Dowser » entrepreneurship

Harvard's Julie Battilana Takes the Pulse of the Social Entrepreneurship Movement

Dowser — Wed, 01 Feb 2012 18:32:07 +0000

A duo of researchers at the Harvard Business School recently set out to investigate movers in the field of social entrepreneurship beyond the big names who attract the most attention. Their study uses six years’ worth of applicants for an Echoing Green fellowship as the sample base for systematic look at where the field is now, and where it is headed. Below, Harvard Business School Associate Professor Julie Battilana shares a few of the study's most significant findings. #

Dowser: Where did the idea for the study come from?
Battilana: It's a study on which I've been working with Matthew Lee, a doctoral student at Harvard Business School. The idea behind it is to be engaged in the field of social enterprise, and not just by doing theoretical work. We wanted to do the kind of study that would be helpful to social entrepreneurs themselves. We actually already knew a lot about the highly visible, very successful social entrepreneurs--and it is probably helpful to the field of social entrepreneurship that some social entrepreneurs have become very visible. But the social entrepreneurship field is so much bigger than the handful of well-publicized cases. People were asking questions about the field--who are these social entrepreneurs, what do they do, where is the field headed--but to this point, there hasn’t been a systematic approach in place to catalog information about social entrepreneurs. #

What were some of the most surprising results of the study?
One interesting finding was about the diversity of projects being proposed--there is a broad range across sectors. The most-publicized examples are usually health or education projects, but there is a huge variety out there. Now, that being said, the applicants did have some points in common. The first is that, although there's all this discussion about social entrepreneurs potentially changing the world, what's interesting to us is that these people are not always attempting to change the world. Often, what they want to do is address a problem locally. They are looking for local solutions, and it is very clear to them that they will have to draw on local resources and partner with local organizations and stakeholders. #

In terms of revenue models, some rely on donations, and on the other end of the spectrum, some rely on commercially-generated revenue, and others rely on a mix of the two. We are seeing the rise of organizations that rely on both forms of revenue as well as the rise of organizations that rely almost exclusively on commercially-generated revenue. I call the latter group of organizations “hybrid organizations” because they combine a commercial logic with a social welfare one: their primary objective is to achieve a social mission but they rely on commercial activities in order to generate the revenue that they need to sustain their operations. #

Hybrid organizations have long existed in certain sectors such as education and healthcare, but they are now represented, and have been spreading, across all sectors including financial services, consulting, retailing, consumer products, apparel, food processing and software development. Digital Divide Data is one example of a hybrid organization (they were not an EG fellow). Vision Spring is another example. Among the EG fellows, Hot Bread Kitchen is an example of a hybrid organization. [According to an article about the study on the HBS website, “In Echoing Green's pool of applicants for 2006, 63.2 percent proposed business models based entirely on donations, 33 percent offered models based on a mix of donations and generated revenue, and 3.9 percent proposed models meant to run entirely on self-generated revenue. In 2011, 54.2 percent of applicants had proposed donation-only models, with 40.6 percent proposing a mixed model. And 5.2 percent intended to run entirely on revenue generated by the business.”] #

The rise of hybrid organizations among social enterprises raises the issue of mission drift that Matt and I want to study. If you look at commercial microfinance organizations, which are examples of hybrid organizations, sometimes they are criticized for losing track of their social mission as they become more profitable. So, we need to help emerging social enterprises that adopt a hybrid model to figure out how they can achieve financial self-sustainability while not losing sight of their social mission. #

One important caveat is that our study is not meant to be normative--I do not mean to say that all organizations should have one kind of revenue model. It makes sense for some organizations to have a commercial business model, but not all. In the social sector one has to understand that some interventions will never be commercially viable, but they are needed and it’s important to continue supporting these initiatives philanthropically through grants and other types of giving. #

What do you think will be the impact of the study?
We see this study as an early step in a long-term program of research that will help the social enterprise field develop. I think social enterprise is a promising way to create both economic and social value. We as a society have a lot to do to help these organizations succeed, because they are facing a number of challenges--some having to do with funding. But things are moving in the right direction. The field of impact investing is on the rise. The rise of hybrid legal statuses, like benefit corporations and L3Cs in the U.S., have the potential to bridge the for-profit, non-profit divide, but it's still very early so we are waiting to see what the advantages of those statuses will be. #

Recently, there was a conference of leading impact investors in New York about social enterprise and about defining the field of social entrepreneurship. We were invited there to talk about our collaboration with Echoing Green because it had been identified as one of the first collaborations between an organization like Echoing Green and researchers. So we hope that our study can be a model for future partnerships between philanthropists, impact investors, social entrepreneurs, representatives of public authorities and academics. Working together will be critical to figuring out the best ways to move the field forward. #

