About Social Enterprises and Impact Innovation
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Transcript of About Social Enterprises and Impact Innovation
aceleradora.njambre.org!
@njambreAC!
NjambreAceleradora!
Paula Cardenau!
Co-creating social entreprises�
State!
Citizen Sector!
Companies!
lack – of - integration !
+ 1.000 M people in extreme poverty (- USD/day)!
We need to change the rules of the game!
new, integrated models are emerging!
charity fundraised/ grant income !
!social
enterprise!impact
innovation!
CAUSE! STRENGHT!
!Grey area in which organizations are often loosely referred to as
social enterprises!
charity with ‘on mission’ trading/
contrac6ng !
social enterprise !
socially responsible enterprise !
business genera6ng profits for charitable spends !
commercial enterprise !
Adapted from “Financing Civil Society”, Venturesome
Foto
ETV
social enterprise, !which is the essence?!
ü is a business (delivers good / service)!
ü main goal: + social or environmental transformation !
ü the impact is integral to the nature of the trading activity!
ü profit is a mean, not an end!
Don’t live in the “or”, but in the “and” world!
High quality, affordable for all healthcare A network of medical centers that offer services and products at below-‐market prices, 6ered according to the pa6ents’ socio-‐economic level.
the impact • has 60% of the market share of health services in Costa Rica • has generated a saving in surgical procedures +40% vis a vis other
private clinics, which have been forced to lower their prices • provided services for 3 M people. 27,000 sophis6cated eye surgeries • 8 clinics cover geographically the whole country • also serves schools, peniten6ary centers, homes for the elderly, etc.
the business model • started as a 3-‐year grant-‐based eye care program for rural areas, now 8 clinics covering every medical specialty (from basic vision tests to sophis6cated surgical procedures).
• =erd pricing system by which mid income pa6ents -‐paying rates 40% below market-‐ subsidy low income, rural pa6ents
• this enables ASEMIS to cover costs while maximizing impact, not profits. Profits reinvested in opening new clinics and health special=es (re6na and cornea surgeries//permanent provincial clinics replaced periodic tours)
• USD 5,700 Million budget
case #1 // consolidated
the learnings • organic growth, financed from cash flow. Revenue serves to
finance new services or units un6l they reach break even // occasional cashflow stretches
• pioneers in a non-‐existent market, once Asembis found out how to deliver services effec6vely, the growth strategy was based in developing a system based on rou6nes, improving prac6ces con6nuously, and inves6ng profits to build addi6onal capacity. Some6mes the innova=on is in the process
• “leave Opera6ons to professionals”
• strong investment in recrui6ng “integrated” staff (top quality doctors, nurses or admin, socially commi]ed)
• For profit mentality while maximizing social impact – the sophis=cated balance
A distribution network of products & services manufactured by people with disabilities (PwD)!increase skills and income, while promoting corporate conscious purchasing!
PDW B
B
B PDW
PDW
TA, financing, equipment, aggregated supplies purchase, new markets, stability in sales
-‐ compe66ve products -‐ opportunity to build inclusive value chains
Flexibility in Purchase Corporate Volunteers
U TI Universi=es -‐ TA -‐ Process improvements
F
Financing Pa6ent working capital
S
Suppliers Flexible condi=ons
- Increased income, skills, dignity, autonomy and citizenship for PwD - New perspective from businesses and consumers towards the capabilities of the PwD
case #2 // ready to scale
ª 20 PwD production workshops !
ª 700 workers with disabilities improving skills and income!
ª 90,000 + hours of work !
ª 105 client companies !
ª 943,000+ people consumed a redACTIVOS product!
ª 40% of redACTIVOS annual profits invested in La Usina NGO!
The model / Lessons Learnt
² The Social – Commercial “tension” was a catalyst for the healthy growth of the social enterprise!
² Breaking the mistrust barrier - opening a new niche means the need to build trust in every stakeholder!
² Increase production capacity while generating new skills in PwD – not any product will do!
² Access to working capital!
² The relevance of relevant KPI to make better strategic decisions!
² Network effect is key to success!
Empowerment of youth and women in
underprivileged communities/digital
work!
case #3 // start-up
foto tagging audio transcript !community manager!Software testing!
+ empowerment!!+ first work opportunity!!+ work in your place / flexible!!+ new perception from the corporate sector!!
4 models by which a social enterprise achieves changes the rules of the game!
