BAEP 491: Introduction to Social Entrepreneurship
Syllabus – Fall 2013
Day/Time: Monday and Wednesday – 10:00-11:50 a.m.
Room: MHP B7B
Professor: Adlai Wertman
Office: DCC 115
Office Phone: 213-740-9910
Office Hours: Wednesday and Thursday – 2:00-3:30 p.m.
Email: awertman@marshall.usc.edu
Course Assistants:
Jessica Levine – jessicbl@marshall.usc.edu
Course Description
As traditional resources to address critical social, environmental and health-related issues come under
increasing pressure, the world is turning toward ‘business models’ as the solution. Social entrepreneurs
and social ‘intrepreneurs’ are creating new models of non-profit and for-profit entities that address issues
including poverty, joblessness, poor health and a sustainable environment. Some of these entities exist
within an existing non-profit (“social enterprises”) while others are stand-alone entities (“social
businesses”). There are also models where existing corporations are looking to leverage their internal
resources to address these challenges (‘corporate social responsibility’). The one thing that all of these
entities have in common is the desire to utilize a business model which balances multiple missions –
revenues (or in some cases profit) and the achievement of a social mission.
This class will offer a survey of the various models - from micro-finance to job development to corporate
philanthropy. We will specifically focus on how these entities exist as businesses and will carefully
analyze the challenges that are specific to this growing sector. We will also explore more deeply the
issues involved with measurement and capital formation.
The course will be a combination of lecture and case studies in order to bring real-life examples into the
classroom. Guest speakers will share their own experiences and challenges. Expect a lively and engaging
conversation as we learn the true challenges and potential solutions to critical global needs.
Learning Objectives
By the end of the course, students will be able to:
1. define social entrepreneur/enterprise and state how a social enterprise differs from pure profitdriven-only models;
2. evaluate the challenges of including multiple missions into a business model;
3. perform business analysis on social enterprise models;
4. cite specific examples of how social entrepreneurs apply technology, design, and finance to
develop long-term sustainable changes in developing markets; and
5. measure the success of non-financial goals.
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Course Structure
The course will generally follow these themes:
Module 1: Introduction to Social Entrepreneurship
In this first week, we will take time at the outset to introduce ourselves as we enter this multi-disciplinary
journey. Each student will have some time to set his/her own context for our classmates – who you are
and what got you to this particular class. We will also begin to create our own definitions of social
entrepreneurship – allowing us a common language as we move forward in the semester.
Module 2: Introduction to Social Enterprise
This module focuses on existing non-profits that create embedded revenue producing programs. In an
effort to achieve a social mission, these non-profits are also looking for financially sustainable solutions.
We will look at the theory behind this model as well as specific cases. Practitioners who will share their
personal and organizational challenges as they manage multiple missions will also join us. We will also
look at charter schools as an example of how business models are being used locally to improve
educational outcomes.
Module 3 – Approaching the Bottom of the Pyramid
In this portion of the course, we will look at how design, ‘design thinking’, technology and new business
paradigms are focusing on the needs of the poorest four billion people in the world. These “Bottom of the
Pyramid” strategies are looking to offer value to the world’s poorest in methods that promote health and
sustainable self-reliance.
This module also looks at ways that basic banking and finance models are used to create change for poor
and developing communities. Access to capital, savings accounts, insurance and other financial tools
have become critical factors for building and sustaining the economy of any community. Alternatively,
lack of access to these tools prohibits people from becoming financially self-reliant and productive. And
ultimately, raising the financial footing of poor communities improves health and education – more
foundational requirements for raising standards of living. We will explore – from a business perspective
– how micro-finance works and what are the particular challenges to managing banking institutions with
social missions.
This module will include lecture, guest speakers and an in-class exercise.
