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Social Entrepreneurship: An Asian Perspective . Prof. Marie Lisa M. Dacanay Asian Institute of Management Civil Society Forum, IMF-WB Annual Meeting 14 Sept 2006. Social Entrepreneurship (SE): An Asian Perspective. Context of presentation A look at some SE initiatives in Asia

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social entrepreneurship an asian perspective

Social Entrepreneurship: An Asian Perspective

Prof. Marie Lisa M. Dacanay

Asian Institute of Management

Civil Society Forum, IMF-WB Annual Meeting

14 Sept 2006

social entrepreneurship se an asian perspective
Social Entrepreneurship (SE): An Asian Perspective
  • Context of presentation
  • A look at some SE initiatives in Asia
  • Understanding SE in Asia
  • Challenges and proposals for advancing SE in Asia
  • Harnessing SE for the MDGs in Asia
context aim cafo partnership in social entrepreneurship
Context: AIM-CAFO Partnership in Social Entrepreneurship
  • Research (AIM/CAFO)
    • Cases on significant practices
    • Creating a Space in the Market (2004)
  • Education (AIM)
    • Degree and non-degree programs
    • Master in Entrepreneurship for Social and Development Entrepreneurs or MESODEV
  • Networking and Outreach (AIM/CAFO)
    • International Workshop on Social Entrepreneurship in Asia (July 6-8, 2006)
a look at some se initiatives in asia
A Look at Some SE Initiatives in Asia
  • KOOL-NE (Philippines)
  • Hagar (Cambodia)
  • PEKERTI (Indonesia)
  • Basix Group (India)
  • Partners for Health (Thailand)
a look at some se initiatives in asia kool ne philippines
A Look at Some SE Initiatives in Asia: KOOL-NE(Philippines)
  • Started 2002
  • Joint venture between PRRM (NGO) & KALIKASAN (farmers)
  • Production, processing and marketing of organic rice
  • Second largest producer-distributor in Luzon island
  • Farmers: increased incomes from lower cost of inputs and premium pricing
  • Also contributes to environmental health and soil rehabilitation
  • Total assets: US$110,000
  • Farmers’ equity: 10%;
  • Annual sales: about USD91,000
a look at some se initiatives in asia6
A Look at Some SE Initiatives in Asia:
  • Started as shelter for women by Pierre Tami in 1994
  • Mission: Prevention, rehabilitation and reintegration of rural women and children who migrate to cities in search of better life.
  • Now a social enterprise system with non-profit arm providing initial education and vocational training and commercial enterprises that provide employment and additional vocational training to enable women to have independent and productive lives
  • Commercial enterprises: Hagar Soya, Hagar Catering, Hagar Design
  • Working with other shelters to expand in Southeast Asia
a look at some se initiatives in asia partners for health thailand
A Look at Some SE Initiatives in Asia: Partners for Health (Thailand)
  • Social enterprise system serving persons living with HIV-AIDS (PLWHA):
    • Health component with outreach care and psycho-social support: managed by Thai Business Coalition on Aids (TBCA)
    • Income generating component providing marketing and retail support for PLWHA-made textile and handicrafts: managed by Center for People’s Families Affected by Aids (CPA) Positive Marketing Co. Ltd. (PMCL)
a look at some se initiative partners for health thailand
A Look at Some SE Initiative: Partners for Health (Thailand)
  • Set up as public-private-community

partnership project in Nov 2003; cost USD117T

  • Partners: UNESCAP, Ministry of Public Health, Bangkok Metropolitan Authority, TBCA and the CPA
  • Objective: to increase outreach and effectiveness of gov’t HIV-AIDS programs
  • PMCL sales (2004) : USD203T, mainly serving events-based market; 35% of profits go to health component
  • Expected to be self-sustaining by 2008; By May 2005, deemed successful for replication & scaling up
a look at some se initiatives in asia pekerti indonesia
A Look at Some SE Initiatives in Asia: PEKERTI (Indonesia)
  • Yayasan Pekerti (1975): not-for-profit foundation set up by 5 NGO activists
  • Mission: increase standard of living of marginalized artisans & establish fair, democratic involvement

in their economic activities; part of IFAT

  • Pekerti Nusantara (1979): commercial arm for export market (assets: USD389T by 2002)
  • Pekerti Cooperative (2000):

working capital for

partners

a look at some se initiatives in asia pekerti indonesia10
A Look at Some SE Initiatives in Asia: PEKERTI (Indonesia)

