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Nurturing Social Enterprises For Poverty Reduction
Nurturing Social Enterprises For Poverty Reduction
Marie Lisa Dacanay President, Institute for Social Entrepreneurship in Asia Philippine Social Enterprise Forum Asian Development Bank, February 28, 2012
Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.
Poverty remains to be one, if not the gravest social problem of the 21st century. We need to focus on nurturing a vibrant social enterprise sector as an effective force in poverty reduction and sustainable development.
Poverty as deprivation of basic capabilities (Sen,1999; 2009) not just low income
Sharpen Concept of SE focus on type of SE evolving as major player in poverty reduction Social Enterprises with the Poor as Primary Stakeholders (SEPPS)
Poor as transactional partner Pro-active workers, suppliers, clients Partners in social enterprise and value chain management
Poor as transformational partner Empowered workers, suppliers , clients ,owners Organized partners in poverty reduction community, sector, societal change Significant outcomes in overcoming capability deprivation & income poverty
Impact on poor
Limited to negative
Single social enterprise interventions limited in terms of impact and sustainability Importance of interventions at the level of economic subsectors network of related actors and enterprises performing various functions in competing value chains; may be identified by major raw material source, finished product or final service provided
Examples of strategic economic subsectors where SEPPS are already playing key roles:
coco coir, muscovado sugar, organic rice, essential oils, bamboo, educational toys , school chairs, brewed coffee
SEPPS are responses to state and market failures in providing for the needs of the poor to succeed, SEPPS need to have a clear agenda for change specially vis a vis mainstream markets and state institutions ( e.g. fair trade principles
when corporations buy raw materials; special provision in GAA for government to procure from PWD cooperatives)
Agenda for Nurturing SE for Poverty Reduction: Magna Carta for SEs (PRESENT Coalition)
Major role for government in providing a policy environment to nurture SEPPS as major partner in poverty reduction
Magna Carta for SEs: support and incentives for SEPPS and social investors SE as legal brand to recognize economic & social value they contribute as major partners in poverty reduction
financial and program support preferential rights in government procurement tax exemptions/incentives
Agenda for Nurturing SE for Poverty Reduction: Elements of a National PRESENT Program
Development of strategic economic subsectors National SE Development Support Program convergence of initiatives to ensure poor (thru SEPPS) benefit the most from subsector growth and development Strategic HRD integration of SE content & courses in schools at all levels
Agenda for Nurturing SE for Poverty Reduction: Elements of a National PRESENT Program
Market Development for SE Products and Services Credit Fund & Guarantee Fund Pool SE credit
windows in all banks, financing of performance bonds
Convergence of initiatives with government playing strategic role in developing vibrant SE sector
Magna Carta for SEs Poverty Reduction through Social Entrepreneurship Program (PRESENT)
THANK YOU!
www.isea-group.net ldacanay@isea-group.net