Social Entrepreneurship by Armando Coloma Jr.

1. Social Entrepreneurship
Economy of Communion
Armando Coloma, Jr.

2. Contents
 Social Entrepreneurship
 Background/Origin
 Focolare Movement
 Objectives of the Economy of Communion
 Concept of Economy of Communion
 Business Practices and Culture
 Benefits & Pitfalls
 Success Stories in the Philippines
 Bangko Kabayan
 Ancilla Enterprise Development Consulting
 Focolare Tagaytay Carpentry Shop

3. Social Entrepreneurship
Social entrepreneurship is the work of
entrepreneurs who recognize a social problem and
uses entrepreneurial principles to organize, create
and manage a venture to achieve social change
(social venture).

4. Social Entrepreneurship
The main aim of social entrepreneurship is to
promote social and environmental goals.
Social entrepreneurs are most commonly
associated with the voluntary and not-for-profit
sectors, but this need not preclude making a profit.

5. Background (Focolare Movement)
•The Economy of Communion is a business philosophy
rooted on the ideals of the Focolare Movement. (FM)
•This movement was started by a group led by Chiara
Lubich, an Italian Teacher, during the Second World War.
•FM intends to extend Catholic practice to their daily
lives and not only limited to going to Church.
•Members of the group pooled their commodities and Chiara Lubich
shared with each other and with the less fortunate.
•The movement aspired to spread a culture of giving
with the belief that this will lead to reciprocity and
solidarity.
•FM has spread to over 180 countries with more than
200,000 followers.
•In the Philippines there are 12 Focolare centers spread
across the nation Officially recognized by
the Pope in 1950’s

6. Background (Economy of Communion)
• In May 1991, Chiara Lubich was struck by
views of shanty-towns amidst skyscrapers in
San Paolo, Brazil.
……Depicting inequality between rich and poor.
• Members of the FM in Brazil did not have
enough commodities to meet their needs even
when they pooled their resources together.
Brazil’s Shanties
•She proposed to the FM to initiate enterprises
that can add income to their pooled resources
and help those in need.
•In addition to sharing profit, these enterprises
will reflect FM teachings such as equality and
solidarity.
•Thus, the ECONOMY of COMMUNION (EOC)
was born. EOC Enterprises

7. Objectives of the Economy of Communion
 To help persons in difficulty - by creating
new jobs and assisting them in their basic
needs;
 To spread the "culture of giving" and of
love, without which it would not be
possible to make the Economy of
Communion a reality; and
 To develop the business, keeping it
profitable and open to a spirit of giving.

8. Three Major Principles of Economy of
Communion
 The first is association where potential
shareholders of a business pool their resources
together in a common fund.
 The second distinctive concept is “a spirit of
fraternity” where stockholders, employees, and
beneficiaries of the business treat everyone equally
and with respect.
 The third major concept is a unique distribution of
profit which is sometimes called as the 33% Rule

9. 33% Rule (The profit of the company is pooled in
common and divided into three parts. )
 The first portion is allocated in
helping the poor in their The 33% Rule
immediate needs.
 The second portion is
appropriated to programs that
are designed to share and
spread the ideologies of EOC.
 The last portion is invested
back into the company to
develop and increase the Profit shared to poor/FM
competitiveness of the Invested to education and training on EOC
business. Invested back to Business

10. 33% Rule (Just Imagine… )
PLDT earnings 2009 P 39,800,000,000.00
One third P 13,266,666,666.00
3,855,730 poor families
6-7 days (family of 5)
Source: www.abs-cbnnews.com/business/03/02/10/pldt-q4-net-income-climbs-155-pct
Source: www.nscb.gov.ph/poverty/2009/Presentation_RAVirola.pdf

11. Business Practices and Culture of the
Economy of Communion
 A Culture of Giving is instilled across the
organization. The business is managed to promote
increased profits but these revenues are used not only
to expand the enterprise but more importantly to help
people in need.
 The human person is central to the business, not
the capital. The organization leadership encourage
innovation, creativity, assumption of responsibility, and
full participation in meeting the company objectives by
all employees.