APIKRI

  • Partner of Pekerti composed of

200 artisans in Yogyakarta

  • 1987-1990: Pekerti helped set up

Apikri Foundation and Apikri Cooperative

w/c now conduct self-sustaining development and trading activities

  • Sales by 2003: USD277 thousand
a look at some se initiatives in asia basix group india
A Look at Some SE Initiatives in Asia: Basix Group (India)
  • Rural livelihood promotion institution founded in 1996 by NGO leaders
  • Bank and non-bank institutions providing livelihood financial services
  • Not-for-profit agency providing agriculture, business and institutional dev’t services
  • Clients: poor & employers of poor in agriculture, non-farm and allied sectors
a look at some se initiatives basix group india
A Look at Some SE Initiatives: Basix Group (India)
  • Targets large numbers of poor in economic subsectors with growth potential: dairy, cotton, rural retailing
  • Outreach (2003): 10,000 villages, 25 districts, 6 states
  • Microfinance outreach: 145,500
  • Livelihood promotion services outreach: 22,000
  • Assets- USD9.2 million (2003); loan portfolio- USD 13 million with 97% on-time recovery rate
  • Impact assessment (2001): 68% clients poor; 52% with increased incomes (control group-29%); 37% with increased employment (control group-26%)
a look at some se initiatives in asia basix group india13
A Look at Some SE Initiatives in Asia: Basix Group (India)

SARVODAYA NANO FINANCE LTD

  • Non-bank financial institution set up by Basix to service self-help groups (SHGs) of poor women
  • July 2001: devolved ownership to community-based mutual benefit trusts of 5,000 SHGs of poor women in Tamil Nadu
  • 3-year agreement for Basix to provide management services
understanding se in asia
Understanding SE in Asia
  • Defining ‘social entrepreneur’
  • Social enterprise

vs traditional business enterprise

  • Social enterprise development strategies
  • Micro and macro perspectives
  • Differing macro contexts
defining social entrepreneur
Defining ‘social entrepreneur’
  • Development change agent working in the market as an arena
  • Innovative, opportunity-seeking, resourceful person, group or institution
  • Leads creation of enterprises, enterprise systems or enterprise development programs demonstrating positive development impact
social enterprise development strategies
Social Enterprise DevelopmentStrategies
  • Resource Mobilization Strategies
  • Social Inclusion Strategies
  • Intermediation Strategies
  • Empowerment Strategies
social enterprise development strategies resource mobilization strategies
Social Enterprise Development Strategies:Resource Mobilization Strategies
  • Primary concern: generate income from sale of products or services to finance development agency’s operations

or core program

  • Exemplified in part by Partners

for Health

  • Another example: Bina Swadaya

Tours plus 8 other subsidiary companies provide 90% of Bina Swadaya’s annual budget of USD5million (Indonesia)

social enterprise development strategies social inclusion strategies
Social Enterprise Development Strategies: Social Inclusion Strategies
  • Address need for disadvantaged or excluded groups to regain their dignified place in society
  • Exemplified by Hagar and Partners for Health
social enterprise development strategies intermediation strategies
Social Enterprise Development Strategies: Intermediation Strategies
  • Provides primary stakeholders access to economic or social services
  • Two types: functional intermediation and progressive intermediation
  • Variations of progressive intermediation exemplified by Pekerti and Basix
  • Example of functional intermediation: most MFIs
social enterprise development strategies empowerment strategies
Social Enterprise Development Strategies: Empowerment Strategies
  • Address need for poor or marginalized to reap maximum benefits from owning and controlling social enterprise themselves
  • Two types: direct empowerment and devolutionary empowerment
  • Direct:

exemplified by cooperatives

  • Devolutionary:

exemplified by KOOL-NE

social entrepreneurship micro and macro perspectives
Social entrepreneurship: micro and macro perspectives
  • Micro perspective: art of wealth creation with multiple bottom lines
  • Macro perspective: strategy to democratize market economies
    • Participation by the poor and marginalized sectors as owners, decision makers and stakeholders (social dimension)
    • Protection and rehabilitation of society’s life support system (environmental dimension)
differing macro contexts of se in asia
Differing Macro Contexts of SE in Asia
  • Developing market economies: POVERTY
  • Socialist countries in transition to market economies: humane market economies or ‘MINDFUL MARKETS’
  • Developed/affluent market economies: SOCIAL INCLUSION ++
    • assisting efforts at poverty reduction and building ‘mindful markets’ in other countries
challenges in advancing se in asia
Challenges in Advancing SE in Asia
  • Social marketing: Lack of understanding by development sector of market as arena for change
  • Capacity building: Low capacity for building and scaling up social enterprises among civil society actors
  • Scaling up and mainstreaming
    • Lack of access to financial capital for scaling up
    • Limited involvement of the business sector
    • Absence of supportive policy environment
concrete proposals to advance se in asia
Concrete Proposals to Advance SE in Asia
  • Regional center for social entrepreneurship in Asia to support country level initiatives in response to challenges
  • Social enterprise capital fund (s)
harnessing se for the millenium development goals mdgs in asia
Harnessing SE for the Millenium Development Goals (MDGs) in Asia
  • MDBs may want to consider harnessing social entrepreneurship to improve performance vis a vis the MDGs in Asia, home to 2/3 of the world’s poorest.
  • Proposal: Invest in a Social Enterprise Capital Fund to support innovative tri-sectoral partnerships and scale up existing initiatives directly responding to the MDGs.