A primer on Social Entrepreneurship with a narrative on their Mission and Nature, India specific Business models and Impact assessment practices. A few cases and Best practices from select social enterprises.

1. “Social and Commercial
Entrepreneurship”
Mission
Nature
Business models
Impact assessment practices
Caselets
Best practices
Dr. Shinu Abhi
Fulbright Fellow
REVA University
shinuabhi@gmail.com
11/4/2019 SHINU ABHI

2. Impetus – OXFAM reports
85
$2.3 Trillion
so far spent by the world’s wealthiest
nations on poverty reduction in the
past fifty years.
Individuals in the world have a combined wealth of
46% of global wealth
$110
Trillion
0.7 percent of the world's wealth is with
bottom half of the population
$1.7 Trillion
4 Billion
out of 7.2 Billion live
with $ 2.50 a day
=
2

3. India – Land of Diversity
2nd highest
population
1.2 Billion
Largest democracy
800 m
120 m first time
voters
10th largest economy
1.842 trillion USD
Mobile phones
900 Million
8 major religions
4 originated in India
30% earn less than
$1.25 a day
Literacy rate
71%
Female Infanticide
Gender ratio
1000:911
50 Million more men
than women

4. Framework of Discussion
4
Mission and Vision of
the Enterprise
Business Model
Performance
and Impact
Intentions to startup
Caselets
SEV - Forus Healthcare
SEV – GPS Renewables
SEV – SELCO Solar
Hybrid – EnAble India
NGO – Dream a Dream
Best Practices
Q&A

5. Social and Commercial Entrepreneurs (SEVs & EVs)
+
SEVs are corrected version of EVs!
(Grassl, 2012)
5

6. Areas of Difference SEVs EVs
Mission Social Financial
Nature
Demographics of ventures and founders,
funding sources and patterns, challenges
Business Models
Customer segments, Value proposition,
Channel, Infrastructure, resources, cost and
revenue
Impact
Social, financial and
environmental
Financial
6
SEVs and EVs similar or different or both?
Based on primary research among SEVs and EVs

7. 7

8. Mission
Statements
SEVs EVs
SEVs EVs
Top words Frequency Rank Top words Frequency Rank
Rural 19 1 World 18 1
Sustainable 12 2 People 14 3
Communities 10 3 Mobile 14 3
Livelihood 8 4 Business 12 4
Poor 6 5 Technology 10 5 8

9. A few examples of Mission Statements
• SELCO Solar: “To provide sustainable energy services to the poor”
• Kautilya Phytoextracts Pvt.Ltd: “Do well by doing well”
• Onergy: “Empowering opportunities for sustainable & equitable
development”
• Industree Skill Transform Pvt.Ltd: “Provide enabling training and
skills to artisans to enhance their incomes, work with dignity and pride
and demonstrate the growth and opportunities that would attract the
next generation to work in the artisanal space”
• Wellspring Career School: “Education for every Child, Employment
for every Adult”
• CDI Ltd: “Use technology to transform lives and develop communities”
• Servals Automation Ltd: “To bring appropriate technology to the
bottom of pyramid to enhance quality of their life” 9

10. Top Values
SEVs
Transparency
Sustainability
Social responsibility
SEVs are more empathic towards social issues since they are
motivated by extrinsic reasons than EVs.
EVs
Integrity
Customer centricity
Honesty
Inspirations
10

11. Inspirations to start-up – A few quotes
• I am from a farmer’s family and always witnessed irrigation issues in
operating the pumps since childhood. My grand father had his right leg cut-
off below knee as he got hurt while walking at midnight to the pump which
was located 1 km away.
• Eastern India is highly energy deficient. Grid electricity is unable to meet the
demand, besides being environmentally damaging. Development has
excluded and disempowered a large number of people. This situation is
unacceptable.
• Children who drop out from school in my village affect my mind.
• To prevent migration of youth from villages to cities. Provide jobs to the
people where they live instead of bringing people to the jobs
• I have been involved as a practitioner of ICT for Rural Dev, and have
incubated many bizs. Its been an evolution of ideas-No one person inspired
me, but Dr Kurien of Amul and Prof Mohd Yunus are close parallel as icons.
• While interacting with various microfinance institutions in India, I realized
that they are not doing anything actively to help create livelihood, while
there is need for someone to address this need for the rural youth.
11

12. SEVs and EVs – SECTORS
24.4
17.9
14.1
7.7
5.1
3.8 3.8 3.8 3.8
2.6 2.6 2.6
1.3 1.3 1.3 1.3 1.3 1.3
0.0
7.8
4.7
21.9
0.0
25.0
3.1
1.6
0.0 0.0
17.2
0.0 0.0
7.8
4.7
3.1
1.6
0.0
1.6
0
5
10
15
20
25
30
EV SEV
Sector
SEVs EVs
Agriculture IT & ITES
Education Consultancy
Energy Education
12