12. Business Practices and Culture of the
Economy of Communion
 The EOC businesses use modern business practices and
methods to be as efficient as possible. This will allow the
enterprise to offer useful, quality goods and services at
affordable and fair prices to be competitive in the chosen
field.
 The company establishes quality standards so that its
products and services not only to meet contractual
obligations but also to delight their consumers.
 The company practices fair play with competitors,
suppliers, customers and business partners. These
practices create an atmosphere of mutual respect and trust
with competitors, suppliers, customers, and public
administrators.

13. Business Practices and Culture of the
Economy of Communion
 Business leaders behave legally and ethically in all
of their dealings. The enterprise complies with the
law and maintains ethical dealings with tax
authorities, regulatory agencies, and labor unions.
 The enterprise applies management systems and
organizational structures that foster teamwork and
personal development. The EOC business leaders
employ decentralized control and participative
leadership.

14. Advantages of the EOC
 The Purpose and Mission of EOC to help the less
fortunate is very appealing to people of all religion and
nationalities.
 Trust and solidarity with employees, customers,
suppliers, and business partners is attained and
sustained. This is because the human person, not profit, is
the center of the EOC business.
 Competent people are entrusted with running the
business. EOC enterprises makes use of the latest
management and business practices to ensure that the
company stays competitive in its chosen field.
 Resources are pooled together. Initial requirements for
small businesses are more easily attained since the monetary,
time, and skill resources of the members are pooled together.

15. Disadvantages of the EOC
 The practice of sharing a third of the profit to non-
employees may not be acceptable to employees who are
not members of the Focolare Movement.
 EOC may be applicable only to small to medium sized
companies.
 Earmarking only a third of the profits may be insufficient
for growth of the business. In today’s very competitive
business atmosphere using all sources of funds including
retained earnings particularly during the start up period is
critical.
 Standardizing and implementing the profit sharing rule
will be very difficult. A study of ten EOC enterprises show
that their methods of profit sharing vary significantly.
 An extensive cultural change is necessary to sustain and
spread the EOC philosophy. Without sufficient followers
who will accept the EOC culture and philosophies, the
sustainability of any EOC enterprise will be in doubt.

16. Global businesses that follow EoC strategy

17. Success Stories in the
Philippines:
 Bangko Kabayan
Inc., a rural bank in
Batangas, has moved
from 123rd to third
largest rural bank in
terms of deposits.
 One of the few banks
that survived the 1998
Asian financial crisis.
Company Vision:
Enabled by the Divine Providence and generating His presence among us as a work
: community united in His name, we will be a leading rural financial institution through the
: delivery of personalized and relevant financial services in an excellent manner, with a
preference for the small and micro entrepreneurs of Batangas, contributing to the
development of the countryside.

18. Success Stories in the
Philippines:
 Tita Datu Puangco of Ancilla
Enterprise Development
Consulting, a Filipino EoC
company. The Company became
the top training and consultancy
provider in Southeast Asia after
just five years in operation.
 She widens one’s vision of work
by posing questions such as
“What is the will of God for my
life?” and “Who are you here to
help?”

19. Success Stories in the
Philippines:
•The Focolare Tagaytay Carpentry Shop is a
furniture manufacturing center that began in
1987.
•An Austrian master carpenter who is a
Focolare convert trained out-of-school
youths in the trade.
•Demand for their products increased due
to the personalized and made to order
approach of the business.
•The shop now has 60 full time employees
and has trained hundreds of out of school
youth that are now government recognized
for their skills.

20. Thank You!!!

21. References
 www.edc-online.org/en.html
 focolare.org.ph/
 en.wikipedia.org/wiki/Focolare_Movement
 www.focolarecarpentry.com/
 www.focolarefctc.com/
 www.bangkokabayan.com/
 www.ancillaedc.com.ph/
 http://en.wikipedia.org/wiki/Social_entreprene
urship