How did you design the study?
We decided to partner with Echoing Green, a fellowship organization that aims to promote social entrepreneurship. They attract applications from thousands of social entrepreneurs from around the world, and every year they fund between 15 and 20 social entrepreneurs. Together with Cheryl Dorsey and Lara Galinsky from Echoing Green (EG), Matt and I started brainstorming about the type of study we could do. It was obvious to us that the best approach was to look at the whole group that had applied. It's not an unbiased sample, because these are self-selected people who wanted to become EG fellows. Fortunately, EG has a definition of social entrepreneur that is very inclusive. We looked at the people who applied for the fellowship between 2006 and 2011--there were thousands. Then we took a random sample of 40 percent of all the applications--that was 3500 applicants-either in the process of launching their social enterprise or getting ready to launch. We created a codebook with 100 variables—basically a list of items corresponding to qualitative factors about the applicants. For example, one has to do with the type of revenue model that these applicants might be using. We created a code for the three different kinds of revenue models—based on donations only, on commercially generated revenues only, or on the mix of the two. [Note: The study also had codes for the aims of the projects and the beneficiaries, as well as plans for legal incorporation.] Throughout the process, we had multiple researchers review each application to make sure that their interpretations were consistent. The whole coding process took over a year. #

Interview has been edited and condensed. #

First Person: Jennifer Chan of Exhibit Change on Early Lessons as an Entrepreneur

Dowser — Thu, 19 Jan 2012 20:05:48 +0000

Jennifer Chan founded Exhibit Change to encourage impact through design thinking and to promote community building. The organization serves as a think tank for people to share ideas and designs, and to create healthier communities and neighborhoods. Here she tells Dowser what she learned in getting Exhibit Change off the ground. #

Dowser: What's something concrete and tangible you've learned in the last three months?
Chan: Make your ideas happen. I had an idea floating around in my head for a few weeks and I realized that the impact could only truly be realized when I set my fears aside and pushed forward, asked for help and executed my idea into an event. The event was called 'Greening Ward 27', it was a hands on community design charrette where we hosted 40 people. We brought together city councilor candidates, school trustee candidates, residents, activists, business owners and facilitators to talk about our vision for Ward 27, a downtown Toronto neighborhood with a wide range in economic status. We focused the areas live, work, play, eat and learn, around the concept of greening. We were able to get hundreds of community led ideas generated and a proposal of 5 project areas to increase community development and civic engagement. #

What is a mistake or mishap you've learned from?
The sweetest juice is in the smallest fruits. Time is very valuable and there is always a really good event, conference, session, meeting, or person to meet, but that I can only do so much effectively. So, I am learning to say no. I am learning that things happen for a reason. And that the most value and sweetest juice is going to come from my most passionate and diligent work. #

Photo courtesy of Jennifer Chan #

Amy Clark of Ashoka on 2011 and What's to Come in the Year Ahead

Dowser — Tue, 03 Jan 2012 15:49:03 +0000

This is the 2^st part of our Year in Review Series, in which we reconnect with our group of experts about the trends they forecasted for social entrepreneurship in 2011 and look forward to the year ahead. Amy Clark, the U.S. Fellow Selection leader at Ashoka, reflects on her prediction about the democratization of the social entrepreneurship movement, and discusses the emergence of a new demographic of changemakers, along with the role that empathy skills play in dictating success. #

Dowser: One of the trends you predicted for 2011 was the democratization of the social entrepreneurship movement, where all types of people -- beyond entrepreneurs -- would contribute to change. What is your assessment of how the movement has democratized this year?
Clark: The trend toward what I had called an "evolved democracy" is a deep one, and signals a truly historical shift that we are seeing play out everywhere from the political upheavals and reforms of 2011, to the emergence of citizen-scientists, citizen-journalists, and so on. The pace of change is picking up considerably and the role of social entrepreneurs and changemakers is more important now than ever, as old institutions and business models break apart and new approaches take root in their place. The actions of the social entrepreneur community are key to shepherding these changes in ways that anticipate and respond to the immediate and long-term health of society. #

Ashoka's interest has always been in catalyzing leading social entrepreneurs who work with the fullest possible freedom, time investment, and creativity in order to isolate guiding insights and architect systemic change. Especially in the past five years or so, we have seen more clearly that the solutions Ashoka Fellows introduce almost always open pathways for many, many people to see themselves and their roles and skills in a new light - as changemakers. When changemakers see a problem in their family life, workplace, or field, they think: what's the best solution and how can I contribute to it? Looking down the road, I think the health of a society will be measured by the proportion of people who identify and act as changemakers at whatever scale the problem requires. #

Can you give some examples of the different types of people and professionals that you’ve seen emerge as changemakers?
We always want to seek out and connect to new groups of changemakers who have not, for any number of reasons, crossed the formal social entrepreneur path. For example, I just got back from a farming and ranching gathering hosted by a group whose aim is to energize young farmers as small business people and also as changemakers - although they didn't use that language. In the U.S., there are few Ashoka Fellows in agriculture and historically few natural points of contact. And yet the culture of farming and ranching is inherently entrepreneurial. It's one of many examples of new corners of the movement that we have yet to fully engage in this country. #

