Rule of law — The rule of law does not prevail to the degree required to make Africa an attractive investment destination. This applies to corporate, societal, and criminal law
Attraction — While the enormous natural resources are an attraction, Africa does not offer a sufficiently large middle class of consumers or show consistent economic growth that could promise a future market. Most African countries are small and have poor markets, and there are barriers to regional markets–such as taxes and the freedom of movement of people and goods
Risks versus rewards– Given the currently perceived risks in Africa, the rewards have to be very high to make it worthwhile to invest. Presently, U.S. corporations say that there are very few visible promises of future returns high enough to justify significant interest in investing
Supportive business framework–Transportation and communications infrastructure, trained or trainable human resources, and equitable trade and employment practices are insufficient to support corporate investment
A welcoming environment– African countries are not doing a sufficient job of providing education and health services to the potential workforce, which makes the potential hire-able local insufficient to support investment.
I think to view Africa as a unified continent is probably a misnomer, in the same way that to view Asia or North America as a unified business environment.
Additionally, the problems with rule of law and infrastructure present opportunities for a) the development of small scale enterprises (in a world of globalization with outsourcing, mobile, and the internet the world is increasingly flat) b) to solve those problems for locals and multinationals c) creating business with the more stable business environment.
Particularly in the mobile space, use is taking off and driving communication, commerce, and local economies. In a globalized world the communications infrastructure is ultimately the lynchpin for driving health care, education, and other community endeavors.
Here are what I think are the best posts from Compassion in Politics about social entrepreneurship and social business ventures. I’ve created this post so you my reader can better navigate the almost 100 posts on social entrepreneurship and social business ventures that I’ve written. Enjoy!!! (hopefully will fill in the rest later…)
Advantages for “Microfranchising: Creating Wealth at the BOP”:
• The case for micro franchising is well made.
• A reader gets a sense of most of the major players in the micro enterprise space.
• A list of several (67) microfranchise examples (the informal economy chapter, I believe, develops a couple more)
• Four extensive chapter length case studies from the Vision Spring (Scojo Foundation), the Health Store, Vodacom Community Services, and Honey Care Africa (including some specific dollar amount discussions)
• The investigation of the informal economy which could be particularly useful for a BOP social entrepreneur.
• A short discussion of funding, including a list of top microfinance institutions (MFIs) by amount borrowed.
• Periodic mini-case studies and additional resources in the appendix are helpful.
• Decent for teaching, as it has several questions at the end of the conclusion for reflection.
Possible additions to the next edition:
• How can I as an entrepreneur take action now to learn more or get involved. For instance, an entire chapter on picking and starting up a social enterprise business venture would be great.
• More “business in a box” or social enterprise training options
• More case studies–perhaps with a more deliberate focus on the base of the pyramid. For instance, no mention of the “Design for the Other 90 Percent” A short paragraph mentioning “appropriate technology” isn’t a fair coverage.
• Personally, I’m fascinated by ICT and mobile, so more in that area would be interesting for purely selfish reason. I do believe the area of ICT, mobiles devices (enterprise, communication, and health care), renewables are probably the 2 biggest change areas for the BOP which lives on from $2 to $4. • An explanation of the larger landscape of corporate social responsibility, and associated issues.
Congrats to Jason Fairbourne, Stephen W. Gibson, W. Gibb Dyer, and other contributors on a great volume thats informative, interesting, and useful for social entrepreneurs.
Eco Capitalism at TerraCycle: Profits via Sustainability
Terra Cycle is an amazing social business which is powered on eco-capitalism, innovation, and worm poop. They transform waste via compost, which worms transform into poop, and then transform that into an eco-friendly fertilizer solution.
Their initial product use worm poop to create organic and natural fertilizers. In fact, It can outgrow Miracle Grow and its the only product in the world that is made entirely of waste.
Recycling Waste, Saving the Environment, and Improving Education
Terra Cycle gets recycled cola bottles from elementary school students via fundraisers and pays the schools a six cents per bottle. On the distribution side its in major outlets including Home Depot, Walmart, and Target.
In his interview on “The Big Idea” with Donny Deutch, the CEO and founder Tom Szaky says “Our goal is to become the green Proctor and Gamble.” Donny concludes, “It all started with…worm poop.” And its cheaper than some of the chemical alternatives which Szazy says “is the key.”
