Spring 2013
Chull-Young Lee
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Chull-Young Lee
Founder & Chairman, Social Enterprise Network(SEN)
Visiting Professor(SE), Sookmyung Women’s University
Adjunct Professor(SE), Ewha Womans University
Chairman, ARK Private Fund (Value Investing + SRI)
Co-Chairman, Bausch & Lomb Korea
Seoul National University Business College(BA)
Columbia Business School (MBA)
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
Mission: Study and education of Social Enterprise.
Help youths grow to responsible leaders of the society.

Partner: Fourteen(14) Business Schools, KDI, British Council Korea,
Foundation and Corporations

Program: (1) Social Venture Competition Asia
(2) Social Enterprise Forum
(3) SEN Student Club

Topic: Social Entrepreneurship, CSR&SRI, Global Poverty & Emerging Markets(BOP),
Environmental Sustainability, Social Capital Market & Impact Investing, Non-
Profit Management & Governance, ACE*, Strategic Philanthropy
*ACE: Arts, Culture, Entertainment(Education)
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Contents
I.
Emergence of Social Entrepreneur
II. Social Entrepreneurship
• Social Entrepreneur: 5 Cases
• Social Entrepreneurship
III. Strategy and Practice
IV. Summary
Appendix: Social Enterprise Enlarged
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I. Emergence of Social Entrepreneur
 Public Sector and Private Sector
- Industrial Revolution: 18 – 19C
Public Sector
Private Sector
(Business Sector)
-Social Problems: Concentration of wealth, Suppressed Human Rights,
Destruction of Environments
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 Emergence of Social Sector and NGO/ NPO
- Gov’t and market neglect or fail to cure social problems
- Emergence of NGO/NPO: in mid 19C
- Explosion of NGO, NPO numbers: from 1970
Public Sector
Private Sector
(Business Sector)
Social Sector
(Civil Society)
NGO, NPO
NGO, NPO:
Indonesia 2,000, Bangladesh 20,000
India 2,000,000, Europe 1,000,000,
U.S. 1,000,000, Korea 20,000
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 Emergence of Social Entrepreneur
○ Social Service Provider: Social Enterprise
-
Charity-based approach
-
Ex: Rainbow Cookie: Employs 40 mentally retarded youths. Produces cookie.
○ Cooperative, Community Business: Social Enterprise
-
Employee and Community ownership
-
Ex: Mondragon Cooperative Corporation(MCC), Late 1950’s, Spain
Coin Street Community Builders(CSCB), 1984, South Bank, London
○ Social Innovator: Social Entrepreneur, Social Enterprise
-
Market-based approach
-
Bill Drayton, Ashoka: Founded 1980. Fostered 2,700
social entrepreneurs in sixty countries.
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Social Enterprise Institution
• Social Entrepreneurship
–
Ashoka Innovator for the Public(1980)
–
Schwab Foundation for Social
Entrepreneurship(1999)
–
Skoll Center for Social Entrepreneurship,
Oxford University(2003)
• Social Enterprise Program
Skoll World Forum
–
Social Enterprise Initiative (1993)
Harvard Business School
–
Social Enterprise Program (1998)
Columbia Business School
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II. Social Entrepreneurship
 Social Entrepreneur: 5 Cases
Case 1 : Muhammad Yunus
- Started 1976 with USD 27 loan to each of 42 women in
Bangladesh. Bank founded 1983.
- Micro loan of USD 6.6 Billion (5.9 Billion paid-back) to 8.1
million poor women by 2,100 branches in Bangladesh 2007.
- Grameen’s business model(micro loan) exported to 40
countries. Helped 100 million poor women in the world get
out of poverty.
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Case 2 : Paul Polak, IDE
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IDE founded in 1981, with $30,000 seed money.
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Helped 19 million poorest farmers get out of poverty in Africa
and Asia.
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Appropriate Technology
-
Grant of USD 41 million from Bill & Melinda Gates Foundation
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Case 3 : Robert Redford,
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Disappointed with money, violence & sex overly dominating Hollywood.
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Founded 1980: Movie “Butch Cassidy and the Sundance Kid” 1969
-
Indie film movement: Sundance Film Festival
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Case 4: Mary Gordon,
- Started in a class room, Toronto, Canada, 1996.
- Empathy teaching program for children:
Children observe interactions between a baby(“teacher”) and a mother.
Develops social skills.
- For 10 years since 1996, bullying was reduced by 90% in Canada.
- Program affected 325,000 children and spreaded to U.S. ,
New Zealand , Ireland, Scotland and Germany.
- Ashoka Fellow 2002, Invited by OECD and WHO.
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- Founded 2001 by Jagueline Novogratz (Stanford
MBA: worked at World Bank, Rockefeller
Foundation).
- Seed capital from Rockfeller Foundation, Cisco
Systems Foundation and three individuals.
- Patient capital(equity or loan) invested in small &
growing businesses for Water, Health, Housing,
Energy, Agriculture: 26 enterprises, 36 million
people in India, Pakistan and Africa