Also, a few social entrepreneurs in our 2011 Fellow class are brilliant at igniting "intrapreneur" talent - changemakers who work in existing institutions such as universities, companies, organizations, or government, and link into the big ideas of system-changing entrepreneurs and the demands and mandates of their institution. Social entrepreneurs partner with them and equip them with overarching ideas and many of the practical tools they need to guide change from within – to green supply chains, to organize parents, and so on. In essence, this strategy extends the reach and resources of the Fellows' team and offers new ways of unlocking and harnessing changemaker talent that is there already. #

So, what does the role of the intrapreneur look like and how does it relate to accelerating change?
Intrapreneurs bring about an important and lasting culture change inside their institutions, so that team-based methods that value good ideas coming from anywhere begin to show results that can't be achieved through top–down approaches and traditional forms of management. The culture they create can withstand -- and even thrive -- in a world where the pace of change is increasing all the time. If I'm a corporate or government leader or school principal or university dean, this is a huge asset, and a reason to recruit changemakers and enable their success. #

It also seems that the way organizations are operating now, that it’s less about having one person leading change, and more about forming organizations where everyone is committed to the mission.
Entrepreneurs define new ways of operating to get things done, and we are seeing a shift in the way entrepreneurial organizations recruit and organize talent – and even in the language used to describe our working lives. Changemakers coalesce teams around meaningful "challenges," which is different from going to work every day because you do a "job." They also build skill sets that allow greater fluidity and co-creation of change across networks, not just within siloed institutions. In response, Ashoka launched its first "20-20 campaign" in 2011 to source entrepreneurial talent – for Ashoka staff roles, and also more broadly for the sector and its networked aims. Talent is one of the top challenges for social entrepreneurs, and the degree to which Ashoka and partner organizations can attract, vet, and route talent to the highest-impact corners of the movement will make the critical difference. #

Speaking of identifying talent and channeling it to the right parts of the movement, Ashoka has also been a champion of cultivating what it considers to be the core skill of empathy. Can you discuss how you have seen empathy shape the sector?
We kicked off our empathy work in the United States formally in 2011 - a key area of work for us in this country and globally. In looking at the 3,000 social entrepreneurs in Ashoka's community, we saw that empathy was a common denominator, a core skill across the community. For us, empathy is not just the ability to feel what someone else is feeling, but to act on that understanding with conviction and creativity, to problem-solve effectively while holding self-interest and the interest of others in a healthy and productive tension. It is therefore a foundational skill for social entrepreneurs and changemakers, whether you're engaged in education or health or reforming markets. #

In the US, we're cultivating empathy through three main approaches. First, we're building a community of leading social entrepreneurs whose innovations we can learn from and share. This includes finding emerging social entrepreneurs in this area. Second, we want to align with thought leaders and influencers in education who see the paradigm shift in learning and want to partner with Ashoka and Ashoka Fellows to make it happen. And finally, because the early childhood years offer a key developmental moment, we are working with schools – especially elementary schools – that are already ahead of the curve in pioneering the focus on this skill. They already ensure that empathy is modeled by teachers and parents and that children have opportunities inside and outside the classroom to practice this skill and prepare for a life of work that is very different from past centuries. #

Weekly Roundup: Global Entrepreneurship Week, Mobile Banking and OWS

Dowser — Fri, 18 Nov 2011 17:26:27 +0000

Global Entrepreneurship Week Invokes the Startup Spirit

“New firms are indeed the greatest source of new wealth for struggling economies and a powerful weapon against poverty.” - Jonathan Ortmans, president of Global Entrepreneurship Week #

With events in the UK, US, Chile, India, Pakistan, Rwanda, and many other countries, Global Entrepreneurship Week, initiated by the Kauffman Foundation and the UK Prime Minister Gordon Brown in 2008, aspired to help the dwindling economy with the start-up spirit this week. From showcasing social enterprises in India to developing an entrepreneurial hub in Chile for South America, there were over 30,000 events around the world in more than 100 countries. #

Coinciding with GEW, the Kauffman Foundation released a report, stating that the millennial generation is eager to start a business but has been discouraged by the economic downturn. In addition, Inc. reported that more people are starting a business out of need, not out of opportunity in America. Eric Markowitz of Inc. writes that to spur innovation and enterprise further in America, resources need to be dispersed throughout the country, not concentrated in the Bay Area, which has been the main hub for startups. That means Startup America, which launched in January 2011, has to start looking beyond Silicon Valley to create an entrepreneurial movement across the nation. #

Occupy Wall Street Pushes for Action

“The erstwhile occupiers of Zuccotti Park swear that they aren’t going anywhere — that they’ll get back into the park one way or another. But they’ve done something more important: They’ve gotten into people’s heads.” - Eugene Robinson #

Occupying subways and even the Brooklyn Bridge, protesters challenged authority and pressed ahead as the protests hit the two-month mark. While many were peaceful, clashes did occur with the police, causing 250 individuals to be arrested. Though they’ve been asked to leave from Zuccotti Park by Mayor Bloomberg, Eugene Robinson of the Washington Post, argues that they’ve done something more import by starting a conversation on inequality in America: “they’ve gotten into people’s heads." #

