Social Entrepreneurship

1. GRAMEEN & OTHER BEST PRACTICES By: Mark Thornton & Marina Kusumawardhani Social Entrepreneurship

2. About • Generation Social: Social Entrepreneurship Academy • Mission: • Social entrepreneurship/business training • Fund mobilization • Focus: youth & women • Public awareness! • US-based company; founded 2012 in Vienna.

3. About (2) • Social Entrepreneurship best-practices • Expert Team • Youth: • Creativity • Leadership • Community: • Demand-driven • Experiential • Engagement • Partnership with stakeholders • Fund mobilization • Organizational transformation

4. Gen Y • Which generation are you?

5. Gen Y (2) • The way we work/produce in the future => new trends • New work-force globally: 2,3 billions • Work method: • Immediate achievement + appreciation • Impatient/anxious • No hierarchy • Success = joy and fun • Time/place flexibility • Keywords: digital, collective mindset, sharing, participation, collaboratively, WIP, learning new skills • Engaging (professionalism) • Purpose • Passion + job => 54% entrepreneurs!

6. Philosophy • Private Sector – Citizen Sector • Capitalism – Socialism => equal chance/opportunity • Transformation from inside + financial sustainability

7. Social entrepreneurship • Vision • Identify and recognize social problems => social change • Using entrepreneurial principles to create social venture • Performance = profit + social return • History • Literature 1960s • Michael Young 1950s: more than sixty social enterprise (“world’s most successful social entrepreneur” – Harvard) “In my case, I like to support causes where "a lot of good comes from a little bit of good," or, in other words, where the positive social returns vastly exceed the amount of time and money invested.”

8. Ashoka • Founded 1981 by Bill Drayton • Identify and support social entrepreneurs through social venture capital • Goal: citizen sector  business sector • Operate in > 70 countries, >2000 SEs, • “Youth Venture” => invests in team of young people • 11 out of 30 Forbes’ under 30 SEs • James Whelton (Coder Dojo): 10,000 kids in 22 countries • Sejal Hathi: 3 enterprises to help young girls in >100 countries • Hugh Evans: 2012 Global Citizen concert in Central Park “Social entrepreneurs will not be content by giving a fish or teaching how to fish; they will not stop until they revolutionize the whole fishing industry.”

9. Grameen Bank • Founded 1976 • 27$ from own pocket for 42 women • Today: $11,35 billion, >8 million borrowers • 68% crosses line of poverty (19 thousand out of 111tsd beggars) • 95% return rate • Social business: 97% by borrowers, 3% by government. • Youth: social business is 70% creativity. “Whenever I see problems in the society, I create business out of it.”

10. Acumen/Skoll/Barefoot • Acumen Fund: • Global venture fund for entrepreneurial approaches • Jacqueline Novogratz (2001). Seed Capital from Rockefeller, Cisco Systems, philanthropists. • Patient capital – loans or equity, not grants • $83 million investments (2012), in 46 enterprises (100 million people and created 58000 jobs) • Skoll Foundation: • Social entrepreneurship foundation • Jeff Skoll (eBay) (1999) • Investing in, connecting & celebrating SEs • Invests through annual Skoll Award for SE • Media projects: Uncommon Heroes short films • Skoll Centre for Social Entrepreneurship at Oxford Uni, international forum and conferences

11. ACUMEN/SKOLL/BAREFOOT (2) • Barefoot College: • Voluntary organization => empowerment & sustainability • Founded 1972, Bunker Roy • 3000 children attending 150 night schools, trained >3 million people for jobs • Gandhi philosophy: each village being self-reliant (medical, energy, etc) • Solar systems to illiterate poor women => no degree • Partners with UNESCO and UNDP for solar training replication Formulas for change! • Individuals • Network • Funding • Replication/best-practices • Media/recognition “We went to Ladakh … and we asked this woman, ‘What was the benefit you had from solar electricity?’ And she thought for a minute and said, ‘It’s the first time I can see my husband’s face in winter.’”

