Issues in Social Entrepreneurship

1. Issues in Social Entrepreneurship Shyam Sunder Global Social Entrepreneurship Workshop Yale School of Management September 20, 2011

2. Issues in Social Entrepreneurship • Product lines: • Tradition vs. innovation • Goods vs. services • Organizations: • Unique/customized/personal vs. mass scale • Assessing Efficiency • Growth and Transitions: • From grants to self-sustenance • From founding entrepreneurs to professional managers

3. Product Lines: Tradition vs. Innovation 3

4. Special Pride Existing skill Craft: embroidery Low capital Low education Low price Staying ahead of imitation New markets New products Mass production: paper cups Higher values Product Lines: Tradition vs. Innovation

5. Product Lines: Goods vs. Services 5

6. Known crafts Familiar processes Familiar markets Higher investment Limited demand Newer process Creation of new markets Reputation important Quality from experience Low investment High demand Challenge of standardization Product Lines: Goods vs. Services

7. Examples of Services

8. Examples of Services • Food and food service • Custodial and Cleaning services • Shopping services • Child, sick, and elder care • House painting (white washing) • Home repair • Electrical work • Plumbing work • Cabinetry work • Delivery services • Quality control • Security • Pest control • Driving and auto/motor cycle repair • Agricultural services (soil testing, land survey, equipment repair) • Consumer surveys and product testing • Skills training

9. Organizations: Unique/Customized/Personal vs. Mass Scale 9

10. Human Scale & Care Personalized Uniqueness Decentralized / Robust Diverse Individualized initiative Difficult Disappear with individuals Entrepreneurial Grass roots Large scale Impersonal Same/similar everywhere Centralized / fragile Copy cat Mass initiative Replicable Continues beyond individual managers Top down control Chance of going viral? Organizations: Unique/Customized/Personal vs. Mass Scale

11. Organizations: Assessing Efficiency or How Are We Doing? 11

12. Organizations: Assessing Efficiency? • Efficient for who? • Engineering efficiency • Economic efficiency • Multiperson efficiency • Efficiency under uncertainty • Combination of two or more of the above

13. Growth and Transitions:From Grants to Self-Sustenance 13

14. Growth and Transitions:From Grants to Self-Sustenance • Is it possible? When? • Is it desirable? In which cases? Why? • If yes, what to do to become self-sustaining?

15. Growth and Transitions:From Founding Entrepreneurs to Professional Managers 15

16. Is it possible? In which cases? Is it desirable? In which cases? If yes, what can be done to promote / smoothen such transitions? Growth and Transitions:From Founding Entrepreneurs to Professional Managers

17. Engineering of Organizations: A Template Shyam Sunder Global Social Entrepreneurship Workshop Yale School of Management September 21, 2010

18. An Overview • A Template for Organizational Engineering • An idea • Resources: inputs and outputs • People: what each gives and wants • Advantage to all • Good governance • Sustainability under stress • Change and transition (re-engineering) • Let us try this out, and develop it as we try 18

19. The Idea • The idea originates with the entrepreneur: a way of meeting an unmet demand or utilizing one or more wasted resource(s) in a way that would make all participants better off • The initial idea rarely survives in final form • All entrepreneurs need to revisit and refine the initial idea many times through iterations until it works • Template may help us refine the idea 19

20. Resources: inputs and outputs • What will be the output(s) of the organization (i.e., anything that anyone may want from it)? • What inputs does the organization need (all those things for which we need to find a supplier) 20

21. People: what they want and are willing to give • For each input, list one or more prospective supplier • For each output, list one or more prospect who would want to have it • If the list cannot be completed, go to an earlier step and revise it 21

22. Advantage to all • Make a list of all participants (from previous page) • For each participant, list the contribution and entitlement • Check if for each participant, what they get is valued as much or more than what they contribute • If not, what changes are necessary to make the participation advantageous to every person on the list? • If there is no way of satisfying the condition, go to an earlier step and revise it 22

23. Governance • Good governance: It is in each participant’s interest to do what the other participants expect him/her to do in various circumstances • How can we organize the environment of each participant to fulfill the good governance criterion? • If such an environment cannot be designed, go to an earlier step and revise 23

24. Sustainability under stress • What are the jolts that could shake the organization? • How big a jolt can the organization survive (i.e., not violate the “advantage for all” condition) • What can be done to: • Avoid the jolts • Increase capacity to withstand larger jolts • Plan for disaster (pick up the pieces) 24

25. Change and transition (re-engineering) • Which changes in the environment threaten the balance you have achieved in the organization (people, resources, technology, expectations) • There are inevitable changes that make the organization infeasible • Go to an earlier step to re-engineer: • New arrangements, expectations • New or different resources • New or different people • New or different idea 25

26. Skills Development (Anudip) • Workplace English • Workplace Readiness • Workplace IT • ICT-based Livelihoods • Basics of Business • Advanced IT • Financial Accounting & Tally • PC Maintenance • DTP (Desktop Publishing – Pagemaker & Corel Draw) • MS Access • Internet usage for the office • Image Processing (Photoshop) • Basics of Sales • CRS (Customer Relationship & Sales) • BPO / Call Center Training • Hospitality • Patient Assistance • Special Curriculum for BPOs • Entrepreneurship Development Workshop • Steps in Cyber Cafe Management

27. Anudip: Unemplyment => Employment

28. Anudip: Entrepreneur Program • Adoption and Mentoring • Assisting graduates interested in group-based micro-enterprises • Equipment lease (computers, printers, cameras, etc.) • Mentoring during incubation phase: planning, marketing, budgeting • Monitoring progress and continuing support to help it grow • People: low income, unemployed, young, mostly agrarian, in geographically isolated villages. • Enterprises: IT-based--cyber cafés, desktop publishing centers, digital photo studios and computer training centers to help: •  ◦ Internet surfing • ◦ Online railway booking • ◦ Electricity and telephone bill payment • ◦ One-minute digital photography

29. Thank You Shyam.sunder@yale.edu www.som.yale.edu\faculty\sunder 29