Discovery Channel’s Eco-Tech on TerraCycle: “Is Zero Waste Possible?”
The Future of Terra Cycle and Tom Szaky’s Vision
They’ve created an eco friendly fire log out of newspaper. Now he’s focused on turning food wrappers into “kites, shower curtains, pencil boxes…for Kraft and Frito Lay” Tom says I want to be the “Walmart of trash.”
The good news is that in the long run, as garbage prices rise, corporations will start looking more closely at how to manage this cost and will bring on more robust recycling programs. This is all well and good, but for those who are willing to leverage the idea of waste now there are millions to be made.
This is the premise of modern eco-capitalism: leveraging the idea of waste. Since waste is a commodity, if you use it as your raw material you will enjoy negative raw material costs. In other words, people are willing to pay you for your raw materials. Imagine the profit potential of such a paradigm. You get paid on both ends: you get paid for your raw materials and paid for your finished product. Not bad eh? And best of all, you are doing a good thing in the process and increasing your environmental bottom line.
If you take this one step further and look at all of the other undesired elements in our modern society you will see just how much waste there is: from people to buildings. Soon you may just have a corporation that has multiple negative cost items on its budget.
I’m curious if this process or product can be used for helping farmers at the base of the pyramid. What do you think would make a great eco capitalist product or business model?
Alternative Video Resources about the Terra Cycle Story:
Terra Cycle Overview:
Tom Szaky of Terra Cycle interviewed on Donny Deutch’s “The Big Idea”
The Skoll Forum for Social Entrepreneurs is happening March 25-27 2009 and is the Davos (or TED) of social entrepreneurship:
Each year nearly 800 delegates from more than 60 countries convene for this premier gathering of the world’s leading social entrepreneurs. Prominent figures from the social, academic, finance, corporate and policy sectors engage for three days and nights in a series of debates, discussions and work sessions focused on accelerating, innovating and scaling solutions to some of the world’s most pressing social issues.
Want to stay up to date with the latest information coming out of the Skoll World Foum in 2009? Nathaniel Whittmore has some great tips on people to follow on twitter for the skoll world forum. Tapping those resources, along with the blogs that Social Edge points out to follow for news coverage regarding the Skoll Forum on social entrepreneurship for 2009 and thus access all the brilliant insight on social change thats happening at the Saïd Business School at University of Oxford.
Check out my earlier article, for more on clean water issues for the global poor. It includes more facts and statistics on clean water as well as innovative design solutions, so that those in the developing world can have clean water just like the rest of humanity.
This was 16 years ago, at the United Nations Conference on Environment and Development, also known as the Rio Summit, Earth Summit (or, in Portuguese, Eco ‘92), a major conference held in Rio de Janeiro from June 3 to June 14, 1992. the UN international Environmental Conference.
There are … so many amazing things happening right now…..
I’ve met a couple of people lately who have a very interesting attitude. They [said], “How lucky are we? How exciting is this time? How lucky are we to be alive when the forces of good and evil are just so clear, when we’re undergoing such a massive time of shift and when our actions really, really matter, for good or for bad?”
This is a really unique period in history and it’s a time when an individual can have more impact than ever before in our human history because of the Internet, because of communication, because of how easily we can travel. … We really have to realize how empowered we can be, how much we actually matter.
The Case for MicroFranchising: Opportunities and Risks
“Ending Global Poverty: The Micro Franchise Solution” by Kirk Magleby is an interesting and quick read about what could very well be the next stage of micro enterprise and micro finance institutions. First it makes a case for microfranchises because they create efficient systems and networks with save money and scale well. Not all people are meant to be entrepreneurs, which is why some micro enterprises fail. Instead of creating unconnected micro-enterprises, the micro franchise model should be used to help provide sucessful, proven, and efficient models for business success. Magleby points out that many businesses such as the phone ladies are based on the micro franchise business model. Several key industries that are viable for micro enterprise and micro franchise.
Ten Areas to Consider for Viable MicroFranchising Businesses:
• Accounting services, agricultural inputs, apparel
• Bakeries, barber shops, beauty parlors, bicycles, building materials, butcher shops
• Construction, cooking oil, cosmetics, courier services.
• Electrical contracting, equipment rental (wheelbarrows, bicycles, etc.)
• Financial services, food, fuel, furniture
• Hardware, house wares and other specialty retailers.
