The content of ISEP’s intensive week has continued to evolve to reflect the trends and innovations in the field of social entrepreneurship. A new Gram Vikas case enabled us to focus greater attention on scaling up, and strategic growth opportunities. Another on a new eco-tourism venture on Palawan Island in the Philippines focused on early-stage strategy decisions. These central sessions are supported by skill development on negotiations and managerial accounting, as well as expertise development on the fundamental organizing processes of team building and leading change. Evening team sessions allowed participants to apply the concepts and tools to their own projects, culminating on project design session to tie the key learnings together at the end of the programme.

Specific sessions in the 2009 ISEP included:

Building High Performance Teams Leading Strategic Change Negotiations Managerial Accounting

Business Model Innovation Scaling-up the Social Enterprise Social Enterprise Challenge

Priority was placed on creating social entrepreneurship-based cases and developing clear and actionable managerial tools from each session to provide social entrepreneurs with a toolkit for business transformation and growth. We continue to receive reports of participants running strategy workshop sessions after ISEP, using the program learning and tools to re-think their organizational structure and business design. Participant Profiles

The diversity of programme participants continued to increase both geographically and in terms of the business ventures they lead. Many are award-winning entrepreneurs identified through our partnership with leading social entrepreneurship organizations including Ashoka, the Schwab Foundation for Social Entrepreneurship, The Acumen Fund, INJAZ, and UnLtd. Participants included key figures in the field who frequently participate in the WEF and the Clinton Global Initiative, as well as recent innovators whose ventures extend from the fields of health and sanitation to rural development and micro-enterprise. Participants either lead or have major operating responsibility for their social enterprise and come from both non-profit and for-profit organisations. Over 49 percent of participants are

At personal level, ISEP has equipped me as a leader to face new challenges as my organization grows. I'm forever grateful for what I learned from ISEP and how it has enabled, prepared, and made me more confident to take on the challenges ahead. As we enter our second decade, one I have labelled "Time to Scale", we have set a goal to reach a million young people both in-school and out of school youth by 2012. The best news is that, not only, am I more confident but I feel more equipped to lead my organization into this exciting decade.

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the founder and/or head of the organisations they represent. Another 46 percent come from positions of senior leadership.

Geographic Distribution of Participants 2009 2008 5-Year Total

Asia & Pacific 32% 45% 54 25.7% Europe 51% 33% 120 57.1% Middle East 3% 10% 12 5.7% Africa 5% 7% 12 5.7% Americas 10% 7% 12 5.7%

In 2009, nearly half of the participants were from outside Europe and 43 percent of the participants were from outside Europe over the five years of the programme. This reflects the increased diversity of the participants since the addition of the Singapore session of ISEP. The percentage of women has grown as well, reaching 56 percent and including more founders and heads of organisations than ever before. Profiles of 2009 ISEP Participants Veronica Colondam: CEO, Yayasan Cinta Anak Banesa (Indonesia): Yayasan Cinta Anak

Banesa (YCAB) is a dynamic Indonesian organisation, founded to address the spiralling incidence of drug abuse, street crime and school drop outs among the youth of Jakarta and other major cities. YCAB’s comprehensive and innovative programme provides counselling, vocational training and promotes active and healthy lifestyles. It prepares troubled youth to assume leadership roles within their peer group and take on sustainable employment opportunities within their communities. The production, distribution and sale of its own line of products provide YCAB with a reliable and sustainable source of income to support its work. A research department evaluates YCAB’s impact on both an individual and programmatic level. Creative approaches in packaging its programmes and services have ensured a stable revenue stream and ongoing sponsorships, but the demands for growth are compelling.

Rana Kamshad, Chief Executive Officer, Injaz-Kuwait (Kuwait): As a journalist, Rana saw the

importance of leadership development among young people in the Middle East-North Africa Region and was compelled to address that need for her own country of Kuwait. She founded INJAZ Kuwait as a member of Junior Achievement Worldwide in 2005. With the help of strategic partnerships with Kuwait’s business and education sectors, Injaz-Kuwait delivers educational programs on entrepreneurship, financial literacy and work readiness to students k-12. Since its founding it has seen tremendous increases in the number of students enrolled its programs, reaching more than 6000 during the 2008-09 academic year. Kuwait is the first country in the region to implement programs for elementary schools and the Kuwaiti team won the regional award for best student company program in 2008, and won the best performance award in the region in 2009.

