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ABC of P overty Re duction through S ocial Ent repreneurship

Institute for Social Entrepreneurship in Asia. ABC of P overty Re duction through S ocial Ent repreneurship. Marie Lisa Dacanay President, Institute for Social Entrepreneurship in Asia PRESENT Multisectoral Forum Series Launch; June 29, 2012.

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ABC of P overty Re duction through S ocial Ent repreneurship

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  1. Institute for Social Entrepreneurship in Asia ABC of Poverty Reduction through Social Entrepreneurship Marie Lisa Dacanay President, Institute for Social Entrepreneurship in Asia PRESENT Multisectoral Forum Series Launch; June 29, 2012

  2. ABC of Poverty Reduction through Social Entrepreneurship • PRESENT as Aspiration • The PRESENT Bill • The PRESENT Coalition • Convergence for PRESENT

  3. PRESENT as ASPIRATION

  4. Social Entrepreneurship:INNOVATIVE SOLUTIONS to SOCIAL PROBLEMS “Social entrepreneurship entails innovations designed to explicitly improve societal well-being, housed within entrepreneurial organizations, which initiate, guide or contribute to change in society” (Perrini, 2006)

  5. Social Entrepreneurship:GLOBAL PHENOMENON: RESPONSE TO CRISIS US: • economic downturn in 70s and 80s hugecutbacks of federal funding to NGOs Europe: • crisis of welfare states in 80s  retreat from public services + phenomenon of structural unemployment  WISE Countries in the South/Philippines: • continuing crisis of development in 90s: massive poverty and inequality  SE-PPS: Social Enterprises with the Poor as Primary Stakeholders

  6. Social Enterprise with the Poor as Primary Stakeholders (SE-PPS): social mission- driven wealth creating organizations

  7. Alter Trade : SusAg & Fair Trade for Poverty Reduction

  8. PWD Fed: Coops for employment and empowerment

  9. Lamac MPC: Vehicle for social inclusion

  10. Social Enterprises with the Poor as Primary Stakeholders (SE-PPS) AS INNOVATIVE CHANGE AGENTS provide the poor a combination of transactional and transformational services: ‘Poverty as deprivation of basic capabilities’(Sen,1999; 2009) not just low income positively contribute to creation of economic and social value: much of value created not recognized by mainstream market economy use combination of principles as actors in economic development: market, redistribution reciprocity,solidarity, sustainability

  11. PRESENT: Developing SE-PPS as Partners of Poor in Strategic Economic Subsectors • 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

  12. PRESENT: Developing SE-PPS as Partners of Poor in Strategic Economic Subsectors • Strategic Economic Subsectors • have a potential for growth • large numbers of the poor are players or could become players • Examples of strategic economic subsectors where SE-PPS are already playing key roles: coco coir, muscovado sugar, organic rice, essential oils, bamboo, educational toys , school chairs, brewed coffee

  13. Pilipinas Ecofiber: Social Enterprise Value Chain Intervention in Coco Coir Subsector • Engaged in the extraction of fiber & peat from coconut husks, and the processing of fiber into high quality stitched & woven coir products for sale in the Philippines and abroad. • Organized to link input providers, small producers & processors, with traders & distributors of various coir products, and to coordinate the activities of the former in order to meet the requirements of final users. Coco fiber &cocopeat Coir ropes & mats Geonets, plant liners, trays, etc. Final sale Coconut husks Weavers & Edgers Associat’ns Plant workers Plant workers Twining agents Tradersdirect buyers Husk collectors Rural workers Rural coops

  14. Poverty Reduction through Social Entrepreneurship (PRESENT) • Aspiration of SE-PPS to scale up impact through innovative partnerships with government

  15. THE PRESENT BILL Partnership with Congress to institutionalize Poverty Reduction Through Social Entrepreneurship

  16. PRESENT Bill: Main Features • Objective: • Provide a nurturing environment for the development and growth of social enterprises as major vehicles for poverty reduction • Enacts: • planning and implementation of a National Poverty Reduction Through Social Entrepreneurship (PRESENT) Program • led by a Commission on Social Enterprises under the Office of the President

  17. PRESENT Bill: Main Features • National PRESENT Program: • Development of strategic economic subsectors with potentials for growth and where the poor are concentrated or could be major players • Benefits to the poor: increased incomes and capability to improve their means of living •  as workers, suppliers, clients and/or owners of SEs in strategic economic subsectors •  as partners in economic and social development • Overall Outcome: substantive poverty reduction

  18. PRESENT Bill: Support Programs for SE-PPS • Provision of accessible non-collateralized loans thru special credit windows with a Guarantee Fund Pool • Comprehensive insurance system to reduce vulnerability to climate change/calamities • Resources for comprehensive capacity development for SEs and poor as partners

  19. PRESENT Bill: Support Programs for SE-PPS • Mainstream SE content in formal educational system • Proactive SE market development program promoting principles of fair trade • R&D on strategic economic subsectors; appropriate technologies; and innovations to democratize access of poor to quality basic social services • Recognition and support for LGUs in developing social enterprises