• Movie theatres
• Plumbing contracting
• Renewable energy, repair shops.
• Transportation for commodities, transportation for people.
To me as concerned outsider, I think the starting point should be the 7 sectors discussed in “The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid” from the World Resources Institute, because it seems to focus on the base of the pyramid and then consider informal economies and less important sectors. But certainly the best market for a given and even the money earned in a non-base of the pyramid business (ie perhaps travel) can be used to fund other ventures aimed at the BOP. Given that there may be more margins in these markets and these levels of affordability, a concern should certainly be paid toward their encouragement.
Guiding Principles for MicroFranchising Businesses
If we look to the work of Paul Polack , he would suggest going to where the action is, talking to your target market directly, and focusing on simplicity and affordable pricing. Then (and perhaps only then) is pursing research in parallel markets and businesses truly viable (although its a bit chicken and egg because those issues are in some regards co-determined).
Magleby includes a great list of 69 micro franchises. I’ve included:
Twelve micro enterprises that are successful micro franchises
1) Cebicherias Chiqui, Peru, 5 lunch stands
2) Casa por Casa, Mexico, 18 advertisings agents (IF)
3) Ingles Individual, Mexico, 70 language tutors, (IF)
4) UV Water, 100 village water systems
5) UMU, Uganga, 125 microfinance agents, MFI
6) Pride Africa, Kenya, 250 microfinance agents, MFI
7) Cemex Patrimonio Hoy, Mexico, 500 local promoters serving 120,000 construction jobsites (MNC)
8} Yogurt Persa, Yougurt Tito, Ecuador, 35 restaurants, IF
9) ES Coffee, Ecuador, 2,500 coffee producers (IF)
10) Grameen Uddog, Bangladesh, 4,500 textile weavers
11) Vodacom Phone Centers, South Africa, 5,000 phone centers, MNC
12) Unilver, Vietnam, 145,000 sales agents, MNC
If you would like to learn more about micro franchise you can:
Greg talked about sex trafficing and TPC. It got me thinking about such things. I found a recent report on the issue:
A Global Report on Trafficking in Persons launched today by the United Nations Office on Drugs and Crime (UNODC) provides new information on a crime that shames us all.
Based on data gathered from 155 countries, it offers the first global assessment of the scope of human trafficking and what is being done to fight it. It includes: an overview of trafficking patterns; legal steps taken in response; and country-specific information on reported cases of trafficking in persons, victims, and prosecutions.
Social Entrepreneurial Examples and Social Venture Case Studies
I’ve created this as a guide and resource to finding social entrepreneurship examples and case studies. You will find that several examples repeat throughout the literature:
Scaling Up Micro lending and Social Business Ventures as Solutions to Poverty
I have only indirect and small scale experience with scaling social impact, besides my experience coaching debate for 5 years and volunteering with the Washington DC Urban Debate League for 2 years (as well as my experience with scaling impact online). However, its an area that I’m passionate about and interests me and my debate skill certainly help out in the research department. Gregory Dees, professor of the practice of social entrepreneurship and non-profit management at Duke University, in his article “Scaling Social Impact” attempts to answer that question by asking:
How can social entrepreneurs find a scaling path that is best for them? They should look at:
READINESS Is the innovation ready to be spread? RECEPTIVITY Will the innovation be well-received in target communities? RESOURCES What resources, financial or otherwise, are required to get the job done right? RISK What’s the chance the innovation will be implemented incorrectly, or will fail to have impact? RETURNS What is the bottom line? Impact should not just be about serving more people – it should be about serving them well.
Recently, I’ve become fascinated with how micro franchising or “business in a box” type business models can help scale micro finance and social entrepreneurship. For instance, Kickstart’s, Vision Spring (Scojo Foundation), and Grameen mobile ladies program success in this area has been proven.
One organization that does a great job of scaling social impact is the ACCION Network. Just Means reports:
That point is underscored when one looks at the ACCION Network numbers in toto. It took ACCION and its partners 20 years to reach the first million clients with microfinance. But as the commercial model was adopted and deployed, that number grew exponentially; it took only three years for the Network to reach two million clients; and only an additional 18 months to reach three million.
