Social Entrepreneurship Policy & Approach

Dr. Madhura M ChatrapathyVirtual Session

University Of Southern CaliforniaSchool of Social Work

at Los Angeles & Orange County

November 22, 2011 9.30 -11 PM IST

Entrepreneuring

dreaming_doing_daring

ASCENT is a NOT-FOR-PROFIT SOCIAL ENTERPRISE committed to develop and FOSTER CHANGE MAKERS.

…fostering an entrepreneurial culture

A NETWORKING ORGANISATION working with strong cross-sector networks, partners, associates and volunteers to evolve INNOVATIVE SOLUTIONS to development challenges.

Engaged in CAPACITY BUILDING, Studies & Exploration, Consultancy Support and Projects – all in the sphere of entrepreneurship.

Acknowledged INNOVATOR AND THOUGHT LEADER in spheres of entrepreneurship, ECONOMIC EMPOWERMENT, enabling mechanisms, gender mainstreaming and enterprise projects in ASIA AND AFRICA.

In a world ofdwindling public resources and growing social challenges, mission-driven entrepreneurship is more important than ever before.

Social Enterprise - the Context

- Rupert Scofield

“ It is not the strongest species that survive nor the most intelligent, but the ones most responsive to change”.

- Charles Darwin

RESPONSIVE to CHANGE

Social enterprise in the context of welfare reform policies

Social Enterprise has come to be a common response in advanced countries to problems like, – structural unemployment– government budget deficits– inadequacy of traditional social policies– need for more active social integration measures

Approach to social enterprise development often defers because of differences in the earlier welfare approach and the change policies or welfare reforms

Every day Amul collects 447,000 litres of milk from 2.12 million farmers (many not literate), converts the milk into branded, packaged products, and delivers goods worth Rs.6 crore (Rs. 60 million) to over 500,000 retail outlets across the country.

Pro Co-operative Movement policy of Indian Government

Gujarat Cooperative Milk Marketing Federation

(Rs. 22 billion) enterprise.

Popularly known as Lijjat, is an Indian Women’s cooperative involved in manufacturing of various fast moving consumer goods.

Started in 1959 with a seed capital of Rs. 80, Lijjat has an annual turnover of around Rs. 650 crore (Rs.65 million), with Rs. 2.9 million in exports (as of 2010). It involves around 42,000 people.

Lijjat is headquartered in Mumbai and has 67 branches and 35 divisions all over India

Shri Mahila Griha Udyog Lijjat Papad

Many governments both in developing &advanced countries have come forward to partner themselves with private / community

initiatives in the providing services, rather than themselves being primary service providers.

PUBLIC - PRIVATE PARTNERSHIP

Social Entrepreneurship

A social entrepreneur recognizes a social problem and uses entrepreneurial priciples to organise, create and

manage a venture to achieve social change.While a business entrepreneur typically measures

performance in profit and return, a social entrepreneur focuses on creating social capital.

Social entrepreneur lays emphasis on ‘thecommunity’ as a vital resource and

a site for intervention.

Social Enterprise

Social enterprises do business delivering on financial, social and environmental

performance targets is often referred to as triple bottom line. It could be that the profit

from the business is used to support related social aims or the business

accomplishes the social aim through its operations.

The triple bottom line

The double bottom line delicate balance between mission & money

Social Entrepreneurship is an organization’s ability to “take their strengths and capacity and match them to an opportunity they see in the marketplace — an opportunity that both meets their mission and provides financial stability — this is what we call the double bottom line”

Mary Birchard National Center for Social Entrepreneurs,

Welfare to Empowerment

Dependency to Self Reliance or Interdependency

Social Work to Social Entrepreneurship

Option that meets the mission and provides the financial stability

& sustainability

The Enterprise Approach

To empower people to make choices based on informed decision making processes with ownership of action and consequent reward and risk

Key Attributes in Enterprise Approach

ASCENT

Opportunity, Resource, Risk, Reward

Over

Despair, Sympathy, Support, Subsistence

Key Attributes in Enterprise Approach

Ownership of operations, reward and risk by the producer groups

Profit sharers and not mere wage earners !

Business strategies leading social strategies

Key Attributes in Enterprise Approach

Access to Exposure – Learning Opportunities

Dignity in the treatment of

‘beneficiaries’ - artisans or producers as Entrepreneurs

Key Attributes in Enterprise Approach

ASCENT

Strategies focus on empowerment of producer groups

Transfer of governance and ownership

NGO in facilitator’s role

Athani to Dusseldorff

Now lets view a film

saga of transforming artisans to entrepreneurs

GROUP ENTERPRISE

A tool in steering grassroots men and women from ‘vulnerable state or low income’ cross roads to entrepreneurial mainstream

GROUP ENTERPRISE

• An Enterprise Owned and Managed by a Group of Like Minded People (an affinity group) to achieve common entrepreneurial goal

• An entity of Micro Enterprises and/or Potential Micro Entrepreneurs created to profitably carry out one or all of the business operations

ADVANTAGES

Enhances risk bearing ability Efficient utilisation of productive resources Enhanced adoption of Technology Enhanced capacity for capital absorption - build up Synergy of operations Higher production capacity

Contd.

