GRAMEEN & OTHER BEST PRACTICES

By: Mark Thornton & Marina Kusumawardhani

SOCIAL ENTREPRENEURSHIP

ABOUT

Generation Social: Social Entrepreneurship Academy

Mission: Social entrepreneurship/business training Fund mobilization Focus: youth & women Public awareness!

US-based company; founded 2012 in Vienna.

ABOUT (2)

Social Entrepreneurship best-practices Expert Team Youth:

Creativity Leadership

Community: Demand-driven Experiential Engagement Partnership with stakeholders

Fund mobilization Organizational transformation

GEN Y

Which generation are you?

GEN Y (2) The way we work/produce

in the future => new trends

New work-force globally: 2,3 billions

Work method: Immediate

achievement + appreciation

Impatient/anxious No hierarchy Success = joy and

fun Time/place flexibility

Keywords: digital, collective mindset, sharing, participation, collaboratively, WIP, learning new skills

Engaging (professionalism)

Purpose Passion + job

=> 54% entrepreneurs!

PHILOSOPHY

Private Sector – Citizen Sector Capitalism – Socialism => equal

chance/opportunity Transformation from inside + financial

sustainability

SOCIAL ENTREPRENEURSHIP

Vision Identify and recognize social

problems => social change Using entrepreneurial principles to

create social venture Performance = profit + social

return History

Literature 1960s Michael Young 1950s: more than

sixty social enterprise (“world’s most successful social entrepreneur” – Harvard)

“In my case, I like to support causes where

"a lot of good comes from a little bit of good," or, in other words, where the

positive social returns vastly exceed the

amount of time and money invested.”

ASHOKA Founded 1981 by Bill Drayton Identify and support social entrepreneurs

through social venture capital Goal: citizen sector business sector Operate in > 70 countries, >2000 SEs, “Youth Venture” => invests in team of

young people 11 out of 30 Forbes’ under 30 SEs

James Whelton (Coder Dojo): 10,000 kids in 22 countries

Sejal Hathi: 3 enterprises to help young girls in >100 countries

Hugh Evans: 2012 Global Citizen concert in Central Park

“Social entrepreneurs will not be content by giving a fish or

teaching how to fish; they will not stop until they revolutionize the

whole fishing industry.”

GRAMEEN BANK Founded 1976 27$ from own pocket for 42

women Today: $11,35 billion, >8

million borrowers 68% crosses line of poverty

(19 thousand out of 111tsd beggars)

95% return rate Social business: 97% by

borrowers, 3% by government.

Youth: social business is 70% creativity.

“Whenever I see problems in the society, I create business out of

it.”

ACUMEN/SKOLL/BAREFOOT Acumen Fund:

Global venture fund for entrepreneurial approaches Jacqueline Novogratz (2001). Seed Capital from Rockefeller, Cisco

Systems, philanthropists. Patient capital – loans or equity, not grants $83 million investments (2012), in 46 enterprises (100 million people

and created 58000 jobs) Skoll Foundation:

Social entrepreneurship foundation Jeff Skoll (eBay) (1999) Investing in, connecting & celebrating SEs Invests through annual Skoll Award for SE Media projects: Uncommon Heroes short films Skoll Centre for Social Entrepreneurship at Oxford Uni, international

forum and conferences

ACUMEN/SKOLL/BAREFOOT (2) Barefoot College:

Voluntary organization => empowerment & sustainability

Founded 1972, Bunker Roy 3000 children attending 150 night

schools, trained >3 million people for jobs

Gandhi philosophy: each village being self-reliant (medical, energy, etc)

Solar systems to illiterate poor women => no degree

Partners with UNESCO and UNDP for solar training replication

Formulas for change! Individuals Network Funding Replication/best-practices Media/recognition

“We went to Ladakh … and we asked this woman, ‘What was the benefit you had from solar electricity?’ And she thought for a minute and said, ‘It’s the first time I can see my husband’s face in winter.’”