Following incidents of violence and serious clashes with authority, Occupy Oakland didn’t participate in the “Day of Action.” However, Southern Californians saw Los Angeles residents take to the street (and get arrested) as they protested near the Bank of America tower. #

Though images of protesters across the country are flooding the web, polls indicate that support for the movement has fallen, according to the Economist and Slate. In fact, Weigel of Slate reports that there’s greater support for the Tea Party than OCW. “Bad enough for liberals, worse is an overall rise in enthusiasm for conservative projects,” he writes, indicating that the Tea Party has a 7% edge over OWS. #

And lastly, the Occupy movement hit UCBerkeley as thousands of college students camped out, demonstrating their frustration and discontent with the increasing budget cuts for California universities. On Thursday, the remaining protesters were asked to vacate (or rather, forced to vacate) the site as well. #

Interesting thoughts from this week:

McKinsey releases a new What Matters report, highlighting Social Innovation. Denielle Saches of McKinsey provides a short summary of the report on HuffPost
Guardian encourages business to be careful with employee engagement programs that are aimed at “doing good” and offer tips to businesses who want to do so.
Sean Parker, founder of Napster, talks with Inc., arguing that start-ups these days are getting funding from overzealous early-stage investors who have crowded the markets.
Visa taps into the emerging markets that have already mastered the art of mobile banking, reports NYTimes ’ Bits Blog.
Mercy Corps chats with Forbes: mobile and social innovation paves the way for the non-profit.

Encore Entrepreneurs: Founders of a Certain Age Kickstart Social Impact Business

Dowser — Mon, 14 Nov 2011 17:08:46 +0000

Our sputtering economy needs workers with more of that entrepreneurial spirit. Think tank Civic Ventures suggests they might come from an unexpected demographic: workers who are approaching middle age or their retirement years. The group found that one in four Americans between 44 and 70 want to build an enterprise, and nearly half of them want it to be a business with a strong social impact. #

Might late-in-life entrepreneurs have the experience to be successful in the business and social sectors simultaneously? With help, yes, posits Civic Ventures, which focuses on baby boomers, work and social purpose. #

To support these second-stage entrepreneurs, Civic Ventures annually awards 10 individuals over the age of 60 with "Purpose Prizes" that include top grants of $100,000 for recipients to invest in their business and social organizations. #

These so-called “encore entrepreneurs” are challenging the convention that the second half of life should be spent playing endless rounds of golf, jokes Randal Charlton, a 71-year-old entrepreneur and Purpose Prize recipient. #

“Not all entrepreneurs are kids in college dorms, eating Ramen noodles, working through the night,” Charlton says. “There’s a generation of baby boomers who want to start businesses too. We have to give them tools to do so.” #

Until recently, Charlton was the executive director of TechTown, an incubator that supports other encore entrepreneurs in the Detroit-area, a city that he says “began decaying ahead of the rest of the country.” #

Earlier this year, the Kauffman Foundation reported that this bracket of entrepreneurs (between 55 and 64) saw a significant increase on the “Index of Entrepreneurial of Activity” in the last two years. Civic Ventures’ new report determined that encore entrepreneurs are seeking small amounts of capital, about $50,000 or less, to launch their ventures. #

“This is small-scale, local, almost personal entrepreneurship, not tech IPO or paradigm-shifting social entrepreneurship,” says David Bank, vice president of Civic Ventures. “These businesses require little start-up capital, produce modest but respectable income, and serve real and demonstrated needs with proven business models. People really can create their own jobs.” #

Since 2007, Charlton has led the Detroit-based business incubator, TechTown, which transformed an abandoned auto plant into a hub for new businesses. The building now houses over 250 enterprises, a dozen of which have turned profit in the last two years, and several others that are on the cusp of doing so. They range from mom-and-pop corner shop ventures to stem cell innovators. #

Charlton, a serial entrepreneur himself who’s started 14 companies, is less concerned with the bottom line and more with the “moral compass” of companies, encouraging them to consider social impact as well as profit. He is now the leader of BOOM!, a Tech Town affiliate focused on supporting older entrepreneurs like himself. Residing in recession-stricken Detroit, he sees the aging baby boomer generation as an asset, not a liability for the American economy. #

“We can see this aging population as an economic problem or as the economic solution,” he says. “I think they can be part of the solution. We’ve just got to help them ‘shift gears,’ retrain them, and help them apply all their years of experience to something new.” #

That’s what BOOM! will try to do by having a “mall of experts” who can guide encore entrepreneurs with programs and workshops that will help them restructure their past experiences for a new business. For Charlton, it’ll be a natural extension of TechTown. #

While Charlton will address the Detroit community, Civic Ventures hopes to spur more national awareness of this untapped segment of the population. “We hope to catalyze relationships and training that may be useful in order to help people turn their aspirations into action,” Bank says. “We’d like to see more mentorship programs for entrepreneurs, more community college courses on starting a nonprofit, more fellowships that can give people an understanding of the nonprofit sector, better financing options for encore entrepreneurs,” #

