INDEV308 Class 10 - The Enabling Environment for Social Entrepreneurship

INDEV308: Introduction to Social

Entrepreneurship

Class 10: The Enabling Environment for

Social Entrepreneurship

Monday, July 11, 2011

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Instructors:

Norm Tasevski (norm@socialentrepreneurship.ca)

Karim Harji (karim@socialentrepreneurship.ca)

© Norm Tasevski & Karim Harji

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© Norm Tasevski & Karim Harji

Agenda

• Unreasonable Institute

• What did we learn – last week?

• Preparing for your Pitches

• The international enabling environment for SE

• The Canadian enabling environment for SE

• Review of the course

• Next week

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Your Investment Pitches…

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© Norm Tasevski & Karim Harji

Pitch guidelines

• Due Dates– Angel Pitch: Midnight on Saturday, July 23

• Format– PowerPoint deck

– 1 page Précis

• Time Allotment– 12 min presentation (strict) – will give you 5 and 2 minute

warnings

– 8 min Q&A

• Grading– To be done by Norm/Karim

– Judges will inform us, but not assign your grades

• Feedback from Judges– Norm/Karim will email our/judges feedback shortly after the

class to integrate into angel investor pitch

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© Norm Tasevski & Karim Harji

Timing

• Arrive by 8:00!!

• We will go in order – Group 1 goes first, Group 2 goes second, etc

• At the end of the pitches, the judges will deliberate (for 10 minutes)

• Judges will then provide feedback to the entire class (Karim and I will provide individual group feedback)

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© Norm Tasevski & Karim Harji

Advice for your pitches

• Focus on the key components of the business

model, and highlight the key financial #s

– Can you clearly explain how your business works? How it

makes money? How it generates social/environmental

change?

• Comfortably stick to the time allotment

– In your practice, aim to deliver your presentation in 10-11

minutes

• Anticipate the investor questions

– If you were investing your own money into the business,

what would you care to know about the business model?

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© Norm Tasevski & Karim Harji

Angel Investment Pitch Components

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• Overview and mission

• Management and

Advisors

• Customer problem

• Market opportunity/size

• Solution

– Inc. social issue being

addressed

• Value Proposition

• Competitive advantage

• Where the solution fits

• Business model

• Marketing and sales

• Financial projections

• Financing requirements

© Norm Tasevski & Karim Harji

PowerPoint tips

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The International Enabling

Environment…

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© Norm Tasevski & Karim Harji

A Growing Ecosystem

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© Norm Tasevski & Karim Harji

An Evolving Field

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“Developing the Field of Social Entrepreneurship” - A Report from the Center for Advancement of Social Entrepreneurship (CASE)

© Norm Tasevski & Karim Harji

As It Evolves…

• Definitions

• Who‟s in or not?

• Expectations vs. reality

• Demonstrating impact

• Scalable business models

• Mission or market?

• Developing and harnessing talent

• Access to finance

• Policy levers and constraints

• Individual vs organizational capacity

• Education – academic, mainstream

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© Norm Tasevski & Karim Harji

Watch these videos!!!

• http://vimeo.com/2307567

• http://www.ted.com/talks/katherine_fulton_you_are_the_future_of_p

hilanthropy.html

• http://www.ted.com/talks/jacqueline_novogratz_on_patient_capitali

sm.html

• http://www.ted.com/talks/melinda_french_gates_what_nonprofits_c

an_learn_from_coca_cola.html

• http://www.ted.com/talks/bjorn_lomborg_sets_global_priorities.html

• http://blog.ted.com/2010/09/18/tackling-the-mdgs-an-introduction-

to-tedxchange/

• http://www.youtube.com/v/QgzlmKPoMEo?f=videos&app=youtube_

gdata&title=Tonya%20Surman

• http://www.ted.com/talks/tim_jackson_s_economic_reality_check.ht

ml

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Break

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Course Summary…

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© Norm Tasevski & Karim Harji

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© Norm Tasevski & Karim Harji

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Motivation

Innovation

Resourcefulness

Risk Taking

How is Social Entrepreneurship Different?

© Norm Tasevski & Karim Harji

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© Norm Tasevski & Karim Harji

What Motivates The Social/Environmental

Entrepreneur?

“…it was an epiphanal experience…”

Ray Anderson, Interface Carpets“I heard the same story again and again.

Someone had experienced an intense kind of pain that branded them in some way. They said, „I had’ to do

this. There was nothing else I could do.”

Jody Jensen, Ashoka

“I was teaching in one of the universities while the country was suffering from a severe famine. People were dying of

hunger, and I felt very helpless. As an economist, I had no tool in my toolbox to fix that

kind of situation.”Mohammed Yunus, Grameen Bank

“…that made a real impression on me…”

Jeff Skoll, eBay, Skoll Foundation, etc.

© Norm Tasevski & Karim Harji

© Norm Tasevski & Karim Harji

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© Norm Tasevski & Karim Harji

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© Norm Tasevski & Karim Harji

Tip…

• Be a Business Model “Alchemist” – You need to go

through the business model process many times in

order to figure out which model best fits

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© Norm Tasevski & Karim Harji

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Cost Drivers and Revenue Sources

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-???

-???

© Norm Tasevski & Karim Harji

Where does HR Fit?

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Where does Marketing Fit?

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© Norm Tasevski & Karim Harji

Embedding “Social” across the Business

Model

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For-Profit

Corporation

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Non-Profit

Corporation

CharityPartnership

Sole

Proprietorship

Co-Operative

Corporation

© Norm Tasevski & Karim Harji

MORE DEBT-LIKE

30Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”,

http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx

Financing Options – Over the Social

Entrepreneurship “Life Cycle”

IDEA DEVELOPMENT PROOF OF CONCEPT START-UP SCALE REPLICATION EXIT

GRANTS

MORE EQUITY-LIKE

SOCIAL VENTURE CAPITAL FUNDS

ANGEL INVESTMENT VENTURE CAPITAL

PROGRAM-RELATED INVESTMENT/RECOVERABLE GRANTS

FORGIVABLE LOANS

SOCIALLY RESPONSIBLE INVESTMENT FUNDS

BELOW-MARKET DEBT

MARKET-RATE DEBT

© Norm Tasevski & Karim Harji

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Aligning Supply and Demand

Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”,

http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx

© Norm Tasevski & Karim Harji

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© Norm Tasevski & Karim Harji

Next Week

• Be here for 8:00am!!

• Deliverables

– Pitches due at Midnight

Saturday, July 23

– 1 page Précis by

Midnight Saturday, July

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