SOCIAL ENTREPRENEURSHIP GRAMEEN & OTHER BEST PRACTICES By: Mark Thornton & Marina Kusumawardhani ABOUT Generation Social: Social Entrepreneurship Academy Mission: Social entrepreneurship/business training Fund mobilization Focus: youth & women Public awareness! US-based company; founded 2012 in Vienna. ABOUT (2) Social Entrepreneurship best-practices Expert Team Youth: Creativity Leadership Community: Demand-driven Experiential Engagement Partnership with stakeholders Fund mobilization Organizational transformation GEN Y Which generation are you? GEN Y (2) The way we work/produce in the future => new trends New work-force globally: 2,3 billions Work method: Immediate achievement + appreciation Impatient/anxious No hierarchy Success = joy and fun Time/place flexibility Keywords: digital, collective mindset, sharing, participation, collaboratively, WIP, learning new skills Engaging (professionalism) Purpose Passion + job => 54% entrepreneurs! PHILOSOPHY Private Sector – Citizen Sector Capitalism – Socialism => equal chance/opportunity Transformation from inside + financial sustainability SOCIAL ENTREPRENEURSHIP Vision Identify and recognize social problems => social change Using entrepreneurial principles to create social venture Performance = profit + social return History Literature 1960s Michael Young 1950s: more than sixty social enterprise (“world’s most successful social entrepreneur” – Harvard) “In my case, I like to support causes where "a lot of good comes from a little bit of good," or, in other words, where the positive social returns vastly exceed the amount of time and money invested.” ASHOKA Founded 1981 by Bill Drayton Identify and support social entrepreneurs through social venture capital Goal: citizen sector business sector Operate in > 70 countries, >2000 SEs, “Youth Venture” => invests in team of young people 11 out of 30 Forbes’ under 30 SEs James Whelton (Coder Dojo): 10,000 kids in 22 countries Sejal Hathi: 3 enterprises to help young girls in >100 countries Hugh Evans: 2012 Global Citizen concert in Central Park “Social entrepreneurs will not be content by giving a fish or teaching how to fish; they will not stop until they revolutionize the whole fishing industry.” GRAMEEN BANK Founded 1976 27$ from own pocket for 42 women Today: $11,35 billion, >8 million borrowers 68% crosses line of poverty (19 thousand out of 111tsd beggars) 95% return rate Social business: 97% by borrowers, 3% by government. Youth: social business is 70% creativity. “Whenever I see problems in the society, I create business out of it.” ACUMEN/SKOLL/BAREFOOT Acumen Fund: Global venture fund for entrepreneurial approaches Jacqueline Novogratz (2001). Seed Capital from Rockefeller, Cisco Systems, philanthropists. Patient capital – loans or equity, not grants $83 million investments (2012), in 46 enterprises (100 million people and created 58000 jobs) Skoll Foundation: Social entrepreneurship foundation Jeff Skoll (eBay) (1999) Investing in, connecting & celebrating SEs Invests through annual Skoll Award for SE Media projects: Uncommon Heroes short films Skoll Centre for Social Entrepreneurship at Oxford Uni, international forum and conferences ACUMEN/SKOLL/BAREFOOT (2) Barefoot College: Voluntary organization => empowerment & sustainability Founded 1972, Bunker Roy 3000 children attending 150 night schools, trained >3 million people for jobs Gandhi philosophy: each village being self-reliant (medical, energy, etc) Solar systems to illiterate poor women => no degree Partners with UNESCO and UNDP for solar training replication Formulas for change! Individuals Network Funding Replication/best-practices Media/recognition “We went to Ladakh … and we asked this woman, ‘What was the benefit you had from solar electricity?’ And she thought for a minute and said, ‘It’s the first time I can see my husband’s face in winter.’” INTEGRATION INTO DEVELOPMENT PROJECTS Sustainability: Market/feasibility studies: Sense of belonging Cultural sensitivity and awareness Business model: Initial investment: affordability of individual projects Payback plan Aid/grant vs. investment No monitoring => involvement of local private companies, or local NGOs Price competition model Cash flow models Revenue model: grid, CDM, etc => Entrepreneurship Awareness & Market Study UN Mission Development Project Business Models Investment INTEGRATION INTO DEVELOPMENT PROJECTS (2) Innovative Business Models Price Competition Local Capacity Building Sustainable Financial incentives Project Design Investment & Private Sector Participation Energy Entrepreneurs Business Skills Independent Power Producer Business Partnerships Rural Energy Enterprises RRE Strategic Outcome 2 RRE Strategic Outcome 1 RRE Strategic Outcome 3 INTEGRATION INTO DEVELOPMENT PROJECTS (3) Planning Stage Identify Interest Organizing Stage Implement -ing Stage Management Agreement Settingup RES Investment/ Loan Agreement Staffing Government Inducement Identify Energy Needs Feasib ility Study Identify Energy Price Structure Monitoring Stage Evaluation Business Plan Identify Employment Identify Fuel Social Entrepreneurship Capacity Building Business Implementa tion Technical Capacity Building Payback Monitoring INVESTMENT SCHEME • • • • • Challenges: Involving /engaging FIs and partners, Knowledge and awareness, Beyond project duration. Looking for innovative projects for renewable energy enterprises: Evidence based Replication of success stories 3 topics: IT/business –social entrepreneurship/renewable energy. Question: how to engage private sector?? => high investment return Support of conventions, advocates, to back UN agencies to Government Egypt example INVESTMENT SCHEME (2) Government • Investment 2011: 257 billion USD • SE4ALL (in Rio 20+): >50 billion USD Fund/Donor Organization (GEF) UN Agencies Financial Institutions/ /Development Bank Social Business Community Create Green industry & job Value Generation MDG REALIZATION POTENTIAL Concrete Deliverables through Projects Portfolio by the end of 2018 GSSB – Bangladesh (in 10 years) Number of people gaining access to energy: >150,000 Number of people gaining access to energy: 8 million Renewable energy capacity installed: ~25MW Renewable energy capacity installed: 55 MW Renewable energy generated: > 450 GWh/year Renewable energy generated: 87 GWh/year Million tons of CO2eq avoided: >7 million tons direct Million tons of CO2eq avoided: 68,000 tonnes/year Number of SMEs benefitting from projects: >600 Number of SMEs (Micro-utlity) from projects: 3395 64 out of 64 districts, 50,000 villages => Green Sustainable Country SHS 1,066,487 (>23500 SHSs/ mo), ICS: 619,734, Biogas: 24,798 Total employees: 12,521 (16,500 trained technicians, 433,556 users) CASE STUDY (Uganda Plan) CREEC Technical Support Capacity Development UNIDO RE Technologies Systems/Operation/Maintenance Agro-processing technologies Business Incubation and other Support Social Entrepreneurship Academy 2 Years existing Electrical Installation Course Training in agro-processing Entrepreneurship and Business Skills Rural Energy and Agro processing Enterprises Finance /Credit Revolving Fund IFI/bank EGYPT PLAN CASE STUDY (2) (Egypt Plan) Preparatory Capacity Building Implementation and M&E Beneficiaries Main Actors Existing SEs NGOs Community SE Training Youth/SEs Technica l Training Incubators /Unis IFIs Endorse ment Monitoring and Evaluation ILO Branches Gov’t Concept Note Main Organizers SE &Technical Training GenSoc ILO ““Dignity is more important to the human spirit than wealth. When people gain income, they gain choice, and that is fundamental to dignity.” - Jacqueline Novogratz QUESTIONS?