This document discusses social entrepreneurship and presents information from a book called "The Power of Unreasonable People". The objectives of the session are to present a new generation of social entrepreneurs, understand their business models and leadership styles, identify market opportunities, and discover financial resources. It provides definitions of social entrepreneurs, explains why they are considered "unreasonable", and describes characteristics of successful social entrepreneurs. It also classifies different types of social enterprises and identifies 10 market opportunities for social entrepreneurs in areas like demographics, finance, health, environment, gender, and education.
Emprendedores sociales, Master Economia Social, Iberoamericana, Mondragon, Mexico
1. SOCIAL ENTREPRENEURSHIP
Máster en gestión de Empresas de Economía Social – Universidad
Iberoamericana – Puebla Julio 2011
Dr. Aitor Lizartza Martin y Dr. Jose Mari Luzarraga
– Mondragon University
alizmar@eteo.mondragon.edu
jmluzarraga@eteo.mondragon.edu
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
2. Objetivos de la sesión
Basado en el libro
“The power of unreasonable people”
(J Elkington & P. Hartigan –
Harvard Business Press 2008)
Nuestros objetivos son:
Ü Presentar una nueva generación de emprendedores sociales
Ü Entender sus modelos de negocio y estilos de liderazgo
Ü Identificar oportunidades de mercado
Ü Averiguar los recursos financieron obtenidos
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
3. “THE POWER OF UNREASONABLE PEOPLE
How Social Entrepreneurs Create Markets that Change the World”
(Harvard Business Press 2008)
- Understanding what is a Social Entrepreneur
- Classifying types of Social Enterprises
- Identifying SE market opportunities
- Tapping SE financial resources
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
4. Understanding what is a Social Entrepreneur
“The reasonable man adapts himself t the world
The unreasonable man persist in trying to adapt the world
to himself.
Therefore, all progress depends on the unreasonable man”
(George Bernard Swaw, 1903)
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
5. Social entrepreneurs are…
Ü Innovative, Resourceful, Practical and Opportunistic,… as any
other entrepreneurs
Ü But… What motivates social entrepreneurs is not doing the
“DEAL” but achieving the “IDEAL”
Ü So they have a long term commitment with their projects
Ü Most Social entrepreneurs stumble across the opportunity to
SERVE OTHERS
Ü Common inspiration is:
“You have to be the change you want to see in the world”
(Gandhi)
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
6. Why are they unreasonable? Because…
Ü They Want to Change the World
Ü They are insanely ambitious
Ü They are propelled by emotions
Ü They think they know the future
Ü They seek profit in unprofitable pursuits
Ü They ignore the evidence
Ü They try to Measure the Unmeasurable
Ü They refuse to be made into Superheroes
Ü They are, well, unreasonable
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
7. Characteristics of Successful Social entrepreneurs
Ü Try to shrug off the constraints of ideology or discipline
Ü Identify & apply practical solutions to social problems, combining
innovation, resourcefulness, and opportunity
Ü Innovate by finding a new product, a new service, or a new
approach to a social problem
Ü Focus-first & foremost-on social value creation and, in that spirit, are
willing to share their innovations & insights for other to replicate
Ü Jump in before ensuring they are fully resourced
Ü Have an unwavering belief in everyone’s innate capacity, often
regardless of education, to contribute meaningfully to economic &
social development
Ü Show a dogged determination that pushes them to take risks that
others wouldn’t dare
Ü Balance their passion for change with a zeal to measure and
monitor their impact
Ü Have a great deal to teach change makers in other sectors
Ü Display a healthy impatience
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
8. How they look like…
Nicholas Negroponte (MIT-medialab)
“Entrepreneur behind the One laptop
per child project”
VIDEO: http://tinyurl.com/qkavho
Dr. Govindappa “Aravind Eye Hospital”
“The largest Eye care medical Dr. Mohammed Yumus
centre in the world” “Grameen Bank – Nobel Price 2006”
VIDEO: http://tinyurl.com/qb37rm VIDEO: http://tinyurl.com/dmbz9f
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
9. Classifying types of Social Enterprises
Traditional classification:
Ü Model 1: Leveraged Nonprofit ventures
Ü Model 2: Hybrid Nonprofit ventures
Ü Model 3: Social Business Ventures
Social Enterprise from a wider perspective
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
10. Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
11. Traditional classification
Model 1: Leveraged Nonprofit ventures
Ü A public good is being delivered to the most economically
vulnerable, who do not have access to, or are unable to
afford, the service rendered
Ü Both the entrepreneur and the organization are change
catalysts, with a central goal of enabling direct beneficiaries to