As the private sector becomes more involved, greater innovation will result, driven by the knowledge and experience of nonprofit practitioners and resulting in a better array of products and services for the poor. ACCION itself is already pursuing four paths of innovation to bring more and better products to customers, and to reduce the cash, paper and manual processing that make microfinance so expensive for both providers and clients:
* Product diversification – A full range of financial services, including savings, credit, money transfers, insurance, and more; * New delivery channels – such as ATMs, smart cards, retail points-of-service, cell-phone banking, mobile banks and kiosks, reducing the cost of bricks and mortar while vastly expanding client outreach; * New technological platforms – from standardizing banking platforms and interfaces, to centralizing back-office and call-center operations; * Credit automation – rationalizing and automating the underwriting, collection and renewal steps of the credit process, to reduce the cost of making loans.
Around the world, with private-sector involvement, exciting innovations are under way on multiple fronts:
* In India, ICICI Bank has equipped its MFI banking correspondents with point-of-service devices that use biometric thumbprint readers for customer identification, compensating for the lack of national identification cards and low literacy;
* In Kenya, Vodaphone is piloting the M-Pesa mobile phone banking system with MFI Faulu Kenya, exploring new avenues of distribution;
* In Uganda, ACCION is piloting ‘Energy Links,’ a low-cost LED light project that will not only eliminates the cost, pollution, and danger of conventional kerosene lanterns but also provides micro-entrepreneurs with a “business in a box” that’s affordable and profitable;
* In Mexico, Banco Azteca has built a 20-million-client financial-services empire in five years, utilizing the sales channels of big-box retailer and parent, Elektra.
Scaling Social Impact and Social Business Ventures
Thanks to Greg Dees for the last two recommendations above.
What is the best way to scale up social impact for social business ventures? What organization, tool, model or technology helps this process? What resource, article, or case study for scaling business do you recommend?
irect
• Some 1.1 billion people in developing countries have inadequate access to water, and 2.6 billion lack basic sanitation.
• Almost two in three people lacking access to clean water survive on less than $2 a day, with one in three living on less than $1 a day.
• More than 660 million people without sanitation live on less than $2 a day, and more than 385 million on less than $1 a day.
• Access to piped water into the household averages about 85% for the wealthiest 20% of the population, compared with 25% for the poorest 20%.
• 1.8 billion people who have access to a water source within 1 kilometre, but not in their house or yard, consume around 20 litres per day. In the United Kingdom the average person uses more than 50 litres of water a day flushing toilets (where average daily water usage is about 150 liters a day. The highest average water use in the world is in the US, at 600 liters day.)
• Some 1.8 million child deaths each year as a result of diarrhoea
• The loss of 443 million school days each year from water-related illness.
• Close to half of all people in developing countries suffering at any given time from a health problem caused by water and sanitation deficits.
• Millions of women spending several hours a day collecting water.
• To these human costs can be added the massive economic waste associated with the water and sanitation deficit.… The costs associated with health spending, productivity losses and labour diversions … are greatest in some of the poorest countries. Sub-Saharan Africa loses about 5% of GDP, or some $28.4 billion annually, a figure that exceeds total aid flows and debt relief to the region in 2003
Clean Water Solutions: The Example of Ultra Violet Waterworks
Ultra Violet Waterworks has an innovative water purification system that is affordable for those at the base of the pyramid:
Ultra Violet Waterworks (UVW) is a small-scale, energy-efficient, and low-maintenance mechanism that uses ultraviolet light to cheaply disinfect water. It is a uniquely effective device that operates using the equivalent of a 60-Watt light bulb at a cost of as low as 4 cents/ton of water treated, treating 15 liters/minute, and providing enough drinking water for 500–1500 people. As a result, UVW is the first practical means of providing many communities in developing nations with readily accessible, disinfected, safe drinking water.
UV Waterworks is a water purification system that disinfects surface- or ground-water of the viruses and bacteria that cause cholera, typhoid, dysentery and other deadly diarrheal diseases that kill millions of people in poor, developing nations.
Low Cost Clear Water Solutions: The Example of Lifestraw
In your research about water purification for the developmening world, you may also want to check out the Lifestraw:
Millions of people perish every year because they simply don’t have clean water to drink. Until now, there was not much we could do about this because systems to clean water were costly and required electricity and spare parts and and and … but the LifeStraw now offers a viable means of saving tens of millions of lives every year.
