SOCIAL ENTREPRENEURSHIP INITIATIVE (SEI)

PRESENTATIONNATIONAL INDIAN GAMING ASSOCIATION

WEDNESDAY, MAY 14, 2014•Presenters

• Gary E. George, CEO, Wildhorse Resort & Casino

Confederated Tribes of Umatilla, Oregon• Lakota Mowrer, Assistant Director, Four

BandsCommunity Fund, Cheyenne River Sioux,

South Dakota

SEI AGENDA•Historical Framework

•Indian Gaming

•Development of a Social Entrepreneurship Framework

• Application of the Social Entrepreneurship Framework

•Questions & Comments

INDIAN GAMING•237 out of 558 Federally Recognized Tribes •28 States•442 Tribally Owned Casinos

Helping Indian Nations recover from centuries of Economic and Social Neglect (Source NIGA)

Majority of Gaming Tribes are not “Rolling in the Dough.”

Proximity to Population Centers, approximately 25 Tribal Gaming Operation generate 56% of the total portion of Indian Gaming Revenue ($27.2 Billion industry)

NIGA•NIGA established the American Indian Business Network to strengthen Tribally owned businesses and Indian Entrepreneurs!

•“Ultimately the American Indian Business Network (AIBN) is about empowering Native – Owned businesses.”

TO HAVE LASTING AND SIGNIFICANT CHANGE•Create Sustainable Communities by Developing Core Infrastructure

Stable Government Health Education Employment

• The Problem…• Better Community Services require

sustainable Revenue.

SEI MODEL•Share our model to effect positive change in Indian Country.

•Created a Hybrid Tribal Model – not Government , not for-profit or non profit, but contains elements of all three.

• Acknowledge Tribal Differences, but all Tribes cope with challenges

Self Governance Protection of Sovereignty Unique Resources Tremendous Value

SEI MODEL• Increase Capacity of Tribes •Provide a Planning Tool to improve Community Infrastructure

•Guiding Principles and Values•A Pathway to rebuilding our sustainable communities!

THE SOCIAL ENTREPRENEURSHIP INITIATIVE

2011-2013

MAIN COMPONENTS OF THE INITIATIVEWHO: WHAT:9 Native organizations chosen Organizational capacityto form a learning and support and pilot projectsimprovement cohortplus 1 intermediary.

WHERE: 8 meetings across the NWAF Footprint:*Minnesota, Iowa, North Dakota, South Dakota, Montana, Idaho, Washington, and Oregon

GOALS OF THE SOCIAL ENTREPRENEURSHIP INITIATIVE

1) Increase the knowledge, capacity, and leadership development

2) To strengthen existing and new relationships

3) Increase knowledge of social entrepreneurship programs

WHAT IS SOCIAL ENTREPRENEURSHIP?“A for-profit or non-profit venture that uses the fundamentals of a business model to help solve a social problem in the world.”

DOES SOCIAL ENTREPRENEURSHIP OCCUR IN INDIAN COUNTRY?

WE ARE SOCIAL ENTREPRENEURS!• Traditional belief system – repackaging

a time honored concept• Increasing the number of people who

have the opportunity to contribute their talents to the world

• Think boldly, act locally, and scale globally

WE ARE• REBUILDING OUR SYSTEMS AND

NATIONS!!

DEVELOPM

ENT OF S

OCIAL

ENTR

EPRENEURSHIP

FRAMEWORK FOR IN

DIAN

COUNTRY

FRAMING THE CONVERSATION

YESTERDAY, TODAY & TOMORROW: impact that will last through seven generations

SELF-REPLICABLE & VIRAL: demonstrate the path toward ensuring greater self-sufficiency

REALISTIC & ADAPTABLE: tap into and unleash the true potential in our people

SYNERGISTIC & INNOVATIVE: leverage synergies across our communities to create

the greatest impact

The importance of shared principles:

• Unifies our thinking.

• Shapes our decisions.

• Helps to frame and communicate our purpose.

1 3 2 4What are the principles we

will use to guide Social

Entrepreneurship?

What set of tools will be developed?

What impacts will be achieved?

How will we organize to achieve our

intended impacts?

