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SLUSH Impact Day28.12.2016
Workshop 1 – StartupsJenni Selosmaa, Business Coach
WHAT WILL YOU ACHIEVE TODAY?
1. Impact model for communicating your impact intentions
2. Impact business model for communicating your value creation process to your customers and investors
IMPACT ECOSYSTEM IN FINLAND
PERSON & IDEA
ADVANCED IMPACT
ENTERPRISES
INV.READY IMPACT
ENTERPRISES
EARLY-STAGE IMPACT
ENTERPRISE
IMPACT ANGELSFINNISH
FOUNDATIONS FINNISH MUNICIPALITIES
ENTREPRENEURSHIP SOCIETIES & INNOVATION
COMPETITIONS ACCELERATORS
IMPACT FUNDS AND OTHER NEW INSTRUMENTS??
GOV’T ORG’S
WHAT IS IMPACT INVESTING?
1. Investing with the target of having social or environmental impact in addition to a financial return
2. Setting targets for a. social / env. impact b. financial returns
3. Measuring how well set targets are met
3D INVESTING
RISK
RETURN
IMPACT
In the ideal case, impact correlates with increased financial returns.
IMPACT ENTERPRISES
GOVERNMENTAL & NGO’SSOCIAL ENTREPRENEURSHIP
SHARED VALUE CREATION
IMPACT GRID MODEL*
*Source: Richard von Kaufmann
More
prof
it-dr
iven
More purpose-driven
IMPACT ENTERPRISES
GOVERNMENTAL & NGO’SSOCIAL ENTREPRENEURSHIP
SHARED VALUE CREATION
IMPACT GRID MODEL*
*Source: Richard von Kaufmann
More
prof
it-dr
iven
More purpose-driven
Profit sought while carefully considering benefits to society in relation to core businessE.g. Patagonia, Ben & Jerry’s, Kickstarter
Profit as means for leverage and longevity E.g. SolarNow
Supporting entrepreneurial activities aimed at improving the welfare & livelihoods of communities in need (as opposed to meeting pressing immediate needs through charity in short term)E.g. Unicef Innovation Fund
Entrepreneurship used to solve social challenges – self-sustaining but not profit-generatingE.g. Kiva.org
IMPACT MODELLING
Impact model
● defines long-term goals and then
● maps backward to identify necessary preconditions
EXAMPLE: IMPACT MODEL
SOURCE: Making Sense of Social Impact: Acumen’s Building Blocks for Impact Analysis course on NovoEd https://novoed.com/social-impact-2016-1
FIRST: Define your target customer or beneficiary
● What unit makes most sense to work with? E.g. individual, household, classroom, community
● What is your geographical target area?
● What is the change you want to see in the world? ● What problem are you solving?● What is the long-term effect that can be attributed to
your product or service
-> Focus on setting up the impact target
IMPACT = LONG-TERM GOAL
HOW DO YOU STRUCTURE AN IMPACT ENTERPRISE?
● Usually beneficiary ≠ customer: this means that the one who benefits is not necessarily the one who pays
● Being able to quantify your impact means you are able to build it into your business model
EXAMPLES OF FINNISH IMPACT ENTERPRISES
EXAMPLES OF IMPACT BUSINESS MODELS
● Low-cost quality eye care to eradicate blindness & grow economic productivity
● “Pay according to your abilities”: 2/3 of poorest customers do not pay, the affluent do
● “McDonald’s model”: highly replicable & standardized
● Mobile learning service www.funzi.mobi to enable everyone to learn practical skills to improve their lives for free
● Finding value in & commercia- lizing learning outcomes ○ 3rd parties purchase
learning outcomes of a certain target population
○ End users can purchase certificates
EXAMPLE OF ARAVIND’S IMPACT BUSINESS MODEL
FOR MORE BUSINESS DEVELOPMENT HELP:
FOR MORE INFORMATION
● Global Impact Investing Network: 2016 Annual Impact Investor Survey
● Männistö, Harri ( 2016) Vaikuttavuusinvestoimisen opas sijoittajille. Sitran selvityksiä 120 (in Finnish)
● Impact Investment: The Invisible Heart of Markets (2014) Report of the Social Impact Investment Taskforce
● Toniic (2016) Millennials & Impact Investment ● Social Finance (about Social Impact Bonds)