  20. PRESENT Bill:Incentives for SE-PPS • Preferential treatment in government procurement including coverage of performance bonds • Tax exemptions and tax breaks for SE-PPS and social investors • Cash incentives (i.e. at least 25% of minimum wage for social enterprises employing PWDs)

  21. PRESENT Bill Initiative: Strategic Rationale • PRESENT Bill as a codification of agenda for change to assist poor overcome poverty resulting from state and market failures thru their effective participation in SE-PPS • PRESENT Bill as codification of incentives and support for SE-PPS as major partners of government in poverty reduction

  22. THE PRESENT COALITION Microcosm, Voice and Action Network of Emerging SE Sector

  23. PRESENT Coalition: main actors • Co-Convenors: FSSI & Ateneo Sch of Gov’t • Members of Steering Committee include • PhilSEN • WFTO-Asia/Philippines • INAFI-Philippines • Eagle’s Wings Dev’t Foundation • Bote Central/ Philippine Coffee Alliance • Pilipinas Ecofiber Corporation • Hapinoy/MVI • Foundation for TheseAbled • PRRM • ISEA

  24. PRESENT Coalition: initiative to unite what was once a fragmented sector • Basis of Unity: • Push for the enactment and implementation of the PRESENT Bill • Undertake a nationwide education campaign on SE as vehicles for poverty reduction • Develop standards and benchmarks for self-regulation and development of sector

  25. PRESENT Coalition: Microcosm, Voice and Action Network of Emerging SE Sector • Informed estimate of Philippine SE sector: +/- 30,000 • Various Actors: • Fair Trade Organizations (crafts, agri-business, processed food) • CSO-initiated SEs serving various segments of the poor (agri-based processing; trading and marketing in upland, lowland, coastal communities; important players in sustainable agriculture and forestry-related enterprises) • Cooperatives (agriculture/agri-business; savings and credit; social services) • Faith-based organizations espousing a solidarity economy • Social welfare-oriented enterprises serving disadvantaged groups (PWDs, women and children) • Micro Finance Institutions • SEs initiated by young professionals (fashion, processed food, services to micro-enterprises) • SMEs with double or triple bottom line • Management and consulting services for SEs/micro-enterprises • SE Service, Resource and Advocacy Institutions/Networks

  26. Convergence for PRESENT Possible Action Points with National Government Agencies (NGAs)

  27. Possible Action Points with NGAs: Invest in strategic PRESENT research • Undertake a comprehensive study to define the most strategic economic subsectors to undertake PRESENT programs. (NEDA) • Undertake a national profiling of the social enterprise sector to better ground government-social enterprise convergence initiatives. (NAPC)

  28. Possible Action Points with NGAs:Begin the paradigm shift towards PRESENT • Explore the reconfiguration of existing resources or develop new programs with ODA donors to • Undertake initiatives to address bottlenecks negatively affecting social enterprise growth • Evolve structures and systems that would inform the IRR (Implementing Rules and Regulations) of the PRESENT Bill

  29. Possible Action Points with NGAs: Evolve best practices in PRESENT • Develop social enterprise-government convergence initiatives • As part of the socio-economic component of government’s thrust in 609 poorest municipalities identified by NAPC • As a key component of priority industries for national convergence identified by DTI • To strengthen/enhance the thrust of DA in organic/ sustainable agriculture  coco coir; organic rice; muscovado; coffee; school chairs; educational toys; bamboo

  30. Possible Action Points with NGAs: Pursue PRESENT innovations • Establish a planning, monitoring, evaluation body and system to evolve effective, transparent, corruption-free public procurement schemes and mechanisms involving SEPPS • coco coir, organic fertilizer, community-based processing equipment for coffee, educational toys, school chairs • In cooperation with bank and non-bank-financial institutions, pilot risk-based lending with a Guarantee Fund Pool for SEPPS • Pilot the development of insurance schemes to address the vulnerability of SEPPS and the poor to natural disasters and climate change

  31. Possible Action Points with NGAs: Pursue PRESENT innovations • Set up a pilot Social Enterprise Development Fund to support capability building of social enterprises • Evolve a market development program promoting the principles of fair trade in partnership with SEPPS • Pilot social enterprise-based social protection schemes and the efficient/ effective delivery of quality basic social services in preparation for a post-CCT scenario • Explore appropriate tax incentives for SEPPS

  32. Concluding Remarks: PRESENT COALITION’s ASPIRATION STRONG, PROACTIVE & INNOVATIVE SE SECTOR with a SIGNIFICANT CITIZEN BASE + GOVERNMENT PLAYING DEVELOPMENTAL ROLE thru SUCCESSFUL CONVERGENCE EFFORTS + RELEVANT SUPPORT from SOCIAL INVESTORS  SE-PPS as MAJORITY OF VIBRANT SME SECTOR in the COUNTRY SUBSTANTIVE POVERTY REDUCTION

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