Reach out to distance marketsAccess to alternative marketsScope for developing brand imageHigher bargaining power - negotiation strengthBest of Corporate and Social Organisations (Have the cake and eat it too)

ADVANTAGES

Self Help Groups usually saving & credit groups

Financial EnablerConfidence Builder self - confidence is critical to entrepreneurial initiativesSafety Net for the highly vulnerable people

PROVIDEA sense of self worth, self reliance and identityPeer and community supportNetwork of mentors and counselorsLarger resource

Enabling policies on Self Help Groups in India

ToeHoldToeHoldARTISANSARTISANS

CollaborativeCollaborative

SHGs

REGULAR WEEKLY

MEETINGS

INFO SHARING PROBLEMSOLVING

SAVING & CREDIT

CAPACITY BUILDING

SKILL DESIGN

& MARKET MATCH

PRODUCTION&

DELIVERY

PROFIT SHARING

MPOWERMENT

BANGALORE

Athani is the heartland of handcrafted footwear in Karnataka

The distinct variety of ethnic footwear is popular by the generic misnomer Kolhapuri !!!700 km

• Funding by NLDP UNDP ** Tech support by CLRI.

•Infrastructure : Government of Karnataka•CORE FOCUS - ECONOMIC EMPOWERMENT /

BUILD OPERATE TRANSFER•The BUSINESS MODEL & SOCIAL PROCESSES were designed and implemented by ASCENT.

•The outcome of this intense joint effort is a Group Enterprise - ToeHold Artisans Collaborative (TAC).

ASCENT initiative Project EnterPrice - transforming artisans to entrepreneurs

Jan 1999 - Dec 2002)

OWNERS CLUB

Nearly 200 women in 15 SHGs

What about men ?

CO-PRENEURS

www.toeholdindia.com

ToeHold Artisans Collaborative

BANGALORE TAC MARKETING

OFFICE

TAC OPERATIONS UNIT

ASCENT

Decentralised Production

Centralised Marketing

www.toeholdindia.com

The Challenge

THEN NOWLow self esteem and resignation to fate

Higher self esteem and confidence to change own destiny

Women not seen much in public,no mobility

Women on the move, with great mobility

Improvement of quality of life through grants and aids – scope limited, periodic in puts, very marginal improvement

Improvement quality of life through self help, scope continuous and unlimited, sustainable and substantive

Continued Support Government of India and Karnataka

Sectoral Development of LeatherMarket Development Assistance to Small Business – participation International FairsSupport Artisans Development –Capacity Building & Exposure VisitsTechnology Upgradation / Modernisation

Under various schemes

International Trade Fairs

GDS Düsseldorf

Buyers interacting with artisans GDS 2007 at Dusseldorf

Students, Sadashiv & Savita Harale, and Intl. fashion designer Cathreen Willems

THE ENTERPRISE MODELFRONT END BACK END

BUSINESS ENTERPRISE SOCIAL ENTERPRISE

BUSINESS STRATEGY

BUSINESS RESULTS

CUSTOMER

BUSINESS MODEL

ARTISAN

HUMAN GROUPS

SOCIAL STRATEGY

HUMAN DEVELOPMENT

BUSINESS PARTNERS SUPPORT NETWORKS

DEVELOPMENT VALUESVALUE PROPOSITION

A FINE BALANCE

New Machinery Addition at CFC, Athani

Stitching Machine

Clicking MachineStamping Machine

Design Development Workshop

technical support by Central Leather Research Institute (Govt)

Leaders at discussion with by Prof. Rajkumar Phatate

10,000 pairs exported to Korea

Hollywood Star

Cameron Diaz

Owns TeoHold Sandals!

EXCELLENCEEXCELLENCE EXPORTEXPORT

exporter from backward area in Karnatakaexporter from backward area in Karnataka

By Federation of Karnataka of Chambers of Commerce &

Industries

AWARD 2006AWARD 2006

Launch of

ToeHold enters the portals of prestigious Indian School of

Business240 MBA students were taught ToeHold Business Model developed by ASCENT on August 17-18, 2009

ToeHold Case Study presented to Masters in Social Work Students of USC, Cal

at TISS Mumbai

Social Work Curriculum need to add social enterprise dimension; not ‘instead of’ but as a mandate of value addition and response to challenge of double bottom line –mission & money

Some management schools & universities in India offer social entrepreneurship PG Diploma and also a PG Diploma in not-for -profit organization management.

Social Work professionals are also increasingly in demand for CSR, social entrepreneurship education will help integrate social work & social entrepreneurship

Social Entrepreneurship

Social Entrepreneurship is beyond being just a profession. Social entrepreneurs are true

change makers.

A spirited entrepreneur, an enterprise with social goals and an enabling eco-system can only be created by the stake holders like the university,

the community, the business and the government in an integrated manner.

Social Entrepreneurship

www.ascentasia.org

Thank you

madhurac@gmail.com

Entrepreneuring

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