Global Social Business Summit 2013 Follow Up Report

GLOBAL SOCIAL

BUSINESS SUMMIT 2013

FOLLOW UP REPORT

This report will provide a summary of the summit

overall outcomes, the Focus Groups and Plenary

Sessions. We will also share information about the

exhibitors and will give more impressions from the

Global Social Business Summit for all who have

not been able to participate this time.

We are looking forward to welcoming you to the

next Global Social Business Summit, which will

take place from 27th – 28th November 2014 in

Mexico City, Mexico.

Read it with joy!

Your GCL Team

The idea of social business as defined by Nobel

Peace Prize Laureate Professor Muhammad

Yunus is a growing movement globally.

More and more social businesses are created with

the clear focus on solving social problems in a

financially self-sustainable way, addressing social

problems within healthcare, environment,

education, and many other areas.

Under the leadership of Prof. Yunus, Yunus Centre

The Grameen Creative Lab and myHarapan

organized the fifth Global Social Business Summit

from 7th – 9th November 2013 in Kuala Lumpur,

Malaysia.

As an integral part of the summit, several

interactive plenary sessions and 20 different Focus

Groups took place. Representatives of diverse

backgrounds including civil society, students,

young leaders, businesses, academia,

international organizations and the government

came together in order to explore and shape the

idea of social business, share perspectives and

best practices, and develop concrete social

business ideas addressing a variety of social

problems.

// OVERVIEW //

To summarize the outcome of the GSBS 2013 here is an overview of all announcements made in the

plenary:

• Announcement of a RM 20 million social business fund (6,5 Mio USD) in Malaysia by Prime

Minister Mohammad Najib Razak

• Signing of Memorandum of Understanding with the Government of Veracruz and Yunus Social

Business to set up a SB fund of USD 4.5 million in Veracruz

• Signing of Memorandum of Understanding with Fifco and Yunus Social Business to set up a SB

called Nutrivita

• Announcement of the partnership between myclimate and Yunus Social Business to set up a SB fund

for climate related issues

• Announcement of the partnership between The Grameen Creative Lab and the City of Berlin

• Announcement of the partnership between Fairwind and the SB fund Nepal supported by

Chaudhary Group

• Tan Sri Vincent Tan pledged USD 1 Mio to start social business in Malaysia.

• Announcement of Mexico City to host the Global Social Business Summit 2014

// SUMMARY //

Ashraf Ghazi (Chairman Board of Trustees myHarapan), Nurfarini Daing (CEO myHarapan),

Mohammad Najib Razak (Prime Minister Malaysia), Prof. Muhammad Yunus, (Nobel Peace

Prize Laureate), Hans Reitz (Head of Global Social Business Summit)

6,949,521 impressions

3,431,411 people reached

2,674 posts

446 users

From the 4th to the 14th of November, 3,431,411 unique twitter users have been reached by the official

hashtag #GSBS2013. The hashtag has been shared with 6,949,521 users. 2,674 posts have been

shared by 446 twitter users.

To relive the moments from the Global Social Business Summit 2013, you can find video, photo and

graphic summaries on the following websites:

http://www.strikingly.com/gsbs2013

http://storify.com/gsbs2013

// OUTREACH //

Key figures

http://www.strikingly.com/gsbs2013

http://storify.com/gsbs2013

// OUTREACH //

Geographical reach

Key words

// AGENDA //

07 November 2013

09:30-10:30 am Opening Plenary

Welcome address and special welcome to Yunus Centre Delegation by

Nurfarini Daing, CEO Youth Trust Foundation myHarapan and Hans Reitz,

Head of Global Social Business Summit

Keynote by Prof. Muhammad Yunus, Nobel Peace Prize Laureate

10:30-11:30 am Plenary Session I

State of the art of social business: the development and implementation of

social business around the world

Host: Prof. Muhammad Yunus, Nobel Peace Prize Laureate

Dr. Fatima al Balooshi, Minister of Social Development Kingdom of Bahrain

Richard Branson, Founder Virgin Group (virtual address)

Saskia Bruysten, CEO Yunus Social Business

Nurfarini Daing, CEO Youth Trust Foundation myHarapan

Eric Lesueur, Projects Director Veolia Environnement

Rogerio Oliveira, Country Director Yunus Social Business Brazil

Prof. Hiroto Yasuura, Vice Executive President Kyushu Unversity

11:30-01:00 pm Focus Groups

01:00-02:30 pm Lunch Break

02:30-04:00 pm Focus Groups (continuation)

04:00-04:30 pm Energy Break

04:30-06:00 pm Plenary Session II

Co-creation an Collaboration: Partnerships as key drivers for social

business

Host: Aarti Wig, Country Director Yunus Social Business India

Antonio da Conceicao, Minister of Commerce, Industry & Environment East

Timor

Hendrik Heuermann, HR Department H&M Germany

Krish Krishnan, Founder Director and CEO Green Ventures

Hans Reitz, Head of Global Social Business Summit

Erin Pham Steinhauer, Head of Corporate Responsibility Asia Pacific, Centre

Europe, Middle East and Africa Visa Inc.