12. INTEGRATION INTO DEVELOPMENT PROJECTS • Sustainability: • Market/feasibility studies: • Sense of belonging • Cultural sensitivity and awareness • Business model: • Initial investment: affordability of individual projects • Payback plan • Aid/grant vs. investment • No monitoring => involvement of local private companies, or local NGOs • Price competition model • Cash flow models • Revenue model: grid, CDM, etc => Entrepreneurship Awareness & Market Study UN Mission Develop- ment Project Investment Business Models

13. INTEGRATION INTO DEVELOPMENT PROJECTS (2) Innovative Business Models Price Competition RRE Strategic Outcome 2 Local Capacity Building Project Design Sustainable Financial incentives RRE Strategic Outcome 1 Investment & Private Sector Participation RRE Strategic Outcome 3 Energy Entrepreneurs Business Skills Business Partnerships Independent Power Producer Rural Energy Enterprises

14. Organizing Stage Implement-ing Stage Monitoring Stage Planning Stage Government Inducement Identify Interest Identify Energy Needs Setting-up RES Business Plan Management Agreement Feasibility Study Evaluation Identify Energy Price Structure Staffing Investment/Loan Agreement Payback Monitoring Identify Employment Business Implementation Identify Fuel Social Entrepreneurship Capacity Building Technical Capacity Building INTEGRATION INTO DEVELOPMENT PROJECTS (3)

15. INVESTMENT SCHEME • Challenges: • Involving /engaging FIs and partners, • Knowledge and awareness, • Beyond project duration. • Looking for innovative projects for renewable energy enterprises: • Evidence based • Replication of success stories • 3 topics: IT/business –social entrepreneurship/renewable energy. • Question: how to engage private sector?? => high investment return • Support of conventions, advocates, to back UN agencies to Government Egypt example

16. INVESTMENT SCHEME (2) • Investment • 2011: • 257 billion USD • SE4ALL • (in Rio 20+): • >50 billion USD Government Fund/Donor Organization (GEF) UN Agencies Financial Institutions/ /Development Bank Social Business Community Create Green industry & job Value Generation

17. MDG Realization potential Concrete Deliverables through Projects Portfolio by the end of 2018 GSSB – Bangladesh (in 10 years) Number of people gaining access to energy: >150,000 Number of people gaining access to energy: 8 million • Renewable energy capacity installed: ~25MW • Renewable energy capacity installed: 55 MW Renewable energy generated: > 450 GWh/year Renewable energy generated: 87 GWh/year • Million tons of CO2eq avoided: >7 million tons direct • Million tons of CO2eq avoided: 68,000 tonnes/year Number of SMEs benefitting from projects: >600 Number of SMEs (Micro-utlity) from projects: 3395 64 out of 64 districts, 50,000 villages => Green Sustainable Country • SHS 1,066,487 (>23500 SHSs/ mo), ICS: 619,734, Biogas: 24,798 • Total employees: 12,521 (16,500 trained technicians, 433,556 users)

18. Technical Support Capacity Development Finance /Credit RE Technologies Systems/Operation/Maintenance Agro-processing technologies UNIDO Business Incubation and other Support 2 Years existing Electrical Installation Course Training in agro-processing Revolving Fund IFI/bank CREEC Social Entrepreneurship Academy Entrepreneurship and Business Skills Rural Energy and Agro processing Enterprises CASE STUDY (Uganda Plan)

19. EGYPT PLAN

20. CASE STUDY (2) (Egypt Plan) Preparatory Capacity Building Implementation and M&E Beneficiaries Main Actors Existing SEs NGOs Community SE Training Youth/SEs Technical Training Incubators /Unis Monitoring and Evaluation IFIs Endorsement ILO Branches Gov’t SE &Technical Training Concept Note Main Organizers GenSoc ILO

21. ““Dignity is more important to the human spirit than wealth. When people gain income, they gain choice, and that is fundamental to dignity.”- Jacqueline Novogratz QUESTIONS?