Social Entrepreneurship: Personal motivation as a way to develop the business model and avoid scope creep Dr. Suzanne Tilleman Economic Empowerment April 8, 2013

Agenda Social Entrepreneurship Exploring your motivations Common reasons for social ventures Shaping the business model Avoiding scope creep

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. J. Gregory Dees, 2001

Personal Experiences Are you engaged in activities to improve social problems? Are you considering it? Why? What do you want to achieve? How do you do it? What else do you wish you could do?

Common Motivations for Entrepreneurship Make Meaning Increase the quality of life Right a wrong Prevent the end of something good Guy Kawaski “The Art of the Start”

Developing the business model “A business model describes the rationale of how an organization creates, delivers, and captures value” Osterwalder & Pigneur, Business Model Generation

Applying to Social Entrepreneurship Customer Segment – Do not worry if your customer segment is profitable, but they should be engaged – Who is your customer segment? You can have more than one. Value Proposition is what you want to achieve

Business Model, continued What Channels do you need? – For delivery? – Communication of offering? – Continued support of product or service? What type of Customer Relationships? – Personalized? – Automated? – Communities?

Business Model, continued Revenue Streams or other sources of funding Key Resources – Financial? Physical? Intellectual? Human? Key Activities Key Partnerships Cost Structure – Key Resources – Key Activities – Key Partnerships

Your thoughts on building the business model?

Avoiding Scope Creep or Mission Creep Definition: expansion past original goals Natural to have tension between focus and diversification Remembering your Value Proposition, how can you best achieve it – Impact versus Income Decide what you will not do Have a process for approving changes

Contact Information Suzanne Tilleman, Ph.D. Department of Marketing and Management University of Montana 32 Campus Drive Missoula, MT