Module 4 – Stakeholder Analysis and Measurement
Social enterprises differ greatly from purely for-profit entities in many ways. One of the most significant
ways they differ is in the number and diversity of stakeholders. Accomplishing a social mission involves
engaging a great number of business, community and government groups in order to succeed. Once
identified, each will have specific goals. Thus it becomes critical to understand how the organization will
define and measure its own success. This module will look at how to identify stakeholders and look at
various tools for measurement.
Module 5 –Double/Triple Bottom Line Businesses and Corporate Social Responsibility (CSR)
This module deals looks at new models for having social impact in a traditional for-profit setting. While
these organizations are looking to maximize return on investment for their owners/investors, they are also
BAEP 491, Fall 2013 – Page 2 of 11
looking for a creative way to leverage their resources to address challenges. We will look at a new breed
of ‘high purpose companies’ or double/triple bottom line organizations. The class will also look at
examples of how companies are integrating corporate social responsibility and cause-related marketing
into their own business paradigms. We will use readings, lectures and guest speakers to give examples of
how companies make change within a for-profit institution.
Module 6 – The Challenges of Capital Formation and Measurement
Having explored various non-profit and for-profit models, we will now turn to the important issue of how
to fund these entities. We will focus on two basic questions – who gives and why? Specifically, we will
look at how non-profit fundraising works as well as what motivates philanthropists. We will also explore
how ‘social investors’ in the private and hybrid arenas are addressing the needs of this sector while still
achieving some sort of ‘returns on investment’. This module will also include a combination of lecture,
exercises and speakers – including a successful philanthropist and a social investment expert.
Module 7 – What’s Next?
We will end the semester with a discussion of the newest trends in social entrepreneurship and work
together to predict where you all may engage in changing the world now, after USC and throughout your
career.
Your Responsibilities
Your responsibilities to this course are very simple. Treat faculty, staff and guest speakers like you
would your best customer and you will be treated in the same manner.
The program believes in and follows a customer-centered philosophy. Your input and participation are
important and appreciated. Class meetings start promptly. Please arrange your schedule to allow you to
be on time for every class and to stay for the entire class.
You will need to come to class prepared, in many ways this will be an educational experience for all of
us. We will teach ourselves as well as being taught by others. Many of our endeavors will be in finding,
sharing and developing resources.
While we want you to take the content of the class meetings seriously and learn all that you can, we hope
that you’ll maintain a sense of humor in the face of ambiguity, uncertainty and changes in the schedule,
usually due to guest speakers. We all believe that we learn more and accomplish more when we’re
having fun doing it, so please bring your sense of humor to class.
Guest Entrepreneurs and Other Speakers
We will have guest speakers this year who are senior professionals in the field of social entrepreneurship.
Each brings a particular expertise that you will learn from. The guest speakers are one of the most
valuable aspects of the course and should not be missed. Arriving late or leaving early on a speaker date
is not acceptable.
Class Participation
I encourage as much discussion as possible throughout the course. You all have a great deal to add to this
dynamic field. In addition to answering questions, you are highly encouraged to ask good questions. In
either case, your comments should show that you prepared for the class (i.e. you have done the reading)
and have been listening.
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I highly value lively debate. Feel free to disagree with me and/or your classmates. There are no right
answers, but you need to back up your argument thoughtfully. Finally, you are also encouraged to ask
good thoughtful questions of our speakers. They understand that you will ask hard questions and they are
looking forward to the discussion. In all cases, we must be respectful. This includes keeping your
comments/questions short and to the point. It also means being kind to each other and respecting all
opinions, backgrounds and viewpoints.
I understand that not everyone feels comfortable speaking in class. I encourage you to come to office
hours and discuss your thoughts on class readings and discussions.
Blackboard and Email
Blackboard and email is the most effective way to communicate outside class. Please check regularly for
messages and additional course materials.
Required Materials
All required readings are posted on Blackboard.
Course Notes
Lecture slides will be posted on Blackboard after they are shown in class. It may take up to a week for
slides to be posted. Regardless, it is important to take notes during class on the material presented.