13. Funding sources
0
10
20
30
40
50
60
70
80
90
100
EV SEV
Internal funding than external sources
13

14. Top Challenges
EV SEV
Major challenges Rank Major challenges Rank
Marketing 1 Obtaining external finance 1
Obtaining external finance 2 Government regulations 2
Government regulations 3 HR Management 3
Sales 4 Marketing 4
HR Management 5 Sales 5
Productions and operations 6 Internal finance 6
Internal finance 7 Supply Chain 7
Legal 8 Productions and operations 8
Others 9 Legal 9
Supply Chain 10 Others 10
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6 EV SEV
14

15. Redefining SE – Practitioner’s
Perspective
“A social entrepreneur is a person, governed by noble values and social
motives, identifies a pressing social problem(s), develops a viable
business solution(s) and builds an enterprise to bring in the desired
social and environment impact with financial sustainability.”
Characteristics
Passion
Empathy
Fortitude
Sensitivity
Business acumen
Social Problem(s)
& Target groups
Bottom of the
pyramid,
Underprivileged,
Rural
Lower income –
households,
Women, youth &
Kids, Farmers
Business
Solution(s)
Affordable
Viable
Adaptive
Scalable
Sustainable
Technology enabled
Innovative
Multiple
impact(s)
Social
Financial
Environmental
Cultural
15

16. 16

17. 17
Osterwalder’s Business Model
(Osterwalder, Pigneur, & Tucci, 2005; Osterwalder & Pigneur, 2010)

18. SE – Business Model
18

19. India specific business models
• Bottom of the pyramid models
• Frugal innovation or Gandhian Engineering (Jugaad)
• Technology for the masses
• Economical yet sustainable models
• NGO – Hybrid model
19

20. Business Models of SEVs and EVs
Customer
Relations
People Centricity
Price and Cost
Sustainability
ScalabilityCustomer Value
Channel
Infrastructure
Revenue Model
EV SEV
SEVs score higher in customer relations and much
lower in infrastructure and resources, channel efficacy
and revenue model than EVs.
20

21. Doing Well by Doing Good
The study showed no significant
relationship between current status of the
venture (profitable, break-even and deficit)
and the nature of the venture (SEV or EVs).
44.9
25.6
29.5
31.3
28.1
40.6
0
5
10
15
20
25
30
35
40
45
50
Profitable Break-even Deficit
EV SEV
21

22. 22

23. Social Impact Financial Impact Environmental Impact
Happiness index
Progress out of poverty index
Number of customers
Number of jobs created
Number of partners engaged
Increase in income (for
customers & employees)
Personal and professional
growth studies
Lives impacted
Impact of training: before and
after Hours of training
Network generated
Feedback from stakeholders
Revenue generated
per customer vs.
expenses
Orders completed
Income generated
Number and amount
of loans given
Reach and
profitability of
products
Units of energy / fuel
saved
Unit is clean energy
generated
Units of water saved
Carbon Emission Saved
Quantity of waste
prevented from ending
in landfills
GHG emission reduced
23
Impact Measurement Tools & Triple Bottom Lines of SEVs

24. Impact Measurement Tools & Triple Bottom Lines of EVs
Financial Social Environmental
Profit after Tax (PAT)
Earnings before interest and tax
(EBIT)
Liquidity, Revenue
Gross margins, Profitability
Turnover, No. of customers
Number of product sold, Quantum
of business
Volume of transactions
Cost of realization of revenue
No. of new user acquisition
R&D expenditure
Feedback from
stakeholders
Happiness index
Employment generated
Employee engagement
New learnings /capabilities
Quality of life studies
Before and after training
studies
Traffic to website
Patents filed
Water / electricity
saved
Reduction in CO2
emissions
Litres of diesel
saved
24

25. 25

26. Forus Health Pvt. Ltd
Founders: K.Chandrasekhar, Dr.
Shyam Vasudeva Rao
Sector: Healthcare
Year started: 2010
Number of Full time Employees: 65
Part time: 30
Annual Turnover: $7,37,800
Start-up capital: $85,000
Number of customers: 400,000
States of operation (India): All states
except a few North east states
26
• Created a “a single, portable,
intelligent, non-invasive, eye pre-
screening device” called “3netra”
• Solving “avoidable blindness” on
account of a neglect of cataracts,
glaucoma, refraction problems,
corneal problems and diabetic
retinas
• If any anomalies are found
connects the patient to a doctor via
telemedicine app “foruscare”.

