Social Entrepreneurship:
IAPB 2012
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A Powerful Agent for Change
Social Enterprise is a powerful Agent of Change
What is Social Enterprise?
Role and importance of Social Enterprise
Capacity to change society / Impact it can make
Experiences in one project
The information contained in this presentation is the property of AgSri Agricultural Services Pvt Ltd (AgSri) and should not be reproduced
in any form, part of whole, without the written permission of AgSri
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What is Social Enterprise?
• Many alternative labels: “BoP”; “Impact Investment”; “Social Enterprise”;
“Multiple Bottom-line Businesses”
• BoP term coined by FDR? Prahalad book 2004
• WRI defined as < $3K / yr
• In 2010, JPM sized “Impact Investing” sector at $400 bn to $1 trillion capital;
profits $180-670 bn
• Investments in defined areas: Agri, Clean Energy, Education, Primary
Healthcare, Low-cost Housing, Water – and Financial Inclusion (??)
• All ill-defined, but certainly seem worthwhile
The information contained in this presentation is the property of AgSri Agricultural Services Pvt Ltd (AgSri) and should not be reproduced
in any form, part of whole, without the written permission of AgSri
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“A venture that achieves social objectives through business methods”
What is Social Enterprise: Characteristics
Large no of small value transactions
Often (not always) thin margins
Need to be close to customer; monitor costs closely; keep OH down
Work with informal markets
“Long range mindset” 
• Many of the same commercial skills are useful – but need to be applied on a
different scale (including internally)
• Don’t always have the numbers for good analytics
The information contained in this presentation is the property of AgSri Agricultural Services Pvt Ltd (AgSri) and should not be reproduced
in any form, part of whole, without the written permission of AgSri
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Role & Importance of Social Enterprise
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Fills a need
Even more important where public services fail
We know now that government isn’t the full answer
Charity and CSR play a role; but can be too pro-cyclical
(And is a “transfer” mechanism sustainable in the long-term?)
For long-term sustainability – someone should be making money
Works well in crowded areas; hence particularly effective in developing
countries
– Airtel & Vodafone
• Matthew Bishop, author of Philanthrocapitalism, wrote an essay in The
Economist, comparing IBM to the Carnegie Corporation
The information contained in this presentation is the property of AgSri Agricultural Services Pvt Ltd (AgSri) and should not be reproduced
in any form, part of whole, without the written permission of AgSri
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• Arguable that any law-abiding, responsible business in a developing country is
doing good
Capacity to change society / Impact it can make
• Major impact :
– AMUL
– Microfinance
– Low Cost Private Schools
• Great pressures on social enterprises to scale
• Not easy even for mainstream commercial business to scale, even with all the
ecosystem and other advantages
• How have social businesses scaled so well?
The information contained in this presentation is the property of AgSri Agricultural Services Pvt Ltd (AgSri) and should not be reproduced
in any form, part of whole, without the written permission of AgSri
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• Multiple cases of multiple impact
• End of 2011, Daniel Altman of Dalberg wrote a paper trying to do away with
the “social” distinction
• Paper been much debunked
• Mis-measuring our lives – could have a large impact
Experience in one Social Enterprise
PoP
Selling sugarcane seedlings + Package of Practices
Reduction in the costs of cultivation by 20-30 percent
Reduction in seed material by as much as 95 percent
Water efficiency increases by up to 40-70 percent
Reduction in the use of labour by 20-30 percent
Yield improvement of 20-50 percent (depending on how effectively the SSI
practices are implemented)
• Weed reduction by 40-60 percent
• Growing millions of seedlings
The information contained in this presentation is the property of AgSri Agricultural Services Pvt Ltd (AgSri) and should not be reproduced
in any form, part of whole, without the written permission of AgSri
www.agsri.com
•
•
•
•
•
•
Social Enterprise is a powerful Agent of Change
What is Social Enterprise?
Role and importance of Social Enterprise
Capacity to change society / Impact it can make
Experiences in one project
The information contained in this presentation is the property of AgSri Agricultural Services Pvt Ltd (AgSri) and should not be reproduced
in any form, part of whole, without the written permission of AgSri
www.agsri.com
•
•
•
•
The information contained in this presentation is the property of AgSri Agricultural Services Pvt Ltd (AgSri) and should not be reproduced
in any form, part of whole, without the written permission of AgSri
www.agsri.com
Thank You