Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Máster en gestión de Empresas de Economía Social – Universidad Iberoamericana – Puebla Julio 2011
Dr. Aitor Lizartza Martin y Dr. Jose Mari Luzarraga – Mondragon University
[email protected] [email protected]
SOCIAL ENTREPRENEURSHIP
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Objetivos de la sesión Basado en el libro “The power of unreasonable people” (J Elkington & P. Hartigan – Harvard Business Press 2008) Nuestros objetivos son: Ü Presentar una nueva generación de emprendedores sociales Ü Entender sus modelos de negocio y estilos de liderazgo Ü Identificar oportunidades de mercado Ü Averiguar los recursos financieron obtenidos
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
“THE POWER OF UNREASONABLE PEOPLE How Social Entrepreneurs Create Markets that Change the World”
(Harvard Business Press 2008)
- Understanding what is a Social Entrepreneur - Classifying types of Social Enterprises - Identifying SE market opportunities - Tapping SE financial resources
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Understanding what is a Social Entrepreneur
“The reasonable man adapts himself t the world The unreasonable man persist in trying to adapt the world
to himself. Therefore, all progress depends on the unreasonable man”
(George Bernard Swaw, 1903)
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Social entrepreneurs are… Ü Innovative, Resourceful, Practical and Opportunistic,… as any
other entrepreneurs Ü But… What motivates social entrepreneurs is not doing the
“DEAL” but achieving the “IDEAL” Ü So they have a long term commitment with their projects Ü Most Social entrepreneurs stumble across the opportunity to
SERVE OTHERS Ü Common inspiration is:
“You have to be the change you want to see in the world” (Gandhi)
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Why are they unreasonable? Because…
Ü They Want to Change the World Ü They are insanely ambitious Ü They are propelled by emotions Ü They think they know the future Ü They seek profit in unprofitable pursuits Ü They ignore the evidence Ü They try to Measure the Unmeasurable Ü They refuse to be made into Superheroes Ü They are, well, unreasonable
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Characteristics of Successful Social entrepreneurs Ü Try to shrug off the constraints of ideology or discipline Ü Identify & apply practical solutions to social problems, combining
innovation, resourcefulness, and opportunity Ü Innovate by finding a new product, a new service, or a new
approach to a social problem Ü Focus-first & foremost-on social value creation and, in that spirit, are
willing to share their innovations & insights for other to replicate Ü Jump in before ensuring they are fully resourced Ü Have an unwavering belief in everyone’s innate capacity, often
regardless of education, to contribute meaningfully to economic & social development
Ü Show a dogged determination that pushes them to take risks that others wouldn’t dare
Ü Balance their passion for change with a zeal to measure and monitor their impact
Ü Have a great deal to teach change makers in other sectors Ü Display a healthy impatience
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
How they look like…
Dr. Govindappa “Aravind Eye Hospital” “The largest Eye care medical centre in the world” VIDEO: http://tinyurl.com/qb37rm
Nicholas Negroponte (MIT-medialab) “Entrepreneur behind the One laptop per child project” VIDEO: http://tinyurl.com/qkavho
Dr. Mohammed Yumus “Grameen Bank – Nobel Price 2006” VIDEO: http://tinyurl.com/dmbz9f
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Classifying types of Social Enterprises
Traditional classification: Ü Model 1: Leveraged Nonprofit ventures Ü Model 2: Hybrid Nonprofit ventures Ü Model 3: Social Business Ventures Social Enterprise from a wider perspective
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Traditional classification
Model 1: Leveraged Nonprofit ventures Ü A public good is being delivered to the most economically
vulnerable, who do not have access to, or are unable to afford, the service rendered
Ü Both the entrepreneur and the organization are change catalysts, with a central goal of enabling direct beneficiaries to assume ownership of the initiative
Ü Multiple external partners are actively involved in supporting the venture financially, politically, and in kind
Ü The founding entrepreneur morphs into a figurehead, in some cases for the wider movement, as others assume responsibilities and leadership
