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SUSTAINABLE BUSINESS MODELS FOR SOCIAL ENTERPRISE Bev Moodie

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					SUSTAINABLE BUSINESS MODELS FOR SOCIAL ENTERPRISE

                       Bev Moodie
          Social Entrepreneur – Ashoka Fellow

                          With
                   Contributions from
    Jonny Gevisser                   Hudson McComb
         Social Entrepreneurs – Ashoka Fellows
      WHO – WHAT IS A SOCIAL
        ENTREPRENEUR?

Men and women with system-changing solutions that
  address the world’s most urgent social challenges,
   persisting in seeing what needs to be better, thus
    opening the ground for new ideas, much like a
   ploughman who prepares the soil for new seeds
                 Bill Drayton – Ashoka

                 Change-makers
Make an impact in society with a new idea/approach
   SUSTAINABLE BUSINESS MODELS FOR SOCIAL
                 ENTERPRISE

 CRITICAL SUCCESS FACTOR OF            CRITICAL ELEMENTS FOR
       THE CHANGE MAKING                   SUSTAINABILITY
            PROCESS
                                       1.   BENEFIT SUSTAINABILITY
  Creates meaningful relationships          activities continue to be felt by
                which                       beneficiaries
 builds trust
 connects people                      2.   ORGANISATIONAL
 builds understanding+                     SUSTAINABILITY
   commitment                               enabling environment inside the
                                            project
and results in action
                                       3.   FINANCIAL SUSTAINABILITY
              Takes time!
                                       4.   COMMUNITY SUSTAINABILITY
                                            capacity to sustain itself – see
Jonny Gevisser – Social Entrepreneur        benefit
   (Ashoka Fellow)
BUSINESS OUTREACH MODEL

  Alleviating poverty by bridging the
      economics and business gap

ECONOMIC CAPACITY BUILDING AND
        EMPOWERMENT
      BUSINESS OUTREACH MODEL
       10 years –active development
GENERAL APPROACH TO BUSINESS                           REALITY
  DEVELOPMENT AT THE TIME FOR
  COMMUNITIES                            NO CONNECTION BETWEEN
                                          SKILLS BUILDINGS AND INCOME
                                          ?What can I do to earn income?
 TECHNICAL SKILLS - MONEY               APPROACH PERPETUATED
  BUILDINGS - EQUIPMENT                   CULTURE OF DEPENDANCY
 FORMAL BUSINESS                        COMMUNITY BUSINESS PROJECTS
  APPROACH/MESSAGE THAT                   - NO OWNERSHIP OF THE IDEA
                                          money gone = people gone
    YOU NEED MONEY
    YOU NEED SKILLS
    YOU NEED TO BE A CERTAIN KIND       DIVERSE EDUCATION LEVELS
     OF PERSONALITY
                                          (Illiterate – graduate in same group)
    FORMAL BUSINESS SKILLS
                                         LIMITED SKILLS AND RESOURCES
  ? So what can I do to earn income ?    ACADEMIC DEGREE - ??
                                         NO ACCESS TO FINANCE
                                         LOW SELF-ESTEEM and belief that
                                          they could not contribute to the
                                          economy
   BUSINESS OUTREACH MODEL

       NEED ON THE GROUND = NEW APPROACH

 LOCAL PROGRAMME THAT UNDERSTOOD THE DYNAMICS OF
  SOUTH AFRICA AND COULD EMBRACE the DIVERSITIES

 PROCESS WHICH COULD BRING THE PERSON (with what they
  have - existing resources) INTO THE BUSINESS PROCESS –
  MAKING IT REALISTIC, RELEVANT and POSSIBLE without
  compromising the business culture

 BUILD TRUST, BELIEF IN THEMSELVES AND ABILITIES –
  creating innovative opportunities to match need in the marketplace =
  OWNERSHIP, COMMITMENT AND ACTION
   BUSINESS OUTREACH PROGRAMME
       10 years – actively working in communities

    1999 + Entrepreneurial Life-skill programme – MFE methodology – embrace
 Diversities and build business and economic capacity, empowering learners to tap
      into their own entrepreneurial potential (how to earn money and keep it)


1999-2008 Programmes designed
    and well documented for
       outreach purposes
       SETA accreditation
        DoL registered ?                                2001+Business Outreach
                                                         Facilitator’s Programme
                                                             Roll-out in rural
                                                               communities
                            2006/7 Bop-Masibambane
                                Business Network
                            Mentorship ad support and
                             Linkages to main-stream
                                    business
       ENTREPRENEURIAL LIFE-SKILLS
           COURSE SUCCESSES
TARGET MARKET – 16+
   (illiterate – graduate/men-women)
                     65% youth

