EXPLORING SOCIAL ENTERPRISE February 19, 2007 BACI - - PowerPoint PPT Presentation

EXPLORING SOCIAL ENTERPRISE

February 19, 2007 BACI aetmanski@plan.ca

Social Entrepreneurs are not content just to give a fish or to teach how to fish. They will not rest until they have revolutionized the fishing industry. Bill Drayton, Founder Ashoka

10 Great Social Entrepreneurs

• St. Marguerite d’Youville (Quebec)
• Alphonse Desjardins (Quebec)
• Rev. Moses Coady (Nova Scotia)
• Milton Wong (British Columbia)
• Ian Gill (British Columbia)
• Nicole Rycroft (British Columbia)
• Florence Nightingale (UK)
• Maria Montessori (Italy)
• Bill Drayton (United States)
• Muhammad Yunis (Bangladesh)

Social Enterprise

• Earning revenue and achieving social
• bjectives
• Often inventing new approaches, creating

innovative solutions to deeply rooted problems

• Wealth as a means to an end

Social Enterprise Objectives

• 1. Achieve our social mission and program

goals

• 2. Earn revenue
• 3. Increases distribution, market,

constituency

• 4. Achieve value and concrete

results for our partners

Additional Outcomes

• Discipline and Creativity
• Accountability (internal)
• Influence
• Changes the culture of your
• rganization

Questions

• Does social enterprise let government
• ff the hook?
• Do the values of social enterprise clash

with our not for profit values?

Value of Social Enterprise

• To diversify funding base
• To acquire ‘flexible’ discretionary

dollars

• To attract new allies and collaborators
• To prepare for predicted fiscal crisis

(smaller fiscal pie-larger share to health)

Value (cont’d)

• To change the ‘psychology’ from

victim to agent (from scarcity to abundance)

• To utilize untapped resources for

social and economic justice

• To address the new ‘worthiness’

agenda

• To establish an economic

power base

Social entrepreneurs

• Convert social to economic assets
• Unite social and economic justice

Pooled Master Trust

NO ONE ALONE FUND

Registered Disability Savings Plan Belonging Initiative

$250 million annually $40 billion

Qualities of Social Entrepreneur

• Risk Taker – breaks free of established

ways of thinking & acting

• Bias toward action - corrects the course

along the way

• Shares the credit
• Crosses sectoral boundaries - collaborative
• Often works quietly behind the scenes
• Strong ethical motivation

Assets of Businesses and Corporations

• Distribution and Communication Systems
• Employee Assistance programs
• In kind (printing, mailing)
• Personnel
• Business Alliances
• Donations

Assets of your membership, constituency

• Spending patterns
• Business opportunities

Ex: if Canada captured 1% of US disabled traveler’s market our tourism revenues increase by $2 Billion Ex: Disability Savings Plan: $80 Billion

Assets Memberships (cont’d)

• Products and services purchased, needed
• Referrals
• Resource to EAP
• Links (web; newsletter)
• Branding
• Profile – halo effect
• Tax receipts

4 Key Questions

1) What products, services, spending patterns does your membership have that may be of value to others? (companies, professionals,

• rganizations…)

2) Who needs or wants what you have to

• ffer? (Who are your natural partners?)

4 Key Questions (cont’d)

3) Who knows who? (You, your board, your membership, staff, friends…?) 4) How might you use your connections for the benefit of your social enterprise?

Lessons Learned

• It’s about relationships
• Stick to what you know
• Competencies
• Capabilities
• Constituency
• Give it room
• Stay focused on mission and margin
• Dream big

Pooled Master Trust

NO ONE ALONE FUND

Registered Disability Savings Plan Belonging Initiative

$80 Billion $40 billion

Social Finance – we are not alone

• Muhammad Yunis (micro credit pioneer) Nobel Peace

Prize

• Deutsche Bank with International Agency for Prevention
• f Blindness - $20 Million investment fund to finance eye

care hospitals in developing countries with near market rates of return

• $180m securitization of micro-credit program receivables

by Grameen Bank, Citibank, KfW and Bangladeshi banks

• Milestone achievement of $100m in loans to community

finance institutions and social enterprises by Calvert Foundation’s Community Investment Note

Social Finance (cont’d)

• Issuance of the UK’s first AAA-rated bond by a

charity, (Wellcome Trust)

• Issuance of a bond, supported by France’s AFD,

by the Kenyan micro-credit organization Faulu, raising $7m

• Structuring of a $10m debt facility by the social

housing non-profit Common Ground of NYC, involving $2m in unsecured debt from foundations and $8m in senior commercial financing secured by properties acquired by Common Ground

How Money Works – Glossary

• investment capital
• gift capital
• senior and subordinated loans
• insured and uninsured deposits
• debt-with-equity features
• SROI – social return on investment
• CSR – corporate social responsibility
• structured derivative products
• collateralized debt obligation (CDO)
• loan guarantees

How Money Works (cont’d)

• PRI’s (program related investment)
• fixed income securities
• real estate mortgages
• stock purchases
• microfinance
• private equity
• patient capital
• social capital markets
• social venture (philanthropy; capital)

Social Finance 21 (national roundtable)

Goals:

• Improved knowledge and awareness
• Partnership and strategy development
• Sectoral capacity-building (capital users

and providers)

• Support for development of social finance

instruments, mechanisms, products and services

Resources

• www.ashoka.ca Ashoka
• www.tidescanada.org Tides Canada
• www.enterprisingnonprofits.ca Enterprising Non Profits Program
• www.bctsvp.org BC Technology S
• cial Venture Partners
• www.changemakers.net Changemakers
• www.sea-change.org S

ea-Change

• www.cedworks.com Centre for Community Enterprise
• www.csen.ca Canadian S
• cial Enterprise Network
• www.svpseattle.org S
• cial Ventures Partner S

eattle

• www.socialenterprisemag.co.uk S
• cial Enterprise Magazine
• www.se-alliance.org S
• cial Enterprise alliance
• www.svn.org S
• cial Ventures Network
• www.socialcapitalpartners.ca S
• cial Capital Partners
• www.socialenterprisemagazine.org S
• cial Enterprise Magazine
• www.socialedge.org S
• cial Edge
• www.blendedvalue.org Blended Value
• www.coastcapitalsavings.com/ Community Coast Capital Credit Union
• www.vancity.com/ vcf Vancity Community Foundation
• www.venturesome.org

Resources

• David Bornstein, How to Change the World –

Social Entrepreneurs and the Power of New Ideas

• Richard Steckel, Filthy Rich – How to Turn Your

Non Profit Fantasies into Cold Hard Cash

• http://www.ashoka.org/news/04november/

(excellent article by Bill Drayton on creating new financial services industry for social entrepreneurs)