Measuring the Social + Economic Impact of Investing in Entrepreneurship in Emerging Markets

Social Entrepreneurship

&

Metrics in developing

countriesTBLI - Nov 12th 2009

Social Entrepreneurship

For profit?or

Not-for profit?

Social Entrepreneurship?

Social entrepreneurship is the work of a social entrepreneur. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. Whereas a business entrepreneur typically measures performance in profit and return, a social entrepreneur assesses success in terms of the impact s/he has on society as well as in profit and return. While

social entrepreneurs often work through nonprofits and citizen groups, many now are working in the private and governmental sectors and making important impacts on society.

Source:Wikipedia

Dilemmas in metrics

• The not-for profits …. which goals ?• Do multinationals contribute to development ?• The maximisation of X ?• SMEs in developing countries … some ideas

Not-for profits: which goals?• Jobs• Homes• Access to energy• Women• Biodiversity• Happines• Revenue generation• ….. Efficient use of funds

?

www.socialevaluator.eu

Do multinationals contribute to development ?

www.mdgscan.com

The maximisation of X

• Access to clean energy (E+Co, GVEP)• Access to drinking water (Aguas Claras)• Micro-credits (Oikocredit)• Real medicine (Medicine Shoppe-Acumen)• Internet connections for all (InfoDev, IICD)• ….

BiD Network: Maximising SMEs started & jobs created (per Euro of budget)

9

www.bidnetwork.org

[2] Matchmaking

[1] Sourcing,

assessment& coaching

Entre-preneurs

[3]Investment

Services

FinancedSMEs

Self-startedSMEs

Investors, brokers &

banks

Experts &Coaches

7000

500 100

250

50

Since 2005 …300 SMEs started and created 3000 direct jobs= €15,000 per SME and €1500 per job

Job creation efficiencies• Joint Strike Fighter € 5 million / job• Green energy jobs(Spain) € 500,000 / job• Spanish private sector € 250,000 / job• Obama’s package € 150,000 / job• Dutch re-employment € 70,000 / job• BiD Network € 1,500 / job• ICCO € 1,000 / job• ProCredit € 300 / job

Focus on jobs can be deadly

Sales

Jobs2:1

5:3

Sales

Jobs2:1

3:1

Sales are the key to sustainable jobsProfits

Profits

Sales growth (& jobs) arethe USP of an SME

MNCs 8% max.

SMEs 25-27% for multiple years

Micros 200% in 1st months, then 0%

BiD Network is testing a webbased system for developing country SMEs

Sales

Jobs

Investment

Country

Input-Output table

Indirect jobs

Jobs for the poor

Cash to the poor

Take-Away

• www.socialevaluator.eu• www.mdgscan.com• Global impact investing network (look for IRIS)

THANK YOU !

Thierry.sanders@bidnetwork.org