SMEs & Entrepreneurship 2007 Entrepreneurial Solutions to Insoluble Problems

2. SMEs & Entrepreneurship 2007 Entrepreneurial Solutions to Insoluble Problems

3. Menu • Introduction • Our Common Future + 20 • Pressure wave 4 • Government’s roles • Conclusion

4. 1 Introduction

5. Who we are

6. 3Ps

7. Where we focus CFOs, Entrepreneurs, Investment Bankers, VCs  CEOs, Investor Relations, Boards (e.g. NEDs)  Process and Product Design, Marketing  Environment Managers, Project Planners  Public Relations, Legal Advisors

8. 2 < 20 years >

9. Brundtland Commission, 1987 • Sustainable development • “Interlocking crises”(e.g. peace, security, environment) • “Security must be sought through change”—build a future that is “more prosperous, more just, more secure”

12. Wave 4 • Wave 1: compliance—government regulates • Wave 2: corporate citizenship—government marginalised • Wave 3: focus on MNCs; CC goes global; stalled 9/11/2001—government obsessed by ‘security’ • Wave 4: mainstreaming, creative destruction, new sources of transformative innovation, governments catalyse and incentivise

13. Social enterprise • Social entrepreneurship ‘on a roll’ • Potential for breakthrough solutions ‘considerable’ • Money ‘main headache’ • Appetite to partner with business • Role for ‘social intrapreneurs’ • For ‘real system change,’ focus on government and public policy

14. 3 Insoluble problems

15. Wal-Mart

17. Economic insecurity • Achilles Heel: oil at ~$100 pb/’Peak Oil’ • World’s energy needs 50% greater by 2030 (IEA reference scenario) • Developing countries accounting for 74%, China + India alone for 45% • OPEC’s share of oil production from 42% to 52% • PetroChina, sovereign wealth funds

18. Environmental insecurity • Warming of 4 degrees warming by 2100 > “significant extinctions”, IPCC • Fossil fuels are predicted to account for 84% of increase in global energy consumption by 2030 • Emissions of carbon dioxide will jump by 57%, 2005-2030 • China becomes world’s biggest emitter this year, India the third largest by 2015

19. Changing climate of opinion(GlobeScan for BBC World, 22,000 respondents, 21 countries)

20. Action Needed on Climate Change 22,000 respondents, 21 countries, 2007

21. Social insecurity • Political and human rights impact of stronger OPEC countries • Impact of ‘Peak Oil’ and instability of e.g. China • Refugees and migration • Demographics, e.g. ageing • 3 billion new people by 2050

22. 4 Government

23. Office of Social Entrepreneurship • Post Hurricane Katrina … • State/social services overwhelmed • Unprecedented flow of federal/charitable funds • Strong demand for meaningful results • New Orleans ‘Social Entrepreneurship Empowerment Zone’ • NC: low profit, limited liability partnerships (L3C)

24. Small Business Innovation Grants: all US federal agencies spending more than $100m set aside minimum 2.5% for SBIRs California: Rural Economic Vitality Project, stimulating green building technology, renewable energy, e.g. biofuels Fast Company: Social Capitalists Award Ashoka, Schwab and Skoll Foundation awards + events Roundtables on public policy priorities—and solutions Promotion of public and private sector partnering Elsewhere …

25. What social entrepreneurs want • Improve tax incentives • Innovative financial instruments to engage banks and pension funds • Boost relevant education and training • Remove barriers • Retune purchasing criteria

26. Run for office?

27. 5 Conclusion

28. Gore on climate challenge • ‘What we are going to have to put in place is a combination of the Manhattan Project, the Apollo Project and the Marshall Plan, and scale it globally.’

29. Scaling up

30. Redesigning the system

31. Unleashing entrepreneurship

32. Thank you.

33. Email: • elkington@sustainability.com • Websites: • www.sustainability.com • www.johnelkington.com