Project Sustainability Through Social Business

1. sustainability
troughsocial business
March 29th 2017

3. 🔥

4. •What are you
passionate
about?

5. •What are you
passionate about?
•What problems do
you really care?

6. •What are you
passionate about?
•What problems do you
really care?
•if you had a magic wand,
how would you change
that problem? why?

7. situation

8. Project

9. Project
Objective

10. Project
Objective
Time

11. Project
Money
Objective
Time

12. Project
Money
Objective
Time
+

13. tyranny

14. dependency

18. social
business

20. MuhammadYunus

21. MuhammadYunus

22. MuhammadYunus

23. MuhammadYunus

24. MuhammadYunus

25. What is a Social Business?

26. (Yunus)
Social Business

27. (Yunus)
Social Business
• Non-dividen company created to solve a
social problem.

28. (Yunus)
Social Business
• Non-dividen company created to solve a
social problem.
• Follows “7 Principles of Social Business”

29. (Yunus)
Social Business
• Non-dividend company created to solve
a human problem.
• Follows “7 Principles of Social Business”
• Concrete definition.

30. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html

31. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html

32. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
1. Business objective will
be to overcome
poverty, or one or more
problems (such as
education, health,
technology access, and
environment) which
threaten people and
society; not profit
maximization.

33. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
1. Business objective will be
to overcome poverty, or
one or more problems
(such as education, health,
technology access, and
environment) which
threaten people and
society; not profit
maximization.
2. Financial and economic
sustainability.

34. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
1. Business objective will be to
overcome poverty, or one or more
problems (such as education,
health, technology access, and
environment) which threaten people
and society; not profit maximization.
2. Financial and economic
sustainability.
3. Investors get back their investment
amount only.
No dividend is given beyond
investment money.

35. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
1. Business objective will be to
overcome poverty, or one or more
problems (such as education,
health, technology access, and
environment) which threaten people
and society; not profit maximization.
2. Financial and economic
sustainability.
3. Investors get back their investment
amount only.
No dividend is given beyond
investment money.
4. When investment
amount is paid back,
company profit stays
with the company for
expansion and
improvement.

36. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
1. Business objective will be to
overcome poverty, or one or more
problems (such as education,
health, technology access, and
environment) which threaten people
and society; not profit maximization.
2. Financial and economic
sustainability.
3. Investors get back their investment
amount only.
No dividend is given beyond
investment money.
4. When investment
amount is paid back,
company profit stays
with the company for
expansion and
improvement.
5. Gender sensitive and
environmentally
conscious.

37. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
1. Business objective will be to
overcome poverty, or one or more
problems (such as education,
health, technology access, and
environment) which threaten people
and society; not profit maximization.
2. Financial and economic
sustainability.
3. Investors get back their investment
amount only.
No dividend is given beyond
investment money.
4. When investment amount is
paid back, company profit
stays with the company for
expansion and improvement.
5. Gender sensitive and
environmentally
conscious.
6. Workforce gets market wage
with better working
conditions.

38. 7 principles (2009)
Draft them Prof Yunus 2009 World Economic Forum
http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
1. Business objective will be to
overcome poverty, or one or more
problems (such as education,
health, technology access, and
environment) which threaten people
and society; not profit maximization.
2. Financial and economic
sustainability.
3. Investors get back their investment
amount only.
No dividend is given beyond
investment money.
4. When investment amount is
paid back, company profit
stays with the company for
expansion and improvement.
5. Gender sensitive and
environmentally conscious.
6. Workforce gets market wage
with better working conditions.
7. ...do it with joy.

39. kindof social business

40. Kinds of Social Business

41. Kinds of Social Business
• Type I
• Non Dividend company created to
solve a human problem

42. Kinds of Social Business
• Type I
• Non Dividend company created to
solve a human problem
• Type II
• Profit Maximizing business owned by
the poor or disadvantaged.

43. Key Aspects
keyaspects

44. dignity

45. empowerment

46. what
poverty
is?

