INDEV308 Class 9 - Social Entrepreneurship in the International Development Context

INDEV 308: Introduction to Social
Entrepreneurship

Class 9: Social Entrepreneurship in the
International Development Context

Monday, July 4, 2011
Instructors:
Norm Tasevski (norm@socialentrepreneurship.ca)
Karim Harji (karim@socialentrepreneurship.ca)
1


Agenda

• Ashoka
• Social enterprises in the developing world
• Impact investing
• Reviewing the Video Assignment
• Next Week

3


There are MANY issues in the
developing world…

4


Traditional approaches have
had relatively limited impact…

5


The principles of social
entrepreneurship have a role to play…

Resourcefulness

Motivation

Innovation
Risk Taking

6


… in education

Source: http://www.enterprisingschools.com/markets/global

7


Crowdsourcing educational innovation:
OpenIdeo + Grey Matters Capital

http://www.openideo.com/open/how-might-we-increase-the-availability-of-
affordable-learning-tools-educational-for-children-in-the-developing-world/

8


9


… in health

Source: http://www.visionspring.org/what-we-do/why-eyeglasses.php

10


Video: Aravind
http://www.youtube.com/watch?v=3cjnNPua7Ag

11


… in agriculture

12


… in communication

13


Video: Ushahidi
http://vimeo.com/7838030

http://www.ted.com/talks/erik_hersman_on_reporting
_crisis_via_texting.html

14


An untapped (local) market

Images: http://bottom-of-pyramid.blogspot.com/2008/10/fortune-at-bottom-of-pyramid-2.html
http://www.thehindubusinessline.in/life/2004/11/26/stories/2004112600140300.htm

15


Capital is often (perceived as) the key constraint to
growth… but… perhaps misalignment is the issue

Source: Alex Nicholls and Cathy Pharoah (2008) The Landscape of Social Investment,
http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx 16


The potential of impact investing

“ Impact investing could expand to a $500
billion industry in the next decade.”
-- Monitor Institute

“… a potential investment opportunity
between $400 billion and $1 trillion with
potential profits between $183 billion and
$667 billion in the next decade…”
-- JP Morgan

17


There is an emerging class of
impact/social investors…

18


… that is providing flexible capital
(+ more) to these social enterprises

19


Acumen Fund
• http://www.youtube.com/watch?v=g-uhz0J3JTE

20


Patient Capital(ism)
Jacqueline Novogratz (founder of Acumen Fund) –
TED talk on “a third way to think about aid”
http://www.ted.com/talks/jacqueline_novogratz_a
_third_way_to_think_about_aid.html

21


Market-Minded Development
• What did you find most interesting about the
Acumen Fund’s approach?

• What challenges or opportunities mentioned in the
article do you think will be most critical?

• What do you think success looks like for the Acumen
Fund? How would you measure it?

22


Acumen Fund: Student Leaders Workshop

• http://www.acumenfund.org/investment-
story/acumen-fund-student-leaders-workshop.html

23


The Impact Investing Marketplace

Source: Monitor Institute (2008) “Investing for Social & Environmental Impact, A Design for Catalyzing an
Emerging Industry”, http://www.monitorinstitute.com/impactinvesting/
24


Microfinance

Microfinance as a subset of impact investing…with a 40 year track record

Images:
http://southeastasia.foreignpolicyblogs.com/2011/05/27/the-poverty-of-microfinance/
http://simran.crownpac.net/blog/2007/05/04/microfinance-%E2%80%93-a-zero-sum-game/

26


“The promise of microfinance”
The (previously) unbankable now have…
• Access to credit
• Understand how to use credit

And have demonstrated…
• An ability to repay in full, and on time
• Through peer pressure, no collateral required

So that…
• Money can be recycled for further lending
• Create businesses and economic growth
• Empower people and improve social conditions

27


The growth of the microfinance industry

Source: http://blogs.cgdev.org/open_book/2010/02/charting-growth.php

28


An industry in crisis?

29


Let’s revisit these assumptions…
The (previously) unbankable now have…
• Access to credit
• Understand how to use credit

And have demonstrated…
• An ability to repay in full, and on time
• Through peer pressure, no collateral required

So that…
• Money can be recycled for further lending
• Create businesses and economic growth
• Empower people and improve social conditions

30


State of the industry

Source: “Microfinance Banana Skins 2011: Losing Its Fairy Dust”, http://www.cmef.com

31


Assessing the impact of microfinance

Source: http://blogs.cgdev.org/open_book/2009/06/roodman-morduch-2009.php

32


Investing in microenterprises vs SMEs
• Which is “better”? Why?

• Under what conditions?

• How do (or would) we know?

** Draw on the reading by Aneel Karnani, and Serge’s talk earlier in the semester

33


So what does this add up to?
• Market-based approaches can (and must) have a role
to play alongside traditional approaches to aid. But
there will sometimes be tensions between them…
• There will always be a need for traditional grant-making
because you can simply not expect a financial return for
all situations e.g. humanitarian disasters
• Impact investing and microfinance are approaches that
are challenge traditional notions of risk and return by
adding a 3rd dimension: (social) impact
• The principles of social entrepreneurship can be applied
to traditional approaches in order to help them scale
even more successfully. This depends on balancing the
financial and social tensions, and taking into account
the local context…
34


Smart or Right? Thinking like a Philanthropist
and Investing in Social Impact
• http://nextgencharity.com/talks/sasha_dichter_sma
rt_or_right

35


The 2nd Online Video Assignment
Expectations
– 2-5 minutes
– Explain your business model:
• How the customer “experiences” your product/service
(“here’s how it works…”)
• Why the customer will be willing to pay for your
product/service (instead of the alternative – e.g. a
competitor’s product or some other substitute product)
• How you make money
• How your model achieves social/environmental goals
– Think of this video as a “practice run” for your final pitch
– Use of visual aides is a bonus, but not necessary

36


Next week
• Lecture on the Enabling Environment for Social
Entrepreneurship
• Guest lecture by Jennifer King, Executive Director of
Social Venture Partners Waterloo Region

37

INDEV308 Class 9 - Social Entrepreneurship in the International Development Context

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (8)

Similaire à INDEV308 Class 9 - Social Entrepreneurship in the International Development Context

Similaire à INDEV308 Class 9 - Social Entrepreneurship in the International Development Context (20)

Plus de Social Entrepreneurship

Plus de Social Entrepreneurship (20)

Dernier

Dernier (20)

INDEV308 Class 9 - Social Entrepreneurship in the International Development Context