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Business modeling for greater impact

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Business modeling for greater impact

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A presentation on how social enterprises and social business modeling has the potential to foster economic prosperity, environmental quality and social equity, satisfying the needs of present society without compromising resources for future generations. We talk about the 9 key approaches to make a business for good, and see through several examples how social entrepreneurs are successfully combining profit and impact in revolutionary ways.

A presentation on how social enterprises and social business modeling has the potential to foster economic prosperity, environmental quality and social equity, satisfying the needs of present society without compromising resources for future generations. We talk about the 9 key approaches to make a business for good, and see through several examples how social entrepreneurs are successfully combining profit and impact in revolutionary ways.

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Business modeling for greater impact

  1. 1. Business Modeling for Greater Impact presents
  2. 2. What is Babele? Online accelerator for social change • Engage stakeholders in sustainable development • Foster peer-learning & sharing of best practices • Co-create solution to the challenges of our time
  3. 3. We collaborate with accelerators, companies and universities to combine their face-to-face programs with our online platforms to crowd- source experts' advice for their social projects. 1039000 900+ Corporations Incubators Universities Networks Our Work
  4. 4. Our Innovation tool 50+ Innovation programs 2000+ Strategies & business models 136 Countries in 5 continents + + We collaborate with accelerators, companies and universities to combine their face-to-face programs with our online platforms to crowd-source experts' advice for their social projects.
  5. 5. About Today Social Entrepreneurship 9 types of Business Models Social Lean Startup
  6. 6. Source: William Anders from the Apollo 8 – December 7, 1972.
  7. 7. New economic growth has an increasingly higher social cost.
  8. 8. Source: Daniel Dancer/Foundation for Deep Ecology
  9. 9. Source: Garth Lentz/Foundation for Deep Ecology
  10. 10. Source: Cotton Coulson/Keenpress/Foundation for Deep Ecology
  11. 11. Who is trying to address the situation?
  12. 12. What’s the role of Business?
  13. 13. SocietyCorporations
  14. 14. What’s the role of Business? Shareholder Stakeholder
  15. 15. Through we can achieve the triple bottom line: Economic Viability Environmental Quality Social Equity Prof. Muhammad Yunus • Nobel Prize Winner • Board at the Grameen Bank • Expert in Microcredit
  16. 16. • More than 160 million people in India are considered "Untouchable"—people tainted by their birth into a caste system that deems them impure, less than human. Source: National Geographic News
  17. 17. SULABH (India) Bindeshwar Patha
  18. 18. SULABH (India) Bindeshwar Patha Stenography Cutting and Sewing Computer Science Fashion Designing
  19. 19. Grameen Adidas Grameen BASF Grameen joint Ventures Grameen Danone
  20. 20. A Paradigm shift in doing business
  21. 21. Social Entrepreneurship
  22. 22. The 2 sides of Bucharest
  23. 23. Ateliere Fare Frontiere (Romania) Patrick Ouriaghli
  24. 24. Social Entrepreneurship
  25. 25. Bangladesh: where much of the world's clothing and goods are manufactured.  the average pair of jeans requires 7000 liters of water to process Source: M.R. Hasasn/Foundation for Deep Ecology
  26. 26. Bangladesh: Rana Plaza collapsed: causing 1,134 deaths and 2,500 injured people Source: M.R. Hasasn/Foundation for Deep Ecology
  27. 27. Patagonia (USA)
  28. 28. Social Innovation? Social Entrepreneurship
  29. 29. Vs.
  30. 30. • 35 million • 450,000,000 tonnes of CO2 avoided • DKK failed DKK (DDR)
  31. 31. A terrible business... with a terrific impact!