Imamus Sultan, Managing Director Grameen Kalyan

// AGENDA //

06:00-06:30 pm Closing Session Day 1

Wrap up, Announcements & Launches of new ventures and initiatives

Wrap up by Ron Garan: Perspective from an astronaut on Co-creation and

Knowledge Management

Signing of Memorandum of Understanding with the Government of Veracruz and

video message from the Governor

Announcement of The Grameen Creative Lab’s partnership with the City of Berlin

06:30-08:00 pm Networking Dinner

08 November 2013

09:30-10:00 am Opening by

Prof. Muhammad Yunus, Nobel Peace Prize Laureate: Recap GSBS Day 1

Keynote by Hans Reitz, Head of Global Social Business Summit: History of

5 years GSBS

10:00-11:00 am Plenary Session III

„It‘s the corporation, stupid!“ – Social business as part of the business

strategy

Host: Martin Löffler, Director California Institute for Social Business

Binod Chaudhary, Chairman Chaudhary Group

Dr. Joon Choi, VP Social Enterprise Team SK SUPEX Council

Emmanuel Faber, COO Danone Group

Navroze Godrej, Board of Directors Godrej Group

Prof. Muhammad Yunus, Nobel Peace Prize Laureate

11:00-12:30 pm Pecha Kucha Festival

8 Presentations of new social business ventures, programs or initiatives

12:30-01:30 pm Lunch Break

01:30-03:30 pm Connected Creativity

03:30-04:00 pm Presentation of Social Business Pedia

Host: Ron Garan, NASA Astronaut

Presentation: Prof. Muhammad Yunus and Social Business Pedia team

// AGENDA //

04:00-05:30 pm Plenary Session IV

Social Impact Measurement – Curse of cure for social investment?

Host: Lutfey Siddiqi, Managing Director, Co-Head Foreign Exchange

Asia-Pacific UBS Investment Bank

Sophie Eisenmann, CFO Yunus Social Business

Anshu Gupta, Founder Goonj

Jean-Luc Perron, Managing Director Grameen Crédit Agricole Microfinance

Foundation

Jack Sim, Founder World Toilet Organisation

Ulrich Villis, Global Co-Leader Social Impact Practice The Boston Consulting

Group

Datuk Zabidah Ismail, Managing Director Amanah Ikhtiar Malaysia

05:30-06:00 pm Closing Session Day 2

Keynote by Prof. Muhammad Yunus, Nobel Peace Prize Laureate:

Roadmap towards 2018

Keynote by Dato’ Sri Haji Mohammad Najib Abdul Razak, Prime Minister of

Malaysia: Roadmap for social business in Malaysia

Keynote by Nurfarini Daing, CEO Youth Trust Foundation myHarapan and

Hans Reitz, Head of Global Social Business Summit: Wrap up of GSBS 2013

Roadmap to Global Social Business Summit 2013

Announcement of the Host for the Global Social Business Summit 2014

10:00-03:00 am YY Party

9 November 2013

02:00-04:00 pm Panel discussion: How can culture & arts support social business?

Host: Hans Reitz, Head of Global Social Business Summit

Bernard Goh, Artist Director Hands Percussion

Eddin Khoo, Founder Pusaka

Low Ngai Yuen, Founder Kakiseni

Prof. Muhammad Yunus, Nobel Peace Prize Laureate

// PLENARY SESSIONS //

// The Plenary Sessions are the heart of the Global Social Business Summit.

However, there are not only experts and celebrities discussing topics on stage, at the

Global Social Business Summit every individual sitting in the audience gets involved

through a live-communication tool that allows interactive discussions in small and

large groups and enables to gather input of all individuals independent of the group

size. //


The Global Social Business Summit 2013 attracted 580 participants from more than 40 nations from all

over the world. The diversity among participants with respect to their professional background and

experience in the field of social business was enormous. The great feedback from last year motivated us

to integrate interactive plenary sessions to grasp the vast potential of such a diverse audience. Facing

specific questions in the plenary every individual was able to share his thoughts and ideas with the group

at his table. Each table had a computer to submit the results from those group interactions to our team.

As a result we generated content and questions to be discussed during plenary sessions. On the other

hand we established a database full of ideas, comments and suggestions by all participants of the

summit. In this report we will highlight the main observations.

The first interactive session was used to gather background information about the participants’ motivation

for social business.

1. Why are you interested in social business?

The audience produced 674 responses. The most common answers were the following:

- Change the world by solving social issues

- Eradicate poverty by sustainable business models

- Networking to share expertise and get new ideas

- Empower and inspire (young) people

- Bring social business to Malaysia and Indonesia

- Get inspired by Prof. Muhammad Yunus

Summary

Opening Session

Plenary Session I: State of the art of social business

Moderation Prof. Muhammad Yunus, Nobel Peace Prize Laureate

Speakers Dr. Fatima al Balooshi, Minister of Social Development Bahrain; Saskia Bruysten, CEO

Yunus Social Business; Nurfarini Daing, CEO Youth Trust Foundation myHarapan; Eric

Lesueur, Projects Director Veolia Environment; Rogerio Oliveira, Country Director Yunus

