Presented by: Michael Cecchi Till Hemmerich Ross Ionta

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Definition Qualities Selected Case Studies Ashoka Hybrid Value Chain

• Identifies and solves social problems • Act as the change agents for society, seizing opportunities others miss in order to improve systems • Invent and disseminate new approaches and advance sustainable solutions that create social value

• Work is targeted not only towards immediate, smallscale effects • But sweeping, longterm change

• Social entrepreneurs are: • 1.) Ambitious • 2.) Mission driven • 3.) Strategic • 4.) Resourceful • 5.) Results oriented

• Tackle major issues • Operate in all kinds of organizations:
– Innovative non-profits – Social purpose ventures – Hybrid organizations

• Generating social value, not wealth • Wealth creation is not an end in itself • Promoting systematic social change

• See & act upon what others miss
– Opportunities to improve systems – Create solutions – Invent new approaches that create social value

• Focused in their pursuit of a social vision

• Social entrepreneurs operate within a social context
– Limited access to capital and traditional market support systems

• Skilled at mustering and mobilizing human, financial and political

• Driven to produce measurable returns • Results:
– Transform existing realities – Open up new pathways for the marginalized & disadvantaged – Unlock society’s potential to affect social change

• Starting with nothing more than an idea or a prototype, entrepreneurs have the ability to take a business to the point at which it can sustain itself on internally generated cash flow • A social entrepreneur is any person, in any sector, who uses earned income strategies to pursue a social objective

• Unless a nonprofit organization is generating earned revenue from its activities, it is not acting in an entrepreneurial manner • It may be doing wonderful things but it is innovative, not entrepreneurial • Only earned income will allow a nonprofit to

• Traditional entrepreneurs can act in a socially responsible manner
– Efforts are only indirectly attached social problems

• Social entrepreneurs are different because their earned income strategies are tied directly to their mission

• Traditional entrepreneurs are ultimately measured by financial results
– The success or failure of their companies is determined by their ability to generate profits for their owners

• Social entrepreneurs are driven by a double bottom line, a virtual blend of financial and social returns
– Profitability is still a goal, but it is not the only goal, and profits are re-invested in the mission rather than being distributed to shareholders

• Sustainability can be achieved through a combination of philanthropy, government subsidy and earned revenue • Self-sufficiency can be achieved only by relying completely on earned income, and is the ultimate goal of the most ambitious social

• As long as nonprofits continue to be dependent on contributions from individuals, grants from Foundations, subsidies from government and other forms of largesse, they will never become sustainable or selfsufficient • Without self-generated revenue, nonprofits will remain forever dependent on the generosity of others . . . and that’s a risk social entrepreneurs are unwilling to take → they want to be self-sufficient to do more

• Earned income strategies
– Every nonprofit has opportunities for earned income lying fallow within its existing programs – Turning inward and searching for pockets of existing opportunities – Nonprofits have been able to register impressive gains, often raising their percentage of total revenue

• Business ventures
– The only reason for a nonprofit to start a business venture is to exploit a specific opportunity for significant growth and profitability – Earned income strategies are designed primarily to cover more of a program’s costs, without any real expectation of making a profit or even reaching a break-even

• Goal was to creatively salvage materials from the 10,000 abandoned houses the city is demolishing over the next 10 years • Saved hundreds of tons of building waste and also hired young adults to collect materials and sell them in the ReUse store, ReSource • Excess building material can be used from art to woodworking to refinishing to welding and metalwork → creates opportunities for artisans

• Opened his family’s front porch and basement as a makeshift community center for drifting young people in Brooklyn • Mobilized young people in his neighborhood to go door to door to raise money to rent their own community center (2002)
– They gathered $25,000 in a little more than two weeks and started Team Revolution

• Team revolution now operates many programs including workshops on financial basics and community mural painting

• AstroTots is a space and science camps for girls 4 to 10 years old • Camps have expanded to 10 states • Started AstroTots to show girls that they could go into sciences → wasn’t a boy’s job

• Poeuv was born in a Thai refugee camp to Cambodian parents who fled the Khmer Rouge • Her curiosity about her parents’ long silence led her to make a film about her personal history, called “New Year Baby” • ‘‘Khmer Legacies’’ is a project in which children interview their parents about surviving the Cambodian genocide and which she hopes will result in 10,000 videotaped testimonials

• Founded in 1980 by Bill Drayton in Washington, DC • Named, created and pioneered the global field of social entrepreneurship • In India in 1981, Elected the first Ashoka Fellows • Started with an annual budget of $50,000, grown to nearly $30 million in 2006

• Ashoka strives to shape a global, entrepreneurial, competitive citizen sector: one that allows social entrepreneurs to thrive and enables the world’s citizens to think and act as change makers.

• Ashoka invests in people • Find social entrepreneurs • Provide them with a stipend for an average of three years to focus on “building their institutions and spreading their ideas.” • Become an Ashoka

• Method Ashoka finds world’s leading social entrepreneurs • “We believe that the growth of a global citizen sector begins with the work of individual social entrepreneurs. “ • Rooted in local communities • Think & act globally

• Measure effectiveness on the class of Fellows elected every five and ten years

• Renata Arantes Villella created Flor Amarela • Became an Ashoka Fellowship in 1995 for her efforts to implement a comprehensive model for the education, rehabilitation, and social integration of disabled people of all ages • Serves 200 students with disabilities attending a high school she created in rural Brazil.

• New test with local hospitals • Changed policy on municipal and state levels to free funds for special education programs. • An estimated 600 people have participated in workshops • Renata broadcasts a monthly radio program on subjects relating to prenatal care which

• Respective core competencies from businesses and citizen organizations • Combines assets and skills of businessmen and social entrepreneurs to better serve lowincome markets

• New generation of win-win collaborations between the lowincome consumers, business partners and social organizations

• “On our honor, we have not given, nor received, nor witnessed any unauthorized assistance on this work.” Michael Cecchi Till Hemmerich