Marie Lisa DacanayPresident, Institute for Social Entrepreneurship in Asia

PRESENT Multisectoral Forum Series Launch; June 29, 2012

Institute for Social Entrepreneurship in Asia

PRESENT as Aspiration The PRESENT BillThe PRESENT Coalition Convergence for PRESENT

ABC ABC ofof P Povertyoverty Re Reduction duction throughthrough S Socialocial Ent Entrepreneurshiprepreneurship

PRESENT PRESENT asas ASPIRATIONASPIRATION

“Social entrepreneurship entails

innovations designed to explicitly improve societal well-being, housed within

entrepreneurial organizations, which initiate, guide or contribute to change in society” (Perrini, 2006)

US: ◦ economic downturn in 70s and 80s huge

cutbacks of federal funding to NGOs

Europe: ◦ crisis of welfare states in 80s retreat from public

services + phenomenon of structural unemployment WISE

Countries in the South/Philippines: ◦continuing crisis of development in 90s:

massive poverty and inequality SE-PPS: Social Enterprises with the Poor

as Primary Stakeholders

Social Entrepreneurship:Social Entrepreneurship:GLOBAL PHENOMENON: RESPONSE TO CRISISGLOBAL PHENOMENON: RESPONSE TO CRISIS

Social Enterprise with the Poor as Primary Social Enterprise with the Poor as Primary Stakeholders (SE-PPS): Stakeholders (SE-PPS): social mission- driven wealth creating organizationssocial mission- driven wealth creating organizations

Private enterprise Social enterprise

Stockholders/ proprietors: owners of capital

Primary stakeholders/

beneficiaries

Poor /Marginalized sectors: engaged as suppliers, workers, clients and/or owners; partners in poverty reduction

Single bottom line: profit

Primary objectives

Double or triple bottom line: poverty reduction, (social), environmental; financial sustainability as supportive objective

Accumulative: enrich individual owners of capital oftentimes with negative social and environmental costs

Enterprise philosophy

Distributive: positive benefits accrue to society specially among broad segments of poor

AS INNOVATIVE CHANGE AGENTS

provide the poor a combination of transactional and transformational services: ‘Poverty as deprivation of basic capabilities’(Sen,1999; 2009) not just low income

positively contribute to creation of economic and social value: much of value created not recognized by mainstream market economy

use combination of principles as actors in economic development: market, redistribution reciprocity, solidarity, sustainability

Social Enterprises with the Social Enterprises with the Poor as Primary Poor as Primary Stakeholders (SE-PPS)Stakeholders (SE-PPS)

Single social enterprise interventions limited in terms of impact and sustainability

Importance of interventions at the level of economic subsectors network of related actors and enterprises performing various functions in competing value chains; may be identified by major raw material source, finished product or final service provided

PRESENT: Developing SE-PPS as PRESENT: Developing SE-PPS as Partners of Poor in Strategic Partners of Poor in Strategic Economic Subsectors Economic Subsectors

Strategic Economic Subsectors ◦ have a potential for growth◦ large numbers of the poor are players or could

become players

Examples of strategic economic subsectors where SE-PPS are already playing key roles:

coco coir, muscovado sugar, organic rice, essential oils, bamboo, educational toys , school chairs, brewed coffee

PRESENT: Developing SE-PPS as PRESENT: Developing SE-PPS as Partners of Poor in Strategic Economic Partners of Poor in Strategic Economic SubsectorsSubsectors

Engaged in the extraction of fiber & peat from coconut husks, and the processing of fiber into high quality stitched & woven coir products for sale in the Philippines and abroad.

Organized to link input providers, small producers & processors, with traders & distributors of various coir products, and to coordinate the activities of the former in order to meet the requirements of final users.

Coconut husks

Coco fiber&

cocopeat

Coir ropes&

mats

Geonets, plant liners,trays, etc.

