SOCIAL ENTREPRENUERSHIP WORKSHOPASHOKA EAST AFRICA

JANUARY, 2012NATCONF 2012Nakuru, Kenya

How rats can change the world: Connecting: Innovation,Passion, Creativity, Enterprise, and Ethics

LCP CUEA, AIESEC Kenya

MC VP Talent Management AIESEC Austria

Talent Management Unit (TMU) AIESEC International

I learned about Ashoka…through AIESEC

Artemisia Global Coordinator (India) AIESEC International

Name: Mutembei Kariuki

Ashoka East Africa and Social Business Consultant

5.15 billion people in the world live on less than 10 USD per day

In the World...

600 million in Asia, Africa and Latin America live in life- and health-

threatening homes Source: UN-HABITAT, 2008/2009 reportsSource: UN-HABITAT, 2008/2009 reports

More than 1,02 billion of the population is hungry people

Source: UN-FAO, 2009 reportsSource: UN-FAO, 2009 reports

101 million children of primary school age don´t go to school, and 16% of the world population can´t read and write.

Sources:

UNESCO 2008/2009

Sources:

UNESCO 2008/2009

Around 894 million people don´t have access to safe fresh water, and 2.5 billion people (1 billion children)

without adequate sanitation.Sources: UN-World Health Organization, 2009

Water Supply and Sanitation Collaborative Council, 2009

Sources: UN-World Health Organization, 2009

Water Supply and Sanitation Collaborative Council, 2009

Your task today

2. Pick one:- Decent housing- Healthcare (threatment and/or

prevention)- Banking and financial services- Telecomunication services- Electricity- Education

1. Divide yourselves into 6 groups of 5 people..

3. Create a business which will make this service available and affordable to the Bottom of the Pyramid in East Africa

4. You have 10 min to come up with an Idea and present it in 3 min

Your task today

Main questions to be answered in your presentation:

1. What is the specific need your business is addressing?

2. What is your target market (you may specify if rural or urban, etc)

3. What is the social impact of your business?4. How is this business economically viable

(accessible to the clients and at the same time generating profit to the business)?

?

Systems are broken

Parasópolis and Morumbi São Paulo, BrazilParasópolis and Morumbi São Paulo, Brazil

That´s no formula to peace. Poverty is a threat to peace

Muhammad Yunus, Nobel Prize Lecture 2006 ( Ashoka Council

Member)

Albert Einstein ( cool dude)

The world we have created is a product of our thinking; it cannot be changed without changing our

thinking.

““

“ “

WHAT TO DO?

Building an “Everyone a Changemaker” World

Ashoka

“ Social entrepreneurs are not content justto give a fish or teach how to fish.They will not rest until they have revolutionizedthe fishing industry.”– BILL DRAYTON, FOUNDER & CEO, ASHOKA

Key ActivityELECTING ASHOKA FELLOWS ( Fishing Industry

revolutionaries“Rather than looking to someone who is building one

school or one hospital, Ashoka looks for individuals who are changing the way children learn or the way healthcare is delivered. In other words, rather than investing in incremental innovation, Ashoka thinks

the most leveraged way to invest in social innovation is to invest in the people who have system change

ideas.” Diana Wells President Ashoka

What?

• An “Everyone a Changemaker” world is one that responds quickly and effectively to social challenges and where each individual has the freedom, confidence, and societal support to address any social problem and drive change.

Our historical moment:

- Current institutions are stuck- New leaders, many more changemakers, and

institutions that work in new and better ways are needed.

- Social entrepreneurs are the most powerful problem solvers

Our historical moment:

- Current institutions are stuck- New leaders, many more changemakers, and

institutions that work in new and better ways are needed.

- Social entrepreneurs are the most powerful problem solvers

Our historical moment:

- Current institutions are stuck- New leaders, many more changemakers, and

institutions that work in new and better ways are needed.

- Social entrepreneurs are the most powerful problem solvers

Leading Social Entrepreneurs:

- Innovative ideas - Creative- Entrepreneurial- Social Impact- Ethical

Rats Can Change the World

Leading Social Entrepreneurs:

- Innovative ideas - Creative- Entrepreneurial- Social Impact- Ethical

Florence Wambugu : Africa Harvest Biotech Foundation ( Revolutionizing GM and African Indigenous food security)

Leading Social Entrepreneurs:

- Innovative ideas - Creative- Entrepreneurial- Social Impact- Ethical

David Kuria, Iko Toilet (revolutionizing view of sanitation as a service and business)

Leading Social Entrepreneurs:

- Innovative ideas - Creative- Entrepreneurial- Social Impact- Ethical

Ndiga Nyaga : Green Power ; Revolutionizing Hydro electricity, education, farming and economic development in rural areas.