assume ownership of the initiative
Ü Multiple external partners are actively involved in supporting
the venture financially, politically, and in kind
Ü The founding entrepreneur morphs into a figurehead, in some
cases for the wider movement, as others assume
responsibilities and leadership
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
12. Traditional classification
Model 1: Leveraged Nonprofit ventures
Bunker Roy
“Barefoot College”
http://tinyurl.com/ottmg8
N. Negroponte
OLPC www.laptop.org
http://tinyurl.com/5tfazu
Mother Teresa
“Missionaries of Charity”
VIDEO: http://tinyurl.com/d25chs
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
13. Traditional classification
Model 2: Hybrid Nonprofit ventures
Ü Goods or services are delivered to populations that have been
excluded or underserved by mainstream markets, but the notion of
making a profit is not totally out of the question
Ü Sooner or later the founding entrepreneur or his/her team, typically
develops a marketing plan to ensure that the poor or otherwise
disadvantaged can access the product or service being provided
Ü The enterprise is able to recover a portion of its costs through the sale
of goods & services, in the process often identifying new markets
Ü To sustain activities & address the unmet needs of poor or otherwise
marginalized clients, the entrepreneur mobilizes funds from public,
private, and/or philanthropic organizations in the form of grants, loans
Ü As mainstream investors & business enter the picture, even when they
are not seeking mainstream financial returns, they push to become
model 3
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
14. Traditional classification
Model 2: Hybrid Nonprofit ventures
Rick Aubry
“Rubicon Programs”
VIDEO: http://tinyurl.com/o4dd82
Dr. Govindappa Martin Fisher
“Aravind Eye Hospital” KickStart: www.kickstart.org
http://tinyurl.com/qb37rm VIDEO: http://tinyurl.com/p7mep3
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
15. Traditional classification
Model 3: Social Business ventures
Ü The entrepreneur sets up the venture as a business with the specific
mission to drive transformational social and/or environmental
change
Ü Profits are generated, but the aim is not maximize financial returns
for shareholders but instead to financially benefit low-income groups
and to grow the social venture by reinvestment, enabling it to reach
and serve more people
Ü The entrepreneur seeks out investors interested in combining
financial and social returns
Ü The enterprise’s financing-and scaling- opportunities can be
significantly greater because social business can more easily take
on debt and equity
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
16. Traditional classification
Model 3: Social Business ventures
Dr. Mohammed Yumus F. Arizmendiarrieta
“Grameen Bank – Nobel Price 2006” MONDRAGON Cooperatives
VIDEO: http://tinyurl.com/qt65ux http://tinyurl.com/p75akt
http://tinyurl.com/otm9ft
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
17. Actividad reflexión/inspiración
Ü Elige un emprendedor social que conozcas
Ü Identifica que características tiene
Ü Identifica que tipo de empresa social utiliza
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
18. Classifying Social enterprise from a wider perspective
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
19. 10 market opportunities for social entrepreneurs
1. Demographic opportunities
Facts:
- Human population toward 9 billion to10 billion people
- Age distribution skewing: old vs. young boom nations
- Worldwide migration: from rural to cities
- One of the best ways of reining population growth is encouraging
economic development
Examples of successful Social Entrepreneurs
- Jeroo Billimoria – Child Helpline International -
http://www.childhelplineinternational.org/
- Martin Fisher – Cooperative Home Care Associates (CHCA), the
Paraprofessional Healtcare Institute (PHI) & Independence Care
System (ICS) http://www.chcany.org/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
20. 10 market opportunities for social entrepreneurs
2. Financial opportunities
Facts:
- The notion that the haves will find ways to gain more and that the
have-nots will lose more has been acknowledged since biblical times
- Extreme financial inequality can sow the seeds of insurrections and
social cataclysm
- Tools & frameworks for economic justice are weak or nonexistent
Examples of successful Social Entrepreneurs
- Jeroo Billimoria – Aflatoun - http://www.aflatoun.org/
- Martin Fisher – Kickstart - http://www.kickstart.org/ (0.6% GDP of
Kenya GDP & 0.25% of Tanzania GDP)
- Fazle Abed – Bangladesh Rural Advancement Committee-
http://www.brac.net/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
21. 10 market opportunities for social entrepreneurs
3. Nutritional opportunities
Facts:
- True famine, hunger, and poor nutrition have been constants
through-out human history
- 862 million people across the world are hungry, up from 852 million a
year ago
- Every day, almost 16,000 children die from hunger-related causes--
ONE CHILD EVERY FIVE SECONDS.
