1. 1 IREX Social Enterprise Development Familiarization Training Gbanga, Liberia May 13 th – 17 th Kim Alter Virtue Ventures LLC

2. Part Two 2

3. 3 Social Enterprise Typology

4. 4 Embedded Business created to Serve clients (Central to mission) Social Programs + Enterprise Activities Enterprise and social program are one and the same

5. 5 Integrated Business created to expand/enhance mission and as a funding mechanism Social Programs Enterprise Activities Business activities overlap with social programs; share costs and leverage assets

6. 6 External Social Programs Enterprise Activities $ Business created mainly as a funding mechanism to support social activities Social and business activities separate and related to mission

7. 7 Employment Model Market Organization Clients Social Impact Financial Sustainability Product

8. 8 Entrepreneur Model Market Social Impact ClientOrganization Financial Sustainability Product Loans

9. 9 Fee-For-Service Model Services Organization Sustainability Clients Social Impact

10. 10 Market Intermediary Model Financial Sustainability Social Impact Clients Organization Market

11. 11 Service Subsidization Model Social Impact Financial Sustainability Organization Clients Market Services Social Impact Clients

12. 12 Organizational Support Model Social Impact Organization Clients Subsidiary Foundation Financial Sustainability Financial Sustainability

13. 13 Cooperative Organization Sustainability Internal Clients MarketSocial Impact External Market

14. 14 Process Innovation

15. 15 Technology Innovation

16. SE Revenue Model Innovations There are compelling business model innovations that seem generally applicable across social enterprises: Cross-segment subsidy (sustainability of model) Economies of Aggregation (value from fragmented supply chains) Bundling Products/Services (value - perception mismatch) Micro-payments (leveraging mobile payment infrastructure) Complementary need matching (broker model) Cost extraction by re-designing the value chain (with high quality)

17. 17 Sustainability Strategy Stakeholder Engagement Culture Management Knowledge Development Resource Mobilization Anyone who has a role to play in addressing the social problem (i.e. community, clients, donors, staff/ management, board, environment, public, etc.) Combination of the many belief systems and mindsets found among stakeholder groups Combination of information (content, results from research, data) and processes (methodologies, systems, techniques, procedures) Resources can be Human (people and their skills), Relational (networks, partners, communities— including intangibles such as brand, reputation and image), Physical (tangible assets: vehicles, land, buildings, raw materials), or Financial (cash, loans, equity, grants, etc.)

18. SE objectives related to org capacity Stakeholder Engagement (Program capacity )  Economic development Employment Creation Wealth creation  Workforce skills  Improved service delivery  Better “customer” service  Higher impact Knowledge (Org Capacity)  Knowledge management  Efficiency / systems  Business skills  High performance Resource Mobilization (Financial capacity)  Income diversification  Lessen donor dependency  Financial rigor and accountability  Self-sufficiency  Resource and asset management Culture (Org Capacity)  Entrepreneurial  Innovative / Creative  Agile  Market Oriented

19. Key Success Factors Cultural Fit  Social enterprise is not suitable for every organization  Stakeholder buy-in  Entrepreneurial organizations Commitment  Must be motivated beyond money;  Organization’s #1 or #2 priority  Launching a social enterprise is time consuming – not a quick fix Capacity  Human resources (leadership/business skills)  Financial (assets/resources)

20. 20 Innovative Solutions to Problems Video cases: Martin Burt Kickstart Greyston