BAEP 491:
Fall 2013 CLASS SCHEDULE
Date
Topic
M 8/26
Prior Reading
Welcome to Class/Introductions
The Meaning of Social
Entrepreneurship - Dees
What is Social Entrepreneurship?
W 8/28
M 9/2
Toward a better understanding
of social entrepreneurship:
Some important distinctions –
Boschee & McClurg
LABOR DAY
Embedded Social Enterprises
Enterprising Non-Profits
Social Enterprise
Merging The Profit Motive and
Moral Imperatives
W 9/4
M 9/9
W 9/11
M 9/16
W 9/18
Social Enterprise Speaker – Mark Loranger, CEO,
Chrysalis
Introduction to Charter Schools
Charter Schools Speaker – Ari Engelberg, CEO,
Brightstar Schools
Review Website
www.changelives.org
“LA Charter Schools Flex Their
Intellectual Muscle” – LA Times
Review Website
www.brightstarschools.org
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The Microfinance Revolution:
An Overview
Microloan Sharks Article
M 9/23
Microfinance
Microfinance Speaker: Ami Gosalia
http://www.inventure.org/
W 9/25
The Fortune at the Bottom of the
Pyramid
Introduction to Bottom of the Pyramid
The Ethical Rationale for
Business for the Poor
Design Thinking for Social
Innovation
M 9/30
Design for Change
Review Website
www.designmattersatartcenter.org
Design Thinking Exercise
No readings
W 10/2
M 10/7
W 10/9
Midterm
M 10/14
Student Panel
Review Website
Measuring
W 10/16
M 10/21
Stakeholder Analysis
Marketing for Social Change
Speaker: Larry Kopald, Kopald Stranger
Measuring and/or Estimating
Social Value Creation
Bring in a mission statement
None
www.kopaldstranger.com
W 10/23
Friedman Article
Social Business and CSR
Creating Shared Value
M 10/28
W 10/30
Social Business Speaker: Paul Polizzotto
Introduction to Corporate Social Responsibility
Speaker: Jessica Aronoff, Vice President, Philanthropy,
Roll Global, LLC
M 11/4
W 11/6
Plumpy Nut Exercise
M 11/11
Social Investing Speaker: Fran Seegull
http://ecomedia.cbs.com
Review Website
www.roll.com
SOCIAL ENTERPRISE
PAPER DUE
Investing for Social &
Environmental Impact
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W 11/13
M 11/18
W 11/20
M 11/25
W 11/27
M 12/2
W 12/4
M 12/?
Non-Profit Fundraising
Why Give Speaker: TBD
Wrap Up/What’s Next?
Presentations
Thanksgiving
Presentations/Evals
Presentations
Final Paper Due
Review Website
www.impactassets.org
Non-Profit Research
Collaborative Survey
TBD
Assignments:
Midterm Exam / 200 points
October 9
The midterm will test your comprehension of the classroom learning and readings through October 2nd.
You will be asked to define the terms we have learned to date. The exam will also require that you be
able to define and identify the models we will have studied. It will also test your ability to analyze and
explain particular challenges that a specific organization/BoP strategy/program might expect to
experience. You must complete the midterm exam on October 9 to receive credit.
Social Enterprise Research Assignment / 200 points
Due: November 4
This assignment requires first selecting one of the models discussed in the first half of the semester: social
enterprise (i.e. a for-profit social enterprise or a revenue producing entity within a nonprofit – an
organization totally reliant on charitable donations will not work), bottom of the pyramid product,
microfinance, etc. Find a real-world example of that model. You are encouraged to find an
organization/BoP strategy/program that interests you and/or you find particularly innovative or effective.
The paper, which should be no longer than five pages (11 point type, 1” margins, one and a half line
spacing) and will be randomly run through ‘turn-it-in’, so do solely not cut and paste from the
organization’s website.
