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									Social Entrepreneurship:
An Asian Perspective


    Prof. Marie Lisa M. Dacanay
    Asian Institute of Management
    Civil Society Forum, IMF-WB Annual Meeting
    14 Sept 2006
Social Entrepreneurship (SE):
An Asian Perspective
   Context of presentation
   A look at some SE initiatives in Asia
   Understanding SE in Asia
   Challenges and proposals for
    advancing SE in Asia
   Harnessing SE for the MDGs in
    Asia
Context: AIM-CAFO Partnership in
Social Entrepreneurship
   Research (AIM/CAFO)
       Cases on significant practices
       Creating a Space in the Market (2004)
   Education (AIM)
       Degree and non-degree programs
       Master in Entrepreneurship for Social and
        Development Entrepreneurs or MESODEV
   Networking and Outreach (AIM/CAFO)
       International Workshop on Social Entrepreneurship
        in Asia (July 6-8, 2006)
A Look at Some SE Initiatives in Asia

   KOOL-NE (Philippines)
   Hagar (Cambodia)
   PEKERTI (Indonesia)
   Basix Group (India)
   Partners for Health (Thailand)
A Look at Some SE Initiatives in Asia:
KOOL-NE (Philippines)
   Started 2002                  Total assets:US$110,000
   Joint venture between          Farmers’ equity: 10%;
    PRRM (NGO) &                  Annual sales: about USD91,000
    KALIKASAN (farmers)
   Production, processing and
    marketing of organic rice
   Second largest producer-
    distributor in Luzon island
   Farmers: increased incomes
    from lower cost of inputs
    and premium pricing
   Also contributes to
    environmental health and
    soil rehabilitation
A Look at Some SE Initiatives in Asia:
   Started as shelter for women by Pierre Tami in 1994
   Mission: Prevention, rehabilitation and reintegration of
    rural women and children who migrate to cities in search
    of better life.
   Now a social enterprise system with non-profit arm
    providing initial education and vocational training and
    commercial enterprises that provide employment and
    additional vocational training to enable women to have
    independent and productive lives
   Commercial enterprises: Hagar Soya, Hagar Catering,
    Hagar Design
   Working with other shelters to expand in Southeast Asia
A Look at Some SE Initiatives in Asia:
Partners for Health (Thailand)

   Social enterprise system serving persons living with
    HIV-AIDS (PLWHA):
      Health component with outreach care and psycho-
        social support: managed by Thai Business
        Coalition on Aids (TBCA)
      Income generating component providing
        marketing and retail support for PLWHA-made
        textile and handicrafts: managed by Center for
        People’s Families Affected by Aids (CPA) Positive
        Marketing Co. Ltd. (PMCL)
A Look at Some SE Initiative:
Partners for Health (Thailand)
     Set up as public-private-community
      partnership project in Nov 2003; cost USD117T
     Partners: UNESCAP, Ministry of Public Health,
      Bangkok Metropolitan Authority, TBCA and the CPA
     Objective: to increase outreach and effectiveness of
      gov’t HIV-AIDS programs
     PMCL sales (2004) : USD203T, mainly serving events-
      based market; 35% of profits go to health component
     Expected to be self-sustaining by 2008; By May 2005,
      deemed successful for replication & scaling up
A Look at Some SE Initiatives in Asia:
PEKERTI (Indonesia)
   Yayasan Pekerti (1975): not-for-profit foundation set
    up by 5 NGO activists
   Mission: increase standard of living of marginalized
    artisans & establish fair, democratic involvement
    in their economic activities; part of IFAT
   Pekerti Nusantara (1979): commercial arm for export
    market (assets: USD389T by 2002)
   Pekerti Cooperative (2000):
    working capital for
    partners
A Look at Some SE Initiatives in Asia:
PEKERTI (Indonesia)
             APIKRI
   Partner of Pekerti composed of
    200 artisans in Yogyakarta
   1987-1990: Pekerti helped set up
    Apikri Foundation and Apikri Cooperative
    w/c now conduct self-sustaining development
    and trading activities
   Sales by 2003: USD277 thousand
A Look at Some SE Initiatives in Asia:
Basix Group (India)

      Rural livelihood promotion institution
       founded in 1996 by NGO leaders
      Bank and non-bank institutions providing
       livelihood financial services
      Not-for-profit agency providing agriculture,
       business and institutional dev’t services
      Clients: poor & employers of poor in
       agriculture, non-farm and allied sectors
A Look at Some SE Initiatives:
Basix Group (India)