INTEGRATION INTO DEVELOPMENT PROJECTS Sustainability:

Market/feasibility studies: Sense of belonging Cultural sensitivity and

awareness Business model:

Initial investment: affordability of individual projects

Payback plan Aid/grant vs. investment No monitoring =>

involvement of local private companies, or local NGOs

Price competition model Cash flow models Revenue model: grid, CDM,

etc

=> Entrepreneurship

Develop-ment Project

InvestmentBusiness Models

Awareness & Market

Study

UN Mission

INTEGRATION INTO DEVELOPMENT PROJECTS (2)

Innovative Business Models

Sustainable Financial incentives

Price Competition

Project Design

Investment & Private Sector Participation

RRE Strategic

Outcome 1

RRE Strategic

Outcome 2Local Capacity

Building

RRE Strategic

Outcome 3

Energy Entrepreneurs

Business Skills

Independent Power Producer

Rural Energy Enterprises

Business Partnerships

INTEGRATION INTO DEVELOPMENT PROJECTS (3)

Business Plan

Identify Interest

Identify Energy Price

Structure

Identify Employment

Identify Fuel

Identify Energy Needs

Planning Stage

Management Agreement

Setting-up RES

Social Entrepreneurship Capacity Building Technical Capacity Building

Implement-ing

Stage

Organizing Stage

Feasibility Study

Investment/Loan

Agreement

Staffing

MonitoringStage

Business Implementa

tion

Evaluation

Payback Monitoring

Government Inducement

INVESTMENT SCHEME • Challenges:

Involving /engaging FIs and partners,

Knowledge and awareness, Beyond project duration.

• Looking for innovative projects for renewable energy enterprises:

Evidence based Replication of success stories

• 3 topics: IT/business –social entrepreneurship/renewable energy.

• Question: how to engage private sector?? => high investment return

• Support of conventions, advocates, to back UN agencies to Government Egypt example

INVESTMENT SCHEME (2)

• Investment 2011: 257 billion USD

• SE4ALL (in Rio 20+): >50 billion USD

Create Green industry & job

UN Agencies

Government

Social Business

Community

Fund/Donor Organization (GEF)

Financial Institutions/

/Development Bank

Value Generation

MDG REALIZATION POTENTIALConcrete Deliverables through

Projects Portfolio by the end of 2018

Number of people gaining access to energy: >150,000

Renewable energy capacity installed: ~25MW

Renewable energy generated: > 450 GWh/year

Million tons of CO2eq avoided: >7 million tons direct

Number of SMEs benefitting from projects: >600

GSSB – Bangladesh (in 10 years)

Number of people gaining access to energy: 8 million

Renewable energy capacity installed: 55 MW

Renewable energy generated: 87 GWh/year

Million tons of CO2eq avoided: 68,000 tonnes/year

Number of SMEs (Micro-utlity) from projects: 3395

Total employees: 12,521 (16,500 trained technicians, 433,556 users)

64 out of 64 districts, 50,000 villages => Green Sustainable

Country

SHS 1,066,487 (>23500 SHSs/ mo), ICS: 619,734, Biogas: 24,798

CASE STUDY (Uganda Plan)

2 Years existing Electrical Installation Course

Training in agro-processing

RE Technologies Systems/Operation/Maintenance

Agro-processing technologies

Entrepreneurship and Business Skills

Capacity Development

Rural Energy and Agro processing Enterprises

Business Incubation and other Support

Revolving Fund

Technical Support

Finance /Credit

UNIDO

Social Entrepreneurship

Academy

CREEC IFI/bank

EGYPT PLAN

CASE STUDY (2) (Egypt Plan)

BeneficiariesMain Actors

Youth/SEs

ILO Branches

Existing SEs

Community

NGOs

SE Training

IFIs

Gov’t

GenSoc ILO

Preparatory Capacity Building

Main Organizers

Implementation and M&E

Concept Note

Endorsement

SE &Technical Training

Incubators/Unis

Monitoring and Evaluation

Technical Training

““Dignity is more important to the human spirit than wealth. When people gain income, they gain choice, and that is fundamental to dignity.”- Jacqueline Novogratz

QUESTIONS?