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Social entrepreneurship

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The lecture attempts to gather ideas and examples from elsewhere in the world to local examples: Muhamad Yunus of Grameen Bank and Dr. V of Aravind Hospital from India. They were able to build large and effective organizations serving millions and the poor, while not maximizing profits. In the Philippines, Ateneos Dr. Lavina is a pioneer in social entrepreneurship, an Ashoka fellow and has inspired a lot of young people do such great projects as Rags to Riches, Hapinoy. Then there is the world renowned Illac Diaz.

Even the great thinker on competitiveness, Prof Michael Porter,,,writes under the CSV concept that values must be shared by the business and the community where the business is situated.

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Social entrepreneurship

  1. 1. Social Entrepreneurship Lecture for Entrepreneurship Students at the Ateneo Graduate School of Business
  2. 2. Before, NGOs and charities were “cash burn” affairs! Donor fatigue resulted in lower fund generation and total fund shutdown!
  3. 3. Difficulties of NGO’s <ul><li>Drying up of source of funds from USA and Europe due to their own financial crisis and needs; </li></ul><ul><li>Most of executive time spent on </li></ul><ul><li>fund generation </li></ul>
  4. 4. Cash burn
  5. 5. Donor Fatigue
  6. 6. Battling their own crisis at home…
  7. 7. Japan’s earthquake and tsunami
  8. 8. Now the donors also need aid
  9. 9. What is the future for the NGO?
  10. 10. New business model needed: <ul><li>Sustainability </li></ul><ul><li>Profit motive needed to support </li></ul><ul><li>activities </li></ul><ul><li>From purely non profit to profit </li></ul>
  11. 11. From NGO, social business to PMB NGO (non-profit) NGO (for-profit) Social Enterprise Social Business Business Enterprise CSR Profit Maximization Business (PMB) Business Enterprise
  12. 12. Social Entrepreneurship <ul><li>“ Any creative and innovative solution applied to solve social problems” (Mohammad Yunus, 2007) </li></ul><ul><ul><li>It involves social mission </li></ul></ul><ul><ul><li>Profit and/or entrepreneurial processes </li></ul></ul>
  13. 13. Origin <ul><li>.. started by Ashoka, founded in l980 by Bill Drayton </li></ul>
  14. 14. Social Entrepreneurship <ul><li>“ Search for approaches to move poor people out of poverty beyond welfare-based safety nets.” </li></ul><ul><ul><li>No more charities </li></ul></ul><ul><ul><li>Sustainability </li></ul></ul><ul><ul><li>Profits for non profits </li></ul></ul>
  15. 15. Social Entrepreneurship <ul><li>CSR – corporate social responsibility </li></ul><ul><li>CSV – corporate shared value </li></ul><ul><ul><li>Human Nature </li></ul></ul>
  16. 16. Social Business <ul><li>The triple bottom line </li></ul><ul><ul><li>PEOPLE </li></ul></ul><ul><ul><li>PROFIT </li></ul></ul><ul><ul><li>PLANET </li></ul></ul><ul><li>BOP – Bottom of the Pyramid </li></ul>
  17. 17. BOP – Bottom of Pyramid A-B 9% C 20% D-E 31% F 40% Living on less than $2 per day Above poverty threshold Living on less than $1 per day
  18. 18. Banker to the poor
  19. 19. Grameen Bank
  20. 20. Nobel Prize Winner: Grameen Bank and Prof. Yunus
  21. 21. Other Grameen Businessess
  22. 22. Grameen Phone
  23. 23. Danone Foods
  24. 24. Grameen Shakti
  25. 25. Aravind Eye Care Hospital
  26. 26. Dr. V the founder
  27. 27. Wanted to be the McDo of eyecare…
  28. 28. Goal: to do a million cataract operations at a very low price Using assembly line operations methods and economies of scale
  29. 29. Modern and innovative…
  30. 30. Aravind Research Center
  31. 31. Dr. V isionary
  32. 32. Using satellite clinics to gather patients for a central operating ctr
  33. 33. Using low wage high school grads as paramedics
  34. 34. Now owns cataract lens factory
  35. 35. Social Entrepreneurship in the Philippines
  36. 36. The Jesuits and Ateneo University are Leaders in Social Entrepreneurship
  37. 37. Ateneo School of Government
  38. 38. Dean Antonio Lavina Ashoka fellow and a pioneer in social entrepreneurship in the Philippines
  39. 39. Rags2Riches: Uplifting the lives of families at Payatas garbage dump
  40. 40. Rajo Laurel’s Designer Rags and Bags
  41. 41. Innovation in rags
  42. 42. R2R in high fashion
  43. 45. Being a man for others
  44. 47. Echo store by Chit Juan
  45. 49. Hapinoy by Mark Ruiz
  46. 52. Human Nature by Ana Menoloto Wills
  47. 54. Mr Ilac Diaz, social entrepreneur of My Shelter Foundation
  48. 55. <ul><li>Mr Ilac Diaz did the following: </li></ul><ul><li>Pier one – a sustainable lodging place for seafarers waiting for their placement while in Manila </li></ul><ul><li>Peanut shellers - made peanut shelling faster and lucrative for Pampanga residents living off peanuts. </li></ul>
  49. 56. Other Illac Diaz achievements <ul><li>Houses made of mud and other local materials to make them affordable and save on foreign exchange. </li></ul><ul><li>Restoration of corals and marine life in coastal areas using low cost photovoltaic or wind powered generating devices. </li></ul><ul><li>Bicycle powered washing machine </li></ul>
  50. 57. CSV Corporate Shared Value By Michael Porter, featured in HBR
  51. 58. Prof. Michael Porter
  52. 59. CSR vs CSV <ul><li>CSR is at the periphery of the business and is incidental; </li></ul><ul><li>CSV is at the center of the business and is supported by budget and resources; </li></ul><ul><li>CSV addresses the disjoint between the business and community especially with the onset of BPO </li></ul>
  53. 60. Even the great thinker of competitiveness favors social business as next option for capitalism
  54. 61. CSV, How to Fix Capitalism
  55. 62. CSV