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Traditional classification
Model 1: Leveraged Nonprofit ventures
Mother Teresa “Missionaries of Charity” VIDEO: http://tinyurl.com/d25chs
Bunker Roy “Barefoot College” http://tinyurl.com/ottmg8
N. Negroponte OLPC www.laptop.org http://tinyurl.com/5tfazu
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Traditional classification Model 2: Hybrid Nonprofit ventures Ü Goods or services are delivered to populations that have been
excluded or underserved by mainstream markets, but the notion of making a profit is not totally out of the question
Ü Sooner or later the founding entrepreneur or his/her team, typically develops a marketing plan to ensure that the poor or otherwise disadvantaged can access the product or service being provided
Ü The enterprise is able to recover a portion of its costs through the sale of goods & services, in the process often identifying new markets
Ü To sustain activities & address the unmet needs of poor or otherwise marginalized clients, the entrepreneur mobilizes funds from public, private, and/or philanthropic organizations in the form of grants, loans
Ü As mainstream investors & business enter the picture, even when they are not seeking mainstream financial returns, they push to become model 3
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Traditional classification
Model 2: Hybrid Nonprofit ventures Rick Aubry “Rubicon Programs” VIDEO: http://tinyurl.com/o4dd82
Martin Fisher KickStart: www.kickstart.org VIDEO: http://tinyurl.com/p7mep3
Dr. Govindappa “Aravind Eye Hospital” http://tinyurl.com/qb37rm
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Traditional classification Model 3: Social Business ventures Ü The entrepreneur sets up the venture as a business with the specific
mission to drive transformational social and/or environmental change
Ü Profits are generated, but the aim is not maximize financial returns for shareholders but instead to financially benefit low-income groups and to grow the social venture by reinvestment, enabling it to reach and serve more people
Ü The entrepreneur seeks out investors interested in combining financial and social returns
Ü The enterprise’s financing-and scaling- opportunities can be significantly greater because social business can more easily take on debt and equity
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Traditional classification
Model 3: Social Business ventures
F. Arizmendiarrieta MONDRAGON Cooperatives http://tinyurl.com/p75akt http://tinyurl.com/otm9ft
Dr. Mohammed Yumus “Grameen Bank – Nobel Price 2006” VIDEO: http://tinyurl.com/qt65ux
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Actividad reflexión/inspiración
Ü Elige un emprendedor social que conozcas Ü Identifica que características tiene Ü Identifica que tipo de empresa social utiliza
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Classifying Social enterprise from a wider perspective
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
1. Demographic opportunities Facts: - Human population toward 9 billion to10 billion people - Age distribution skewing: old vs. young boom nations - Worldwide migration: from rural to cities - One of the best ways of reining population growth is encouraging
economic development
Examples of successful Social Entrepreneurs - Jeroo Billimoria – Child Helpline International -
http://www.childhelplineinternational.org/ - Martin Fisher – Cooperative Home Care Associates (CHCA), the
Paraprofessional Healtcare Institute (PHI) & Independence Care System (ICS) http://www.chcany.org/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
2. Financial opportunities Facts: - The notion that the haves will find ways to gain more and that the
have-nots will lose more has been acknowledged since biblical times - Extreme financial inequality can sow the seeds of insurrections and
social cataclysm - Tools & frameworks for economic justice are weak or nonexistent
Examples of successful Social Entrepreneurs - Jeroo Billimoria – Aflatoun - http://www.aflatoun.org/ - Martin Fisher – Kickstart - http://www.kickstart.org/ (0.6% GDP of
Kenya GDP & 0.25% of Tanzania GDP) - Fazle Abed – Bangladesh Rural Advancement Committee-
http://www.brac.net/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
3. Nutritional opportunities Facts: - True famine, hunger, and poor nutrition have been constants
through-out human history - 862 million people across the world are hungry, up from 852 million a
year ago - Every day, almost 16,000 children die from hunger-related causes--
ONE CHILD EVERY FIVE SECONDS.
