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Could social enterprise reform
         capitalism and solve some of the
            world’s biggest problems?
        SOCIAL ENTERPRISE BY NUMBERS
© Copyright 2012 London Business School
THE THREE Ps

03
Many social entrepreneurs pursue a triple bottom
line, aiming to deliver social, environmental and
economic benefits (people, planet, profit) through
the actions of the social enterprise.


 BUSINESS STRATEGY REVIEW                        1
GLOBAL ASSOCIATIONS

1981
At the beginning of the 1980s, Bill Drayton founded Ashoka, a global
association of social entrepreneurs. Since then this US headquartered
organisation has elected some 3,000 leading social entrepreneurs as
Ashoka Fellows, in over 70 countries, providing them with living stipends
and professional support. Ashoka says that just over 80% of their
Fellows have “changed a system at a national level in at least one way
within 10 years of election”.
Ashoka.org


    BUSINESS STRATEGY REVIEW                                        2
£600MILLION
 Big Society Capital, the world's first 'social investment
 market builder' was launched by the UK government in April
 2012. The independent organisation was capitalised with
 £600 million to invest in social enterprise via social
 investment finance intermediaries.
 bigsocietycapital.com




BUSINESS STRATEGY REVIEW                                      3
“Social investment empowers
                           social entrepreneurs to help
                           those whom our society leaves
                           behind.”
                           Sir Ronald Cohen, Chair of Big Society Capital




BUSINESS STRATEGY REVIEW                                                    4
Social workforce
       800,000
       Number of people working in UK social enterprises.
       Annual Survey of Small Businesses, UK 2010




BUSINESS STRATEGY REVIEW                                    5
£91.7BILLION
  With little consensus globally on how terms like social
  enterprise should be defined, or even if they are the
  appropriate terms at all, sector figures vary considerably.
  Some sources, for example, suggest there are about
  213,000 broadly defined social enterprises in the UK,
  contributing £91.7bn to GDP each year.
  deltaeconomics.com




BUSINESS STRATEGY REVIEW                                        6
MEASURED RESULTS
 £24BILLION
 The amount that social enterprise is said to contribute
 annually to the UK economy measured as Gross Value Added.
 Annual Survey of Small Businesses, UK 2010




BUSINESS STRATEGY REVIEW                                     7
3.3MILLION
       The number of NGOs in India. Between 2006 and 2009
       numbers grew by 10% a year.




BUSINESS STRATEGY REVIEW                                    8
“A hand up, not a hand out.”
                           Big Issue mission Statement




BUSINESS STRATEGY REVIEW                                  9
TRADING PLACES
 $250MILLION
 Since its formation in 1999, the US-based Skoll Foundation has
 awarded over $250 million to individual social entrepreneurs,
 social enterprises and other “organisations creating a brighter
 future for underserved communities”. The Foundation was
 started by Jeff Skoll, philanthropist, social entrepreneur, and
 former president of eBay.
 skollfoundation.org



BUSINESS STRATEGY REVIEW                                       10
MEASURED RESULTS
$11.35BILLION
The total amount of money disbursed by social enterprise Grameen
Bank in microcredit loans as of October 2011. The Bangladesh-based
bank was started in the 1970s by Nobel Peace Prize winner
Muhammad Yunus, a pioneer of the microcredit methodology. Of the
8.35 million borrowers, 96% are women, and the borrowers own 95%
of the bank. The loan recovery rate is just over 96%.
grameen-info.org



 BUSINESS STRATEGY REVIEW                                    11
Trading places
The number of subscribers to Grameenphone's mobile phone
network in Bangladesh (one of the world's poorest nations). The
endeavours of this social enterprise mean that 99% of the
country's population, much of it rural, is within its EDGE/GPRS
enabled network coverage.
grameenphone.com




BUSINESS STRATEGY REVIEW                                      12
MONEY men
1944
Some argue that the origins of social enterprise lie in the groups like
the Diggers Protestant nonconformists led by Gerrard Winstanley in
England in the 17th century. A more obvious connection, though, is
with the Rochdale Society of Equitable Pioneers, founded in 1844,
the prototype for the co-operative movement.
forbes.com/billionaires




  BUSINESS STRATEGY REVIEW                                         13
PLAN B
+500
The number of certified B Corporations across 60 industries in
the United States. Benefit Corporations aim to benefit society
as well as shareholders.
grameenphone.com




BUSINESS STRATEGY REVIEW                                         14
687 MILLION
There are 687 million mobile phone connections in Africa and
937 million in India. Of the six billion mobile subscriptions, some
3.4 billion are in low- and middle-income economies.
grameenphone.com




BUSINESS STRATEGY REVIEW                                         15
ENTERPRISING NUMBERS
68,000
The approximate number of social enterprises in the UK economy.
Annual Survey of Small Businesses, UK 2010




BUSINESS STRATEGY REVIEW                                    16
This report was part of Business Strategy
   Review, Volume 23 Issue 4 - 2012
   Visit the website www.london.edu/bsr




BUSINESS STRATEGY REVIEW                       17

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Could social entreprise reform capitalism?