Published in partnership with GOOD #

Photo courtesy of TechTown #

Skillshare's Michael Karnjanaprakorn on Risk-Taking

Dowser — Wed, 09 Nov 2011 18:21:24 +0000

In our risk-taking series, Tulane University and Ashoka U students Katie Smalley and Laura White shed light on the value of risk-taking. By interviewing social innovators about bold steps they’ve taken, they reveal that behavior that appears risky may be the most dependable way to produce innovation, ultimately leading to better solutions to social problems. #

Michael Karnjanaprakorn is a serial entrepreneur and philanthropist. Co-founder of All Day Buffet, The Feast, and most recently, Skillshare, as well as a championship poker player, Michael is an expert on risk. Below, Michael shares some of the lessons he has learned. #

Dowser: What is the biggest entrepreneurial gamble that you’ve taken that has paid off?
Karnjanaprakorn: As a first-time entrepreneur, quitting my job to pursue a startup full time was a big risk. This is critical because relentless focus is the key to success for any new business ideas. Great successes rarely happen on the side. It's hard for anyone to take your idea seriously when you're not even fully committed to it. I can't tell you how many things fell into place when I took that first leap. #

What is the biggest risk that you’ve taken that hasn’t paid off, or at least seemed that way at the time?
I think all entrepreneurs want to start their own company as soon as possible. But, like anything else in life, timing is everything. When I was younger, I felt really rushed to start my own company and worked on a lot of bad ideas. Looking back, I realized that I wasted a lot of time solving the wrong problem, which is a trap that sucks energy and money out of many entrepreneurs. Instead of focusing on the solution, most first-time entrepreneurs need to focus on the problem they will be solving -- hopefully it'll be world-changing and profitable. #

What do you think is the most important factor in taking intelligent risks in social enterprise?
For your company, your job is to reduce uncertainty and increase the likelihood of success. You can reduce uncertainty by putting together a great team, finding strong advisors and personal mentors, and solving the right problem with a great idea. #

Personally, your job as an entrepreneur is to increase your confidence and risk tolerance over time. Quitting your job should be small potatoes compared to taking your first dollar of investment, or maxing out your credit card to pursue your dreams. Every day, you are faced with hundreds of decisions to make, and you have to be confident that you'll be making the right decisions, or your company will fail. Increasing your risk tolerance, taking calculated risks, and minimizing uncertainty by making good decisions will ultimately lead to success. And if it doesn't work out the first time, chalk it up as a learning experience, and move on to the next thing. Our country loves entrepreneurs so it's a win-win for you. All upside. No downside.

This interview has been edited and condensed. #

End Malaria: Michael Stanier on publishing, impact and the possibility virus

Dowser — Thu, 27 Oct 2011 16:23:34 +0000

It’s sometimes a stretch to see how buying a product can solve a cause, but with his new book End Malaria: Bold Innovation, Limitless Generosity, and the Opportunity to Save a Life Michael Bungay Stanier is looking to make that link as clear as possible. The book is packed with business advice and advice on meaningful work from a range of thought leaders, and $20 from each book goes to fund mosquito nets for African families through the organization “Malaria No More.” Below Dowser talks with Stanier about his model for book to end malaria and about how a business book can involve the 99%. #

Dowser: How did the idea for this book emerge and how has it evolved?
Stanier: About a year-and-a-half ago I published a book called Do More Great Work. My professional philosophy is to help people do more of the truly great stuff and less of all the other stuff. In that book I suggest that people truly select a great work project to care about and focus their energies on. After the book came out it occurred to me that I should have a great work project of my own. I sat down and I had a look at the assets that I had – both intangible and tangible assets – and saw that I had a desire to do more work outside of my work in corporations – which I love – but I wanted to do something outside of it.
#

Why turn that energy toward a book?
I asked myself, what do I know about? I know how to write a book and get a book out into the world. I know quite a lot of what you’d call business or thought leaders because for five years or so I’ve been doing a podcast series with many of them. I did some research to figure out what was the smallest unit of money that could make a real difference, and I decide it was $10 – the cost of a mosquito net. I decided I’d write a book in which proceeds would go to nets. I struggled to make the concept work for while, but in February of 2011 Seth Godin started a new publishing company that publishes only through Amazon.com, which makes the financial model of how a book gets published much cleaner and easier to translate directly into those proceeds.

Why malaria?
I have no personal connection to malaria as an issue - this really was me asking where can I have the most impact? I am drawn to trying to find ways to get lots of people to give a little rather than a few people give a lot – and these nets seemed to access that possibility.

How did you get connected to Malaria No More?
I tried to find the best nonprofit organization to work with that also had financial standards that could work with the way money was transferred, because we need to give $5 out of the $25 cost of the book to Amazon.com. Malaria No More was highly rated, had a very strong social media presence, and had a strong presence in the US, Canada and the UK, which areas where I work.