LifeStraw is a personal, low-cost water purification tool with a life time of 700 litres – approximately one year of water consumption for one person. Positive test results have been achieved on tap, turbid and saline water against common waterborne bacteria such as Salmonella, Shigella, Enterococcus and Staphylococcu.
You can find more information about Lifestraw at their website and at the Lifestraw feature at the Cooper Hewitts’ Design for the Other 90 Percent exhibit online. The lifestraw is $5 and provides one person with clean water for an entire year.
Low Cost Clean Water Solutions: The Example of the Bio Sand Water Filter
For Cambodians in rural Svay Rieng province, a little sand goes a long way in helping make water safe for consumption. According to a report by humanitarian agency Church World Service, residents in 19 villages of Svay Rieng have been significantly reducing incidences of typhoid and diarrhea by drinking water filtered through affordable, user-friendly bio-sand water filter devices small enough to place in a home or office space. CWS has provided 1,216 of the filters to date in 56 Svay Rieng villages for use by people in some 1,900 households, schools, pagodas and commune halls.
The simple bio-sand water filters are a lifeline in a country where it’s estimated that 74 percent of all deaths comes from water borne diseases. Despite advances in recent years made by Cambodia’s public water utility in converting Phnom Penh’s war-degraded water supply system into a model safe-water utility serving the capital city, rural areas of Cambodia still suffer from lack of clean water resources, sanitation, and related hygiene awareness and education.
The cost for a typical bio-sand filter can range from US$15 to $20, depending on regional costs for materials. In the CWS program, those who receive the filters are encouraged and given training to build their own filter devices.
KX Industries (Orange, Connecticut) has developed a point of use technology that filters water free of viruses, pesticides, and bacteria, but has a running cost so low that very poor people may be able to afford it. The new microbiological system — consisting of a dispenser and disposable filters — uses nanotechnology fibers and removes anything from water that is not dissolved.
The company has put the retail price for the dispenser in the range of $6-$11 (lasts 3-5 years) and the filter itself at $0.75-$0.80. A filter can clean 100 gallons, which is enough drinking water for a family for a month at the cost of about 10$ per year.
That seems to offer a good water purification solution, but its not as flexible (decentralized and personal) as the Life straw.
Water Purification and Development at the Base of the Pyramid (BOP)
For more information about water for BOP populations, check out the “Next 4 Billion” on Water Markets for the base of the pyramid, which includes water purification and sanitation case studies. They point to Water Health International, Heritage Livelihood Services, Water Cone, PuR (Proctor and Gamble), the Shapla Arsenic Filter by International Development, Enterprises, Hindustan Lever Limited, KX World Filter, and Mytry by ITT Kanpur.
[Note: I haven't checked to see what are the relative prices for any of these case study examples from the Next 4 Billion--but they are a fantastic place to start--if you have any experience feel free to leave a note in the comments section. Also point to the work of Cosmol in Bolivai and Marlon Lara in Honduras. Thanks.]
What is Government to Do to Support Social Entrepreneurs and Social Business Innovators
You might be wondering How can goverment increase social entrepreneurship and encourage social change? Or perhaps “How can government faciliate and enable the next generation of do gooders?” Initially providing funds to jump start incubators that provide space and practical training can also provide. The Center for Social Innovation is a great example are similar examples of coworking in the states. You can find more about coworking here.
A public-private social innovation fund can leverage taxpayer dollars with private funds to make resources available for funding social-entrepreneurial solutions. Creating a fund specifically designated to advance social entrepreneurship would enable government to follow a performance-based model for investment, not unlike venture capital funds, to both seed and scale initiatives. Two related models show how such a fund could work structurally and operationally.
Models: Small Business Investment Company (SBIC)
Venture Philanthropy & Social Venture Capital
Small Business Investment Company (SBIC)
Encouraging Public Innovators
Initially, Public Innovators have 5 other ideas for encouraging social entrepreneurship that are worth checking out. Their website just launched to answer this specific public policy question. You can also check out their social entrepreneurship and government resources. Finally, America Forward likewise specializes on the interface between social entrepreneurs and government (although they appear to have a focus on Americorps style social entrepreneurs, as opposed to more for profit models)
The Public Innovators has a 30 minute podcast on the role of government role with social entrepreneurs of a panel at the Aspen Institute. A noted panelist from New Orleans on the Aspen panel intelligently points out, “Our role…the role of government is to facilitate, link, leverage, and get out of the way.” He later points out that as a general rule that public private partnerships ultimately work best than either working alone, if done right.