Finalsale

Tradersdirect buyers

Huskcollectors

Rural workersRural coops

Plant workersTwining agents

Weavers &Edgers

Associat’nsPlant

workers

Pilipinas Ecofiber: Social Enterprise Pilipinas Ecofiber: Social Enterprise Value Chain Intervention in Coco Coir Value Chain Intervention in Coco Coir Subsector Subsector

◦Aspiration of SE-PPS to scale up impact through innovative partnerships with government

Poverty Reduction through Poverty Reduction through Social Entrepreneurship Social Entrepreneurship (PRESENT)(PRESENT)

THETHE PRESENT B PRESENT BILLILLPartnership with Congress to institutionalize Poverty Reduction Through Social Entrepreneurship

Objective: ◦ Provide a nurturing environment for the

development and growth of social enterprises as major vehicles for poverty reduction

Enacts: ◦ planning and implementation of a National

Poverty Reduction Through Social Entrepreneurship (PRESENT) Program

◦ led by a Commission on Social Enterprises under the Office of the President

PRESENT Bill: Main PRESENT Bill: Main FeaturesFeatures

National PRESENT Program:◦ Development of strategic economic

subsectors with potentials for growth and where the poor are concentrated or could be major players

◦ Benefits to the poor: increased incomes and capability to improve their means of living as workers, suppliers, clients and/or owners of SEs in

strategic economic subsectors as partners in economic and social development

◦ Overall Outcome: substantive poverty reduction

PRESENT Bill: Main PRESENT Bill: Main FeaturesFeatures

Provision of accessible non-collateralized loans thru special credit windows with a Guarantee Fund Pool

Comprehensive insurance system to reduce vulnerability to climate change/calamities

Resources for comprehensive capacity development for SEs and poor as partners

PRESENT Bill: PRESENT Bill: Support Programs for SE-PPSSupport Programs for SE-PPS

Mainstream SE content in formal educational system

Proactive SE market development program promoting principles of fair trade

R&D on strategic economic subsectors; appropriate technologies; and innovations to democratize access of poor to quality basic social services

Recognition and support for LGUs in developing social enterprises

PRESENT Bill: PRESENT Bill: Support Programs for SE-PPSSupport Programs for SE-PPS

Preferential treatment in government procurement including coverage of performance bonds

Tax exemptions and tax breaks for SE-PPS and social investors

Cash incentives (i.e. at least 25% of minimum wage for social enterprises employing PWDs)

PRESENT Bill:PRESENT Bill:Incentives for SE-PPS Incentives for SE-PPS

◦PRESENT Bill as a codification of agenda for change to assist poor overcome poverty resulting from state and market failures thru their effective participation in SE-PPS

◦PRESENT Bill as codification of incentives and support for SE-PPS as major partners of government in poverty reduction

PRESENT Bill Initiative: Strategic PRESENT Bill Initiative: Strategic RationaleRationale

THE THE PRESENT PRESENT CCOALITIONOALITION

Microcosm, Voice and Action Network of Emerging SE Sector

Co-Convenors: FSSI & Ateneo Sch of Gov’t

Members of Steering Committee include◦ PhilSEN ◦ WFTO-Asia/Philippines◦ INAFI-Philippines◦ Eagle’s Wings Dev’t Foundation◦ Bote Central/ Philippine Coffee Alliance◦ Pilipinas Ecofiber Corporation◦ Hapinoy/MVI◦ Foundation for TheseAbled◦ PRRM◦ ISEA

PRESENT Coalition: PRESENT Coalition: main main actorsactors

Basis of Unity:o Push for the enactment and implementation of

the PRESENT BilloUndertake a nationwide education campaign on

SE as vehicles for poverty reductionoDevelop standards and benchmarks for self-

regulation and development of sector

PRESENT Coalition: PRESENT Coalition: initiative initiative to unite what was once a fragmented to unite what was once a fragmented sector sector