2 Inclusive Value Chain!
1 Generates Access!
4 Community Ownership !
IMPACT
3 Circular Economy – Regenerating Ecosystems!
Access to:
Housing
Nutri6on
Energy
Health
Sanita6on
Produc6vity
Financial services
" Aravind, cataract surgeries to fight preventable blindness, 6 hospitals in India, 300,000 surgeries / year
" Amagi: Fashion ougit for people with disabili6es www.amagi.com.ar/
" The Working World: Accessible financial services to recovered factories and coopera6ves. www.theworkingworld.org
" Proyecto Ser: high quality healthcare for low income women in Northern Argen6na. Purchasing a USD 5 card annually, they have access to affordable medical services. 100,000 women associated.
" Moses Muzaazi: biodegradable sanitary pads that help prevent female adolescent scholar drop out in Uganda. Local produc6on.
" IDEAAS: Affordable solar energy panels in rural communi6es with no access to electricity, through leasing.
" Energe: solar heaters for low income communi6es, rural mid-‐income producers, and ABC1 sector. www.energe.com.ar
" SolarEar: Low cost hearing aids, feed with solar energy and rechargeable ba]eries (long useful life). www.solarear.com.br
" Ikotoilets: toilet malls to promote sanitary use culture in Kenya. www.ecotact.org/ecoweb/
" ZMQ: Health preven6on & educa6on in isolated rural areas through mobile phone gaming h]p://www.youtube.com/watch?v=du7zWSpKSKo
Genera=ng Access Model
Inclusive value chain:
Vulnerable communi6es
Partners
Producers
Distributors
Co-‐creators
" Interrupción: sells in the US organic produc6on, under fair trade system, of 12,000 La6n-‐American small producers. With the fees of fair trade, educa6ve /health/ financial service funds are created for producers and their families. www.interrupcionfairtrade.com
" Oro Verde: Cer6fies social and environmental mining responsible prac6ces and gives craosman miners access to markets, by paying a fee that goes back to their local communi6es. 700 families/5,000 people self www.greengold-‐oroverde.org/loved_gold
" Granja Andar: Catering service and bakery that gives work to 95 people with intellectual disability. Family franchises.
" RedAsta: Direct selling system of jewelry and design products elaborated by 800 small craosman women in Río de Janeiro, Brasil. www.redeasta.com.br
" MicroConsignment: Sale of product and services that improve life quality of isolated rural communi6es through local entrepreneurs. 248 entrepreneurs sold 55,400 products. They improve income, acquire new abili6es, gain protagonism. Greg van Kirk. www.cesolu6ons.org
Inclusive value chain model
" Mamagrande: Bio plas6c produc6on using natural renewable resources, cleaning polluted water and bringing low income rural communi6es into the value chain. www.mamagrande.org
" Guayaki: Works jointly with organic cer6fied yerba mate producers and under na6ve species of Atlan6c rainforest in Argen6na, Brasil and Paraguay. The objec6ve is the conserva6on and development of communi6es through the commercializa6on of products in USA and Canada. www.guayaki.com.ar
Circular economy model
Ecosystem regenera=on
innovation serving people & planet!
impact innovation?!
Foto Energe
# 1 create markets!
ü non-existent markets, no suppliers, no competitors !
ü higher associated costs!ü need to raise awareness!
# 2 empathy in R+D!
ü high quality technologies that actually meet the needs and desires of underserved communities!
ü users are key to co-design goods and services!
Foto Amagi
ü ‘last mile’ is the first one!
ü + eficiency in distribution chain!
ü based in local entrepreneurs!
ü tiered pricing!
# 3 distribution to enable access!
Foto Community Enterpise Solutions
# 4 governance / decisions shared with stakeholders!
ü underserved communities gradually at some point of decision making!
ü Producers opening costs / consumers involved to lower prices!
ü empowerment!
# 5 work in underserved communities!
# 6 new leaderships!
ü holistic & empathic vision!ü Integrated social and
commercial profile!
ü New skills development!
# 7 economic value to garbage
# 8 change visions
The challenge
Still a handful
Emerging support ecosystem
Limited access to capital
Lack of legislation
“hybrid” models needs to be understood
26
Ø we believe in the high potencial of social business!
Ø we create them!
We s=mulate impact innova=on opportuni=es.
We co-‐build the impact economy ecosystem
We co-‐build and/or accelerate impact innova=on enterprises.
Co Crea=on Hubs
Our solu6on
28
Sector Público ESTADO!
Sector Social!OSCs!
Sector Privado EMPRESA!
new integrated models!
new type of economy centered in people!