Social Business Brazil; Hans Reitz, Founder The Grameen Creative Lab; Prof. Hiroto

Yasuura, Vice Executive President Kyushu University

Link http://www.youtube.com/watch?v=BaPqZNwgPdg

Summary

The current status of social business all around the world was discussed in this panel. Topics included

the successful KIVA crowd funding campaign for social business, the collaboration with the African

Development Bank to launch social business funds and incubation offices in Tunisia and Uganda as well

the collaboration with USAID to invest into the Haiti social business fund. Bahrain reported from the

development of social business since its first strategy week in 2012, in Brazil nutritional social businesses

are currently under establishment . In Japan, the Yunus & Shiiki Social Business Research Centre that

aims to study, research, and promote social business has made tremendous progress. Insights from

Grameen Veolia Water, The Grameen Creative Lab as wellas the development of an social business

ecosystem in Malaysia have been addressed.

Summary Plenary Session I


http://www.youtube.com/watch?v=BaPqZNwgPdg

Plenary Session II: Co-creation and Collaboration: Partnerships as key drivers for social business

Moderation Aarti Wig, Country Director Yunus Social Business India

Speakers Antonio da Conceicao, Minister of Commerce, Industry & Environment East Timor;

Hendrik Heuermann, HR Department H&M Germany, Krish Krishnan, Founder Director

and CEO Green Ventures; Hans Reitz, Head of Global Social Business Summit; Imamus

Sultan, Managing Director Grameen Kalyan; Erin Pham Steinhauer, Head of Corporate

Responsibility Asia Pacific, Central Europe, Middle East and Africa Visa Inc

Link http://www.youtube.com/watch?v=o9vUBq9jP9M

Summary

The speakers presented the projects that they are currently implementing and talked about their

challenges and experiences in partnerships. A project presented by Hendrik Heuermann was the

cooperation between H&M and The DO school to create a green H&M store concept. Antonio da

Conceição underlined the support of the government of East Timor to create a business environment,

provide technical assistance and establish funding opportunities for social business in East Timor. Erin

Steinhauer shared her experience on building partnerships with public and private sector organizations

on innovative solutions to increase financial inclusion. Krish Krishnan also talked about his efforts to

partner with different entities like the Indian Post in order to establish his renewable energy firm and how

important knowledge sharing is in his function as climate change advisor in Mumbai. Imamus Sultan

shared insights from the joint venture social businesses between Grameen and multinational companies.

Hans Reitz talked about the implications of Social Business Cities resp. Villages, which are public-private

partnership models to create an infrastructure for social business.

Summary Plenary Session II


http://www.youtube.com/watch?v=o9vUBq9jP9M

To share the broad experience from each person in the audience two questions were raised. To analyze

the answers provided we categorized them into different clusters. It turned out that some clusters and

even some ideas repeatedly appeared throughout the catalogue of answers. In order to allow deriving

conclusions and takeaways we, therefore, decided to outline the prevailing ideas in the eight most

prominent clusters. By this approach we touch upon the majority of the most popular ideas.

Summary Plenary Session II

Complementary

expertise Strong commitment

Human, financial, and

intellectual resources Mutual advantages

2.2 What are the key success factors in establishing a partnership?

Trust Alignment of vision Common grounds Transparency


Intense research Similar background in

the field

Effective

communication

through networking

Identify passion of

partner

2.1 How to identify strategic partners?

Trust Shared vision and

common goals

Complementary

capabilities Valuable experience

This year’s overall theme was how to change the world by changing individuals, communities, villages,

cities and countries. During the first day many different aspects have been highlighted and the day closed

with an ambitious challenge to achieve the overall goal of transforming societies through social business.

3. What are key success factors for transforming 1% of the economy of a city, province or country

as social business economy?

6 categories were predefined to pre-order potential answers and to simplify the presentation of results on

stage. Participants formulated key success factors for each of the categories. 523 answers have been

submitted by all participants. The most frequent answers are listed below.

Summary Closing Session

Corporations SME‘s National

Government Municipalities Civil Society Others

Integrate

social

business into

CSR

Partner with

social

business

Create

policies that

support social

business

Create an

entrepreneur-

friendly

environment

Education

campaigns

about social

business

Motivate

people to

become

entrepreneurs

Intrapreneurs

that drive

change within

corporations

Establish

social impact

measurement

Develop tax

incentive

programs for

social

business

Decentralize

public

services to

social

entrepreneurs

Address the

youth to

change

common

mindsets

Collaboration

rather than

competition

Best practices

of joint

ventures

Create public

awareness for

social

business

Foster

education and

funding of

social

business

Use social

business to

tackle

community

issues

Training for

entrepreneurs

Introduce

social

business

philosophy to

all people

Create social

business

funds

Become social

business role

models

Combat

corruption

Foster private

and public

cooperation

Develop

motivation and

awareness

within civil

society

Act now!