All papers should include the six points below. Note that each item is assigned a weight. Keep that
weight in mind as you decide how to devote space to the each item. Number each section in your paper
with the question you are answering. Please do not expect me to go searching in your paper for
responses to each of the items below.
1. (25 pts.) Describe the social/environmental/health challenge that the organization/program is
designed to affect. Offer some statistics, if possible.
2. (50 pts.) Describe the organization/strategy/program. Be sure to describe how the
organization/BoP strategy/program impacts the problem you identified in section 1.
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3. (50 pts.) Describe in as much detail as possible how the organization produces earned income
(remember that the organization cannot rely solely on charitable donations). Describe two
potential tradeoffs that you can predict between the achievement of the organization’s mission
and the need to produce earned income.
4. (30 pts.) What is this organization’s competitive landscape? How does it compare to other
organizations/programs working to solve this problem?
5. (15 pts.) Is the organization/BoP strategy/program’s mission statement reflective of the work they
are doing? Please include the mission statement and offer what changes, if any, you would make
to the mission statement to make it more effective.
6. (30 pts.) Based on what you have learned in class, what suggestions would you offer to the CEO
of this organization?
Class Group Presentation and Individual Video - 200 each/400 Total points As assigned: 11/25,
12/2, 12/4
Each group of five to six will be assigned a THEME. These THEMES are based on character traits, or
other factors, that may influence the development, design or success of a social entrepreneur and his/her
enterprise. Each team will then use our class Google Doc to sign up for a presentation date.
The THEMES are:
-
Creativity of entrepreneur (character trait)
Tenacity/Stubbornness of entrepreneur (character trait)
Empathy of entrepreneur (character trait)
Type of Education (e.g. location, major, graduate degree) of entrepreneur (influencing factor)
Prior Experience of entrepreneur (influencing factor)
Outsider/Otherness of entrepreneur (influencing factor)
Life Changing Event experienced by entrepreneur (influencing factor)
Upbringing/Family life of entrepreneur (influencing factor)
From the beginning of the course, you and your team should use this THEME as one of the lenses
through which you view each example we learn about in our readings or in class.
This assignment has two deliverables:
1. Group Class Presentation
A. Your group presentation should consist of three parts:
1. Teach the class about your THEME. Include, if appropriate, a researched definition of your
assigned THEME. How does your team interpret this THEME (e.g what does ‘tenacity’
mean to you)? Theoretically, how might the THEME influence an entrepreneur’s
methodology, success/failure, or organizational issue/design? In general, is this THEME a
good or bad factor for a social entrepreneur? Does the importance of this THEME change if
it is a social entrepreneur versus a for-profit-only entrepreneur?
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2. Pick two examples of social entrepreneurs or enterprises that we learned or read about for
class in which you believe that your THEME was a major factor in the creation, design,
success or failure of the enterprise. Explain why you chose this person/organization as an
example and how the THEME came into play.
3. Pick three examples of social entrepreneurs or enterprises that we DID NOT learn or read
about for class where you believe that your THEME was a major factor in the creation,
design, success or failure of the enterprise. Explain why you chose this person/organization
as an example and how the THEME came into play.
B. You will have 30 minutes to present.
1. Your presentation may not exceed 30 minutes. If you exceed 30 minutes, you will be cut off
and you will not receive any points for any of the three parts of the presentation that were not
included in the 30 minutes.
2. You team is highly encouraged to meet with the course TA to discuss your presentation and
plan your teaching strategy.
3. Each group member will receive the same grade for the presentation.
The presentation is worth a total of 200 points (see above for details required for each section
below):
50 points
40 points
60 points
50 points
“Definition,” etc. of THEME
Two examples from class (see above)
Three new examples from outside class (see above)
Your presentation was thoughtful, professional, and showed evidence of being
planned in advanced and well-rehearsed. There was creativity in the slides and
presentation.