Mark Joaquin Ruiz: Founder and Managing Director, MicroVentures/Hapinoy (Philippines):

Mark is a serial social entrepreneur who has created several social enterprises. One of them, MicroVentures brings together creative and resourceful groups of like-minded individuals from manufacturing, advertising, real estate, marketing, micro-finance, NGOs, and the government to build, what he describes as the ‘highways to the base of the pyramid’. Using an innovative approach of integrating production to retail and back again, MicroVentures set out to build a sustainable network of micro-entrepreneurs to tackle problems of poverty and social deterioration. Its network of local and family-owned Hapinoy Community Stores serves as the retail outlets that provide affordable, high-quality food, merchandise and services to residents while creating training, employment and business opportunities at every point along the way. Within a short time Hapinoy has grown from a handful of stores to nearly 10,000 in 75 communities and is expected to reach 400 communities by the end of 2010, creating business and employment for tens of thousands more.

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Hamide Latifi: Country Executive Director, Women for Women International (Kosovo):

Women for Women International’s (WfWI) mission is to provide women survivors of war, civil strife and other conflicts with the tools and resources necessary to move from crisis and poverty to stability and self-sufficiency, thereby promoting viable civil societies. WfWI-Kosovo was launched in 2000 in the aftermath of a war characterized by ethnic cleansing, which was devastating to women, including the destruction of villages and rape as weapon of war. During 2008, WfWI-Kosovo served approximately 3,600 participants through our core education program. Additional services reach nine municipalities and 33 communities across the country. It has provided services and training on human rights, leadership and vocational skills to more than 23 000 women benefiting an additional 160,000 family and community members. WfWI-Kosovo has provided income generation opportunities through investments to more than 600 participants including milk collection, green houses, woodworking and beekeepers. WfWI-Kosovo has also constructed community centre for women in Vushtrri/Kosova.

Growing Diversity and Innovation

The diversity of social enterprise models themselves has grown over the five years of the programme’s operation. New and innovative business models are emerging from among the pool of participants with more socially oriented, for-profit businesses than ever before. Inventive, new approaches to generating a sustainable revenue stream are emerging internationally, and most especially amongst Asian participants. The current year’s participants also reflect a significant increase in the number social venture investment firms either directly linked to traditional venture firms or drawing upon the resources of other investors. The role of microfinance within organisations as also grown as more social ventures incorporate microfinance in their overall scope of programme activities. Finally, the number of new social entrepreneurship promotion and training organisations has increased significantly, especially in Asia. In all three instances, the impact of those attending ISEP is multiplied by the dissemination of the tools and frameworks conveyed in the course as they are passed on to others, often far beyond the reach of other social entrepreneurship education programmes. New social entrepreneurship ‘hubs’ are emerging in Africa and across Asia. They serve as a vehicle for networking, collaboration as well as training, mentoring and skill development among ever-growing networks of social entrepreneurs. The shift toward organisations employing hybrid business models continues to expand. While the vast majority of the enterprises represented at the outset of the programme were not-for-profit, the current year’s participants reflected that nearly two-thirds include some form of profit-generating component. In most cases, participating companies or organisations have sought sustainability and increased impact by employing a business model that balances profit with the aim of delivering a social benefit. In many cases social entrepreneurs have sought out this programme specifically for our ability to deliver expertise in this area. However, the value of the interaction amongst these innovative leaders in the field is viewed as one of the primary benefits of ISEP that lasts long beyond the weeklong programme itself. This promoted a far livelier examination of innovative approaches to securing resources, generating sustainability and balancing the financial and social return generated by these

I want to emphasize that, on top of the formal lectures and exercises – it was really the fact that it was a week of engaging in meaningful conversation, discussion, and debate on our field, social (business) enterprise, that made it such a meaningful learning experience for me. Whether it be lunch break fodder, a formal group exercise, or a case study exploration — hearing the diverse inputs and exchange of ideas was absolutely enriching, real-world lessons that got me to think on how I could apply it back to my own work.