Plenary Session III – “It’s the corporation, stupid!” - Social business as part of the business

strategy

Moderation Martin Löffler, Director California Institute for Social Business

Panelists Binod Chaudhary, Chairman Chaudhary Group; Dr. Joon Choi, VP Social Enterprise Team

SK SUPEX Council; Emmanuel Faber, COO Danone Group; Navroze Godrej, Board of

Directors Godrej Group; Prof. Muhammad Yunus, Nobel Peace Prize Laureate

Link http://www.youtube.com/watch?v=RD7CeAW_Ggg

Summary

This plenary session was about designing and implementing social business with corporations. Key

discussion points were how the expertise and the core business of corporations should be involved when

they are interested to engage in social business. Key learning was that a corporation tends to fail with its

engagement if it only involves the periphery of its core business or corporate social responsibility strategy.

The core competencies need to be used to co-create the solutions that technically help to design the

social business. During this plenary session the audience’s opinion towards essential questions related to

the discussion was captured.

Summary Plenary Session III


http://www.youtube.com/watch?v=RD7CeAW_Ggg

4.1 I feel like it is okay if corporations engage in social business in order to solve a social

problem and, at the same time, to increase the company’s shareholder value.

31 % of the participants support that corporations engage in social business not only to solve a social

problem but also to increase the shareholder’s value. 69 % do not accept any exceptions from a solely

social-driven motivation for social business engagement.

4.2 Despite being a non-dividend business, I think that social business has significant power to

support the core business and its strategic goals for those corporations that create one.

Although, the previous question showed 69 % of the participants do not accept a bilateral motivation for

an engagement in social business, almost 91 % of the plenary thinks that a social business significantly

influences the implementation of strategic goals and its core business. Only 9 % think that a social

business has no positive effects on a company’s core business.



4.3 Supposing that social business can generate shared – i.e. social and economic – value for a

corporation, in what business area of a corporation (outside of CSR) do you see the highest

potential.

Around 32 % of the audience sees the greatest increase in value from social business in the area of

marketing, communication and sales (e.g. reputation, brand awareness). Almost the same importance

(29 %) is identified for the research & development department (e.g. purchase behavior, customer

preferences). 23 % are confident that the human resource department benefits from social business

initiatives (e.g. employer attractiveness). However, only 14 % impute a positive effect on procurement &

sourcing (e.g. supply chain).



Plenary Session IV – Social Impact Measurement – Curse or cure for social investment?

Moderation Lutfey Siddiqi, Managing Director, Co-Head Foreign Exchange Asia-Pacific UBS

Investment Bank

Panelists Sophie Eisenmann, CFO Yunus Social Business; Anshu Gupta, Founder Goonj; Jean-

Luc Perron, Managing Director Grameen Crédit Agricole Microfinance Foundation; Jack

Sim, Founder World Toilet Organisation; Ulrich Villis, Global Co-Leader Social Impact

Practice Boston Consulting Group; Datuk Zabidah Ismail, Managing Director Amanah

Ikhtiar Malaysia

Link http://www.youtube.com/watch?v=fMgVZQtUWXM

Summary

The panel on stage represented every part of the social business ecosystem ranging from investors,

entrepreneurs, incubators to researchers. Main discussion point was how social impact can be measured

and what is the best data to convince investors. Key learning was that a rich set of quantitative data and

also qualitative narratives are necessary to fully cover the broad variety of dimensions underlying the

success of social business.

Summary Plenary Session IV


http://www.youtube.com/watch?v=fMgVZQtUWXM

The audience’s opinion underlined these results:

5.1 Social Impact Measurement – Curse or cure for social investment?

5.2 Focus of impact measurement – Quantitative or qualitative?

Summary Plenary Session IV


// FOCUS GROUPS //

// The Focus Groups are topic-oriented breakout sessions. Purpose of the Focus

Groups is to work on challenges and identify opportunities as well as concrete

recommendations related to the topic of the respective session. //

// FOCUS GROUPS//

1) Introduction to Social Business Funds

2) Alternative ways of financing social businesses

3) Microfinance as social business: Examples from Bangladesh, Cambodia and Palestine

5) BEHAVIOR influence approaches: How to overcome non-financial purchase barriers at

the bottom of the pyramid?

6) Transforming not-for-profit models into social businesses

7) Impact measurement and assessment of social businesses

4) Scaling up: How to grow and scale social businesses

8) Nutrients for all: social business models for nutrition-related issues

9) Social business solutions for waste management

10) The new role of academia: Combining social business teaching with incubation services

for local social value creation

11) Reaching and keeping talent: How to recruit and train people for social businesses?

12) Case studies on social businesses delivering healthcare services to underprivileged

communities

13) Experience Dialogue in Silence by DiD Hong Kong Limited

// 1 // INTRODUCTION TO

SOCIAL BUSINESS FUNDS //



Format: Training session

Level: Pilot

Moderator: Saskia Bruysten (CEO Yunus Social Business)

GENERAL INFORMATION

Goal of Focus Group

Start-up funding is still a major challenge for many entrepreneurs. A growing number of social business

funds are emerging, but still there is a great need for further fund sources in many places around the

globe. This focus group presents an overview of existing social business funds and a brief outline of the

fund structures and will further explain the mechanics of setting up a local social business incubator fund.

Participants will also learn about the implementation of incubation services and pipeline management.

