APS1015H Class 10 - Enabling Environment for Social Entrepreneurship

APS 1015: Social Entrepreneurship

Class 10: The Enabling Environment for Social Entrepreneurship

Saturday, November 17, 2012

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Instructor: Norm Tasevski ([email protected]) Karim Harji ([email protected])

© Norm Tasevski & Karim Harji

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Agenda

•  Unreasonable Institute •  Preparing for your Pitches •  The enabling environment for SE •  Review of the course •  Next week

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Your Investment Pitches…

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Pitch guidelines

•  Due Dates –  Investment Pitch: Midnight on Friday, December 7, 2012

•  “Dry run”: Midnight on Friday, November 23, 2012

•  Format –  PowerPoint deck

•  Time Allotment –  12 min presentation (strict) – will give you 5 and 2 minute

warnings –  6 min Q&A

•  Grading –  To be done by Karim and Norm –  Judges will inform me, but not assign your grades

•  Feedback from Judges –  Norm will email his and judges’ feedback shortly after the

class to integrate into angel investor pitch 5


Timing

•  Arrive by 12:45pm!!

•  Group order will be assigned on the Monday prior to the presentation

•  At the end of the pitches, the judges will deliberate (for 10 minutes)

•  Judges will then provide feedback to the entire class (and I will provide individual group feedback)

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Advice for your pitches

•  Focus on the key components of the business model, and highlight the key financial #s –  Can you clearly explain how your business works? How it

makes money? How it generates social/environmental change?

•  Comfortably stick to the time allotment –  In your practice, aim to deliver your presentation in 10-11

minutes

•  Anticipate the investor questions –  If you were investing your own money into the business,

what would you care to know about the business model?

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Contents for the Investment Pitch…

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•  Overview and mission •  Management and

Advisors •  Problem

–  social issue being addressed

•  Size of the problem –  how big is the social issue

•  Solution –  Here’s how it works…

•  Value proposition –  Inc. social benefit

•  Business model •  Competitive advantage •  Collaboration/

partnerships •  Marketing and Sales •  Financial projections •  Financial requirements


PowerPoint tips

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The Enabling Environment…

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A Growing Ecosystem

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An Evolving Field

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!"#$%$&'()*+!,-$!.)$&/!'0!1'2)3&!4*,5$(5$*$657-)(8!9!:!;$('5,!05'<!,-$!=$*,$5!0'5!:/%3*2$<$*,!'0!!1'2)3&!4*,5$(5$*$657-)(!!>=:14?!!


As It Evolves…

•  Definitions •  Who’s in or not? •  Expectations vs. reality •  Demonstrating impact •  Scalable business models •  Mission or market? •  Developing and harnessing talent •  Access to finance •  Policy levers and constraints •  Individual vs organizational capacity •  Education – academic, mainstream

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Watch these videos!!!

•  http://vimeo.com/2307567 •  http://www.ted.com/talks/

katherine_fulton_you_are_the_future_of_philanthropy.html •  http://www.ted.com/talks/

jacqueline_novogratz_on_patient_capitalism.html •  http://www.ted.com/talks/

melinda_french_gates_what_nonprofits_can_learn_from_coca_cola.html

•  http://www.ted.com/talks/bjorn_lomborg_sets_global_priorities.html •  http://blog.ted.com/2010/09/18/tackling-the-mdgs-an-introduction-

to-tedxchange/ •  http://www.youtube.com/v/QgzlmKPoMEo?

f=videos&app=youtube_gdata&title=Tonya%20Surman •  http://www.ted.com/talks/

tim_jackson_s_economic_reality_check.html

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Break

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Course Summary…

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Motivation

Innovation

Resourcefulness

Risk Taking

How is Social Entrepreneurship Different?


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What Motivates The Social/Environmental Entrepreneur?

“…it was an epiphanal experience…” Ray Anderson, Interface Carpets

“I heard the same story again and again. Someone had experienced an

intense kind of pain that branded them in some way. They said, ‘I had’ to do

this. There was nothing else I could do.”

Jody Jensen, Ashoka

“I was teaching in one of the universities while the country was suffering from a severe famine. People were dying of

hunger, and I felt very helpless. As an economist, I had no tool in my toolbox to fix that

kind of situation.” Mohammed Yunus, Grameen Bank

“…that made a real impression on me…”

Jeff Skoll, eBay, Skoll Foundation, etc.


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-Coffee!-Food!-Merchandise!

-Coffee shops!-Kiosks!

-Personal (Baristas)!-Online, print ads!

-Adults that want a place to relax, work quietly, meet friends, etc!!-Locations!

-Coffee making

equipment!-Baristas!

-Coffee roasting/brewing!-Processing orders!

-Farmers!-Suppliers!

-Staff training!-Asset acquisition!-Marketing!

-In-store Purchases!


Tip…

•  Be a Business Model “Alchemist” – You need to go through the business model process many times in order to figure out which model best fits

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Cost Drivers and Revenue Sources !

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-???!

-???!


Where does HR Fit?

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Where does Marketing Fit?

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Embedding “Social” across the Business Model

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For-Profit Corporation !

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Non-Profit Corporation!

Charity!Partnership!

Sole Proprietorship!

Co-Operative Corporation!


MORE DEBT-LIKE

32 Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx

Financing Options – Over the Social Entrepreneurship “Life Cycle”

IDEA DEVELOPMENT PROOF OF CONCEPT START-UP SCALE REPLICATION EXIT

!"#$%&'

MORE EQUITY-LIKE

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0("!*,#5+-'+(#$&'

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5-+(732#"8-%'1-5%'

2#"8-%3"#%-'1-5%'


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Aligning Supply and Demand

Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx


Lessons from The Idea Jams

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Next Week

•  Dry run of investor presentations!!

•  Arrive by 1pm!!

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APS1015H Class 10 - Enabling Environment for Social Entrepreneurship

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