Examples of successful Social Entrepreneurs
- Takao Furuno – The power of Duck - http://tinyurl.com/ojdwy7
- Hector Gonzalez – Cuadritos - http://www.cuadritos.com.mx/ (the
largest self-sustaining food bank in Mexico, feeding 100.000 people a
day)
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
22. 10 market opportunities for social entrepreneurs
4. Resource opportunities
Facts:
- A growing world population will not be a problem if the planet’s
resources were limitless, but they are not
- Demographic pressures are fistering awareness of the natural
resource limits to economic growth
- Example: the UN argues that the conflict in Darfur has been driven by
competition for water as climate change bites
Examples of successful Social Entrepreneurs
- Phil LaRocco – E+Co - http://www.eandco.net/
- Fabio Rosa – Ideaas - http://www.ideaas.org.br/ & the widely
replicated Palmares project http://www.ashoka.org/node/3291
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
23. 10 market opportunities for social entrepreneurs
5. Environmental opportunities
Facts:
- Environmental issues are universal: there is not South-North differences
- Nevertheless, poor populations everywhere in the world re forced to live in
the worst circumstances
- The dominant environmental concerns include the immediate of clean water
& sanitation, the risks of local & indoor pollution , & vulnerability to natural
hazards.
- Other parts of the world: noise, traffic congestion, air & water pollution, long-
term climate change,…
Examples of successful Social Entrepreneurs
- Yan Arthus-Bertrand – The Earth from the Air -
http://www.wecommunic8.com/earthfromtheair/
- Wangari Maathi – Green Belt Movement -
http://www.greenbeltmovement.org/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
24. 10 market opportunities for social entrepreneurs
6. Health opportunities
Facts:
- From HIV/AIDS, to malaria, to potential pandemics like SARS or Flu-
A, the world problems can seen overwhelming
- In 2006,11 million children <5 years died from preventable causes
- 4 million babies will not survive their first month of life
- > 1/2 million women died in pregnancy, during labor, or after birth
Examples of successful Social Entrepreneurs
- Dr. Paul Farmer – “The Man who will cure the world” -
http://tinyurl.com/aovmpq
- Dr. Devi Shetty – Narayana Hrudayalaya -
http://www.narayanahospitals.com/
- Vera Cordeiro – Resnacer - http://www.ashoka.org/node/3420
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
25. 10 market opportunities for social entrepreneurs
7. Gender opportunities
Facts:
- There is always an inescapable gender component
- In the 1995 Kobe earthquake, 1,5 times more women than men died
- In the Asian tsunami, death rates for women were 3-4 times those for
men
- There are several factors: biological, cultural, economic, or access to
health care, education & information technology.
Examples of successful Social Entrepreneurs
- Wu Qing – Beijing Cultural Development Center for Rural Women -
http://www.nongjianv.org/english/index.html
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
26. 10 market opportunities for social entrepreneurs
8. Educational opportunities
Facts:
- Few factors are as powerful as education in empowering humans
- In a knowledge society access to educations becomes eevn more
important
Examples of successful Social Entrepreneurs
- Bunker Roy – Barefoot College - http://www.barefootcollege.org/
- Kyle Zimmer - Fist book - http://www.firstbook.org
- Wendy Kopp – Teach For America - http://www.teachforamerica.org/
- Michael Brown & Alan Khazei –City Year - http://www.cityyear.org
- Javier Gonzalez – abcdespanol - http://www.abcdespanol.com/es/
- Liz Maw – Netimpact - http://www.netimpact.org/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
27. 10 market opportunities for social entrepreneurs
9. Digital opportunities
Facts:
- Enthusiasts may talk of “growing up digital”, but the IT revolution has
created its own divides
- 80% of people in the world have never heard a dial tone, let alone
surfed the Web
- Kofi Annan: “People lack many things: jobs, shelter, food, health care &
drinkable water. Today, being cut off from basic telecommunications services
is hardship almost as acute as these other deprivations, & may indeed
reduce the chances of finding remedies to them”
Examples of successful Social Entrepreneurs
- Rodrigo Baggio – Committee for Democracy in IT -
http://www.cdi.org.br/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
28. 10 market opportunities for social entrepreneurs
10. Security opportunities
Facts:
- September 11th terrorism attack changed world security, however this
might be an effect of deeper & previous security causes.
- Instead of turning to companies like General Dynamics or Halliburton
for security measures, governments should look to social
entrepreneurs who recognize address the physical, psychological,
social, economic, energy-related, water-related, or environmental
security.
- Rich western countries spend up of 25 times as much on defense as
they do on overseas aid.
Examples of successful Social Entrepreneurs
- Pioneer Human Service - http://www.pioneerhumanservices.org/
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
29. “YOU HAVE TO BE THE CHANGE YOU
WANT TO SEE IN THE WORLD”
GANDHI
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
30. Eskerrik asko
Muchas gracias
Thank you
“Our strength does not lead to struggle but co-operation”
P. JM Arizmendiarrieta - 1956
Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011
31. Dr. JM Luzarraga – Mondragon Unibertsitatea – Master Emprendimiento Social Ibero - Julio 2011