27. Highlights
27
Accessibility
• Through primary / secondary / tertiary
care centers and kiosks
Affordability
• Per use cost:> $2 per patient
Innovation
• Portable, non-invasive, can be
mounted on a motor bike
Revenue Model
• Profit sharing with centers
• Installation charges
Impact Measured : No. of installations, no. of tests, no. of eyes saved

28. Green Power Systems
Founder: Mainak Chakraborty
Sector: Waste management / clean
energy
Year started: 2010
Number of Full time Employees:
12
Annual Turnover: $ 595,000
Start-up capital: $30,600
Number of customers: 20,000
farmers
States of operation (India):
Karnataka, Tamil Nadu, Andhra
Pradesh
• Environmental Entrepreneur
• BioUrja –a bio waste-to-energy solution
for urban establishments.
• Bio-CNG can be directly used for cooking
and thus help save on commercial LPG
expenses
• Bio-CNG can be used for generating
electricity
• Modular design with the bulkier parts kept
very simple so that they can be easily
outsourced in the future, without giving
away the technology, as the "heart" of the
solution is in the electronics, which will be
built by GPS. 28

29. Highlights
29
Innovation
• Modular installation, clean, compact,
no water,
• Heart of the solution – Electronics
Promise
• Per 100 Kg of bio-waste, 7 Kg of LPG
Affordability
• Recurring cost of producing 1 kg of
LPG is less than $ 0.13
Revenue Model
• Installation charges
• Maintenance fee
Impact Measured : No. of installations, waste prevented from ending up in
landfills, GHG emissions reduced, customer centric parameters

30. SELCO Solar Pvt.Ltd
Founder: Dr. Harish Hande
Sector: Energy
Year started: 1995
Number of Full time Employees: 211
Part time: 40 Volunteers: 30
Annual Turnover: $3,400,000
Start-up Capital: $17
Number of customers: 3,400,000
States of operation (India): Karnataka,
Andhra Pradesh, Tamil Nadu and Gujarat
• Dr. Harish Hande – Recipient of
Magsaysay award
• Sustainable energy solutions
mainly solar and biomass – Off-grid
• Bundling Model
• Customized solutions
• Income based finance options
• Energy service centers operated by
micro-entrepreneurs
30

31. Highlights
31
Innovation
• Linked cash flow based financial products
for the informal sector through rural banks
• Incubates micro entrepreneurs who
maintain solar charging centers and energy
service centers
• Mentor other sustainable energy solution
providers through its foundation
Accessibility
• Door-to-door delivery
• Customized services
Revenue Model
• Installation charges
• After sales service charges
Impact Measured : No. of installations, increased productivity and quality of life

32. 32

33. Improves the quality of lives of children from vulnerable backgrounds
through non-traditional education to allow them to explore, innovate and
build important life skills” through art, music, theatre and sports to build
critical life-skills and to provide an avenue for professional careers.
33
• Target group – Underprivileged children
• Continuous innovation in programs
offered
• Volunteer based
• Partner with schools and other NGOs
• Philanthropic sources (mainly institutions)
for funding on a sustainable basis
• Frugal expenditure / cost structure

34. “Empower persons with disability”
34
• Training and placement services for
PWDs
• Standardised and customised training
modules
• Sensitising training to companies
• Lobbying with Government for
inclusion of PWDs
• Institution and individual donors
• Hybrid model (new) – To charge fee
for training from companies

35. Top 10 Best Practices
35
Input
Market Research
with Empathy
Outcome
Environmentally
responsible
products
Integrated
solutions
Creating Micro
Entrepreneurs
Social Impact
Earning Trust
and improving
lives
Process
Locally available
resources
Adaptive
Technology
Right
partnership
Access to
Finance
Process

36. Success Formula
• Visionary founder(s) with passion
• Low cost highly skilled talent
• Simple, affordable, bundled technology
• Customized solution
• Low cost distribution using low cost sales force
• Combination of high tech and low tech strategies
• Large volumes, low prices
• Scale up fast while remaining very close to the customer
• Good stakeholder management

37. 4 Questions to be asked
37
1. What SOCIAL VALUE / IMPACT are you creating?
2. What is your BUSINESS MODEL?
3. How do you SCALE?
4. How do you stay SUSTAINABLE?

38. Conclusion
Passion with a
purpose
SEVs have noble
mission, values and
empathy
SEVs are as
profitable as EVs
SEVs have high
“social” quotient
Revenue Model is
the Largest
Differentiator
Business Model is more
important to profitability of
the venture than being EV
or SEV
Best Practices to
create more social
impact
38

39. 39