The presentation discusses social enterprises and provides several case studies from Kenya. It begins by defining key terms like social entrepreneur, social enterprise, and social return on investment. It then presents challenges to starting social ventures and outlines factors for identifying viable business opportunities. The presentation provides examples of successful social enterprises in Kenya, including Honey Care Africa, Kickstart, and Pacis Insurance. It concludes by emphasizing the importance of community involvement in social enterprise models.

1. THE REGIONAL AIDS TRAINING
NETWORK (RATN)
The Capacity Building Mini- Conference,
Kenya.
“A shifting capacity building environment that demands for results”
“Social Enterprises”
Presentation by: David Kairo
Serena Beach Hotel|Mombasa|29th
June 2013

2. Presentation Structure
• Definitions
• Case Studies
• Change Management

3. Water Resources: 2 Locations
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4. Emergence of Social Enterprise
 Financial sustainability pressure on NPO’s
 Recognition of business to tackle social
problems
 Outsourcing by Government e.g. waste
management
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5. Education…
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6. Definitions
• There is NO single acceptable definition of social
enterprise
• The consistent theme in all definitions is that social
enterprises are businesses that trade for the
primary purpose of creating a positive and lasting
impact on society.
• The East Africa Social Enterprise Network (EASEN) is
a regional institution driving the SE agenda
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7. Definitions cont’d
a. Social entrepreneur: One who" builds strong and
sustainable organization, which are either set up as
not-for-profits or companies”
b. Social Enterprise: “Business trading for social and
environmental purposes.”
c. What is social economy: “ An economy that
contributes to improved quality of life for all in the
community rather than only a privileged few. It is
built on economic justice and democratic
participation.”
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8. Definitions cont’d
d. Social Return on Investment (SROI): An
approach for measuring and accounting
for a broader concept of value i.e.
measure of change in relation to social,
environmental, economic and other
outcomes.
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9. Why would you want to change your business model?
 Identify “risk” factors and how to deal with them.
 Check adequacy of starting capital
 Are projections realistic
 Check business link to organizational goal
 Adequacy of systems, skills and staff to manage the
business
Which of the above had you not considered?
Organisational Preparedness
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10. VISION, MISSION AND VALUES
Adapted form Private Sector Growth Programme Toolbox
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11. Impact/Profitability Matrix
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12.  Legal form
 Rethink tax obligations
 Cost allocation
 Internal Conflicts/culture clash
 Remuneration and incentive schemes
 Growth risk leading to mission drift
 Effect on competitors and regulators
 Realization of triple bottom line i.e. financial, social and
environmental
Which is difficult to deal with?
Business Effect on Organization
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13. Business Opportunity?
Opportunity: A perceived means of generating economic
value (SROI) that previously has not been exploited and is
not currently being exploited by others.
Characteristics of a viable opportunity:
1.Potential economic value: the capacity to generate SROI
2.Innovation: something that did not exist previously
3.Perceived desirability: moral and legal acceptability in
society
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14. Opportunity Checklist
Why is your client going to pay you (substantially) more
for the product you are providing than it will cost you to
produce?
Who is the target customer?
What are their needs,
What are their alternatives? (Competition)
NB.
Do you have a sustainable competitive advantage?
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15. What three or four things must go right in order to
succeed?
a.Is our management team capable of making it
happen?
*Timing considerations
a. Is the window of opportunity broad or narrow?
b. Is timing critical to capturing market share?
c. Who else is trying to get there first?
Critical Success Factors
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16. 1. Identifying viable business ideas
2. Thinking money/capital is the problem
3. No top management support
4. Hurry/Urgency to see results/profits
5. Writing proposals easier than growing enterprises
6. Assumption that funding is ‘ever present’
7. Lack of skills and training in entrepreneurship
8. Limited and stretched staff
9. Resistance from beneficiaries to pay for services
10. Lack of clear plans and goals
11. Limited Access to appropriate finance
Challenges in Starting Ventures
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17. News…
Posted Monday, March 25 2013 at 00:30
Out of the world’s7 billion people, 6 billion have mobile
phones compared to only 4.5 billion people who can boast
having access to a working toilet.
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18. ??Same Problem, Diff Solution
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19. Kenya Red Cross Financials
Adapted from the annual report and financials statements 2011
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2011 (Kshs) 2010 (Kshs)
Income 476,9m 296.4m
Expenditure (357.6m) (287.8m)
Surplus 269.7m 8.6m

20. ‘Ambulance’ /E-Plus
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21. Boma Hotels
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22. Kickstart cont’d
Impact to Date
Over:
64,000 new businesses started
800 new businesses per month
$79 million a year in new profits and wages generated by
the new businesses
New revenues equivalent to more than 0.6% of Kenya’s
GDP and 0.25% of Tanzania’s DGP
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23. Case Studies
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24. Pacis Insurance
All profits made by the company go to sponsor, the
various arms of the church, that then reinvest the money
back into the community through numerous projects.
There are an estimated 7.5 million baptized Catholics in
Kenya, approximately 33% of the population.
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25. Honey Care
• Honey Care Africa was established in 2000 as a private
sector social enterprise to promote sustainable
community-based beeping in Eastern Africa.
• It collects the honey at the farm gate and pays for it on the
spot, then processes, packs and sells the honey for profit
through supermarket chains and other industrial clients.
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26. Honey Care Model- Bee Keeping
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27. The Overall Market System Model –
Adapted from Private Sector Growth Programme Toolbox
Macro economy
Monetary and fiscal
control
Trade, industrial,
financial sector
policies
Trade
Aid
Trends and tastes
Technology
Information
Government
services
Health and education
Utilities
Infrastructure
Security services
Society & culture
Demographics
Consumer tastes
Attitudes towards business
Climate &
Environment
Natural resources
Weather
Agricultural cycles
Government &
Politics
Legislative, policy
Making process
Judiciary
Security & stability
Resources Markets
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28. Six Silent Strategy Killers…
• Ineffective management team
• Top-down management style
• Unclear strategy and priorities
• Inadequate Leadership skills
• Poor communication across borders
• Poor vertical communication 28© 2013 CE&L

29. Conclusion
Community Involvement model is key
Possible challenges
- Access to fixed assets
- Perceived a s ‘foreign’, rich pockets
- Poor communication (buy in)
- Opposition by politicians
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30. Change Management
Exercise
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31. Conclusion
”Social entrepreneurs don’t want to
help. They want to change the world”.
Bill Drayton
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32. Website References
EASEN Website: www.easentwork.net
One Health Organisation: Website http://onehealthorganisation.org/social-enterprise-emergence/
PennSEM Website: http://www.pennsem.org/the-emergence
Skoll world forum : http://skollworldforum.org/2010/09/28/the-global-emergence-of-social-enterprise/
of-social-entrepreneurship-in-china/
Wikipedia: http://en.wikipedia.org/wiki/Social_enterprise
http://ecotact.org/toilets-and-phones/
http://www.thecoolist.com/floating-hotels-10-aquatic-escapes-of-luxury-and-adventure/
http://www.mikekujawski.ca/2009/03/16/latest-mobile-phone-statistics-from-africa-and-what-this-
means/
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33. Questions and Comments
Contact Details
David Kairo
Manager, Centre For
Entrepreneurship and Leadership
(CE&L)
KCA University, Kenya.
EASEN Board Member
Websites: www.kca.ac.ke &
www.easenetwork.net
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