   Created their own innovative business ideas
    = action
   Demystified business process = yes I can be
    an entrepreneur; run my business in an
    entrepreneurial way
   Recorded success rate 78% - Market
    focused business ideas started with little/no
    start-up capital.
    Income where none before
   Recorded success rate 100% - survival
    business growing with existing resources
   Businesses changed with changes in
    marketplace = sustainability
   Equalising everyone into the business
    process
   Created a culture of entrepreneurship and
    self-reliance
REPLICATION - BUSINESS OUTREACH
          FACILITATORS
 Pilot programme (Apt Enterprise
  Development (UK)) – 5 Community
  Facilitators with training and support
  empowered 200 business initiatives in
  12 months with no micro-finance

 Beneficiaries – young, old, men,
  women, disabled, illiterate – graduate,
  community projects and micro-lending
  processes

 Facilitators came from ordinary
  backgrounds – some linked to
  business service centres and
  community projects, others operating
  as independent Facilitators

 Licensed to operate, code of conduct,
  supported and coached, worked with
  solid learner programme with
  measurement tools and earned
  income (community franchise
  operation)
        BOP-MASIBAMBANE BUSINESS
                NETWORK
BUSINESS NETWORK FOR
EMERGING ENTREPRENEURS
(business bridging project - partnership
    with Knysna Municipality)

 Ongoing support and motivation after
  entrepreneurial life-skills course

 Linked them with existing businesses
  and municipality procurement
  processes

 Shared their experiences and
  challenges and learnt from each other
  (big business same problems as
  emerging entrepreneurs) – exposure
  to realities of business - equalising and
  empowering process

 Vehicle to market their
  products/services to wider audience
  (local/international linkages).
    BUSINESS OUTREACH MODEL
SUCCESSES

 Huge demand at community level – benefit sustainability
 High success rate and roll-out impact 1-4 (participants helping their
  neighbours in business)
 Cost effective mechanism saw the money going into community
 Outreach facilitators empowered with an understanding of how
  business really works and a tool that could handle diversities within
  communities, allow for discrepancies with facilitators and measured
  their impact
 Process added business value/culture to various community projects
  – agriculture, manufacturing, service, tourism
 Business Outreach approach (African approach) shared with great
  success in Mexico – Sierra Gorda Bio-reserve - African solutions for
  international challenges
              BUSINESS OUTREACH’S
                  EXPERIENCES
CHALLENGES – EMERGING ENTREPRENEURS (lessons learnt)

 Takes time for small business to grow from egg – chicken – fowl – egg (18
  months – business idea could change in that time – match market need) –
  this is not understood in business development environment

 Local Business Service Centres push them into the formal business
  environment (registering cc) before they’ve even started - got to that level.
  Many cases cc is not relevant nor needed

 Business Service Centres lack understanding of entrepreneurial business
  development process. Resource centre on receiving end of great
  expectations.

 Finance for emerging entrepreneurs – not easily accessible
       Group financing schemes cause problems for entrepreneurs
BUSINESS OUTREACH MODEL
BUSINESS OUTREACH CHALLENGES

 Funding for the community training programmes (isn’t this what the
  DoL’s supposed to support?)
 Lack of co-ordination and co-operation in business development
  environment (waste of resources). Everyone wants to re-create the
  wheel their own way.
 Unwillingness in Government departments (LED) reluctant to
  outsource what they don’t do
 Social enterprise (unknown quantity) – right legal structure for
  funding and income generation
 Venture capital for social enterprise (doesn’t exist in S.Africa)
 Venture capital for 2nd level – (doesn’t exist)
 BOXES - SETA and DoL
   SUSTAINABLE BUSINESS MODELS
      FOR SOCIAL ENTERPRISE
                           ABOUT BOXES

    Social enterprise is delivered by social entrepreneurs who think
                         OUT OF THE BOX but
  their ideas or projects are vetted for support/finance by people who
                              think IN THE BOX

             “Like asking a blind man to assess artwork”
                        Hudson McComb – Ashoka fellow

Whatever you do
 Interlinks (maximises resources and opportunities)
 KISS (keep it simple, simple)
                            VISIT

               www.business-opportunity-books

Publishers of self-help ebooks and etraining programme/products

Social innovation, supporting change, personal empowerment and
                        Economic growth

				
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