  32. 32. Social Innovation Social Entrepreneurship
  33. 33. • 3.2 billion people live in areas at risk of malaria transmission in 106 countries and territories. • In 2016, malaria caused an estimated 207 million clinical episodes, and 627,000 deaths. An estimated 91% of deaths were in the African Region. Source: World Health Organization
  34. 34. Malaria Spot Game (Spain) Miguel Angel Oroz
  35. 35. L e t ’ s d i g i n t o t h e D e t a i l s
  36. 36. The 7 principles of Social Business
  37. 37. Financial and economic sustainability. Environmentally conscious. Investors get back their investment amount only. No dividend is given beyond investment money. When investment amount is paid back, company profit stays with the company for expansion and improvement. ...do it with joy. Workforce gets market wage with better working conditions. 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. 1 2 3 4 5 6 7
  38. 38. Financial and economic sustainability. Environmentally conscious. Investors get back their investment amount only. No dividend is given beyond investment money. When investment amount is paid back, company profit stays with the company for expansion and improvement. ...do it with joy. Workforce gets market wage with better working conditions. 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. 1 2 3 4 5 6 7
  39. 39. Electronic waste, from around the world, is shipped to Accra, Ghana, where locals break apart the electronics for minerals or burn them. Source: Peter Essick/Foundation for Deep Ecology
  40. 40. FairPhone (Olanda) Bas van Abel Columbite-tantalite • Extraction: Conflict for Materials • Design: longevity and repairability • Production: fair treatment • Disposal: responsible recycling
  41. 41. • Styrofoam is non-biodegradable, non-recyclable & it takes 500 years to decompose it; • Styrene leaches into foods and drinks served in Styrofoam containers; • Styrofoam products fill up 30 percent of our landfill space; Source: Earth Resource Foundation
  42. 42. EcovativeDesign (USA) Eben Bayer & Gavin McIntyre
  43. 43. EcovativeDesign (USA) Eben Bayer & Gavin McIntyre Grow high-performance, cost- effective & sustainable materials
  44. 44. Financial and economic sustainability. Environmentally conscious. Investors get back their investment amount only. No dividend is given beyond investment money. When investment amount is paid back, company profit stays with the company for expansion and improvement. ...do it with joy. Workforce gets market wage with better working conditions. 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. 1 2 3 4 5 6 7
  45. 45. Financial and economic sustainability. Environmentally conscious. Investors get back their investment amount only. No dividend is given beyond investment money. When investment amount is paid back, company profit stays with the company for expansion and improvement. ...do it with joy. Workforce gets market wage with better working conditions. 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. 1 2 3 4 5 6 7
  46. 46. Return Impact = + Impact Investor +
  47. 47. Who really are Impact Investors? Impact Investor?
  48. 48. A polarization is taking place… Making money while solving a is more complex
  49. 49. ECO-Enterprise
  50. 50. ENERGAIA (Tailandia) Saumil Shah
  51. 51. Koppert (Olanda)
  52. 52. Interface (USA) Materiali riciclati 65%
  53. 53. SOCIAL-Enterprise
  54. 54. Teach very poor and semi-literate people in underdeveloped countries to become solar engineers Barefoot college (India) Bunker Roy
  55. 55. Financial and economic sustainability. Environmentally conscious. Investors get back their investment amount only. No dividend is given beyond investment money. When investment amount is paid back, company profit stays with the company for expansion and improvement. ...do it with joy. Workforce gets market wage with better working conditions. 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. 1 2 3 4 5 6 7
  56. 56. Financial and economic sustainability. Environmentally conscious. Investors get back their investment amount only. No dividend is given beyond investment money. When investment amount is paid back, company profit stays with the company for expansion and improvement. ...do it with joy. Workforce gets market wage with better working conditions. 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. 1 2 3 4 5 6 7
  57. 57. The Business Model of Social Enterprises
  58. 58. 3 Different Types of Social Enterprise Embedded The Social programs is the business it-self. Social programs are self-financed through enterprise activities and thus, the embedded social enterprise also functions as a sustainable program strategy.
  59. 59. Social Venture Micro-credit KIVA (USA) Jessica Jackley
  60. 60. 3 Different Types of Social Enterprise Embedded Integrated The Social programs is the business it-self. Social programs are self-financed through enterprise activities and thus, the embedded social enterprise also functions as a sustainable program strategy. Social programs overlap with business activities, often sharing costs and assets. They often expand the organization’s mission by commercializing the social services and selling them to a new fee-paying market.
  61. 61. Every year, about 15 million children are born prematurely. Complications due to premature birth are the main cause of death in children under the age of five, responsible for more than 1 million deaths each year.
