Lisa Nitze presents SE Alliance
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Transcript of Lisa Nitze presents SE Alliance
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Social Enterprise: A Critical Engine of Simultaneous Economic and Social
Development
By Lisa NitzeCEO, Social Enterprise Alliance
I-7 ConferenceOctober 15, 2010
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A New Vision
The world’s problems are outstripping our current initiatives to address them – not necessarily our current capacity to address them
Our old models for how to address social problems need to be updated
Resources residing in silos need to be combined through collaborative partnerships for maximum positive social impact
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The Role of Government
Traditional View
Take care of those who can’t take care of themselves
Educate the peopleProtect the environmentBuild and maintain transportation and communications infrastructures
Build and maintain public health infrastructuresCreate and implement laws and punishments to provide safety, social stability, equity and fairness in society
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The Role of GovernmentRevised ViewProvide those who can’t take care of themselves with the tools to help themselves
Partner with others in the market to educate, protect the environment, create and maintain infrastructures, protect public health
Provide incentives for people to self-govern for safety, social stability and equity
Use leverage to convene partnerships among sources of resources for public good
Use leverage to convene stakeholders around issues so they can define a middle ground
Incentivize corporations to invest in societies’ well-being
Provide seed-funding, be the convener and catalyst
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Corporations
Traditional ViewEmphasis on short-term profit for shareholdersSee societal needs as the job of governmentSee environmental issues as the job of government
See non-profits as an adjunct of government and make annual contributions to them as asked
See Universities as disconnected from economySee citizen and advocacy groups as on another team
See government as ineffective
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Corporations
Revised View
See other stakeholders in society as partners in long-term health and sustainability of:
– Communities where operate– Employees– Customers– Suppliers– Distributors
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Universities
Traditional View
Educate the best on higher level thinkingStick to education
Revised View
Educate to market needsPartner with corporations, government and non-profits to create societal and commercial value while educating
Commercialize learning where possible
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Citizen Advocacy Groups
Traditional View
Corporations are deliberately ignoring needs of society and environment
Corporations are on another team - damaging society in pursuit of their interests
Revised View
Corporations have resources to contribute to the communityCorporations can be partners in solving social problems
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Nonprofits
Old View: The Traditional Nonprofit
Model of meeting need through dependency on donations
Model of pursuing good without responsibility for figuring out how to pay for it
Lack of connection to market drivers allows original model to become out of touch
Federal organizations do not meet local needs with local solutions
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Social Enterprises
Revised View: The Social Enterprise
A market-based, business-like approach to solving a social problem
Its mission is to meet a societal need in a way that is self-sustaining
Simultaneous pursuit of social and economic development that is not zero-sum
Partnering with government, business, universities and all other sources of resources creatively to achieve goals
What is a Social Enterprise?
A “Social Enterprise” is a nonprofit or private sector entity that:
• Uses earned revenue strategies, either exclusively as a business or as a significant part of a nonprofit’s revenue stream, and
• Directly addresses social needs either through its goods and/or services or by employing people who are disabled or disadvantaged
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Social Enterprises Make up a Rapidly Growing and Vital Sector of the U.S. Economy
The economic downturn has caused nonprofits to seek new solutions for sustainability as charitable contributions decline
Social need has increased as corporations and government cut jobs and budgets
Public awareness of social entrepreneurship has risen and purchasers are increasingly seeking to support positive social change with their dollars
Nonprofits adding revenue-generating streams to their business models can increase scale and impact
Government social program budgets are shrinking creating market opportunities for growth of the social enterprise sector
Having market-based elements to their business models keeps nonprofits tracking with the evolution of market need
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A Few Examples of Social Enterprises
Common Ground Women’s Bean Project Homelessness Women in Transition Real estate development Product Assembly/Retail Sale
Juma Ventures Cornerstone/National Day 1 Underprivileged Youth Domestic Violence Employment and Training Database Product
Project Health EngAGE Urban Health Clinics Elderly Care Hospital Contracts Program Design Consulting
Harbor City Services DC Kitchen Mental health Addiction/Incarceration Corporate Shredding, Moving, Catering Services Filing, Storage
Case Studies of Select Social Enterprises in the Health Care Field
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Economic and Social Infrastructures Can’t Keep Pace with the Growth of Social Enterprise
•New legal and tax structures are needed•Access to growth capital is constrained by outdated frameworks
•Clear definitions of the sector are necessary to measure impact
•Branding and awareness building is required to drive greater growth
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Why Should Corporations Be Investing in the Success of Social Enterprises?
•It represents a highly leveraged investment•They strengthen the communities where your employees live•Employee retention, attraction and development•Business-like approaches to social problems use society’s resources more efficiently
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Why are Social Enterprises Good Partners for Business?
Sources of market-research
Sources of innovation
Sources of inspiration
Investments in the future
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Social and economic development are no longer mutually exclusive
“Nonprofit” and “For Profit” are rapidly becoming outdated distinctions
Triple bottom line analysis is being done by all actors in pursuit of sustainable progress
Those enterprises that will be the most successful as the shifts continue are those that have attracted and invested in the largest percentage of change leaders – innovators who excel at leadership, teamwork and empathy
The Sands are Shifting and Stakeholder Roles are Changing in the Economy and in Society
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Social Enterprise Alliance
5358 42nd Place NWWashington, DC 20015
www.se-alliance.org [email protected]
P: (202) 758-0194F: (202) 449-9611
Questions?