  • 1. Could social enterprise reform capitalism and solve some of the world’s biggest problems? SOCIAL ENTERPRISE BY NUMBERS © Copyright 2012 London Business School
  • 2. THE THREE Ps 03 Many social entrepreneurs pursue a triple bottom line, aiming to deliver social, environmental and economic benefits (people, planet, profit) through the actions of the social enterprise. BUSINESS STRATEGY REVIEW 1
  • 3. GLOBAL ASSOCIATIONS 1981 At the beginning of the 1980s, Bill Drayton founded Ashoka, a global association of social entrepreneurs. Since then this US headquartered organisation has elected some 3,000 leading social entrepreneurs as Ashoka Fellows, in over 70 countries, providing them with living stipends and professional support. Ashoka says that just over 80% of their Fellows have “changed a system at a national level in at least one way within 10 years of election”. Ashoka.org BUSINESS STRATEGY REVIEW 2
  • 4. £600MILLION Big Society Capital, the world's first 'social investment market builder' was launched by the UK government in April 2012. The independent organisation was capitalised with £600 million to invest in social enterprise via social investment finance intermediaries. bigsocietycapital.com BUSINESS STRATEGY REVIEW 3
  • 5. “Social investment empowers social entrepreneurs to help those whom our society leaves behind.” Sir Ronald Cohen, Chair of Big Society Capital BUSINESS STRATEGY REVIEW 4
  • 6. Social workforce 800,000 Number of people working in UK social enterprises. Annual Survey of Small Businesses, UK 2010 BUSINESS STRATEGY REVIEW 5
  • 7. £91.7BILLION With little consensus globally on how terms like social enterprise should be defined, or even if they are the appropriate terms at all, sector figures vary considerably. Some sources, for example, suggest there are about 213,000 broadly defined social enterprises in the UK, contributing £91.7bn to GDP each year. deltaeconomics.com BUSINESS STRATEGY REVIEW 6
  • 8. MEASURED RESULTS £24BILLION The amount that social enterprise is said to contribute annually to the UK economy measured as Gross Value Added. Annual Survey of Small Businesses, UK 2010 BUSINESS STRATEGY REVIEW 7
  • 9. 3.3MILLION The number of NGOs in India. Between 2006 and 2009 numbers grew by 10% a year. BUSINESS STRATEGY REVIEW 8
  • 10. “A hand up, not a hand out.” Big Issue mission Statement BUSINESS STRATEGY REVIEW 9
  • 11. TRADING PLACES $250MILLION Since its formation in 1999, the US-based Skoll Foundation has awarded over $250 million to individual social entrepreneurs, social enterprises and other “organisations creating a brighter future for underserved communities”. The Foundation was started by Jeff Skoll, philanthropist, social entrepreneur, and former president of eBay. skollfoundation.org BUSINESS STRATEGY REVIEW 10
  • 12. MEASURED RESULTS $11.35BILLION The total amount of money disbursed by social enterprise Grameen Bank in microcredit loans as of October 2011. The Bangladesh-based bank was started in the 1970s by Nobel Peace Prize winner Muhammad Yunus, a pioneer of the microcredit methodology. Of the 8.35 million borrowers, 96% are women, and the borrowers own 95% of the bank. The loan recovery rate is just over 96%. grameen-info.org BUSINESS STRATEGY REVIEW 11
  • 13. Trading places The number of subscribers to Grameenphone's mobile phone network in Bangladesh (one of the world's poorest nations). The endeavours of this social enterprise mean that 99% of the country's population, much of it rural, is within its EDGE/GPRS enabled network coverage. grameenphone.com BUSINESS STRATEGY REVIEW 12
  • 14. MONEY men 1944 Some argue that the origins of social enterprise lie in the groups like the Diggers Protestant nonconformists led by Gerrard Winstanley in England in the 17th century. A more obvious connection, though, is with the Rochdale Society of Equitable Pioneers, founded in 1844, the prototype for the co-operative movement. forbes.com/billionaires BUSINESS STRATEGY REVIEW 13
  • 15. PLAN B +500 The number of certified B Corporations across 60 industries in the United States. Benefit Corporations aim to benefit society as well as shareholders. grameenphone.com BUSINESS STRATEGY REVIEW 14
  • 16. 687 MILLION There are 687 million mobile phone connections in Africa and 937 million in India. Of the six billion mobile subscriptions, some 3.4 billion are in low- and middle-income economies. grameenphone.com BUSINESS STRATEGY REVIEW 15
  • 17. ENTERPRISING NUMBERS 68,000 The approximate number of social enterprises in the UK economy. Annual Survey of Small Businesses, UK 2010 BUSINESS STRATEGY REVIEW 16
  • 18. This report was part of Business Strategy Review, Volume 23 Issue 4 - 2012 Visit the website www.london.edu/bsr BUSINESS STRATEGY REVIEW 17