  62. 62. Social Venture It combats premature infant mortality Embrace Global (USA) Jane Chen
  63. 63. 3 Different Types of Social Enterprise Embedded Integrated External The Social programs is the business it-self. Social programs are self-financed through enterprise activities and thus, the embedded social enterprise also functions as a sustainable program strategy. Social programs overlap with business activities, often sharing costs and assets. They often expand the organization’s mission by commercializing the social services and selling them to a new fee-paying market. Social programs are distinct from business activities. The enterprise's activities are "external" from the organization’s operations, but support its social programs through supplementary financing.
  64. 64. Concordia (Romania)
  65. 65. 9 Fundamental Financial Models
  66. 66. Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. 9 Fundamental Financial Models
  67. 67. Social Enterprise Women Development through Microcredit Pro Mujer (Bolivia, Nicaragua, Peru and Mexico) • Impact : clients are able to double their income after two years in the program.
  68. 68. 9 Fundamental Models Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  69. 69. Social Enterprise Intermediary for rurally made food TOPLA (Haiti)
  70. 70. 9 Fundamental Models Employment (E) Provides employment and job training to people with high barriers to employment. Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  71. 71. Social Enterprise Technology-based employment for disadvantaged Digital Divide Data (Cambodia) Landmine victims Abused women Rural immigrants Orphans. UNIVERSITIES COMPANIES
  72. 72. 9 Fundamental Models Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  73. 73. Social Enterprise Online library of digital books for blind people Bookshare.org (USA) < 5% books for blind Significant barrier to literacy • SCOPE : 320.000 people, 50 countries, 300.000 titles • Activity : Exempt from US copyright laws, users can also share the book, eliminating duplicate effort
  74. 74. 9 Fundamental Models Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  75. 75. Scojo (India) Mechanics Hairdressers Seamstresses Rug makers Bookkeepers Foundation Eye-care : address presbyopia • Manufacturing : Same quality, different positioning; • Distribution : pharmacies, general stores, and bookstores in urban areas; hospitals, health and microcredit NGOs in rural areas. 75.4% 24.6%
  76. 76. 9 Fundamental Models Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets. Market information, technical assistance/extension services, collective bargaining power, economies of bulk purchase, access to products and services, access to external markets for member-produced products and services, etc...
  77. 77. Cooperative Fair Trade Equal Exchange (USA) Coffee Chocolate & Cocoa Tea Bananas Fair Foods • Marketing : Education on Social Benefits • Fair Treatment : $1.41 Vs. $0.60 per pound • Quality : 85% certified organic fair trade coffee
  78. 78. 9 Fundamental Models Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  79. 79. Non profit trade association Sustainable production and fair trade Marketplace Pytho Trade (South Africa) MARKETPLACE
  80. 80. 9 Fundamental Models Service Subsidization (I) Sells products or services to an external market and uses the income to fund its social programs. Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  81. 81. Non Governmental Organization Addressing illiteracy problem Editora Expressão Popular (Brazil) For labor movement leaders
  82. 82. 9 Fundamental Models Organizational Support (X) Similar to Service Subsidization but the activities might have nothing to do with the social model. Service Subsidization (I) Sells products or services to an external market and uses the income to fund its social programs. Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  83. 83. Plant trees while you search the web Ecosia (Germany) Christian Kroll • 80% of its surplus income to nonprofit conservationist organizations, • Ecosia is a CO2-neutral company[6] certified as a B-corporation.[9 B-Corporation
  84. 84. La Ruche qui dit OUI (Francia) Guilhelm Cheron
  85. 85. 9 Fundamental Models Organizational Support (X) Similar to Service Subsidization but the activities might have nothing to do with the social model. Service Subsidization (I) Sells products or services to an external market and uses the income to fund its social programs. Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  86. 86. 9 Fundamental Models Organizational Support (X) Similar to Service Subsidization but the activities might have nothing to do with the social model. Service Subsidization (I) Sells products or services to an external market and uses the income to fund its social programs. Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  87. 87. They teach African giant rats to reveal mines + tuberculosis from sputum samples APOPO (Tanzania) Bart Weetjens Impact: over 58,000 land mines destroyed, released over 24 million square meters of land and diagnosed +50,000 cases of tuberculosis
