TWO KEYS TO

SUSTAINABLE
SOCIAL ENTERPRISE
By Roger L. Martin & Sally R. Osberg

Group 1 -

Kundan Kumar M212-19

Subhodeep Bagchi M208-19
Shruti Swaroop M197-19
Aditya Chaudhary M210-19
Divyanshu Kumar M166-19
 TIMELINE

KEY ELEMENTS:
INTRODUCTION
TECHNOLOGY

01 02 03 04

KEY ELEMENTS: EXAMPLES

ACTORS
 INTRODUCTION
SOCIAL
ENTREPRENEURSHIP
Rising Global phenomenon to address
several social and environmental problems

Target of the enterprise is marginalized

segment of the society

The venture should be financially

sustainable

Involves identification of an opportunity in

unjust equilibrium and developing a value
proposition for the social change
KEY ELEMENTS

Consumers Government

Technology
CONSUMERS
One of the economic factors involved which shifts the power
balance

Kailash Satyarthi got the clue of children being exploited by

labor brokers for many industries in India

After raiding several companies through advocacy, he realized

that this would not change the system

Instead educating the consumer about giving up the product

is produced by exploitation rather than produced responsibly

Thus the consumer represent the strong means to alter the

suboptimal social equilibrium
 Successful social entrepreneurs
have placed government in a
01
much better place wherein the
Government can effectively
control.
New role leverages the
effectiveness of taxes or
02 development aid making
government services more
valuable.
Amazon Conservation (ACT)
has tackled the problem of
03 deforestation and has placed
Brazil government into a more
effective actor than before .
As brazil faced a massive
04 deforestation due to illegal use
by indigenous people the
government could do too little
given the magnitude of
violations.
ACT core innovation was to
equip tribals with GPS devices
05
01
and train them to better
advocate their lands for their
own interest and supply
government with much needed
02 information for forest
conservation.
This Distributed system of
07 06
Government as monitoring and conserving
outperformed any centralised
an actor approach.
03
The balance of power in the
06 struggle with commercial 07
interests was cost effectively
shifted in favour of the tribal
04 people,resulting in more-
05
efficient and effective
conservation.
 THE TECHNOLOGY
2nd Key to Sustainable Social Enterprise

TECHNOLOGY

The existing actors and their means of operating and the engagement “technologies” they use is a
major factor catering to combine to make the equilibrium unjust and suboptimal. A second way,
therefore, to effect change is to dramatically improve a system’s technology while leaving the current
actors in place.

Such improvement is achieved in one of three ways:

❏ Substitution
❏ Creation
❏ repurposing.
Three Ways of Technology intervention
Replace a key technology
with a lower-cost one
Identifying a lower-cost technology that
can substitute for a prevailing standard in a
given function or product component.
Few Examples:
❑ APOPO and the rats clearing land mines
and detecting TB in poor countries,
deprived of proper medical services.
❑ The nonprofit Medic Mobile equips
community health workers
❑ Mothers2Mothers trains “mentor
mothers” to monitor HIV-positive
pregnant women. In the United States,
Health Leads trains college students to
“prescribe” what doctors would if they
had the time and the information.
Creating a new enabling
technology
Over the years, it has been seen that social
entrepreneurs also succeed by supplying or
creating a new technology that allows users
to do things they could not previously do.
Few Examples:
❏ The Kiva platform provides a technology
to break through the barriers which
restricted small scale lenders to lend to
small scale borrowers in poor countries,
as the Financing Institutes were
regulated as banks.
❏ Kiva Platform enables microlender
worldwide to make loans as small as
$25. It has help accessing loan to the
total of $1 billion with 98% return rate.
Repurpose an existing
enabling technology
In the third mechanism instead of creating a
new technology, the social entrepreneur
repurposes an existing one from a different
context.
Few Examples:
❑ Institute for OneWorld Health (iOWH)
scoured pharma company shelves for
drugs deemed unsuitable for developed
world markets and incapable of
generating profits, in the developing
world. She reasoned that some of this
latent intellectual property could be
repurposed to fight diseases endemic in
the poorest parts of the world.
❑ Treated Black fever with paromomycin.
BLENDED APPROACH
EXAMPLE :
Debbie Aung Din Taylor and Jim
Taylor, of Proximity Designs,
understood that transforming
Myanmar’s agricultural sector
required them to fire on multiple
cylinders:
1. They had to reduce costs
traditionally associated with a
start-up
2.Lower down the operating
costs of product design and
development.
3. Cultivate customers
4. Shift government’s role
5. Continually enhance their
technology solutions.
02
01 The Taylors were determined
to transform this miserable
equilibrium.
Proximity started as a country
office for International
Development Enterprise
03
They figured out how to significantly
reduce product R&D costs.
★ By partnering with Stanford’s
Hasso Plattner Institute of
Design.
★ Actively recruiting low-cost
talented interns.
04
Understanding its poor rural customers
enables Proximity to meet their needs
across the board.
Myanmar’s farmers can’t afford new
seed stock or even the least
expensive device, so Proximity has
added microcredit to its suite of
services.
05
Finally, the organization engages
deftly with the government, which
considers it a trusted adviser on
issues of food security.
EXAMP
LES
 TOMS
One for One

TOMS social enterprise lifestyle

brand, a for-profit social enterprise
that generates charitable donations
through consumer purchases
While travelling in Argentina in 2006, TOMS Founder Blake Mycoskie witnessed the
hardships faced by children growing up without shoes. Wanting to help, the story of TOMS
started, a company that would donate a pair shoes for every pair of shoes purchased.
What started with a simple idea has now evolved into a powerful business model that helps
address need and advance health, education and sustainable growth for communities
around the world.
T
O
M
S
Rang De- Invest in Fellow
Indians
About
ChangeRANG
the DE
way you see Change!
A technology driven platform for delivering low cost credit through Crowdfunding and Peer-to-Peer, leveraging a network of qualified “ Impact
Partners” to target borrowers from low-income underserved communities, especially first time borrowers.
How to be a part of it
1. Select an entrepreneur
You decide who you want to invest in
from our curated community of
entrepreneurs.
2. Invest
Invest an amount of your
choice. Start small, see the
difference and increase
your investments when you
are convinced.
3. Track Progress
You stay invested and get to
track the progress made by
the entrepreneur through
your dashboard. You can
also go on a field trip to
witness your impact
4. Get repaid with interest
Repayments are credited to your Rang
De account on a monthly basis. You can
choose to reinvest or withdraw this
amount.
ARAVIND EYE CARE
SYSTEM
❏

❏
Dr. Venkateswamy established a health care model after realizing the problem of
blindness rapidly escalating in a developing country like India
Started with only 11 beds is now a growing network of eye care facilities with 13 eye
hospitals, a research institute and eye banks
❏ Conducting eye camps in rural areas
❏ Giving free treatment to poor people
AMUL
Amul in 1946 was founded as a reaction to unfair milk practices
that occured in India,

Amul’s main aim was to eradicate the gap between the

producers and consumers in the market.

Amul illustrated an example of how brand’s value can become

the catalyst for social change and development besides being a
highly profitable enterprise.

Amul demonstrated that the elimination of middlemen and

the professional management of milk procurement could
result in low-income farmers getting access to new
markets thereby lifting them out of poverty.

While Amul was not conceived as a social enterprise, it is a

historic example of supply chain management that has its
roots of social entrepreneurship.
THANK YOU