Goal of the session is to give the focus group an understanding of:

• How a social business fund operates via the case study of Yunus Social Business

• How to create a social business fund

• How to seed funding alternatives to a social business fund

Session Flow

The session began with a brief introduction by Saskia Bruysten, followed by a background of YSB’s key

activities, such as cross-pollinating proven social business models as well as scouting and nurturing

potentially successful social businesses.

GOAL AND CONTENT



After the introduction, Saskia Bruysten provided a quick overview of the session, where she iterated the

goals of the session. To ensure that all expectations were met, participants were asked to note down, in

groups within their individual tables, what their expectations were. The 20 participants consisted of varied

backgrounds with social business entrepreneurs, private sector leaders, non-profit organizations and

students.

In no particular order, the expectations of the groups can be summarized to the following few: to

understand the technical details of starting a SB fund; to understand the key differences between a SB

fund and a non-SB fund; how to initiate a SB fund and sustain it; how to find SB funds or alternative seed

funding and how to apply for it; general information on SB incubators.

As the format of this focus group was an expert-led presentation, it was for the most part a knowledge

flow from the expert Saskia Bruysten to the participants. The discussion part, however, covered

interesting questions from the audience and a vivid exchange of ideas, experiences and perspectives

was the core of the session.

Focus Group Results

YSB’s activities are to take successful SB models from Bangladesh and scale them in other countries. It

also sources and trains SB entrepreneurs (who pass rigorous assessment) to undergo training and

consulting to become investment-ready. Once ready for investments, YSB then funds them via debt or

equity provided they successfully pass the investment process.

As an organization, YSB has grown from 7 to a 30+ employee organization in a short span of time and

they operate across 7 developing nations with their headquarter in Frankfurt/Germany. There are two

types of contributors to YSB: one is the donor, the other is the social investor.

The donor donates to YSB and receives a charitable receipt in return. He/she expects nothing more from

the money invested. On the other hand, a social investor lends his money to YSB and expects the

principal to be repaid over time. In either case, the donor/investor may choose to either contribute to

YSB’s global umbrella corporation, or directly to YSB’s country initiative.

A 6% management fee is deducted from the incoming cash flow as a means to ensure operating costs of

YSB are covered. From experience, and differing from country to country, the average annual operating

costs of a YSB are EUR400-500k. Given the costs in relation to the 6% management fee, YSB funds

typically need to be about EUR 8-15 mil in order to sustain operations. Aside from the management fee,

the only other revenue stream for YSB is the interest made from its loans. However, this revenue is kept

aside for risk adjustment purposes.

GOAL AND CONTENT



After screening potential SB candidates to invest in, YSB performs the following stringent checks before

releasing funds - a due diligence check > SB’s business plan is scrutinized > review committee looks

through plan and interviews the entrepreneur > entrepreneur assuages all raised YSB concerns > YSB

negotiates terms of contract > a separate YSB committee not previously involved reviews the entire

application > if this committee approves, the funds are then released. The SB will then either be built or

expanded.

To manage their portfolio and feedback to their investors, YSB requires their borrowers to produce

monthly, quarterly and annual reports with different degrees of detail for each, covering both financial and

social KPIs. Although YSB strives for diligent reporting, it recognizes the need for moderation in order to

avoid an overload of paperwork for the SBs. With this in mind, they have also produced an automated

fund management and reporting tool with SAP to ease the process.

Some of the key questions asked during the discussion part were as follows:

What specific criteria do you look for in a YSB fund application?

After receiving the concept paper from the applicant, we ask for a business model/plan and assess with

the same rigor as a normal commercial investment fund. The only difference is that we take into account

social impact as well as business viability. We ask many difficult questions, including interviewing their

peers and persons in their community.

What are the key challenges faced in raising funds?

The key challenge is that SB falls neither in the charity nor commercial business category. As such, few

organizations have funds allocated to SBs. If it is a philanthropic fund, they question why YSB invests in

the business. If it is a commercial fund, they question why there is no ROI.

What is the difference between impact investing and SB investing?

The key difference is the expectation of ROI, whereby impact investors expect one and SB investors do

not. On a personal level, the moderator believes that SB investing avoids the possible issue of mission

drift that may be faced by impact investors. She feels that there may be cases in impact investing where

social impact is traded off for additional ROI.

How would we go about setting up a YSB fund in Asia?

Firstly, you do not have to do it with the support of YSB. You are completely welcome to set it up yourself

by your own means. If you do not set it up together with us, we are happy to provide you with the

necessary material. However, the priority we would put on this is secondary to our core business

objectives. If you do decide to establish the fund in partnership with us, we will then require an anchor

investment that will allow us to bridge the initial gap to raise the necessary capital to offset operating

costs.

GOAL AND CONTENT



How do you determine the fund size required to operate in a new country?

First, we analyze the local costs of establishing in the country. As operating costs vary between countries,

it is not always a fixed fund size. After we have identified the operating cost together with some other

projections, we use the data to calculate the required fund size.

How many SBs are community driven or individual driven?

We have not done any specific analysis on this, but going by personal judgment, it seems equal between

corporate, NGOs or individual driven. Also, it is my observation that even if an SB arises out of a

community-driven issue, it eventually has to be run by a single or group of key individuals rather than the

whole community.