  88. 88. 9 Fundamental Models Organizational Support (X) Similar to Service Subsidization but the activities might have nothing to do with the social model. Service Subsidization (I) Sells products or services to an external market and uses the income to fund its social programs. Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  89. 89. 9 Fundamental Models Organizational Support (X) Similar to Service Subsidization but the activities might have nothing to do with the social model. Service Subsidization (I) Sells products or services to an external market and uses the income to fund its social programs. Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  90. 90. Mobile School (Belgium) Arnoud Raskin
  91. 91. Mobile School (Belgium) Arnoud Raskin Positive Focus Agility & Resilience Proactive Creativity Cooperative Competition
  92. 92. 9 Fundamental Models Organizational Support (X) Similar to Service Subsidization but the activities might have nothing to do with the social model. Service Subsidization (I) Sells products or services to an external market and uses the income to fund its social programs. Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  93. 93. 9 Fundamental Models Organizational Support (X) Similar to Service Subsidization but the activities might have nothing to do with the social model. Service Subsidization (I) Sells products or services to an external market and uses the income to fund its social programs. Market Linkage / marketplace (E/I) Facilitates trade relationships between small producers, local firms, cooperatives, and the external market Cooperative (E) Provides direct benefit through the sales of products and services to its members (clients). Low-income Client (I) Provides products and services to poor and low-income clients who could not afford them. Employment (E) Provides employment and job training to people with high barriers to employment. Fee-for-service (E) Commercializes its social services, and then sells them directly to the target populations (very common) Entrepreneur Support (E) Sells business support and financial services to entrepreneurs. Market Intermediary (E) Provides services to the target population to help them access markets.
  94. 94. WTF!? How do you get started?
  95. 95. Time for a Paradigm Shift? RiesBlank Osterwalder Maurya
  96. 96. Social Lean Startup
  97. 97. Social Lean Startup • 50 pages business plan • Specify all features • Development in Secrecy • Complete product build • 1 page canvas • Minimum viable product • Continuous stakeholders’ input • Continuous deployment
  98. 98. Mobile School (Belgium) Arnoud Raskin CAUSE IMPACT VICTIMS CONTEXT Why is this happening?
  99. 99. Mobile School (Belgium) Arnoud Raskin We spend our days in the streets We don’t want to go to school
  100. 100. Social Lean Startup • Focus on the solution • Specify all features • Development in Secrecy • Complete product build • Focus on the problem • Minimum viable product • Continuous stakeholders’ input • Continuous deployment
  101. 101. Social Business Model Canvas
  102. 102. Social LEAN Canvas
  103. 103. Social Lean Startup • Focus on the solution • 50 pages business plan • Development in Secrecy • Complete product build • Focus on the problem • 1 page canvas • Continuous stakeholders’ input • Continuous deployment
  104. 104. Mobile School (Belgium) Define the Specifications Build your model/mock-up Get our of the building and get more Feedback!
  105. 105. Mobile School (Belgium) Arnoud Raskin MVP: Ready in 1 weekend!
  106. 106. Street Wize (Belgium) Arnoud Raskin
  107. 107. Social Lean Startup • Focus on the solution • 50 pages business plan • Specify all features • Complete product build • Focus on the problem • 1 page canvas • Minimum viable product • Continuous deployment
  108. 108. Mobile School (Belgium) Arnoud Raskin Where can we find our early adopters? Those who correspond to the ideal «persona» of your segment!
  109. 109. Social Lean Startup • Focus on the solution • 50 pages business plan • Specify all features • Development in Secrecy • Focus on the problem • 1 page canvas • Minimum viable product • Continuous stakeholders’ input
  110. 110. CHANGE is your Best Friend! Lack of spontaneous organic growth!
  111. 111. • Features • Marketing • Business model • Clients • Product • Etc. The youare, theeasieritis to PIVOT = challenge your key assumptions
  112. 112. • December 5th - Full day • La Firul Ierbi – Splaiul Unirii 160
  113. 113. Interested in Open and Social Innovation? We are looking for an apprentice :) - manu@babele.co -
  114. 114. www.babele.co facebook.com/babele.co | twitter.com/babele_co Babele Create Together Srl – Dorneasca, 11 - Bucharest, Romania Emanuele Musa Cofounder of BABELE.co  manu@babele.co

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