2. Individual Video
Produce and post a two-minute video that explores your experience of the group assignment
and your group’s THEME. The format of the video is up to you: it could be in the style of a
video blog, a music video, a “confessional,” a mini-documentary, an advertisement, anything. Be
creative and teach us something!
As you plan your video it may be helpful for you to reflect on the following prompts:
 Did the THEME resonate with you?
 Does the THEME play a role in the life of an entrepreneur or organization you admire?
 In the final assessment, did you find the THEME relevant to social entrepreneurship? If not,
what THEME would you suggest, instead?
 How does the THEME play a role in your life?
 Did the THEME inspire, motivate, or influence your next steps at the conclusion of this
course?
 Did you and your group agree? If not, how did you differ?
 How does the THEME influence the world around you (people and organizations)?
Be creative, teach us something!
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Your individual video is worth a total of 200 points:
100 points
100 points
Does the video clearly illustrate the THEME and its influence on people,
organizations or the world? Did we learn something new about the THEME
and/or its impact?
Is your video creative? Does is strive to teach us something. Importantly, does it
show that you put both thought and work into the video?
Professional Development Paper / 200 points
Due Date: (No later than the
scheduled final exam date)
For this assignment, you will attend an event in Los Angeles related to the field of social
entrepreneurship. After attending the event, you will write a paper (3-4 pages) reflecting on your
experience. The paper should include the following sections:
1. (25 points) A clear description of the event you attended. This includes the name and date of the
event, who organized it, who spoke, and the topics covered.
2. (80 points) Describe four things you learned from this event. (Bullet points are fine.)
3. (60 points) Frame this event within a larger context of social entrepreneurship. What topics
covered in class did the speaker address? How does this event contribute to/fit in with social
entrepreneurship in LA?
4. (35 points) How the event affected your development as a student in this class and at USC. Also,
connect the experience you had at this event with your personal and professional goals.
Attending an event like this can also be a networking opportunity for you! Keep an open mind and
introduce yourself to people. For extra credit (10 points), take a picture of yourself at the event and email
it to us.
*Note: I will provide a list of potential events to give you suggestions. If you would like to attend an
event that you think is relevant that is not on our list, you must clear it with me first.
Grade Breakdown
Your final grade is based on an evaluation of the following activities:
Midterm
Social Enterprise Research Assignment
Group Presentation
Individual Video
Professional Development
Total
20%
20%
20%
20%
20%
100%
200 points
200
200
200
200
1000
PLEASE NOTE THAT YOUR FINAL LETTER GRADE MAY NOT DIRECTLY CORRELATE
TO THE PERCENTAGES ABOVE (e.g. A 90 MIGHT NOT NECESSARILY BE AN ‘A’ FOR
THE COURSE). ALTHOUGH THERE IS NO SET CURVE, IF ALL GRADES SKEW HIGHER
BAEP 491, Fall 2013 – Page 9 of 11
OR LOWER (e.g. FEW IF ANY STUDENTS SCORE ABOVE 90%), I WILL ADJUST ALL
FINAL LETTER GRADES ACCORDINGLY.
MARSHALL GUIDELINES
Add/Drop Process
The USC Add/Drop Period goes from 8/26/13 to 9/13/13. Friday, September 13, 2013 is the last day to
drop this class without a mark of “W”. The last day to withdraw from this class with mark of "W" is
Friday, November 15, 2013.
Retention of Graded Coursework
Final exams and all other graded work which affected the course grade will be retained for one year after
the end of the course if the graded work has not been returned to the student (i.e., if I returned a graded
paper to you, it is your responsibility to pick it up during class and file it, not mine).
Technology Policy
Laptop and Internet usage is not permitted during academic or professional sessions unless otherwise
stated. Use of other personal communication devices, such as cell phones, is considered unprofessional
and is not permitted during academic or professional sessions. ANY e-devices (cell phones, PDAs,
iPhones, Blackberries, other texting devices, laptops, ipods) must be completely turned off during class
time. Upon request, you must comply and put your device on the table in off mode and FACE DOWN.