What is the ratio between the debt vs. equity you issue to YSB applicants?

For the simple fact that debt structures clearly outline a fixed payment structure, we have been issuing

mostly debt financing. The most we would invest in equity is up to 20%. However, as time goes by, we

are experimenting with different types of debt, equity and quasi-debt/equity instruments.

As the YSB borrowers are charged interest just like a regular bank loan, how is a YSB loan any

different form a conventional bank loan?

Firstly, the interest charged by YSB is significantly lower than what the borrower would be able to get

from a conventional bank. Secondly, YSB takes up loan applicants which would usually be rejected by

conventional banks as they do not consider social impact value. Thirdly, we offer advisory services and

take a proactive effort in ensuring the success of each YSB borrower.

What is the average loan size amount?

200,000 – 300,000 USD

Why is an interest rate charged?

Firstly, to maintain the overall size of the fund. Secondly, to be kept for risk adjustment purposes.

Do you share the information that you have gathered through your experience in YSB online?

Although this is definitely something we would like to pursue, at present we have not had the resources

to sit down, compile and do so.

Are the YSB loans applicable only to aspiring social businesses? What if I have an existing

successful social business and I am looking to expand to other countries, would I be eligible for

YSB funding?

Yes, most definitely. We are always looking to help grow, scale and replicate successful SB models.

GOAL AND CONTENT



Do you require applicants to be gathered in a physical incubation space?

No. Unlike a tech incubator where a techpreneur requires only a computer and an internet connect, social

business entrepreneurs are out on the field in remote grass root locations. So what makes sense for a

tech incubator does not necessarily apply to social business. However, we are still experimenting. We are

now trying out a physical incubation space in Albania. But it is important to note that Albania is a small

country just 4 hours across.

Does YSB fund SBs outside of their current operating countries? If not, what funding alternatives

can I seek?

No, YSB does not fund SBs outside of our current operation bases. However, there are many alternatives

to seek. You can look at crowd funding, conventional banks (which are increasingly interested in social

impact), high net worth individuals, impact funds, business angels, etc.

Are there other funds out there similar to YSB?

Yes, there are a few companies that invest in social business. For example, Danone has a 80 million

Euro fund, where 10% of the money is invested in SBs. But, the SB has to be related to Danone’s key

interest areas - fields in which they have knowledge. Another example is Grameen Agricole (a French

bank), they have funds allocated to microfinance and social business projects. They have a fund with a

legal structure in Luxembourg which invests only in SBs which are co-created or co-invested by other

corporations. They do not invest on the grass root level. There are also impact funds such as LGT

Ventures, Acumen Fund, Avishkaar and so on.

What level of SB funds needs to be generated in order to completely eradicate poverty?

At this point, we would not know. However, as an organizational goal, we believe in making 1% of the

world’s GDP come from social business. We believe that once that yardstick has been achieved, the

presence and impact of social business will be clearly evident and acknowledged.

Apart from the reporting requirements, how do you ensure the SBs stay on track?

Certain baseline requirements of running a business are automatically solved by ensuring they keep to

their reporting. Other than that, we have an equity stake, thus we have some degree of control in

managing the SBs commitment.

Does YSB share their knowledge on SB issues?

We have just published a report with BCG on issues faced by Bangladeshi SBs. For other countries, the

issues are in our heads, but we have yet to put pen to paper.

GOAL AND CONTENT

// 2 // ALTERNATIVE WAYS OF

FINANCING SOCIAL

BUSINESSES //


FINANCING SOCIAL

BUSINESSES //

Format: Workshop

Level: Pilot

Moderators: Jean-Luc Perron (Managing Director Grameen Credit Agricole

Microfinance Foundation), Emmanuel Marchant (General Manager

danone.communities)

GENERAL INFORMATION

Goal of Focus Group

Beyond Social Business Funds, how can social businesses get funding they need for growth? Can a

social stock market or social bonds be developed? Is crowd funding the future? Can governments,

development agencies and large corporations encourage third-party investments through credit

guarantees or purchasing guarantees? This focus group will do a review on last year’s key findings and

participants are held to brainstorm and discuss on innovative ways of funding.

Session Flow

The first part of session started with a presentation about ways to fund social business and resulted in a

Q&A round where participants were held to share and discuss open points and different perspectives.

Focus Group Results

The workshop focused on the social stock market, social impact bonds, and crowd funding.

Social stock exchange is a concept that is similar to a classical stock exchange. Muhammad Yunus

stated that “to connect investors with social businesses, we will need to create a social stock market

where only shares of social businesses will be traded.”

GOAL AND CONTENT


FINANCING SOCIAL

BUSINESSES //

According to a JP Morgan report, $8bn have been invested in social finance in 2012. The report also

estimated a planned investment sum of $9 billion in 2013. It also predicted the market opportunity in the

next decade would range from $200-$650 billion. Jean-Luc Perron mentioned that he was not believing

in these predictions as JP Morgan mixed up social business and impact investing.

