1. Art of the Start
- “Many years ago Rudyard Kipling gave an address at McGill University in Montreal. He said one striking thing which deserves to be remembered. Warning the students against an over-concern for money, or position, or glory, he said: “Some day you will meet a man who cares for none of these things. Then you will know how poor you are.” – Halford E. Luccock
2. Social Innovation
- Definition of Entrepreneurship
- Entrepreneurship is the process of designing, launching and running a new business, i.e. a startup company offering a product, process or service. It has been defined as the “…capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.”
- Value Creation
- “Shifting economic resources out of an area of lower and into an area of higher productivity and greater yield”
- French economist Jean-Baptiste: Entrepreneurs are Value Creators
- Value Creation is the crux of development
- How to Raise Money for Your Business
- Make Meaning Not Money
- Artemisia – Social Business
- John Doerr: Disruptive Technology
- Social Entrepreneurship: The Case for Definition
- Market Positioning
- The characteristic that separates the two groups is purpose. The concept of “blended value” arises from the notion that value has within it three component parts: economic, social, and environmental. While traditionally people have thought of nonprofits being responsible for social and environmental value and for-profits for economic value; in fact both types of organizations generate all three value sets. The rise of social enterprise, corporate social responsibility, social investing, and sustainable development are all examples of how various actors are pursuing a blend of financial, social, and environmental value.The blended value proposition is drawn from the belief that “value” is inherently whole; hence this school of thought is moving from measuring multiple bottom lines to focusing on a single value sign-blended value-or “total value” creation. More information about Blended Value is available on the Blended Value Map website.
- Non-Profit with Income Generation
- Nonprofit organizations that incorporate some form of revenue generation through commercial means into their operations. Income-generating activities are not conducted as a separate business, but rather are integrated into the organization’s other activities.These activities usually realize little revenue relative to the organization’s overall budget and traditional fundraising contributions.There are two types of income-generating activities, delineated here by purpose:• Cost Recovery (discrete)–a means to recuperate all or a percentage of the costs to deliver a nonprofit service or fund a discrete activity related to the organization’s mission. Special events, conference fees, paid training, and fee-for-service are examples. Cost recovery activities are linked to programs; once a program ends, the related cost recovery activities are terminated.• Earned Income (ongoing)–provides a stream of unrestricted revenue to the organization, generated through activities both related and unrelated to the mission. Membership dues, sales of publications and products, and consulting services are examples. Earned income activities are rooted in operations; they may progress into social enterprises when implementation is accompanied by a business plan.
- Earned Income Activity vs. Social Enterprise
- The National Zoo in Washington DC sells Elephant dung to the public as exotic fertilizer. Although the humorous product is popular among local organic gardeners, the “Zoo Doo” venture is not treated as a business and the income it earns is insignificant. Opportunities to scale Zoo Doo into a viable enterprise by selling the product in nurseries and gardening catalogues, as well as adding other “zoo products” to the line have not been realized. Instead Zoo Doo functions as an innovative public relations and marketing strategy used to attract visitors and patrons to the National Zoo. The small amount of money it generates is considered a plus. Using the same raw material, Zookeepers in Bangkok, Thailand turned their Elephant dung into lucrative business. The Thais transform the animal excrement into high-quality handmade paper which are sold in stationary stores, nature shops, and used in premium paper products in domestic and export markets. The enterprise employs several people who process the organic pulp to produce handmade paper. To keep up with demand, Thai zookeepers source dung from other zoos and elephant habitats.Unlike Zoo Doo, the Elephant dung products are not advertised to consumers as such; rather, socially conscious consumers are sold on organic nature of the product and the fact that proceeds from sales are used to fund zoo activities and animal protection organizations.
3. Triple Bottom Line Philosophy
* Blog Questions
- Describe an activity where you created non-material value.
- What are your product’s bottom lines/metrics for success?
- What is your product’s value proposition?
- Come up with a mantra for your product.