Introducing Social Entrepreneurship.

1. An Introduction
to
Social
Entrepreneurship
RAF VLUMMENS MFIN CRA
ENTREPRENEURIAL COACH

2. An Entrepreneurial Revolution
1 million new ventures a year in U.S.
85% of the new jobs in SME’s
Product/service introduction rate higher
than ever before
Rate of wealth creation exploding
And it’s a global revolution

3. The New Buzzword:
Social Entrepreneurship

4. Social Entrepreneurship
a social enterprise is an organization that
trades for a social purpose.
Sometimes social enterprises are
described as 'not for profit' as any profit
or surplus generated is used to further
the social objectives of the business.

5. Social Entrepreneurship
The only big difference between
commercial and social
entrepreneurship:
Attribution of the bottomline

6. Social Entrepreneurship
 Traditional Business – one bottom line
 Social Enterprise – up to 4 bottom lines
 Social: improving the quality of life, access to services, and so on for
communities
 Environmental: minimising the enterprise’s own negative impacts, making
improvements
 Economic: increasing employment rates, income levels, business start-ups,
etc
 Financial: generating income and profits to be invested in the other bottom
lines

7. The Cooperative and Social
Entrepreneurship
 Ownership
Members of the coop are the owners
Management
Board of Directors are Members

8. The Cooperative and Social
Entrepreneurship
 the cooperative structure is the ideal
‘corporate’ structure to realize social
objectives
Ownership
Management
Allocation of the bottom line

9. The Process of Social Entrepreneurship?
1. Find an opportunity
2. Develop a business concept
3. Figure out what success means and
how to measure it
4. Acquire the right resources
5. Launch and grow
6. Attain goals

10. Three characteristics of Social
Entrepreneurship
 Social entrepreneurship meets needs unmet
by commercial markets and (usually) the
government
 Social entrepreneurship is motivated by social
benefit
 Successful social entrepreneurship usually
works with, not against, markets

11. Other definitions of Social Entrepreneurship
 Social Enterprises have social and/or
environmental objectives.
 Social Enterprises are businesses looking for
financial independence.
 A Social Enterprise cannot be the subsidiary of a
public sector body.
 Social Enterprises are driven by values – both in
their mission and business practices

12. Social Entrepreneurship
Environmental factors
• Social climate conducive to social
entrepreneurship
• Political climate that facilitates
social innovation
Availability of financial and
nonfinancial resources
Perturbation of the environment
• Political change
• Cultural change
• Economic change
Entrepreneurial
personality traits
Preparation to exploit
opportunities
• Education
• Experience
Social entrepreneurship
process begins
External forces
Internal forces
Environmental factors
• Social climate conducive to social
entrepreneurship
• Political climate that facilitates
social innovation
Availability of financial and
nonfinancial resources
Perturbation of the environment
• Political change
• Cultural change
• Economic change
Entrepreneurial
personality traits
Preparation to exploit
opportunities
• Education
• Experience
Social entrepreneurship
process begins
External forces
Internal forces

13. Social Entrepreneurship
Innovativeness
Education and experience
Achievement orientation
Independence
Sense of control over destiny
Low risk aversion
Tolerance for ambiguity
Entrepreneurial
orientation
Community awareness
And social concern
Socially-entrepreneurial
orientation
Innate characteristics
Innovativeness
Education and experience
Achievement orientation
Independence
Sense of control over destiny
Low risk aversion
Tolerance for ambiguity
Entrepreneurial
orientation
Community awareness
And social concern
Socially-entrepreneurial
orientation
Innate characteristics

14. Social Entrepreneurship
Opportunities for social
entrepreneurs look like threats
and tragedies to others

15. Myths about Social Entrepreneurship
 Social entrepreneurs are anti-business
 The difference between commercial and social
entrepreneurship is greed
 Social entrepreneurs are nonprofit managers
 Social entrepreneurs are born, not made
 Social entrepreneurs are misfits
 Social enterprises usually fail
 Social entrepreneurs love risk

16. Social Entrepreneurship and Cooperatives

17. Social Entrepreneurship and Cooperatives
Grameen Danone Foods Ltd
a Social Business
in Bangladesh

18. Social Entrepreneurship and Cooperatives
Grameen – Danone Foods
 a social business Joint-Venture
 Grameen Bank – prof Mohammud YUNUS
 Danone Foods - France

19. Social Entrepreneurship and Cooperatives
Grameen – Danone Foods
 Bangladesh
 14 % has an income > 4.1 EURO/day (212 Pesos/day)
 11 % has an income between 2.9 and 4.1 EURO/day
 16% has an income between 2 and 2.9 EURO/day
 37 % has an income between 1 and 2 EURO/day (50-100 Pesos)
 22 % has an income < 1 EURO a day

20. Social Entrepreneurship and Cooperatives
Grameen – Danone Foods : Objectives:
To bring health through nutrition at very affordable price for all Bangladeshi children
To improve living conditions of the poorest of the community by involving them in all stages of
the business model (supply, production, sales), creating jobs and improving local competencies
To preserve non-renewable resources as much as possible
To be profitable to ensure economic sustainability

21. Social Entrepreneurship and Cooperatives
Grameen – Danone Foods : a ‘bumpy’ road….
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22. Social Entrepreneurship and Cooperatives
Conclusion

23. Social Entrepreneurship and Cooperatives
0
50
100
150
200
250
300
350
Health Education Religion Social
welfare
Arts and
culture
Subsector
Billionsof1997dollars
1977
1987
1997

24. Social Entrepreneurship and Cooperatives
 Main Challenges for the Future
 Money
 Competition
 Demonstrating effectiveness
 Technology
 Trust
 Human resources
 Public-sector relations

25. Social Entrepreneurship and Cooperatives
 Main Opportunities for the Future
 Demographic shifts
 New philanthropy
 Heightened awareness of sector
 Increased social welfare spending through sector
 Entitlement expansion
 Welfare reform

26. Social Entrepreneurship
Raf Vlummens Mfin, CRA
Entrepreneurial Coach
TheBigBelgian@gmail.com