Social edge has several resources (including summary case studies on government engagement in the social venture space) relevant to those who want to encourage social capitalism and better public-private relationships in this burgeoning arena.
• Among the actions respondents called for are improved tax incentives for social entrepreneurship, innovative financial instruments to encourage banks and pension funds to get involved, stronger property rights, simplified regulation, and incentives to encourage public sector employees to remove barriers to innovation and entrepreneurship.
• Bilateral and multilateral institutions have key roles to play in increasing transparency, stimulating entrepreneurial cultures, raising awareness of social entrepreneurship, expanding the use of public-private partnerships, and supporting necessary expert studies.
Educational institutions are vital for the long-term success of communities, countries, and the global economy….They…need to cultivate entrepreneurial thinking, promote interdisciplinary programs, provide internships and other opportunities to expose young people to the world of entrepreneurship, stimulate the formation of national and global networks, contribute research to the field, and support young entrepreneurs with awards.
Remote Monitoring
21. Cell-Life Project, South Africa
22. Chinese Aged Diabetic Assistant (CADA), China
23. Colecta-PALM, Peru
24. Mashavu: Networked Health Solutions for the Developing World, Tanzania
25. MediNet Healthcare Management System, Trinidad and Tobago (need a better link)
26. Mobile Care, Support and Treatment Manager (MCST), India
27. Mobile Phones for Health Monitoring, India and the United Kingdom
28. Phoned Pill Reminders for TB Treatment, Thailand
29. SIMpill Solution for TB, South Africa
30. Virtual Health Pet, Brazil
Communication and Training for Healthcare Workers
31. Enhancing Nurses Access for Care Quality and Knowledge through Technology (ENACQKT), the Caribbean
32. HealthLine, Pakistan
33. Mobile HIV/AIDS Support, Uganda
34. Primary Healthcare Nursing Promotion Program, Guatemala
35. Uganda Health Information Network (UHIN), Uganda
Disease and Epidemic Outbreak Tracking
36. Acute Encephalitis Syndrome Surveillance Information System (AESSIMS), India
37. Alerta DISAMAR, Peru
38. FrontlineSMS, Worldwide
39. GATHER, Uganda
40. Handhelds for Health, India
41. Remote Interaction, Consultation, and Epidemiology (RICE), Vietnam
42. Tamil Nadu Health Watch, India
What is happening in the world of cell phones, mobile telephony, and health care delivery? The AFP points out the need for mobile phones and innovative applications in the health care sector:
“When you consider that there are 2.2 billion mobile phones in the developing world, 305 million computers but only 11 million hospital beds you can instantly see how mobiles can creat effective solutions to address healthcare challenges,” said Terry Kramer, strategy director at British operator Vodafone.
mHealth for Development (70 page guide from the UN) which cites Text to Change as a case study in Uganda, which has a text quiz for AIDs awareness. The report also contains a case study on data gathering as well as emphasizing the need for open source solutions like Open Rosa. The report also includes 6 pages of mHealth applications.
• Wonder where you can get recycled mobiles or computers in latin america, asia, or africa?
• I’m curious how mobile games, mobile music, or ring tones can be used to encourage people to either purchase mobiles for health care ends. (although this could be a potential distraction of sorts). Certainly mobile music could be a form of marketing. For instance the Kickstart moneymaker was marketed using an African rapper.
Great Books for Social Entrepreneurs and Micro enterprise Innovators
I’ve read a lot in the social entrepreneurship space over the last 12 months, with a particular focus on those at the bottom of the pyramid. Here are 30 second reviews of the best of the best. I’m particularly impressed by the depth, passion, and detail of the first seven books.
Base of the Pyramid Books
Out of Poverty by Paul Polack
• Polack’s 12 Steps to practical problem solving which is insightful and provides needed focus for social innovators and entrepreneurs at any level.
• A smart and compassionate focus on those that live on $1 a day.
• Listening to your customers and simple is just good business for the Bottom of the Pyramid (BOP)
• Integrates issues of simplicity, listening, and grassroots marketing to help BOP entrepreneurs and social ventures.
• Tells the International Development Enterprises (IDE) story
Design for the Other 90 Percent by Amy Smith
• Short articles with principles of design for the other 90 percent from Polak from IDE and one of the founders of Kickstart
• Great short case studies which provide a fantastic overview of the space. A real sense of design innovation in the Bottom of the Pyramid (BOP) market.
