Presentation on theme: "1 IREX Social Enterprise Development Familiarization Training Gbanga, Liberia May 13 th – 17 th Kim Alter Virtue Ventures LLC."— Presentation transcript:
1 IREX Social Enterprise Development Familiarization Training Gbanga, Liberia May 13 th – 17 th Kim Alter Virtue Ventures LLC
Part Four 2
3 Innovative Solutions to Problems Video case: Aravind
Social Enterprise Design
Be clear about the purpose Solve a social problem? Earn money to fund social costs or overhead? Strengthen organizational capacity? Create entrepreneurial culture? Diversify funding? Hire and retain staff? Attract new donors? Sharpen mission? Strengthen community relations? Improve service and program delivery?
7 Inception and Direction The problem is the social enterprise opportunity The vision is the image of successfully solving the social problem
8 Mission Objectives Theory of Change Social criteria Financial criteria Assets and resources Market information Operating environment Organizational factors Stakeholders Preferences Informs Design
9 The Mission is the Anchor To Vision Unrelated Opportunity
10 Objectives are Aligned Vision Social Impact Objectives Social Impact Objectives Financial Objectives Financial Objectives Mission
11 Impact Goals Local business -Opportunities Women - Gender roles Community -EmpowermentChildren -Education Environment -Renewable Farmers -Markets Local NGO -Engagement Workers - Employment
12 Principles of Design - 1 1. Social Aspects Start with the social problem Needs or special conditions of your clients that must be factored into enterprise design Social market analysis Determine stakeholders and their roles related to the social enterprise Identify social stakeholders and their needs and wants
13 Business Aspects Financial criteria Assets (have) Resources (needs) Market information Strategic environment Organizational factors Stakeholders (customers and business relationships) Preferences Principles of Design - 1
14 Social Market Landscape “Beneficiaries” of impact Client Community Environment Public Competitors Direct competitors Role of subsidies in the market Substitutes Collaborators Strategic alliances and partners
16 Social Criteria Special design considerations or attributes required to achieve social impact objectives. Social Criteria often hinges on special needs or limitations of clients and/or beneficiaries. Social Criteria can impact: Operations Productivity Financial results Choice and type of enterprise
17 Assets Identification Tangible People Land Money Intangible Reputation / brand Methodologies Relationships Skills and expertise
20 Resource Strategy Driven by resource requirements Strategies Earned income Grants In-kind subsidies Equity Soft loans /patient capital (below market rate) Commercial loans
21 Personal Fit Passion and Commitment Commitment to realizing social mission Qualifications/experience Maximise resource utilisation Stage of life Avoid burn-out Time/activity Matches preferences
Prioritize Screens Prioritizing screens depends on: What are you trying to achieve? What you have? What you don’t have? Organizational culture/priorities? Financial needs? Costs and cash flow?
Scoring Opportunities Opportunity Enterprise idea Fit with Mission Fit with Social Criteria Fit with Organization Fit with Assets Fit with financial criteria Market Potential Fit with preferences Create a custom scorecard based on your organization’s Social enterprise criteria, priorities, purpose
Enterprise Idea Evaluation What is the mission; how does the social enterprise help to accomplish the mission? What is the social theory; how social enterprise social impact goals be achieved? What are the financial goals? Social enterprise’s community and environmental impact goals? What are the human resource needs for running the social enterprise? What specific characteristics/needs of the clients must be considered in the social enterprise? Timeline for implementing the social enterprise? Is there stakeholder support for the enterprise? What is the best type of business model to achieve social and business goals? What are the critical factors for ensuring social enterprise success? What’s it going to cost? What biz attributes/characteristics are preferred?
26 Clarify enterprise concept In addition to solving a social problem, is this a real business idea? Quick and dirty qualification of enterprise concepts: Products or services? Customers? Demand? Business model? HR requirements? Cost? Operational requirements? Positive impact on organizations and clients? Risks and threats?