2. SMEs & Entrepreneurship 2007 Entrepreneurial Solutions to Insoluble Problems

3. Menu 1Introduction 2Our Common Future + 20 3Pressure wave 4 4Government’s roles 5Conclusion

4. 1Introduction

5. Wave 4GovernmentConclusionsIntroduction Who we are

6. Wave 4GovernmentConclusionsIntroduction 3Ps

7. Public Relations, Legal Advisors  Environment Managers, Project Planners  Process and Product Design, Marketing  CEOs, Investor Relations, Boards (e.g. NEDs)  CFOs, Entrepreneurs, Investment Bankers, VCs Where we focus

8. 2

9. Wave 4GovernmentConclusionsIntroduction Brundtland Commission, 1987 –Sustainable development –“Interlocking crises”(e.g. peace, security, environment) –“Security must be sought through change”—build a future that is “more prosperous, more just, more secure”

12. Wave 4GovernmentConclusionsIntroduction Wave 4 –Wave 1: compliance—government regulates –Wave 2: corporate citizenship—government marginalised –Wave 3: focus on MNCs; CC goes global; stalled 9/11/2001—government obsessed by ‘security’ –Wave 4: mainstreaming, creative destruction, new sources of transformative innovation, governments catalyse and incentivise

13. Wave 4GovernmentConclusionsIntroduction Social enterprise –Social entrepreneurship ‘on a roll’ –Potential for breakthrough solutions ‘considerable’ –Money ‘main headache’ –Appetite to partner with business –Role for ‘social intrapreneurs’ –For ‘real system change,’ focus on government and public policy

14. 3Insoluble problems

15. TrendsConclusionsIntroductionWavesCases Wal-Mart

17. GovernmentConclusionsIntroduction Wave 4 Achilles Heel: oil at ~$100 pb/’Peak Oil’ World’s energy needs 50% greater by 2030 (IEA reference scenario) Developing countries accounting for 74%, China + India alone for 45% OPEC’s share of oil production from 42% to 52% PetroChina, sovereign wealth funds Economic insecurity

18. GovernmentConclusionsIntroduction Wave 4 Warming of 4 degrees warming by 2100 > “significant extinctions”, IPCC Fossil fuels are predicted to account for 84% of increase in global energy consumption by 2030 Emissions of carbon dioxide will jump by 57%, 2005-2030 China becomes world’s biggest emitter this year, India the third largest by 2015 Environmental insecurity

19. GovernmentConclusionsIntroduction Wave 4 Changing climate of opinion (GlobeScan for BBC World, 22,000 respondents, 21 countries)

20. GovernmentConclusionsIntroduction Wave 4 Action Needed on Climate Change 22,000 respondents, 21 countries, 2007

21. GovernmentConclusionsIntroduction Wave 4 Political and human rights impact of stronger OPEC countries Impact of ‘Peak Oil’ and instability of e.g. China Refugees and migration Demographics, e.g. ageing 3 billion new people by 2050 Social insecurity

22. 4 Government

23. ConclusionIntroduction Wave 4 Government Office of Social Entrepreneurship –Post Hurricane Katrina … –State/social services overwhelmed –Unprecedented flow of federal/charitable funds –Strong demand for meaningful results –New Orleans ‘Social Entrepreneurship Empowerment Zone’ –NC: low profit, limited liability partnerships (L3C)

24. ConclusionIntroduction Wave 4 Government Elsewhere … Small Business Innovation Grants: all US federal agencies spending more than $100m set aside minimum 2.5% for SBIRs California: Rural Economic Vitality Project, stimulating green building technology, renewable energy, e.g. biofuels Fast Company: Social Capitalists Award Ashoka, Schwab and Skoll Foundation awards + events Roundtables on public policy priorities—and solutions Promotion of public and private sector partnering

25. ConclusionIntroduction Wave 4 Government What social entrepreneurs want –Improve tax incentives –Innovative financial instruments to engage banks and pension funds –Boost relevant education and training –Remove barriers –Retune purchasing criteria

26. Introduction Wave 4GovernmentConclusions Run for office?

27. 5Conclusion

28. Introduction Wave 4GovernmentConclusions Gore on climate challenge ‘What we are going to have to put in place is a combination of the Manhattan Project, the Apollo Project and the Marshall Plan, and scale it globally.’

29. Introduction Wave 4GovernmentConclusions Scaling up

30. Introduction Wave 4GovernmentConclusions Redesigning the system

31. Introduction Wave 4GovernmentConclusions Unleashing entrepreneurship

32. Thank you.

33. Email: elkington@sustainability.com Websites: www.sustainability.com www.johnelkington.com