What compels you about the model of many people giving a little instead of a few giving a lot?
My personal mission is to infect a billion people with the possibility virus. In all of my work I try to help people see how much possibility there is in the world and to pick the best possibility for them. A billion people is a lot of people and I hope 'the possibility virus' spreads through me affecting one person and them affecting others. In today’s language, I’m more interested in the 99% rather than the 1% - I don’t particularly have connections to the 1% and there are so many more people to involve in the 99%.

Why a book? Why not another type of campaign in another media, which you’ve also done?
The purpose of the book was not just to spread news about malaria being countered but to raise money about it by creating something that people are willing to trade their money for. People buy books because it connects them to a moment or an idea. If was also that I’d done books before - if you’re a hammer everything looks like a nail, so this looked like a book project to me, and it looked like a book was the easiest bridge to get to what I wanted.

How did you gather the writers in this book?
I hunted them down like dogs! Some of these people I know a little bit from previous work. With many of the people it’s a question of being bold enough to ask them for their help – to have a clear offer about how they will contribute to something bigger. I reached out to people who I could get connected to, who I thought had interesting things to say, had who a platform for influence.

Who do you most want to be reading this book?
The book is positioned as a business book. That’s what Seth publishes and that’s what I do. Truly, though, the information in the book is something that anybody can use if they’re interested in making choices about having a bolder, courageous more meaningful life.

What’s your unique approach to creating links between the business and social justice worlds?
I think corporations are extraordinarily powerful. They’re where a lot of people spend their time and they control a lot of the wealth of the world. In a lot of ways, business is broken – not in terms of being profit-driven, but in terms of the experience people have working for big companies. That experience is often mediocre. At the heart of my business is our tagline about helping people 'do less good work and more great work.' That’s my driver. My life is richer by bringing in an ability to contribute and by finding some small ways to help others connect with contributing.

What are you working on next?
I’m primarily working on catching up on my sleep! We’re doing another little push of the book in about three weeks time. Truly I’m trying not to actually rush into what’s the next project. I’m trying to let this one sink in and give myself a bit of slack time to lets see what pops up. Part of the essence of creativity is knowing when to broaden rather than narrow your vision. This time now is to dabble and play and see what percolates.

What practical advice would you offer someone who working with business and social impact?
I’d give three pieces of advice. First, people’s advice is often next to useless. Second, if it’s about trying to raise money get really clear about what the business model is – where’s the money going to come from and what’s the exchange for. Lastly, be bold about getting the most awesome people involved that you can. The way I got awesome people involved was I asked them for their help. The worst thing that can happen is they say no, and I keep asking until I get a no. Being persistent about asking for helping and getting people involved will lead you through.
#

This interview has been edited and condensed.

Photo courtesy of Michael Bungay Stanier #

Reflections and questions following Opportunity Collaboration

Dowser — Mon, 24 Oct 2011 17:32:04 +0000

Attending Opportunity Collaboration last week with 300 other amazing advocates was like drinking from a fire hose of social entrepreneurship. The people were stunning in their commitment, diversity, and quality of imagination. The discussions were wide-ranging, thought-provoking, and consistently engaged with pragmatic intention. The jargon was plentiful (PIRs, stacked hybrids, and b-corps, oh my!). #

As someone who has written extensively about social change from a less entrepreneurial angle, being immersed in a world where complex organizational structures are second nature and market-based solutions are celebrated was a grand education. I have often reported on the most ordinary of justice-related jobs—social work, teaching, community organizing, in part because I see these stories as underreported. The media is often in pursuit of the next big trend, rather than doing the hard work of describing some of our oldest traditions in caretaking and advocating. #

But my days among the grassroots activists, big thinkers, and inspired funders of the community at Opportunity Collaboration reminded me that it is not an either/or proposition, but an and/both challenge. Sitting in my colloquium with a humanitarian physician, a veteran peacekeeper, a defender against torture, and a microlending entrepreneur, among so many others, humbled me and reinforced that it takes all of us, finding that sweet spot where out “deep gladness meets the world’s deep need,” as theologian Fredrick Bruechner put it, to create genuine justice. #

It also left me with nine million and one story ideas and a few key questions: #

The Opportunity Collaboration, the inspired brainchild of Jonathan Lewis, is intended to disrupt the usual rules and roles that one finds in the funder-doer relationship. Through out the week, people were busily making appointments to brainstorm, collaborate, and ask. But as I watched this buzzing activity unfold, I couldn’t help but notice that many of the usual race, class, educational, geographical boundaries were instantaneously drawn in what was supposed to be a blank slate space. Is it enough to take people’s titles off of the nametags and encourage intermixing, or do organizers need to deliberately link certain doers with certain funders? Can we assume that people will naturally pick up the rituals of creating collaborations or do the uninitiated need to be initiated into the culture of development, which in my estimation, seems like a tangled web of unspoken expectations and cultural assumptions in and of itself? #