• Great visual design. It’s a great way to tell to the story to other stakeholders, because its visual.
Bottom of the Pyramid by CK Prahalad
• About a dozen case studies of key social enterprise ventures including Cemex, Jaipur Foot, e-Choupals, and HHL soap.
• Makes a great case for the opportunity base of the pyramid (BOP) market
• Lots of support materials at the University of Michigan school as well as some exclusive publisher resources created for book buyers.
• “Fortune at the Bottom of the Pyramid” is a classic social innovation and business book.
Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid by the World Resources Institute
• About 2 dozen examples in 6 different critical market sectors including energy, water, communications, and health care.
• Tons of statistics from each bottom of the pyramid market.
• The visual data and dollar based metrics for industries, continents, and countries is pretty amazing. Can help entrepreneurs understand the size of the market more accurately.
(Available in PDF form for free online: “The Next 4 Billion“)
Social Entrepreneurship Books
Power of Unreasonable People: How Social Entrepreneurs Create Markets that Change the World by John Elkington and Pamela Hartigan
• Fantastic profiles and examples from across the spectrum of social business ventures
• Lots of different perspectives and unique interview answers from Kickstart to Whole Foods and beyond.
• Passionate
Creating a World Without Poverty: Social Business and the Future of Capitalism by Mohammed Yunnus
• Helps articulate a great case for microloans and social business
• Tells the Grameen story including challenges, growth, and collaborations.
• Gives you a sense of the time line and dedication it takes to run a social business.
• Mohammed Yunnus finally provides a great explanation of many of the component companies in the Grameen family.
Micro Franchising Books
Micro franchising: Creating Wealth at the Bottom of the Pyramid, edited by Jason Fairbourne, Stephen W. Gibson, and W. Gibb Dyer
• Extensive case studies of a handful of organizations that rival those created for Bottom of the Pyramid
• Mentions several successful social enterprise ventures.
• Chapter length case studies of social businesses like the Scojo Foundation (now Vision Spring), Vodacom Community Services, the Health Store Foundation, and Honey Care Africa.
Ending Global Poverty: The Micro franchise Solution, by Kirk Magleby
• Short overview of micro franchise issues
• Most is available online for free, but its also very affordable.
Technology Startup Books
Founders at Work: Stories of Startups’ Early Days, by Jessica Livingston
• For those interested in software as a service, technology startups (ITC), and VC funding.
• Good read that profiles about 20 founders of technology startups.
• Unfortunately, no explicit social business focus. Very limited direct use in the social business space except the passion and determination
(Note: most all of these social business books are $12 to 15 on Amazon, except the next 4 billion which is $27 and Micro franchise Solution: Creating Wealth at the Bottom of the Pyramid is $35)
The Next Step in Learning about Social Entrepreneurship and Innovations for the BOP
I’m becoming more passionate about mobile technology, particularly in the heath care context and “business in a box” type social venture franchising. At the moment, I’m a little frustrated by the lack of literature on social enterprises that be started for between $50 and $5000, which could really help easily replicate successful models for the BOP.
Your Take on Base of the Pyramid and Social Entrepreneurship Books What social enterprise or innovation book are you reading? What are your favorites? What do you recommend for the beginner, intermediate, or advanced social venture practitioner? Would love to hear what you have to say…
The Success of the SELCO Social Entrepreneurial Business Model in India
In fact, according to Think Change India, SELCO is ready to scale up. For more information, check out the SELCO website or their case study profile in the recent World Resources Institute report Next 4 Billion (Case study 7.5 Here Comes the Sun)
“When people invest in themselves and their own futures, they have full ownership of their success, and that creates dignity.”
“Measuring real impact or outcome is where many would be social entrepreneurs fail. The number of products you have sold or distributed tells the world nothing.”
“Wholesalers and middlemen move these goods from factory to marketplace.”
“Kickstart spends about $250 of donor funds to take an average family out of poverty, whereas a traditional aid program claims on its website to do the same for $2,750.”
Thanks for visiting. I hope my research and ideas provide insight into social entrepreneurship, innovation, and positive social change.
If you are in social enterprise or passionate about these issues feel free to connect via Twitter, Facebook, or Linked In.
Thanks and have a great day!