47. “poverty is
lack of access
to
opportunities”

49. Poor people
are
Bonsai People

52. definitions

53. social
business
definitions

54. social
business
social
enterprise
definitions

55. social
business
social
enterprise
definitions
Non - for profit

56. social
business
social
enterprise
definitions
ngo
Non - for profit

57. social
business
social
enterprise
definitions
ngo
hybrid
ngo
Non - for profit

58. social
business
social
enterprise
social
entrepreneurship
definitions
ngo
hybrid
ngo
Non - for profit

59. social
business
social
enterprise
social
entrepreneurship
social
innovation
definitions
ngo
hybrid
ngo
Non - for profit

60. social
business
social
enterprise
social
entrepreneurship
social
innovation
definitions
ngo
hybrid
ngo
Non - for profit
Inclusive
business

61. social
business
social
enterprise
social
entrepreneurship
social
innovation
definitions
ngo
hybrid
ngo
hybrid
value
chain
Non - for profit
Inclusive
business

62. social
business
social
enterprise
social
entrepreneurship
social
innovation
definitions
ngo
hybrid
ngo
hybrid
value
chain
Non - for profit
Inclusive
business ¿?

64. Social
Enterprise
Social
Business
Social
Entrepreneur
ship

68. “Applying business principles to
social problems can increase
effectiveness and financial
sustainability ”
- BCG

69. “Success (in social business) means
delivering real social impact
and doing so self-sustainably”
- BCG

70. around
the world

71. social business
movement

72. http://www.yunussb.com/

73. • Yunus Social Business is a non-profit venture
fund.
• They believe that business can be used to solve
human problems.
• Turn donations into investments in social
businesses that solve problems on the field.
http://www.yunussb.com/

77. http://www.grameencreativelab.com/
• The Grameen Creative Lab's vision is to serve
society’s most pressing needs.
• It’s mission therefore is to accelerate social
business.

79. Past Editions
• 2009 & 2010 Wolfsburg, Germany
• 2011 & 2012 Vienna
• 2013 Kuala Lumpur
• 2014 Mexico City
• 2015 Berlin

81. Young Challengers
Meeting

84. +

87. http://www.yyfoundation.de/

88. http://www.yyfoundation.de/

90. Country
Social Business
Forums

91. September 28, 2016
Ottawa, Canada

92. September 28, 2016
Ottawa, Canada

93. September 28, 2016
Ottawa, Canada
+

96. 33 Yunus Centers
2009

97. http://yunuscentre.becker.edu/wp-content/uploads/2015/12/
yunus_centre_report1.pdf

98. http://www.yunuscenter.ait.asia/

99. what do we?

102. how?

123. social entrepreneurship
initiatives

125. CIC
Community
Interest Company
UK (2005)

126. CIC
Community
Interest Company
UK (2005)
Social Business Initiative
(2011)

127. CIC
Community
Interest Company
UK (2005)
Social Business Initiative
(2011)
L3C
Low Profit
Limited
Liability
Company
US* (2008)

128. CIC
Community
Interest Company
UK (2005)
Social Business Initiative
(2011)
L3C
Low Profit
Limited
Liability
Company
US* (2008)

129. CIC
Community
Interest Company
UK (2005)
Social Business Initiative
(2011)
L3C
Low Profit
Limited
Liability
Company
US* (2008)
+?

130. discussion

132. interesting agree
disagree

133. interesting agree
disagree
resonate
challenging
unique

134. interesting agree
disagree
resonate
challenging
unique
similar
Potential
Special

135. Important aspects of SB
important
elements

136. social
impact

137. Social Impact Models

138. Embedded
• Social impact activities
directly create revenue
for the business.

141. Integrated
• The company runs
related services o
programs to fund its
social enterprise
works.
• Cross- subsidize

143. External
• The activities that
generate money are
distinct from the social
impact activities.
• Operate 2 very distinct
enterprises
• Difficult to keep focus
on impact.

145. Social Impact Models
• Embedded
• Integrated
• External

146. Integrated Impact and
business model
• Impact, first priority.
• Business as a need.
• The more people
reaches the more
impact, the more
revenue, the more
growth.

147. Value Chain Impact

148. Impact on Sourcing

149. Impact on Operations

150. Impact on Sales

151. Value Chain Impact
• Impact on sourcing
• Impact on operations
• Impact on sales / distribution

152. IMPACT
measurement

153. Measuring Social Impact
Stanford Social Innovation Review
https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact

154. Measuring Social Impact
Stanford Social Innovation Review
https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact

155. Measuring Social Impact
Stanford Social Innovation Review
https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact

156. Measuring Social Impact
Stanford Social Innovation Review
https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact

157. Measuring Social Impact
Stanford Social Innovation Review
https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact

158. Expected Returns
• Methods weigh the anticipated benefits of an
investment against its costs.

160. Guide

161. Theory of Change

162. Theory of Change
• Outline the intended process for achieving social
impact, often using a logic model,
• A tool that maps the linkages between input,
activities, output, outcomes, and ultimately impact

163. Mission Alignment Methods
• Measure the execution of strategy against the
project’s mission and end goals over time,
• Rubrics such as scorecards to monitor
performance metrics.

