Presentation on theme: " Agenda –Sexual harassment laws –Social entrepreneurship –Strive video and discussion –Global SE Business Plan Competition."— Presentation transcript:
Agenda –Sexual harassment laws –Social entrepreneurship –Strive video and discussion –Global SE Business Plan Competition
Social entrepreneurship Addressing market failure in social issues Ethics Regulation Law Social ventures Overall social welfare Market-created social welfare
“Entrepreneurship” New product/service New method New market New form of organization Risk Combination of resources/resourcefulness (“reach exceeds grasp”) Value creation Entreprendre: v. To undertake; to begin, start (upon), embark upon, set about
Social Entrepreneur Agents of change: Not to be confused with for-profit firms trying to be socially responsible. E. g. Body Shop Mission to create/sustain social value New opportunities for pursuit of mission Innovation, adaptation, and learning Not limited by resources currently in hand Accountability to constituencies and outcomes created
Social entrepreneurship – why it’s such a big deal Markets for ideas not necessarily efficient –The case of health insurance coverage 45 million Americans (15% of the population) lack insurance coverage Why is this an untapped market? –The shortage of education and healthcare workers The search for meaning in work –Senior executives dropping out of the rat race to focus on intrinsically rewarding experiences
Social entrepreneurship – why it’s such a big deal Trends in spending and budgets by the traditional actor: government –Downward pressure on tax rates and the prevalence of tax shelters –Pressures on entitlement spending Social security and Medicare –Other diversions, for instance, defense and homeland security expenditure Increasing income inequality –Shift to a winner-take-most society
Social entrepreneurship – why it’s such a big deal The paradox of corporate philanthropy –Businessmen are penny-pinchers in their corporate avatars, but can be pretty generous in private life Gates Foundation –Tax breaks Philanthropy is costless when tax-deductible! –Corporate social responsibility Individual philanthropy sidesteps the controversies surrounding corporate philanthropy
Social entrepreneurship – why it’s such a big deal Microfinance –The most challenging of social ventures –One-third of the world’s population lives on a dollar a day –Microfinance involves providing small loans/investment to the world’s poorest; venture capital for those with zero collateral –e.g. Grameen Bank
Social entrepreneurship – why it’s such a big deal Governmental efforts to solve social deficiencies is unlikely to be effective (primary education in the US, for instance) or popular (healthcare). Markets fail when the profit motive is not satisfied. Hence, social entrepreneurs play a very critical role as a bridge between imperfect markets and controversial government intervention.
Important themes Markets –Competitors –Customers People/team Social networks Timing
Strive facts Founded 1984 by Sam Hartwell Three tenets: –Employment is the best solution for the urban poor –“Soft skills” –Confront “baggage” Placement rate: 80% average wage Retention after two years: 75%-80% Cost per placement: $1500
Social v. business entrepreneur: Mission/strategy Constituents Competitors Value creation –B.E.: Customers, investors –S.E.: Donors, subsidies, volunteers, consumers –B.E.: “Market discipline” –S.E.: Imperfect market, imperfect information
Discussion 1. What are the distinct challenges faced by Strive compared with for-profit ventures? 2. What criteria would you use to measure Strive’s performance?
Impact Cost effectiveness Organizational Inform public Accountability “Measurable social impact”
How well is Strive doing? Goals and objectives Replication and scaling Social indicators Numerical targets
How to be a good S. E. Markets within values Mission, not dollars Long term gains, not short-term Profit is desirable, though not essential
Consider: Capital formation and revenue generation Dead-ended client –Alliances with educational institutions for upgrading skills Alliances with other S.Es for geographical replication –Strive Seattle is an alliance with Goodwill Room for improvement?