Our Guiding Principles

• YESTERDAY, TODAY & TOMORROW

• SYNERGISTIC & INNOVATIVE

• REALISTIC & ADAPTABLE

• SELF-REPLICABLE & VIRAL

How impacts will be

delivered

• Tools developed

How impacts are measured

EMPLOYMENT

EDUCATION

SECURITY

CIVIC ENGAGEMENT

What will be focused on over

the next six months:

1. 2.

SOCIAL ENTREPRENEURSHIP FRAMEWORK

APPLICATI

ON OF THE

FRAMEWORK

F O U R BA N D S C

O M M U N I TY F

U N D

FOUR BANDS COMMUNITY FUND: WHO WE ARE

• Native Community Development Financial Institution (CDFI) incorporated in 2000 and became certified by US Treasury CDFI Fund in 2002

• Serve the Cheyenne River Sioux Indian Reservation in North-central South Dakota

• Serving Native Entrepreneurs in other persistent poverty counties in SD through partnerships

WHO WE SERVE• 62% of the households are below the

poverty level• 45% of the population is below the

age of 18• Few have educations beyond high

school• Easy targets for predatory lenders –

avg credit score 100 points lower than national average

• Little expertise with banks or money management

• Economic dependence vs. independence

CURRENT MODEL FOR SOCIAL CHANGEType of Funding

Government

$$$

Philanthropic$$$

Apply to Social ProblemsArts &

CultureSocial

Welfare Healthcare Education

Impact

Impact

Impact

Impact

1 3 2 4What are the principles we

will use to guide Social

Entrepreneurship?

What set of tools will be developed?

What impacts will be achieved?

How will we organize to achieve our

intended impacts?

Our Guiding Principles

• YESTERDAY, TODAY & TOMORROW

• SYNERGISTIC & INNOVATIVE

• REALISTIC & ADAPTABLE

• SELF-REPLICABLE & VIRAL

How impacts will be

delivered

• Equity Bundles

How impacts are measured

EMPLOYMENTIncrease in number of livable wage jobs on Reservation

EDUCATIONIncrease in financial capability of our reservation families

CIVIC ENGAGEMENTOutflow of consumer will decrease due to availability of new goods and services.

What will be focused on over

the next six months:

1. Seek Investment 2. Recruit, Assess, and Select participating native entrepreneurs3. Provide loan capital, TA, and equity bundle

FOUR BANDS BAU TO WOW FRAMEWORK

IMPROVED SELF-SUSTAINING MODEL

Access to

capital

Provide loans and

equity bundles

Start a business on the

rez

New goods and

services offered

Payment on loan returns

to revolving loan fund

Money available

for re-lending

and ops.

Social Need

Action

Direct Result

Benefit

Opportunity

Sustained Value

TRANSFORMING OUR ECONOMIC LANDSCAPE• Increased our loan deployment from

$800,000 in 2012 to $1.8 million in 2013

• Increased job creation from 42 in 2012 to 70 in 2013

• Clients experienced a 68 point increase in their credit score in 6 months!

• For every dollar invested by a funder, Four Bands and the entrepreneur leverage $15!

NEXT STEPS• Approach Native CDFI Network and be placed on their

Board Agenda and propose the creation of a social entrepreneurship committee

• Approach National Indian Gaming Association for socially responsible investing opportunities and to purchase from native vendors.

• Approach academic institutions, such as Washington University in St. Louis’s Center for Social Development, to develop technical assistance component

1 3 2 4What are the principles we

will use to guide Social

Entrepreneurship?

What set of tools will be developed?

What impacts will be achieved?

How will we organize to achieve our

intended impacts?

Our Guiding Principles

• YESTERDAY, TODAY & TOMORROW

• SYNERGISTIC & INNOVATIVE

• REALISTIC & ADAPTABLE

• SELF-REPLICABLE & VIRAL

How impacts will be

delivered

How impacts are measured

What will be focused on over

the next six months:

1. 2. 3.4.5.

SOCIAL ENTREPRENEURSHIP FRAMEWORK

QUESTIONS & COMMENTS

Lakota MowrerAssistant Director

Four Bands Community Fundlakota@fourbands.org

www.fourbands.org

Gary GeorgeCEO

Wildhorse Resort & Casino

gary.george@wildhorseresort.com

www.wildhorseresort.com