168. (quasi)-Experimenta
methods
• Randomized control trials, simmers
• Social Impact bonds

169. Social Impact Bond
• Is a contract with the public sector in which a
commitment is made to pay for improved social
outcomes that result in public sector savings.

170. Measuring Social Impact
Stanford Social Innovation Review
https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact

171. Stanford Social Innovation Review
https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact

172. Measuring Social Impact
• Social Return on Investment
• Theory of Change
• Mission alignment methods
• Experimental and quasi-experimental methods
Stanford Social Innovation Review
https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact

174. Lean Data
• From compliance to collaboration. Actionable.
• From investor first to customer first. Meaningful
• From reporting requirements to better business
decision making. Applied.
• From resource-heavy and expensive to cost
efficient. Fast & Affordable.
http://acumen.org/ideas/lean-data/

177. reflection

178. •why is it
important to
measure the
intended impact?

179. •why is it important
to measure the
intended impact?
•What if we don’t
measure?

180. •why is it important to
measure the intended
impact?
•What if we don’t measure?
•What are the potential
challenges to measure?

181. business
model

182. Business Model
• A business model describe the rational for how an
organization creates, delivers and captures value.
— “Alex Osterwalder”
• Turning hypothesis to action

183. Product Companies
• Traditional
buy-sell
Credit: http://businessmodelzoo.com/

185. Service Companies
• Customised

188. Platform Companies
• Freemium

190. Market Companies
• Matching buyers an seller.
• Take a “slice of transactions”

192. Business Models
• Product Companies
• Service Companies
• Platform Companies
• Market Companies
Credit: http://businessmodelzoo.com/

194. Turning your Business
Model to Action

196. Template
Business Model Canvas

199. need for lean
approach

200. The Need for a
Lean Approach
• Lean is a mindset and as et of methods initially
created to help companies learn faster and
eliminate waste.
• Now it’s been used to tackle the most pressing
problems.

201. Why Lean?
• 1 It favors experimentation over elaborate
planning
• 2 It priorities customer feedback over intuition
• 3 It emphasize iterative design over traditional
“bid design up front” development

202. • As Lean practices
spread, they’re
turning the
conventional
wisdom about
Entrepreneurship
on it’s head. -
Steve Blank

203. • “Charities will do well to
change mindset and become
more entrepreneurial sooner
rather than later.”

211. Activity

212. reflection

213. • What do these situations have in common?

214. • What do these situations have in common?
• How could have been avoided?

215. • What do these situations have in common?
• How could have been avoided?
• Have you ever experienced something
familiar? What happened? Why did you have
that experience? What would you do
different the next time?

216. What Lean does differently?

220. www.bit.ly/thepowerofsocialbusiness

221. How to build a successful
Social Business?

222. 1. Choose the right focus area
2. Designing a successful Business
Model
3. Continuously learning and adapting
4. Building efficient and sustainable
operations.
5. Managing for impact.

229. purpose

230. challenge

231. turn
problem
into
social business

234. before…

240. Looking forward
• çlooking forward

241. imagine

244. Social
Business

245. v

246. vSocial
Business

247. balance

248. zz
alignment

250. 0 poverty
0 unemployment
0 net carbon emissions (c02)
- 2050 , Muhammad Yunus

252. improve
people’s
lives

254. Room 208 AIT Extension Building
yunuscenter@ait.asia
parra@ait.asia
@parra___

256. • As countries like Bangladesh move towards
middle-income status, and with aid money drying
out, charities will have to convert to social
enterprises in order to address challenges in
human development

257. • the 1.2 billion people currently living in extreme
poverty cannot be met by either traditional
development or social enterprise alone. The ideal
scenario may be where the two can work together

258. • States have cut financial commitments to countries
with growing economies – the UK’s Department for
International Development (DfID) decided to stop
bilateral aid to India and South Africa by this year –
in favour of investing in social enterprise schemes
2013

259. Challenges
• Returns 12%