- Fund Size : USD 40 million, Investment per project:
USD 250,000-3 million, Pay-back: 5-7 years.
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 Social Entrepreneurship
-
Social Entrepreneur’s characters & doings
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See social problems as opportunities.
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Use business skills to solve social problems: Market-based Approach
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Start-up business (For-Profit, Non-Profit) and change the world: Social Innovation
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Pursue Social(Environmental) and Financial values simultaneously: Blended Values
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III. Strategy and Practice
Purpose
•
Social Mission (Social Value Proposition): Primacy
•
Social Innovation
•
Max Social Impact (Social benefits created)
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Max Social Impact
•
Scalability
- Replication
- Economy of Scale
•
Sustainability
- Systemize∙Organize
- Financial performance
Social Innovation: Replication or Economy of Scale, Mass-Market Adoption, Imitation, Ecosystem
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Social Service Provider vs Social Entrepreneur
“Social entrepreneurs are not content to give a fish, or
teach how to fish. They will not rest until they have
revolutionized the fishing industry.” , Bill Drayton
* Alleviation of the pain
vs Solution to the pain
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“Almost all governments seek to work with social entrepreneurs
and their organizations. Basically they(governments) confuse
them(social entrepreneurs) with service delivery providers to be
subcontracted, much the same way they relate to charities and
NGOs to carry out the work the state cannot do or does not
choose to.” , Pamela Hartigan
*
Social Enterprise Promotion Act, July 2007, Korea
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“Social service provisions never break out of their limited frame:
Their impact remains constrained and their service area stays
confined to a local population ∙∙∙. Millions of such organizations
exist around the world – well intended, noble in purpose, and
frequently exemplary in execution – but they should not be
confused with social entrepreneurship.” , Roger Martin
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Market Application
• Application to market
- Technologies
- Ideas
• Mobilize market power
- Target market
- Different interest groups
*Appropriate technologies
*Use feet
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Practice
• Start small
• See large issue (opportunity)
*Use feet
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Market Survey
-
Existing cases
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Potential competitors
*Use feet
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Alliance and Partnership
PPP Model:
Gunpo English Language School
Hybrid Value Chain (HVC)
Partnership: Corporation + Social Enterprise
*Use feet
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Entry Barrier: Competitive Advantage
- Build
- Open
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Chemical Integration
- Social value + Financial value
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Replication, Economy of Scale
- Cooperative
- Community development
- Global perspective
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Hybrid Model
• Social Service + Social Activism + Social Entrepreneurship
Ex: Florence Nightingale
• Standard Setting or Certification (Social Activism)+Social
Entrepreneurship
Ex: Fair Trade USA, Cafedirect UK
• Social Activism + Social Entrepreneurship
Ex: DiD(Dialogue in the Dark)
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Social Impact
- Quantify & Monetize
- Impact Value Chain
- Social Return on Investment: SROI
- Qualitative assessment
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Impact Value Chain
Social Mission
Inputs
Activities
Outputs
Outcomes
SROI
: Social Indicators
: Social Impacts
(Social benefits created)
: Social Return on Investment
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Misunderstandings & Truths
- Make breads to employ?
- Teach how to catch fish?
- Distribute profit to giving-back?
- Higher Social, Lower Financial Values?
- Social Entrepreneurs are born?
- Social Venture is a growth without employment?
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Key Words
•
Social Mission
•
Social Innovation
•
Scalability & Sustainability
•
Market Application
“Doing Good, Doing Well”
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IV. Summary
“Put Horse before Cart”
“Doing Good, Doing Well”
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Appendix:
Social Enterprise Enlarged
Blended Value Spectrum
Social
Non-Profit
Management
& Governance,
ACE*
Strategic
Philanthropy
Financial
Social Entrepreneurship
Global Poverty,
Emerging Markets
&
Int’l Development
Cooperative
Environmental
Sustainability
Community
Business
Social Capital Market & Impact Investing
Corporate
Social
Responsibility
Socially
Responsible
Investment
Sustainable Development
*ACE: Arts, Culture, Entertainment(Education)
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