Sparking Disruptive Change through Social Entrepreneurship and Innovation Dr. Heather Cameron Michael B. Kaufman Professor of Practice in Social Entrepreneurship
Nonprofit leaders are seeking new ways of creating greater impact and generate revenue.
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“What we have been doing so far isn’t working. We need a new disruptive approach, and we don’t know how to do it ourselves.” - Aimee Wehmeier, Paraquad 3
Total assets of all registered nonprofits and public charities (2013)
Total assets of nonfinancial corporations (2013)
$8.39 trillion
$20.45 trillion
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Social entrepreneurship is changing the way nonprofits get funded, while integrating social and financial returns
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Social Value Creation Customer: purchases product or service
Value Creation Beneficiary: benefits from the value created
User: uses the product or service purchased
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Blended Value Proposition
Profit
Planet
People
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Generating Revenue and Positive Social/Environmental Impact Primary driver is to achieve social value.
Traditional Charity
Primary driver is to achieve financial value.
Impact investing
Social Enterprises
Traditional Business
Purely charitable Additional Potentially Social business: Mission-driven funding from market based self-sustaining profits are for-profit grants, donations revenue stream >75% market reinvested enterprise or endowment revenues (“B-Corp�)
Nonprofit
CSR and corporate philanthropy (target for SRI)
Pure profit orientation; mainstream investors
for-profit 8
Social entrepreneurship is bringing about systems and framework change across various sectors.
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Four Levels of Impact
Direct Service Work in populations needing services, food, and/or a direct benefit to their wellbeing.
Scaled Direct Service
Systems Change
Framework Change
Models that unlock efficiency and impact through well-managed logistics of an intervention or solution.
A new model that is addressing the root cause of a problem. It often involves policy change, widespread adoption of a specific methodology .
Framework Change affects individual mindsets which will ultimately change behaviors across society as a whole.
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Four Levels of Impact
Direct Service
Scaled Direct Service
Systems Change
Framework Change
Has a clear and concrete feedback loop.
Scaled Direct Service benefits large numbers of individuals.
Creates new behaviors within an existing market or ecosystem.
e.g National organizations with local chapters such as Boys and Girls Club
e.g Microfinance loans
Compounds the work of many individual organizations to create a paradigm shift.
e.g Soup Kitchen, after school tutoring program
e.g Abolition of slavery, women’s suffrage 11
Continuum of Social Change “Systemic” change
What are some examples of change in the different quadrants?
Gradual or “adaptive” change
Discontinuous or “disruptive” change
Where is social entrepreneurship and innovation? Context specific change 12
Paraquad: Bloom Cafe
Providing job training and employment for those with disabilities to increase their financial independence. People with disabilities have the highest poverty rate of any minority group, which isn’t surprising considering that only 34% of working-age adults with disabilities are employed, compared to 77% of nondisabled adults.
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Paraquad: Bloom Cafe Training Program: Students will receive culinary instruction in a training kitchen and learn soft skills in the classroom. Some students will also acquire ServSafe Certification. Paid Internship: Graduates of the training program will progress to a paid three- to six-month internship in the cafĂŠ to hone their skills and build credentials before entering the workforce. Job Placement: At the end of the internship, Paraquad will assist job seekers in finding and maintaining a job, providing support in resume and cover letter writing, job seeking and interview preparation.
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Dream Builders 4 Equity Problem: need for job training for black youth Opportunity: inexpensive real estate. connections to lenders, and desire for compelling CSR from home equipment companies. Solution: investment in real estate in the community, on the job training for youth who will renovate property, sale of property 15
Case Studies
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Group Discussion 1. How might your non-profit leverage existing resources to generate new revenue streams? 2. What level of impact is your nonprofit currently at? 3. How might it shift to another level of impact?
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The SEIL co-creates an entrepreneurial and impact focused culture of innovation with campus and community actors, to spark new ways of tackling complex social problems. 18
Get Involved Take a Class Idea Phase Google class for those with an idea for a social enterprise Academic courses: S50 SWSA 5060 Social Entrepreneurship S50 SWSA 5063 Social Innovation
Do a Independent Study/Practica/Paid Internship Applications for funding to intern at a Social Entrepreneurship and/or Innovation related firm are now live.
Attend an Event March 22nd, 6-8pm. Second Idea Phase cohort meet-up at Better Family Life Community Incubator. April 7th, Impact Investing Conference in partnership with Net Impact
Connect with us Online www.seic.wustl.edu www.facebook.com/WUSTL. SEIL/ 19