In what ways does the social entrepreneurship framing let people off the hook from considering the inherent inequalities built into the market system and/or their own disproportionate wealth? While books like Dead Aid and others have made such a clear and cogent argument about the potential evils in traditional charity, I’m still left convinced that we need an approach to poverty that acknowledges the huge potential in market-based solutions while still insisting on accountability to the vast and immoral inequities in the world, and how some of this stemmed from the very structure of free market capitalism. #

How can we continue to widen the circle of those with access to information about all the different structures and approaches available to organizations that want to eradicate poverty? I have a very pricey Ivy League education, and yet, much of the conversation regarding organizational structure and economic models was like a foreign language to me. In part, this is no doubt due to my own shortcomings, but it’s also a question of acculturation. Who is introduced to these terms around the dinner table and who isn’t? Who is attracted to studying economics and/or going to business school, and who isn’t? Who has access to these tracks of study and mentorship, and who doesn’t? #

All food for thought as we continue to build this big tent movement of people all over the world committed to eradicating poverty and making sure that every single person on this planet has the dignity and opportunity that they deserve. Thank you to all those who enlivened this year’s meeting with such powerful insights, best practices, and bright ideas. If you’d like to apply for a fellowship to next year’s conference, go here. #

On starting over: Troy Holmberg of Coast Coconut Farms

Dowser — Thu, 13 Oct 2011 16:42:35 +0000

When a good idea is executed poorly the smart social entrepreneur will often scrap the project and go back to the drawing board. In this series entrepreneurs talk about discarding what isn’t working and starting over in order to maximize social impact. #

Troy Holmberg is a co-founder of Coast Coconut Farms a social enterprise that brings sustainable employment and microfranchises to rural Kenya. #

Dowser: What's something concrete you've learned in the last three months?
Holmberg: We started with a technology to make coconut oil that was very appropriate for a small-scale, rural scenario—which was the situation we found ourselves in when we started our project five years ago. Back then, we didn’t have a good idea of who our customers would be and what they would require. As we matured and started to find customers, we were forced to look at more efficient and economical ways to produce our oil. Just recently we took some trips to other parts of the world to see how they are making coconut oil for the world markets. We discovered that the initial technology we were using was not the technology we really needed to service our customers. #

We have since, at considerable cost and time, purchased and installed all new equipment with a process that meets the needs of our customers. We learned that what we should have done in the very beginning was to search out the best technology from around the world and really understand the business and technology before jumping into the business. #

We have also learned that it is critical to have a Western manager on the ground full-time to work with and mentor the Kenyan managers and team. It has made a huge difference and there is a synergy as we combine Western management styles and knowledge with the local knowledge of markets and culture that has made us more successful. But it can’t be done alone with only Western or only Kenyan perspectives and knowledge. #

What is a mistake or mishap you've learned from?
Coast Coconut Farms spent the first three years of its existence struggling to find customers and markets for its product (virgin coconut oil). We got into the business with only a very limited understanding of the market and needs of the customers. We took on the mentality, 'if you build it, they will come.' We started making oil and warehousing it without having any real customers in hand. Those first three years cost us a lot of money, time and mental capital trying to understand how to make our business model successful. #

We are now over that hump, thank goodness, but we are still struggling to manage a business in a third world that is servicing customers in the developed world. Quality, reliability, transportation and costs are all critical issues to our customers that are very difficult for us to control in an environment like Kenya. It can be thrilling and very rewarding as we help create jobs and improve lives, but it is extremely challenging, frustrating and unpredictable. You have to be prepared to work in such an environment. Looking back, we would have taken more time and effort in doing research and due diligence on the market, industry and technologies before jumping in and committing significant resources. #

Interview has been edited and condensed. #

Photo courtesy of Troy Holmberg #

Bill Drayton on Empathy and Collaborative Entrepreneurship

Dowser — Wed, 12 Oct 2011 16:37:59 +0000

Ashoka’s Founder and CEO Bill Drayton recently spoke to Dowser about a new approach to problem solving - collaborative entrepreneurship. #

By pooling together hundreds of entrepreneurs (and their passion, innovation, and zeal) who are working on issues pertaining to young people and children, Drayton hopes to give rise to a more empathetic generation, one that understands that we’re part of a team, not a hierarchy of institutions. For Drayton, empathy is at the root of social change, a value that will enable everyone to become a changemaker. #

Here are snippets of the interview. For the full interview, please listen to our conversation with Bill Drayton. #

Dowser: Recently, Ashoka launched a new initiative focusing on empathy. Can you summarize what it's about?
Drayton: The rate of change is increasing exponentially in the world. It used to be that if you mastered a body of rules, you could apply the rules and be a productive person. But that doesn’t work anymore. Rules work less and less. #

Rather, every child must master empathy. And anyone who hasn’t mastered empathy will not be helpful in this new world. #

