IREX Social Enterprise Orientation Training

1. IREX Social Enterprise Orientation Training Gbanga, Liberia Kim Alter Virtue Ventures LLC

2. What is social enterprise?

3. Hybrid Spectrum Both Values Social Value Economic Value Traditional Nonprofit Nonprofit with income activities Social Enterprise Socially Responsible Business Corporate Social Responsi-bility (CSR) Traditional Corporation Profit-Making Motive  Shareholder Accountability  Profits redistributed to shareholders • Mission Motive • Stakeholder Accountability • Income invested in • programs or overhead Adapted from Lee Davis and Nicole Etchart.

4. Definition “A social enterprise is any business venture created to address a social problem and generate social value while earning income through commercial activities.” In short…. “ solving a social problem with business tools and practices.”

5. What do we mean by social problems Example: Millennium Development Goals • Eradicate extreme poverty and hunger • Achieve universal primary education • Promote gender equity and empower women • Reduce child mortality • Improve maternal health • Combat HIV/AIDS, malaria and other diseases • Ensure environmental sustainability • Develop a global partnership for development

6. Social Enterprise Characteristics Enterprise Approach: the enterprise is the change vehicle and uses market principles and entrepreneurship Social Aims: has explicit social objectives Value creation: solve social problems while earning revenue through commercial means, generating “blended” social and economic value. Agnostic about legal form: Non-profit, for-profit, cooperative, hybrid, etc., depending on legal environment S drives E: social value before financial value

7. Social enterprise is driven by a social problem… in other words, the business opportunity lies in the social problem.

8. Opportunities in Social Problems

9. Social Problem Food insecurity Deforestation unemployment Illiteracy Limited access to health services Barriers to employment Lost of livelihoods due to poor vision Social Enterprise Bakery Ecotourism Credit & training Publisher/education Discount pharmacy Café, janitorial, thrift, landscape, etc. Reading glasses Social Problem IS the Biz Opportunity

10. Video Examples of Social Enterprise Martin Burt Vision Spring Greyston Bakery

11. Myth Busting:Social Enterprise Realities

12. Motivations for starting an SE

13. SE Impact on Organization Source: Powering Social Change: Lessons for Community Wealth Generation for Nonprofit Sustainability, Community Wealth Ventures, 2003

14. Mission Alignment 3% of SE don’t relate to mission 78% of SE relate directly to mission Source: Powering Social Change: Lessons for Community Wealth Generation for Nonprofit Sustainability, Community Wealth Ventures, 2003

15. Profitability Foster, William and Jeffery Bradach, “Should Nonprofits Seek Profits,” Harvard Business Review, February, 2005

16. The 1st Point Social Enterprise is not a “quick fix” for financial ills, Running a social enterprise is not easier than running a CSO/NGO however… SE offers nonprofits many benefits including financial ones

17. The 2nd Point Be clear about what you want to achieve with a social enterprise Purpose Objectives

18. The 3rd Point The greater the integration the easier the execution and the greater the chance success.

19. The 4th Point Social Enterprise can be a vehicle to do more social good and create more impact It is an ORGANIZATIONAL STRENGTHENING TOOL

20. The 5th Point Do what you know and leverage what you have to start your enterprise

21. The 6th Point Number ONE factor for success is the DESIRE to do a social enterprise Business approach fits with organizational culture