SEEP Annual Conference October 2006 Social Enterprise: A Market Based Approach to Poverty Alleviation SEEP Network.

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Presentation transcript:

SEEP Annual Conference October 2006 Social Enterprise: A Market Based Approach to Poverty Alleviation SEEP Network

SEEP Annual Conference October 2006 State of the Practice Emerging as a field Practiced for years Fragmented Transcends several sectors Few methodologies and industry-own resources Until recently private funding Receiving lots of media attention Universities & research institutes

SEEP Annual Conference October 2006 A social enterprise is any business venture created for a social purpose— mitigating/reducing a social problem or a market failure—and operating with the financial discipline, innovation and determination of a private sector business - Virtue Ventures 2005 Working Definition of Social Enterprise

SEEP Annual Conference October 2006 Social Enterprise Characteristics Social Purpose - created to generate social impact and change by solving a social problem or market failure Enterprise Approach – uses business vehicles, entrepreneurship, innovation, market approaches, strategic-orientation, discipline and determination of a for-profit business Social Ownership – public good; stewardship, rather than legal structure

SEEP Annual Conference October 2006 Social Enterprise Design is Driven by Social Concern Rather than Financial or Market Opportunities The social problem IS the business opportunity

SEEP Annual Conference October 2006 Reduce social problems w/enterprise Social Problem 1. Food insecurity 2. Deforestation 3. Subsistence farming 4. Limited economic opportunities 5. Hunger 6. Barriers to employment Social Enterprise 1. Agricultural products store & bakery 2. Ecotourism 3. Natural products 4. Tool Library & School 5. Restaurant 6. Landry, housecleaning, thrift, etc.

SEEP Annual Conference October 2006 Well-Known Examples Aravind Eye Hospital Kickstart echopal Equal Exchange Greyston Bakery HealthStore Grameen

SEEP Annual Conference October 2006 Social Enterprise is a Hybrid Purely PhilanthropicHybridPurely commercial Type of Organization Traditional NGO Social Enterprise Traditional for-profit MotivesAppeal to goodwill Mixed motives Appeal to self-interest MethodsMission-driven Balance of mission and market Market-driven GoalsSocial value creationSocial and economic value creation Economic value creation Destination of Income/Profit Directed toward mission activities of NGO (required by law or organizational policy) Reinvested in mission activities or operational expenses, and/or retained for business growth and development Distributed to shareholders and owners Adapted from Gregory Dees; and Lee Davis and Nicole Etchart.

SEEP Annual Conference October 2006 Employment Model Market Social Enterprise Clients Social Impact Financial Sustainability Product

SEEP Annual Conference October 2006 Entrepreneur Model Market Social Impact ClientSocial Enterprise Financial Sustainability Product Services

SEEP Annual Conference October 2006 Fee-For-Service Model Services Social Enterprise Sustainability Clients Social Impact

SEEP Annual Conference October 2006 Market Intermediary Model Financial Sustainability Social Impact Clients Social Enterprise Market

SEEP Annual Conference October 2006 Cooperative Model Market Social Enterprise Clients Social Impact Financial Sustainability Product Market

SEEP Annual Conference October 2006 Service Subsidization Model Social Impact Financial Sustainability Social Enterprise Clients Market Services Social Impact

SEEP Annual Conference October 2006 Web Resources Ashoka and Skoll Centre The Center for the Advancement of Social Entrepreneurship, Duke ( NESsT ( Ashoka ( REDF ( Virtue Ventures Social Enterprise Reporter ( Social Edge ( Schwab Social Entrepreneurs ( World Resources Institute ( Partnership on Nonprofit Ventures ( William Davidson Institute University of Michigan ( Skoll World Forum on Social Entrepreneurship Oxford University

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