Examples of successful Social Entrepreneurs - Takao Furuno – The power of Duck - http://tinyurl.com/ojdwy7 - Hector Gonzalez – Cuadritos - http://www.cuadritos.com.mx/ (the
largest self-sustaining food bank in Mexico, feeding 100.000 people a day)
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
4. Resource opportunities Facts: - A growing world population will not be a problem if the planet’s
resources were limitless, but they are not - Demographic pressures are fistering awareness of the natural
resource limits to economic growth - Example: the UN argues that the conflict in Darfur has been driven by
competition for water as climate change bites
Examples of successful Social Entrepreneurs - Phil LaRocco – E+Co - http://www.eandco.net/ - Fabio Rosa – Ideaas - http://www.ideaas.org.br/ & the widely
replicated Palmares project http://www.ashoka.org/node/3291
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs 5. Environmental opportunities Facts: - Environmental issues are universal: there is not South-North differences - Nevertheless, poor populations everywhere in the world re forced to live in
the worst circumstances - The dominant environmental concerns include the immediate of clean water
& sanitation, the risks of local & indoor pollution , & vulnerability to natural hazards.
- Other parts of the world: noise, traffic congestion, air & water pollution, long-term climate change,…
Examples of successful Social Entrepreneurs - Yan Arthus-Bertrand – The Earth from the Air -
http://www.wecommunic8.com/earthfromtheair/ - Wangari Maathi – Green Belt Movement -
http://www.greenbeltmovement.org/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
6. Health opportunities Facts: - From HIV/AIDS, to malaria, to potential pandemics like SARS or Flu-
A, the world problems can seen overwhelming - In 2006,11 million children <5 years died from preventable causes - 4 million babies will not survive their first month of life - > 1/2 million women died in pregnancy, during labor, or after birth
Examples of successful Social Entrepreneurs - Dr. Paul Farmer – “The Man who will cure the world” -
http://tinyurl.com/aovmpq - Dr. Devi Shetty – Narayana Hrudayalaya -
http://www.narayanahospitals.com/ - Vera Cordeiro – Resnacer - http://www.ashoka.org/node/3420
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
7. Gender opportunities Facts: - There is always an inescapable gender component - In the 1995 Kobe earthquake, 1,5 times more women than men died - In the Asian tsunami, death rates for women were 3-4 times those for
men - There are several factors: biological, cultural, economic, or access to
health care, education & information technology.
Examples of successful Social Entrepreneurs - Wu Qing – Beijing Cultural Development Center for Rural Women -
http://www.nongjianv.org/english/index.html
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
8. Educational opportunities Facts: - Few factors are as powerful as education in empowering humans - In a knowledge society access to educations becomes eevn more
important
Examples of successful Social Entrepreneurs - Bunker Roy – Barefoot College - http://www.barefootcollege.org/ - Kyle Zimmer - Fist book - http://www.firstbook.org - Wendy Kopp – Teach For America - http://www.teachforamerica.org/ - Michael Brown & Alan Khazei –City Year - http://www.cityyear.org - Javier Gonzalez – abcdespanol - http://www.abcdespanol.com/es/ - Liz Maw – Netimpact - http://www.netimpact.org/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
9. Digital opportunities Facts: - Enthusiasts may talk of “growing up digital”, but the IT revolution has
created its own divides - 80% of people in the world have never heard a dial tone, let alone
surfed the Web - Kofi Annan: “People lack many things: jobs, shelter, food, health care &
drinkable water. Today, being cut off from basic telecommunications services is hardship almost as acute as these other deprivations, & may indeed reduce the chances of finding remedies to them”
Examples of successful Social Entrepreneurs - Rodrigo Baggio – Committee for Democracy in IT -
http://www.cdi.org.br/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10 market opportunities for social entrepreneurs
10. Security opportunities Facts: - September 11th terrorism attack changed world security, however this
might be an effect of deeper & previous security causes. - Instead of turning to companies like General Dynamics or Halliburton
for security measures, governments should look to social entrepreneurs who recognize address the physical, psychological, social, economic, energy-related, water-related, or environmental security.
- Rich western countries spend up of 25 times as much on defense as they do on overseas aid.
Examples of successful Social Entrepreneurs - Pioneer Human Service - http://www.pioneerhumanservices.org/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
“YOU HAVE TO BE THE CHANGE YOU WANT TO SEE IN THE WORLD”
GANDHI
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
Eskerrik asko Muchas gracias Thank you 谢谢你
“Our strength does not lead to struggle but co-operation”
P. JM Arizmendiarrieta - 1956
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011