      Targets large numbers of poor in economic subsectors
       with growth potential: dairy, cotton, rural retailing
      Outreach (2003): 10,000 villages, 25 districts, 6 states
      Microfinance outreach: 145,500
      Livelihood promotion services outreach: 22,000
      Assets- USD9.2 million (2003); loan portfolio- USD 13
       million with 97% on-time recovery rate
      Impact assessment (2001): 68% clients poor; 52%
       with increased incomes (control group-29%); 37%
       with increased employment (control group-26%)
    A Look at Some SE Initiatives in Asia:
    Basix Group (India)
SARVODAYA NANO FINANCE LTD
    Non-bank financial institution
     set up by Basix to service self-
     help groups (SHGs) of poor
     women
    July 2001: devolved ownership
     to community-based mutual
     benefit trusts of 5,000 SHGs of
     poor women in Tamil Nadu
    3-year agreement for Basix to
     provide management services
Understanding SE in Asia
     Defining ‘social entrepreneur’
     Social enterprise
      vs traditional business enterprise
     Social enterprise development
      strategies
     Micro and macro perspectives
     Differing macro contexts
Defining ‘social entrepreneur’
      Development change agent working in the
       market as an arena
      Innovative, opportunity-seeking, resourceful
       person, group or institution
      Leads creation of enterprises, enterprise
       systems or enterprise development programs
       demonstrating positive development impact
  Social enterprise
  vs traditional business enterprise

Traditional business                         Social enterprise
enterprise
Stockholders or        Primary               Marginalized sectors
proprietors            stakeholders/
                       beneficiaries
Bottom line: profit    Primary objectives    Double or triple
                                             bottom line

Accumulative           Enterprise philosophy Distributive
Social enterprise
vs traditional business enterprise
Traditional                          Social
business                             enterprise
enterprise
Stockholders or      Primary         A sector,
proprietors:         stakeholders/   community or
individuals,         beneficiaries   group, usually
families who own                     involving the
capital and invest                   marginalized
such in the                          sectors of society
enterprise                           who may or may
                                     not own/control
                                     the enterprise
Social enterprise
vs traditional business enterprise
Traditional                          Social
business                             enterprise
enterprise
Bottom line:     Primary             Double or triple
profit           objectives          bottom line:
                                     financial viability;
                                     improve quality of
                                     life of
                                     marginalized
                                     sector;
                                     environmental
                                     sustainability
    Social enterprise
    vs traditional business enterprise
Traditional business                Social enterprise
enterprise


Accumulative:          Enterprise   Distributive:
minimize costs,        philosophy   economic benefits
maximize profits to                 distributed to a
enrich individuals;                 broader segment of
social and                          society;
environmental costs                 generate social and
externalized                        environmental
                                    benefits to society
Social Enterprise Development Strategies


   Resource Mobilization Strategies
   Social Inclusion Strategies
   Intermediation Strategies
   Empowerment Strategies
Social Enterprise Development Strategies:
Resource Mobilization Strategies
   Primary concern: generate income from
    sale of products or services to finance
    development agency’s operations
    or core program
   Exemplified in part by Partners
    for Health
   Another example: Bina Swadaya
    Tours plus 8 other subsidiary companies
    provide 90% of Bina Swadaya’s annual
    budget of USD5million (Indonesia)
Social Enterprise Development Strategies:
Social Inclusion Strategies

   Address need for
    disadvantaged or
    excluded groups to
    regain their dignified
    place in society
   Exemplified by Hagar
    and Partners for
    Health
Social Enterprise Development Strategies:
Intermediation Strategies
                Provides primary stakeholders
                 access to economic or social
                 services
                Two types: functional
                 intermediation and progressive
                 intermediation
                Variations of progressive
                 intermediation exemplified by
                 Pekerti and Basix
                Example of functional
                 intermediation: most MFIs
Social Enterprise Development Strategies:
Empowerment Strategies
   Address need for poor or marginalized to
    reap maximum benefits from owning and
    controlling social enterprise themselves
   Two types: direct empowerment and
    devolutionary empowerment
   Direct:
    exemplified by cooperatives
   Devolutionary:
    exemplified by KOOL-NE
Social entrepreneurship:
micro and macro perspectives
   Micro perspective: art of wealth creation with
    multiple bottom lines
   Macro perspective: strategy to democratize
    market economies
       Participation by the poor and marginalized
        sectors as owners, decision makers and
        stakeholders (social dimension)
       Protection and rehabilitation of society’s life
        support system (environmental dimension)
Differing Macro Contexts of SE in Asia
   Developing market economies: POVERTY
   Socialist countries in transition to market
    economies: humane market economies or
    ‘MINDFUL MARKETS’
   Developed/affluent market economies:
    SOCIAL INCLUSION ++
       assisting efforts at poverty reduction and building
        ‘mindful markets’ in other countries
Challenges in Advancing SE in Asia
   Social marketing: Lack of understanding by
    development sector of market as arena for change
   Capacity building: Low capacity for building and
    scaling up social enterprises among civil society
    actors
   Scaling up and mainstreaming
       Lack of access to financial capital for scaling up
       Limited involvement of the business sector
       Absence of supportive policy environment
Concrete Proposals to Advance SE in Asia

   Regional center for
    social entrepreneurship
    in Asia to support
    country level initiatives
    in response to
    challenges
   Social enterprise capital
    fund (s)
Harnessing SE for the Millenium
Development Goals (MDGs) in Asia
   MDBs may want to consider harnessing
    social entrepreneurship to improve
    performance vis a vis the MDGs in Asia,
    home to 2/3 of the world’s poorest.
   Proposal: Invest in a Social Enterprise
    Capital Fund to support innovative tri-
    sectoral partnerships and scale up existing
    initiatives directly responding to the
    MDGs.
Thank You!

								
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