Informed estimate of Philippine SE sector: +/- 30,000

Various Actors:◦ Fair Trade Organizations (crafts, agri-business, processed food)◦ CSO-initiated SEs serving various segments of the poor (agri-

based processing; trading and marketing in upland, lowland, coastal communities; important players in sustainable agriculture and forestry-related enterprises)

◦ Cooperatives (agriculture/agri-business; savings and credit; social services)

◦ Faith-based organizations espousing a solidarity economy◦ Social welfare-oriented enterprises serving disadvantaged

groups (PWDs, women and children)◦ Micro Finance Institutions◦ SEs initiated by young professionals (fashion, processed food,

services to micro-enterprises) ◦ SMEs with double or triple bottom line ◦ Management and consulting services for SEs/micro-enterprises◦ SE Service, Resource and Advocacy Institutions/Networks

PRESENT Coalition: Microcosm, Voice PRESENT Coalition: Microcosm, Voice and Action Network of Emerging SE and Action Network of Emerging SE SectorSector

Convergence for Convergence for PRESENTPRESENT

Possible Action Points with National Government Agencies (NGAs)

Undertake a comprehensive study to define the most strategic economic subsectors to undertake PRESENT programs. (NEDA)

Undertake a national profiling of the social enterprise sector to better ground government-social enterprise convergence initiatives. (NAPC)

Possible Action Points with NGAs: Possible Action Points with NGAs: Invest in strategic PRESENT researchInvest in strategic PRESENT research

Explore the reconfiguration of existing resources or develop new programs with ODA donors to

◦ Undertake initiatives to address bottlenecks negatively affecting social enterprise growth

◦ Evolve structures and systems that would inform the IRR (Implementing Rules and Regulations) of the PRESENT Bill

Possible Action Points with NGAs:Possible Action Points with NGAs:Begin the paradigm shift towards Begin the paradigm shift towards PRESENT PRESENT

Develop social enterprise-government convergence initiatives

◦ As part of the socio-economic component of government’s thrust in 609 poorest municipalities identified by NAPC

◦ As a key component of priority industries for national convergence identified by DTI

◦ To strengthen/enhance the thrust of DA in organic/ sustainable agriculture

coco coir; organic rice; muscovado; coffee; school chairs; educational toys; bamboo

Possible Action Points with Possible Action Points with NGAs: NGAs: Evolve best practices in Evolve best practices in PRESENT PRESENT

Establish a planning, monitoring, evaluation body and system to evolve effective, transparent, corruption-free public procurement schemes and mechanisms involving SEPPS ◦ coco coir, organic fertilizer, community-based processing

equipment for coffee, educational toys, school chairs In cooperation with bank and non-bank-financial

institutions, pilot risk-based lending with a Guarantee Fund Pool for SEPPS

Pilot the development of insurance schemes to address the vulnerability of SEPPS and the poor to natural disasters and climate change

Possible Action Points with Possible Action Points with NGAs: NGAs: Pursue PRESENT innovations Pursue PRESENT innovations

Set up a pilot Social Enterprise Development Fund to support capability building of social enterprises

Evolve a market development program promoting the principles of fair trade in partnership with SEPPS

Pilot social enterprise-based social protection schemes and the efficient/ effective delivery of quality basic social services in preparation for a post-CCT scenario

Explore appropriate tax incentives for SEPPS

Possible Action Points with Possible Action Points with NGAs: Pursue PRESENT NGAs: Pursue PRESENT innovationsinnovations

STRONG, PROACTIVE & INNOVATIVE SE SECTOR with a SIGNIFICANT CITIZEN BASE

+GOVERNMENT PLAYING DEVELOPMENTAL ROLE

thru SUCCESSFUL CONVERGENCE EFFORTS +RELEVANT SUPPORT from SOCIAL INVESTORS SE-PPS as MAJORITY OF VIBRANT SME SECTOR

in the COUNTRY SUBSTANTIVE POVERTY REDUCTION

Concluding Remarks: Concluding Remarks: PRESENT COALITION’s PRESENT COALITION’s ASPIRATIONASPIRATION