Leading Social Entrepreneurs:

- Innovative ideas - Creative- Entrepreneurial- Social Impact- Ethical

Dr. Moses Musaazi-t4t Africa. Returning dignity to women and girls in Africa by giving access to Sanitary towels ( local innovations with University students)

How are EACH contributing to “EACH”?

- Individual

- Institution

- Society

Becoming an “EACH” Individual, Institution, society:

- Practice innovation, creativity, change-making (entrepreneurship and social impact), and empathy.

- Create spaces, incentives, rewards for others - Identify and systematically remove the barriers to

change- Identify and systematically support the enablers of

change

BUSINESS WORLD

SOCIAL INITIATIVES

• Economic Contribution

• Challenge for innovating their models to solve society problems

• Social and environmental impact• Challenge to become self-sustainable

To create business models

That combine positive social impact

With financial results

We need INNOVATION

Social Businesses

aim to develop more INTEGRATED

models

SOCIAL BUSINESS

• Sell products and services that contribute to poverty reduction.

• Aim to be profitable

• Use market mechanisms to generate transformation

A financially sustainable

organization that uses market

mechanisms to provide solutions to

social and/or environmental

problems

100% income from donation

Income from sales and donations

Profitable, no sharing

75% of income from sales

Breakeven: all income from sales

Profit sharing, social purpose Profit maximization

Charity Social Enterprises which generate income Business with social focus

Social Focus

Traditional business

Social Business

SB Yunus

“Social Enterprise” Concept (1)

(1) De acordo com definição do Departamento de Comércio e Indústria do Reino Unido(2) Distribuição de lucros = Distribuição para acionistas (não inclui funcionários e comunidade)Fonte: Department of Trade and Industry (UK), Bridges Community Ventures, Análise Projeto Setor 2,5

Profit Focus

DIFFERENT MODELS FOR SOCIAL ENTREPRENEURS

Social Business Real ExamplesHousing

Arquitetas da ComunidadeBrazil

• Redesigning to improve the use of resources• Work with groups to lower the price• Trainings to community members, to

become construction workers• Support clients to get credit and financing

alternatives

Social Business Real ExamplesTelecommunications

Grameen PhoneBangladeshwww.grameenphone.com

• Village Phone: a member of Grameen Bank gets a loan to buy a phone, and is trained by Grameen Telecom to use it

• Her business is retail the service in the village

• Grameen Phone is a joint venture of Grameen Telecom (NGO) and Telenor

village telephony

telecom infrastructure

customer relationships

villager

activity configuration

micro-credit

Grameen Bank

mobile phone revenues

source of revenue

mobile telephony

billing

telecom operators

Grameen Bank (billing)

phone ladies

phone ladies

Social Business Real ExamplesFinancial Services

M PESA

Kenya

Banco Sol

Boliviawww.bancosol.com.bo

• Credit, saving accounts, insurances

• Lower interest rates and minimum amounts

• 3% of Bolivia´s GDP

Mobile Money Transfer System by Safaricom ( Vodafone Kenya)

Social Business Real ExamplesHealthcare

Aravind Eye HospitalIndiawww.aravind.org

• Innovation on the process• Employment of local people• 285 000 surgeries in 1 year

• Reduction of costs by scale• 68% of the national population

needing Eye care

as per 20103 million surgeries22 million outpatients60% global market share

11 thousandmobile branchentrepreneurs

6 millioncustomers

Nation wide

INDIAPotencia Partner

Hyderabad

INDIA

Potencia Partner

(Opening in New Dehli)

Bangalore

INDIA

Artemisia Partner

New Dehli

INDIA

Partner

Social Business Real ExamplesEducation

Affordable Private SchoolsHyderabad, Indiawww.enterprisinschools.com

• GMC Invests in Affordable Private schools and focuses on improving the standard of education.

• Schools run on as low as 70-600 rupees a month tuition

Social Business Real ExamplesElectricity

HUSKBihar ,Indiawww.huskpower systems.com

• Lower installation costs by changing the wire structure

• Using Rice Husks in Indian villages to produce electricity.

• Focused on rural areas• Provides off-grid power to rural Indian villages of

about 500 households. HPS uses its own proprietary technology to install and operate 35-100 kW “mini power plants” that delivers electricity as a “pay-for-use” service using a point-to-point

Social Business Real Examples

Electricity

Manufacture micro solar systems, incorporating recycled materials and the skills of local artisans.

Kampala, Uganda

AIESEC Alumni and Ashoka Alumni Initiative

KEY THINGS TO THINK ABOUT WHILE SETTING UP

How rats can change the world: Connecting: Innovation,Passion, Creativity, Enterprise, and Ethics

“With great power comes great responsibility” Peter Parker (Spiderman)

Being in AIESEC and the experiences you have give you power what will you with it to change yourself and the situation around you: Energy , Food, Sanitation, Economic Empowerment, Civic Engagement, Youth Employment ( opportunities if you chose to see them as such)

Live the life that touches those of others in a positive way