This document summarizes a presentation on social innovation. It defines social entrepreneurship and social innovations as solutions that create social value rather than private value. Microfinance is used as a case study to illustrate the stages of innovation - defining problems, generating ideas, piloting solutions, and scaling impact. The presentation argues that social innovations require cross-sector collaboration between civil society, government, and business to succeed and provides examples of organizations employing different strategic approaches. It emphasizes that social change happens gradually along a continuum rather than overnight.
3. Soraya Salti
INJAZ al-Arab
Bill Drayton
Ashoka
Premal Shah/Matt Flannery
KIVA
Muhammad Yunus
Grameen Bank; Nobel Laureate
Adalberto Verissimo and Carlos Souza Jr.
Imazon
Social Entrepreneurs
4. Social Entrepreneurship
Social entrepreneurs play the role of change agents in the
social sector, by:
• Adopting a mission to create and sustain social value
(not just private value),
• Recognizing and relentlessly pursuing new opportunities to
serve that mission,
• Engaging in a process of continuous innovation,
adaptation, and learning,
• Acting boldly without being limited by resources currently in
hand, and
• Exhibiting heightened accountability to the
constituencies served and for the outcomes created.
Source: Greg Dees, The Meaning of “Social Entrepreneurship,” J. Gregory Dees, Duke University, May 30, 2001
6. Need to do something with
this and the next slide. I
like the stool metaphor, but
this is a poor visual, and I
have not been able to find
a decent stool photo
(surprisingly)
7. Social Entrepreneurs
The Great Man or
Woman Theory
Social Enterprise
Self-Sustaining
Organization Theory
Social Capital Market
Microfinance
8. Social Innovation Definition
A novel solution to a social problem that is more
effective, efficient, or sustainable
than existing solutions and for which the
value created accrues primarily to
society as a whole
rather than private individuals.
9. Criteria differentiation
Innovation Criteria
• Novelty- new to user, context or
application
• Improvement- more effective or
efficient
Social Innovation Criteria
• Sustainable
• Just
• Public Value
10. Social Innovation and Traditional
Innovations
Social Innovation
• Socially Responsible
Investing
• Microfinance
• Sustainable
Development
(Amazon)
Innovation
• The Internet
• Hydraulic Fracking
• Deep water Trolling
18. Diffusion & Scaling 1990-present
1990’s 2000’s Present
• Microfinance
Decade
• Nonprofit +
Emergence of
For Profit
• Rise of Non-Bank
Financial
Institutions (NBFIs)
• 2005- UN declared
the year of
microcredit
• 2006- Yunus and
(Grameen)
received the Nobel
Peace Prize
19.
20. State of Microfinance - Global View
• Over 12,000 MFIs
• More than 94,000,000 borrowers total
• 91 countries
21.
22. • Data and Metrics
• Organizational
Efficiency/IT
Systems
• Scale and Reach
Technology’s Influence on Microfinance
23. The Story of M-Pesa: Problem
• Needed to
deepen
financial
penetration
into the
unbanked
community
24. The Story of M-Pesa: Idea Generation
• Utilized cross-sector community
collaboration to be successful
25. The Story of M-Pesa: Pilot
• Adapted to practice on the ground
26. The Story of M-Pesa: Scaling
Established a
network of
agents
Set a bold goal
27. The Story of M-Pesa: Tipping Point
Became viral after reaching over a
million customers and implementing
lessons learned
• Ubiquitous distribution
network
• Strong Brand
• Work all the time
• Agent Training
• Combat Fraud
28. The Story of M-Pesa: Kenya Today
• Moves between $500-$700million
per month (20% of Kenya’s GDP)
• 15 million active users
29. The Story of M-Pesa: Global Expansion
• Tanzania
• Afghanistan
• South Africa
• India
39. What can
civil society do?
• Leverage trust, networks,
and deep customer
knowledge
• Ensure voice of customer is
heard
• Provide long-term thinking
40. What can
government do?
• Set effective policy,
regulation, and rules
• Provide access to reach
large number of customers
• Raise awareness
41. What can
business do?
• Leverage assets,
efficiencies, and resources
(Financial, management,
supply chain, etc.)
• Demonstrate rapid action
• Provide flexible funds
42. “If we want to build a stronger,
more sustainable world for
future generations, one with
more partners and fewer
enemies, we have to work
together.”
So let’s start delving into a definition of social innovation. Here is a picture of the social change landscapeSince the early 90’s there has been an explosion of “social” as a modifier, leading to a world today where we have social entrepreneurs, social enterprise, social capital and of course - social innovation. These are all important and valuable efforts. However, solving social problems takes more than adding the adjective “social” to business terms to create real solutions. Therefore, if we are serious about addressing the world problems we have to be serious about defining and understanding what we are talking about. So let’s take a deeper look at what these constructs are and how they are different and similar and in particular what is a social innovation.
Now lets move to the diffusion and scaling stageThe 1990’s and 2000’s saw a dramatic scaling and diffusion of microfinance, both geographically and across sectors. The combination of social impact and commercial viability attracted traditional commercial banks to the sectorAnd government’s played a key role to bridge nonprofits and traditional banks - Across countries new relationships built Rise of for profit Microfinance institutions – organized as non-bank financial institutions (NBFIs)India as an example:Government move to link self-help groups with formal banks1999 – 33,000 credit linked banks2000 – 115,000 credit linked banks20004 had linked to 1,000,000 banks
Tipping PointBecame viral after reaching over a million customers and implementing learned lessons:Ubiquitous distribution network Strong Brand- stand out in the community Product work all the timeAgent TrainingCombat FraudImportant to remember, the growth of M-pesa was not based on its original intention, rather from real customer usage
So even on a small level – demonstrated value of cross-sector collaboration