A social stock market is supposed to be a platform where social-oriented investors buy and sell stocks

and bonds of companies that have strong economic and social returns. The operation is similar to the

classical listing, trading and settlement of shares, bonds, and other financial instruments. The social stock

exchange is supposed to be a designated place for social business to raise social capital and a trusted

place for impact investors to identify and assess investment opportunities. The major difference between

a stock exchange and a social stock exchange is that companies listed in social stock exchanges must

demonstrate their social and/ or environmental returns, in addition to their traditional financial reporting.

In June 2013 the London Social Stock Exchange was launched. It is a UK-based online portal aiming at

connecting social-oriented investors with companies making a positive social impact. But the London

Social Stock Exchange is not a real stock exchange as it does not provide a trading platform. Investors

interested in a given social business have to get in touch with the company for making a transaction. On

the other hand, the Canadian SVX launched in September 2013, is a stock exchange that directly

connects social ventures with investors as it engages in capital market activities (registered as a

restricted dealer with the Ontario Securities Commission).

Secondly, Social Impact Bonds (SIBs) are a new concept which has been experienced in UK, the US and

Australia as an innovative way to provide long term funding to projects aimed at solving social problems.

The 1st SIB was launched by Social Finance in 2010: Peterborough Prison in UK. SIBs are a way to

attract private investors willing to support an impact partnership aimed at solving a social problem, like

recidivism, homelessness or youth services. The same approach has been proposed in the context of

developing countries under the name of Development Impact Bonds (DIBs). Based on an “impact

partnership”, DIBs are a shared platform for governments, donors, investors, firms and civil society to

work together, in view of the same measurable objective. Precise metrics about the social impact and a

verification process by a third party are key, as they will trigger the repayment of the bonds to the private

investors. It could be regarded as a pioneer approach to provide effective and cost-efficient solutions to

social problems, but they are still in an experimental phase.

GOAL AND CONTENT


FINANCING SOCIAL

BUSINESSES //

Lastly, crowd funding is the collective effort by a group of people who network and pool their money

together, usually via the Internet, in order to invest in and support the projects or even companies started

by other people or organizations. The word ‘crowd funding’ was started in the US with the platform

“ArtistShare” in 2001. This methodology of fundraising is quickly spreading around the globe as it is used

to finance projects in several different fields.

Several kinds of funding was provided under crowd funding such as donations, loans and equity

investments. Generally, the donations are made to finance projects without expecting financial return.

Most of the projects would be artistic projects. KissKissBankBank established in 2010, is a crowd funding

platform which helps to raise funds to realize ideas and projects.

On the other side, loans (repaid with or without interest rate) to individuals or SMEs are widely used for

financing microcredits, social business and other types of organizations of solidarity economy. Babyloan

established in 2009, which is the 1st European peer-to-peer microcredit website, provides micro loans in

16 countries. Babyloan presents different microcredit projects run by individuals located in developing

countries and supported by local microfinance institutions (MFIs). Another example of a loan platform is

Kiva (USA). It was established in 2006 and regarded as the largest worldwide crowd funding platform for

microcredit. Kiva offers a wide range of microcredit to be funded all around the world. Every lender has

an account on the website to handle money and to follow the projects presented on the platform.

Equity investment is a capital investment in SME through a crowd funding platform that connects

investors and investees. Moreover, it should depend on the policy of the company that might be possible

to receive financial return such as dividends.

Currently, the European Commission is studying the possibility to regulate crowd funding as it is

becoming more and more common as a way to finance projects in different sectors. France is also

preparing a draft legislation to facilitate the development of crowd funding.

GOAL AND CONTENT

// 3 // MICROFINANCE AS

SOCIAL BUSINESS:

EXAMPLES FROM

BANGLADESH, CAMBODIA

AND PALESTINE //


SOCIAL BUSINESS //

Format: Case Studies

Level: Start-up

Moderators: Jürgen Hammer (Chief Investment Officer Grameen Crédit Agricole),

Muhammad Shahjahan (Acting Managing Director Grameen Bank),

Prof. Latifee (MD Grameen Trust)

GENERAL INFORMATION

Goal of Focus Group

Astonished of how much can be achieved with a small amount of money, Prof. Yunus developed the

concept at the core of Grameen Bank: banking without collateral for the poorest of the poor. The Nobel

Peace Prize was awarded jointly to Prof. Yunus and Grameen Bank in 2006 for their efforts to create

economic and social development from below. This Focus Group enabled participants to understand how

Grameen microcredit works and how it was replicated in many countries all over the world. It also

demonstrated in practical examples how microfinance institutions develop their business model as a

social business.

Session Flow

A total of four case studies was presented followed by Q&A rounds where participants could get an in-

depth understanding of how each MFI works.

GOAL AND CONTENT


SOCIAL BUSINESS //

Case study Grameen Bank

Speaker: Mr. Shahjahan, Acting Managing Director of Grameen Bank

To understand microfinance, one must understand the roots in the work of Grameen Bank. Microfinance

derived from the principle to alleviate the poor out of poverty through small loans for income generation

(e.g. craft making, agriculture, etc). Grameen Bank is known as the bank to the poor because they give

out credits to people who are not considered credit worthy by conventional banks and are mostly not able

to fill out paperwork due to illiteracy. It gives the poor access to credits based on practical terms as loans

and weekly installment payment are negotiable according to the client’s condition. Every month, $130

millions are disbursed to 8.5 million borrowers, with a high repayment rate of 97.5%. A variety of loans

has been created in the past 31 years to respond to other demands.

