APS1015H Class 2 - Identifying Key Issues in Social Entrepreneurship

APS 1015H: Social Entrepreneurship

Class 2: Identifying Key Issues in Social Entrepreneurship

Wednesday, September 21, 2011

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

© Norm Tasevski & Karim Harji

Agenda

•  Admin stuff •  Review the guidelines for the term project •  Guest Speaker – Adam Spence – what did we

learn? •  Class discussion •  Prepping for next week

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Admin Stuff

•  A change of plans… –  Idea Jam at Thing Tank Lab to be run on October 5th (not

next week!)

http://www.criticalmaking.com/ddimit/

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Term Project


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Adam Spence

What did we learn?


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Lemelson Foundation - Examples

•  Low-cost baby warmer built by local craftsmen; has cut the neonatal mortality rate in half

•  Little Cool: refrigerator that sells for $70 that is quiet, portable, and energy-efficient

•  Iko-toilet: technology-enabled sanitation “kiosks”

•  Soy milk maker for an orphanage

•  Chlorinator for community water systems

•  Portable solar cooker

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Safe Water as a Market Opportunity Huge global need for access to safe drinking water. Diarrheal disease causes 1,600 deaths a day…

Opportunity: a large unmet demand

Business model issues: –  Market creation entails developing customer awareness of the link

between water quality and human health, as well as the need to understand consumer preferences—in taste, convenience, health benefits, and aspirations.

–  Distribution involves the ability to design a reliable supply chain for deploying and maintaining treatment plants that can provide treated water at affordable prices.

–  Financing solutions must cover the up-front capital costs of water purification technology.

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Case Study: Naandi Foundation

•  Largest community-scale water-treatment program in the world; focused on rural villages w/o access to clean water

•  A hybrid business model that incorporates both a social enterprise and an NGO

•  Program has grown in 3 years to around 800 units located in 4 states that serve three million people daily; scaling up (2009)

•  Subscription-based model (prepaid, incentive to use daily)

•  What sets Naandi apart / why is it successful?

–  Efficient business-like approach that optimizes the entire value chain

–  Forming trusted partnerships with state and local governments that aid business development

–  Intensive, sophisticated marketing designed to change community perceptions and behaviour

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Case Study:

•  Largest community-scale water-treatment program in the world; focused on rural villages w/o access to clean water

•  A hybrid business model that incorporates both a social enterprise and an NGO

•  Has grown in 3 years to around 800 units located in 4 states that serve three million people daily; scaling up (2009)

•  Subscription-based model (prepaid, incentive to use daily)

•  What sets Naandi apart / why is it successful?

–  Efficient business-like approach

–  Forming trusted partnerships with state and local governments

–  Intensive, sophisticated marketing

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The Opportunity Restated

“But there is no magic here—simply excellent and intelligent execution. The approach is potentially replicable, if others follow Naandi’s pioneering strategies.

Moreover, there appears to be strong interest in both private and public sources of capital in supporting scalable clean-water solutions.

These factors argue strongly that the sector is positioned to scale, and that a businesslike entrepreneurial approach can play a significant role, whether carried out by an unusual NGO like Naandi, by a commercial entity, or by a hybrid value chain involving both types of organizations.”

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The Mobile Revolution: Drivers

Explosive growth:

–  3.3 billion people using mobile phones, projected to grow to 5.2 billion by 2011.

–  More subscribers in developing countries than in developed countries.

Increased performance and functionality

–  technological advancements (Moore’s Law, smartphones, cloud computing)

Greater openness: for applications and devices

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*Mobile is not a silver bullet. Applica4on is more important than access.


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APS1015H Class 2 - Identifying Key Issues in Social Entrepreneurship

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Transcript of APS1015H Class 2 - Identifying Key Issues in Social Entrepreneurship