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ventures than seen previously. It also reflects the growing maturity of the sector and the increasing value of the network. The ISEP Global Network of Social Entrepreneurs

One of the unique and powerful aspects of ISEP is the network of social entrepreneurs that grows with each year of programme. As of the end of 2009, the network is now over 200 strong, brings together leading social entrepreneurs from 36 countries on five continents. While they activities span microfinance to sustainable tourism and education to healthcare they have a common sense of mission and a shared framework for using business practices and market mechanisms to bring about positive social change. Increasingly, the network serves as a dynamic platform for exchanging skills, contacts and expertise; for simulating innovation, new business development; for problem solving; and finally for education and learning on emerging topics and issues in the field of social entrepreneurship. With the ever-increasing expertise residing within this group, specialised virtual working groups on topical issues are being launched to create additional venues for collaboration and problem solving. An annual reunion in 3-6 June 2010 in Istanbul will bring to participants from all seven sessions of ISEP held so far for a face-to-face meeting. For INSEAD, the network and the annual meetings are powerful tools to support our alumni and better understand and learn from the dynamics driving this vibrant sector. The Importance of Scholarship Funding

Tuition fees for ISEP have risen over the past five years to adjust to the actual cost of conducting the programme and enable it to be sustainable. Since it is unlikely that social entrepreneurs will ever be able to bear the full cost of an INSEAD executive education programme, the gap has been narrowed considerably over the five years of the programme’s operation and INSEAD is committed to ensuring its future. Throughout the programme’s operation, scholarship funding has played a critical role in keeping it accessible to social entrepreneurs, especially to those working in the most marginal and challenging parts of the world and with the most vulnerable populations. This has proven especially important, as we have added the Singapore programme to attract more participants from the dynamic Asian market and made extra efforts to involve successful social entrepreneurs from the Middle East, Africa and Latin America. 47 percent of those attending the programme in Fontainebleau and Singapore received some form of scholarship assistance. While nearly all of those attending paid some portion of tuition, nearly all of those from developing countries required scholarship funding. We anticipate that over time tuition fees will represent 60 percent of revenues and cover the marginal cost of running the program. However, scholarship support for social entrepreneurs will always remain an essential component of the programme to ensure that ISEP remains accessible to a diverse group of the most deserving participants. Programme Evaluation and Feedback

Participants were asked to rate the programme on a series of criteria using a scale of 1-5. In both Fontainebleau and Singapore ratings were very high but also point to areas where continued refinement is required. These include continuing to develop and update social entrepreneurship cases and revise the evening team work sessions.

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ISEP V December 2009

Average rating (of 5)

Fontainebleau ‘09 Singapore ‘09

2008 rating of very good or excellent

percent total Overall satisfaction with the programme 4.7 4.4 96% Extent to which the key learnings from the programme have met your expectations

4.5 4.2 91%

Overall relevance of the programme for your job 4.5 4.2 89% Quality of the contributions of other participants to your learning 4.6 4.5 88%

Participants were also asked to provide written comments, a selection of which are presented below. Selected Written Comments

Relevant. Engaging. Bringing creative people together in this way creates action.

What really made this such a great experience for me was learning alongside “my classmates” who, in themselves, carried a lot of knowledge that they openly shared.

Excellent lecturers – all of them really talented teachers which made learning engaging and interesting.

Obtaining tools for innovating and a framework that makes innovation possible were very important

I gained a lot of good ideas to implement; new projects and new ideas that arose in conversations and during classes.

ISEP benefits from the depth of social entrepreneurship knowledge at INSEAD and its leading edge research.

Through ISEP I gained important management insights for the project that I am launching including building and managing a team, observing more, clarifying the mission, and a framework to use in thinking about scaling up.

The class didn’t end with the last lecture. Being an “alumni” of the course, I’m now part of the “learning community” of ISEP.

Inspiring classmates and great lecturers made all the learning possible and FUN!

The programme applied a structure and framework to examine what we are doing and how to use tools to move forward.

The diversity of the participants and the tremendous and generous sharing of ideas and views from the participants, the case-studies and the trainers. So enriching!

Lot of thinking and content went into this programme.

The incredible network of other participants – they would be a fantastic resource pool for the future.

An awesome experience, not in the least by the quality of professors.

Absolutely the right programme for any social entrepreneur to come together to share common beliefs, push new boundaries and keep the social entrepreneurial sights and light burning.

Excellent programme from which you learn a lot about the subject and are impressed and inspired by other participants.

This programme ROCKS!