Social Enterprise: A Market Based Approach to Poverty Alleviation
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Transcript of Social Enterprise: A Market Based Approach to Poverty Alleviation
SEEP Annual Conference October 2006
Social Enterprise:A Market Based Approach to
Poverty Alleviation
SEEP Network
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October 2006
State of the Practice Emerging as a field Practiced for years Fragmented Transcends several sectors Few methodologies and industry-
own resources Until recently private funding Receiving lots of media attention Universities & research institutes
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A social enterprise is any business venture created for a social purpose—mitigating/reducing a social problem or a market failure—and operating with the financial discipline, innovation and determination of a private sector business
- Virtue Ventures 2005
Working Definition of Social Enterprise
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Social Enterprise Characteristics
Social Purpose - created to generate social impact and change by solving a social problem or market failure
Enterprise Approach – uses business vehicles, entrepreneurship, innovation, market approaches, strategic-orientation, discipline and determination of a for-profit business
Social Ownership – public good; stewardship, rather than legal structure
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Social Enterprise Design is Driven by Social Concern Rather
than Financial or Market Opportunities
The social problem IS the business opportunity
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Reduce social problems w/enterpriseSocial Problem 1. Food insecurity
2. Deforestation3. Subsistence
farming 4. Limited economic
opportunities5. Hunger6. Barriers to
employment
Social Enterprise1. Agricultural products
store & bakery2. Ecotourism 3. Natural products 4. Tool Library & School
5. Restaurant6. Landry,
housecleaning, thrift, etc.
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Well-Known Examples Aravind Eye Hospital Kickstart echopal Equal Exchange Greyston Bakery HealthStore Grameen
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Social Enterprise is a Hybrid Purely
PhilanthropicHybrid Purely
commercial
Type of Organization
Traditional NGO Social Enterprise
Traditional for-profit
Motives Appeal to goodwillMixed motives
Appeal to self-interest
Methods Mission-driven Balance of mission
and market
Market-driven
Goals Social value creation
Social and economic value
creation
Economic value creation
Destination of
Income/Profit
Directed toward mission activities of NGO (required
by law or organizational
policy)
Reinvested in mission activities
or operational expenses, and/or
retained for business growth and development
Distributed to shareholders and
owners
Adapted from Gregory Dees; and Lee Davis and Nicole Etchart.
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Employment Model
MarketSocial Enterprise
Clients
Social Impact Financial
Sustainability
ProductProduct
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Entrepreneur Model
Market
Social Impact
Client Social Enterprise
FinancialSustainabili
ty
ProductProductServicesServices
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Fee-For-Service Model
Services
Social Enterprise
Sustainability
Clients
Social Impact
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Market Intermediary Model
Financial
SustainabilitySocial Impact
ClientsSocial Enterprise Market
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Cooperative Model
Market
Social Enterprise Clients
Social Impact Financial
Sustainability
ProductProduct
Market
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Service Subsidization Model
Social ImpactFinancial Sustainability
Social Enterprise Clients
Market
Services
Social Impact
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Web Resources Ashoka and Skoll Centre www.universitynetwork.org The Center for the Advancement of Social
Entrepreneurship, Duke (http://www.fuqua.duke.edu/centers/case)
NESsT (www.nesst.org) Ashoka (www.changemaker.net) REDF (www.redf.org) Virtue Ventures http://www.virtueventures.com) Social Enterprise Reporter (www.se-reporter.com) Social Edge (www.se-alliance.org) Schwab Social Entrepreneurs (www.schabfoundation.org) World Resources Institute (www.netbillion.org) Partnership on Nonprofit Ventures (www.yale.ventures.edu) William Davidson Institute University of Michigan (
http://www.wdi.umich.edu) Skoll World Forum on Social Entrepreneurship Oxford
University