Social Enterprise

Doing Better than Business

Social Enterprising as an approach to the genuine development of the Philippine Countryside starting with Bamboo 5th National Bamboo Conference St. Paul, Dumaguete City

What is a Social Enterprise?

Social Enterprise - Definition



Wealth creating organization that has for its bottom line the provision of service to its constituencies or the public at large single bottom line to double/triple bottom lines
Income/ Profits  Benefits and Service to the community  Positive Impact on the Environment/ Cultural Integrity


It exists for a community (often marginalized) that sought to jointly improve their lot through collaborative, cooperative, and prosperity creatingcreating-sharing mechanisms

Social Enterprise Social Entrepreneur : Character



Engage in the continuous process of innovation, adaptation and learning



Thinking out of the box, there always a better process

Act boldly without being limited by the resources currently in hand



Creative, not bound by norms and traditions, skilled to do more than less

Exhibit a heightened sense of accountability to the constituencies served and for the outcomes created


Making sure that social improvements or social benefits are realized by their clients

Social Enterprise Social Entrepreneur : Character

 Adopt

a mission to create and sustain a social value (not just private value)
 Working

for the common good

 Opportunity
 Where

Oriented:

others see a problem an SE sees opportunity and they use this to relentlessly pursue their mission.

Social Enterprise Goal/Purpose



Basic goal is to uplift the lives and improve the well being of under-privileged and underdisadvantaged groups : To make others prosper A mechanism that deals with the MARKET to effect social change or meet development objectives

Social Enterprise vs. Traditional Business

Traditional Enterprise
Stockholders or Proprietors. People who have capital invested in the Business Profits

Social Enterprise
Poor Sectors, Groups Community. May or may not own/ control the business Quality of Life, Environmental sustainability Distributive: Benefits distributed to a broader segment of society. Income not at the expense of society and the environment

Primary Stakeholder/ Beneficiary Primary Objectives

Accumulative: Min Cost = Maximize profits/ Returns for the investor. Social and Environmental Cost externalized

Enterprise Philosophy

Why Social Enterprise?

Copenhagen Business School New Markets Build Skills for Innovation Develop Bottom of the Pyramid Market

Premium Pricing

Margins + Sales

Gain New Clients Customer Loyalty Motivations for Business to Partner with Social Enterprise Motivates Staff Lower Capital Cost /Ethical Investors Efficiency Avoid Consumer Boycott

Leverage for Favorable Policy Reduce Risks

Receive Free Advertising

Why Social Enterprise?

Vijay Mahajan: CEO Basix,
(Operates in 10,000 villages in India)


SMEs will always provide inputs to small producers or will process inputs from small producer. If SMEs are not FAIR:
The producers will switch to other products/ crops  The producers will try to get even by bringing in bad quality


The long-term equilibrium is possible only if a longwinwin-win situation exists in the transaction

Why Social Enterprise Peter Drucker

Management Guru


Good Non-Profit organizations (Social NonEnterprises) base their strategy on their mission and not on their money. This creates disciplined organizations. Many Non-Profits (Social Enterprises) have Nonfunctioning board and CEOs that are accountable to their Board


People are more committed to the cause, bring in resources and have knowledge of the operations

Social Enterprises in the Philippines Developing Sub-sectors/ industries SubKooperatibang Likas ng Nueva Ecija/ Pecuaria Development Cooperative Inc. = Introduced organic farming and consolidates organic products of the farmers in Nueva Ecija/ Bicol


Combined volume = biggest supplier of organic rice products in the Philippines

Community Crafts Association of the Philippines = Exports handicrafts from communities. The communities as partners in business and not just raw material suppliers One Network Bank = rural bank in Mindanao that supports joint ventures in agribusiness among farmers, bank employees and the bank itself. Philippine Social Enterprise Network = 22 members engaged in various social enterprise activities in the country (Buglas Bamboo Institute, Inc)

Social Enterprises In the World



BASIX, India
 

10,000 villages covered in India (micro-finance) (micro2 Billion Rs loaned out since 1996

Titan Industries (India), 6th largest global player in the manufacturers brand


Support social development projects using 63% of total capital of parent Firm (Philanthropic Foundation) Dutch organization engaged in processing wood from community managed Forests

Timber Reef Corp.



Social Enterprises TRCTRC- Africa

Community Maintains Forest and Supply Timber to TRC

TRC Process the Timber to Specially Cut Wood

TRC Process the Timber to Specially Cut Wood

TRC Social Enterprise Mechanics and Impact



Community Forest is maintained

Standards and Policies in cutting (only 24 inches and above in diameter)  Replanting of cut trees


 

Community receive better income therefore they maintain their forest area Partnership with business maintains the efficiency in operations and stable links with the markets

Social Enterprise within the Bamboo Industry:



Like the Timber in Africa

  

Grown and harvested by communities Processed and Standardized by TRC Sold to stable markets and high end markets

The Bamboo in the Philippines

Grown and Treated in the community (partner in business instead of just raw material supplier)  Transfer of technology, and capital = Processed by Social Enterprises  Sold to mainstream channels (industrial, consumer) Double to triple Bottom Line


The Future is not some place we are going to, but one we are creating; the paths to it are not found but made; and the making of those pathways changes both the maker and the destination
Australian Commission for the Future, 1996

Thank You