You might also be asked to deposit your devices in a designated area in the classroom. Videotaping
faculty lectures is not permitted due to copyright infringement regulations. Audiotaping may be permitted
if approved by the professor. Use of any recorded or distributed material is reserved exclusively for the
USC students registered in this class.
Statement for Students with Disabilities
Any student requesting academic accommodations based on a disability is required to register with
Disability Services and Programs (DSP) each semester. A letter of verification for approved
accommodations can be obtained from DSP. Please be sure the letter is delivered to me (or to your TA) as
early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m.–5:00 p.m., Monday
through Friday. The phone number for DSP is (213) 740-0776. For more information visit
www.usc.edu/disability
Statement on Academic Integrity
USC seeks to maintain an optimal learning environment. General principles of academic honesty include
the concept of respect for the intellectual property of others, the expectation that individual work will be
submitted unless otherwise allowed by an instructor, and the obligations both to protect one’s own
academic work from misuse by others as well as to avoid using another’s work as one’s own. All students
are expected to understand and abide by these principles. SCampus, the Student Guidebook,
(www.usc.edu/scampus or http://scampus.usc.edu) contains the University Student Conduct Code (see
University Governance, Section 11.00), while the recommended sanctions are located in Appendix A.
Students will be referred to the Office of Student Judicial Affairs and Community Standards for further
review, should there be any suspicion of academic dishonesty. The Review process can be found at:
http://www.usc.edu/student-affairs/SJACS/. Failure to adhere to the academic conduct standards set forth
by these guidelines and our programs will not be tolerated by the USC Marshall community and can lead
to dismissal.
BAEP 491, Fall 2013 – Page 10 of 11
Class Notes Policy
Notes or recordings made by students based on a university class or lecture may only be made for
purposes of individual or group study, or for other non-commercial purposes that reasonably arise from
the student’s membership in the class or attendance at the university. This restriction also applies to any
information distributed, disseminated or in any way displayed for use in relationship to the class, whether
obtained in class, via email or otherwise on the Internet, or via any other medium. Actions in violation of
this policy constitute a violation of the Student Conduct Code, and may subject an individual or entity to
university discipline and/or legal proceedings.
Lloyd Greif Center for Entrepreneurial Studies Confidentiality Policy
Throughout The Entrepreneur Program's classes and events, students will be exposed to proprietary
information from other students, guest lecturers, and faculty. It is the policy of The Entrepreneur Program
that all such information be treated as confidential.
By enrolling in and taking part in The Entrepreneur Program's classes and activities, students agree not to
disclose this information to any third parties without specific written permission from students, guest
lecturers or faculty, as applicable. Students further agree not to use any such proprietary information for
their own personal commercial advantage or for the commercial advantage of any third party.
In addition, students agree that any legal or consulting advice provided without direct fee and in an
academic setting will not be relied upon without the enlisted opinion of an outside attorney or consultant
without affiliation to The Program.
Any breach of this policy may subject a student to academic integrity proceedings as described in the
University of Southern California "University Governance Policies and Procedures" as outlined in
SCampus and to any remedies that may be available at law.
The Entrepreneur Program, the Marshall School of Business and the University of Southern California
disclaim any responsibility for the protection of intellectual property of students, guest lecturers or faculty
who are involved in The Entrepreneur Program classes or events. Receipt of this policy and registration in
our classes is evidence that you understand this policy and will abide by it.
Emergency Preparedness/Course Continuity
In case of a declared emergency if travel to campus is not feasible, USC executive leadership will
announce an electronic way for instructors to teach students in their residence halls or homes using a
combination of Blackboard, teleconferencing, and other technologies.
Please activate your course in Blackboard with access to the course syllabus. Whether or not you use
Blackboard regularly, these preparations will be crucial in an emergency. USC's Blackboard learning
management system and support information is available at blackboard.usc.edu
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