Today, we don’t talk about how many children are empathetic to be able to apply the knowledge that they learn to society. We measure the success of a teacher/ school on other metrics. But, there are 700 Ashoka (out of 3,000) fellows that work on young people and children. We know how to help children grasp empathy - bullying rates come down and stay down when we work on this. But until we get principals and teachers to understand, little is going to change. #

So, the program is using collaborative entrepreneurship to make sure that this idea is applied in the classroom. #

How do we prevent empathy from becoming an empty buzzword? How can we ensure that this translates into action and be measurable to some extent?
We can measure it to some degree. We’ll get better at measuring empathy as we progress. For instance, Canadians have very good measuring rates of bullying - if you’re bullying then you’re not being very empathetic. Canadian entrepreneur Mary Gordon has been working in this space for years now. Her work shows us how empathy can be introduced in schools. #

Recently, I came across a study that looks at how children respond to anger- can they identify it or not. The study stated that two-thirds of children in a number of African countries, can’t tell. So, how does that impact society? How can we get children to identify such emotions and be more empathetic? After all, little children are the best at non-verbal communication. #

And we have to give them the opportunity to be a part of a society. To be a good person is to be part of society. #

Companies also have to make the transition to become a team of teams. If they’re going to function in a world of change, it’s absolutely essential for them to recruit people with empathy. A lot of people in corporate America are not aware of this. So, that’s our job. We have to get them to understand this. #

The faster things change, the higher skill of empathy people have to have. You can’t just say you’re going to do it, swallow a magic pill and it happens. It takes time. But that’s what we’re striving toward - getting everybody to be a changemaker. #

You travel regularly for pleasure and work. Do you find that some societies tend to be more empathetic than others, due to culture, traditions, history?
That’s a tough question. But for example, I’ve noticed that people in Indonesia and Thailand are highly sensitive, not wanting to upset other people. That’s a traditional value. So maybe you would say that behavior there would suggest that. #

But, America has a huge advantage here. Look to what we acquired from the UK and Europe who developed democratic societies within their city states. So, we have that. But, then we lost it during the reign of empires. De Tocqueville also pointed it out with our associational skills. But we’ve been losing that. America is more divided now. Can we turn it around? Otherwise, we can slip. #

Ashoka is usually identified with entrepreneurs in the developing world. But Ashoka also has a large number of entrepreneurs in the US. How can they make an impact in these difficult economic times? Do you see an urge to focus on issues at home?
The level of social entrepreneurship globally, including America, has been going up rapidly in the past 30 years. In the beginning, we had to invent a phrase (social enterprise) to get people to understand. But that’s changing. Even in today’s world, we’re seeing growth in the citizen sector. We have some great minds coming into this space. #

There is tremendous need right now. And the faster things change, the more they’re out of whack, the more there are opportunities for things to be better. #

We’re 4% of the world. We have a higher proportionate of really good social entrepreneurs. But they’re also the bridge through whom some of the best social ideas come from because they weave in ideas from the other world. They see what’s working elsewhere and apply that to their organizations. And their work is on a large scale. So, America has a lot to contribute to the world and vice-versa. #

There’s so much activity in the social enterprise space with an increasing number of SEs and incubators for SEs. But what do you think is still lacking in this space? What do we need to work on more?
We have to get everyone to understand the transition from small elites running everything to having everyone be a changemaker. Everyone now has to become team of teams. Once they’ll see it, they’ll respond. It’s going to go quickly. But it’s really important. #

Collaborative entrepreneurship - this is a gigantic breakthrough. Leading social entrepreneurs from all across the world are working together. This is amazingly powerful. Empathy comes out of the work of 700 Ashoka fellows. Collaborative entrepreneurship - when an issue is ripe, you get a wave of entrepreneurs throughout the world. We know the area is ripe when so many people are working on one area - for example children/ young people. So, you can identify patterns and build paradigms. #

The field is just learning how to work together. It’s a gigantic breakthrough. #

Collaboration goes hand in hand with technology today. What has made the greatest impact, in terms of technology, in the social sector?
Technology has played a big part and making it possible for us to build a global team of teams. #

If we’re creating a global teams of teams, for instance to address young people, the Web is invaluable. We can sit in different continents and work together. We can see one another and getting rapidly better, less expensive. #

These are fluid, kaleidoscopic team of teams. When we had a world dominated by institutions, that didn’t work. #

What’s one book that you would recommend for those who are interested in getting into this space or want to set up their own organization/ company? And what words of wisdom would you impart on them?
Give yourself permission. #

Mary Gordon was teaching at a school in Toronto when she began to see aggression in the children. She gave herself the permission to see that and then change it. Everyone can be a changemaker. Nothing in the steps to doing so is rocket science. Anyone who is with us can do this. But you have to give yourself permission. #

And they have to very politely ignore all the people who tell them that they can’t. #

As for a book, this may seem biased but David Bornstein’s How to Change the World is still the classic book for the field because in the five years that he worked on it, he truly applied his personal honesty to understand social enterprises. From that book, you can understand what it is to be an entrepreneur, which is very similar to being a social entrepreneur. I think it will be a classic for the field in the future as well. #