Micro-entrepreneur loan: dedicated to individuals who possess strong ability in entrepreneurship.

Borrowers can borrow to the extend of $100,000.

Higher education loan: as to date, $14 million were disbursed for the children of borrowers to higher

education. During the course of study, no interest rate is applied. Loans are paid back after graduating at

a rate of 5%.

Young entrepreneurs’ loan: devoted to higher educated individuals such as doctors and engineers to run

clinics or workshops for the poor.

Struggling member loan: focuses on small loans to the beggars with no interest rate, long repayment

period and free cost of life insurances. The borrowers are not halted from begging, but are also

empowered by Grameen Bank to start making small trading. As to date, about 100,000 beggars are

involved under this loan.

Other than providing loans to the needy, Grameen Bank created 4 types of saving accounts:

Personal saving account: weekly minimum amount depending on the loan issued and withdrawals are

not subject to limited amount and time.

Special saving account: the account receives 2.5% of the loan value and may be withdrawn after 3 years,

subject to a minimum balance of $30.

Grameen Pension Scheme: Depositor pays a fixed sum per month up to 10 years, after which principle

and interest of 12% are released.

GOAL AND CONTENT


SOCIAL BUSINESS //

Credit life insurance saving fund: this scheme was created on the religious belief that borrowers will head

to hell if debt not paid during their life span and after death. At the event of borrower’s death, principle

from the saving fund is returned to the successor without interest as the interest is used to repay the

loans. With the assurance of debt free after death, the poor are now willing to take bigger loan that will

exhilarate the pace of economic growth of the household, ultimately out of poverty line.

Mr. Shahjahan concluded that Grameen Bank is a perfect example of a social business type II. The

products and services provided by Grameen Bank address the needs of the poorest of the poor and are

not an alternation to make profit. Ownership structure of the bank itself is comprised of the poor, hence

any profits made are distributed in the form of dividends to the poor borrowers. From the year 2006-

2012, there have been a consistency of 30% dividends dispersed back to the owners. The cycling

process of profit distribution created a sustainable model for Grameen Bank to flourish and to generate

economic and social development.

Question: Why does Grameen Bank only operate in rural areas, not in the city where many households

live below the poverty line?

Answer: At the time of establishment, the bank was born under an ordinance stated by the government

to serve the poorest of poor only in the rural areas. This led Grameen Bank to set its path in rural areas,

abiding the law that prohibits working in city. Subsequently, Grameen Bank aims to reach to every corner

of rural villages.

Case study Grameen Trust

Speaker: Prof. Latifee (Managing Director Grameen Trust)

Grameen Trust (GT) is an independent, non-profit organization responsible for spreading the core values

of Grameen Bank outside Bangladesh. It supports, promotes and implements poverty-focused

microfinance, social business and other programs with more than 150 organizations in over 40 countries.

Training and technical assistance to microfinance organizations and social business initiatives are also

provided. Key activities of GT include the Grameen Bank Replication Program; Directly Implemented

Programs, Joint Collaborations and Social Business Initiatives.

The creation of microfinance was based on the principle to provide access to credit for the poor. Latifee

quoted from Prof Yunus, “If you have access to credit, you have the power to everything.” The liberation

of having access to credit empowers, for example, through creating employment opportunities. With this

determination to solve a social problem, microfinance in essence is social business.

GOAL AND CONTENT


SOCIAL BUSINESS //

However, there are MFIs trying to exploit the poor by focusing on profit maximization. For example, in

recent years the MFIs in South India have been misled by profit makers and venture capitalists. Such

cases violate the first principle of social business which is to solve human problems.

The financial and economic sustainability of a social business is important. In many cases, sustainability

cannot be achieved within a year or two. A sound and well-developed business plan is needed to pay

back the investors their investment money from net profit. The remaining profit is retained inside

company for further expansion and improvement.

Prof. Latifee ended his presentation with a strong belief that social business will capture the attention of

the world in a short period of time, just as how the notion of microfinance gained its popularity over the

years.

Question: What’s the difference between the infrastructure of Grameen Trust (GT) and Grameen Bank

(GB)?

Answer: GB is a bank and its operation focuses on providing small loans to the poor in rural areas of

Bangladesh. GT is a global program initiated by Prof. Yunus to reach out to organizations who are

interested in following the steps of the Grameen microfinance model internationally. For example,

Grameen Crédit Agricole Microfinance Foundation is the result of a partnership between one of the

leading banks in Europe, Credit Agricole SA, and the GT. Today the Foundation supports 40 MFIs

worldwide that have direct social benefits and are accessible by the poor.

Case study Chamroeun/Cambodia

Speaker: Sophea Suon, CEO Chamroeun

Chamroeun is Khmer and means “progress”. In 2006, Entrepreneurs du Monde created Chamroeun as a

NGO program to provide loans, savings and micro-insurance services to the poor in Phnom Penh. In

2009, as borrowing increased, Chamroeun transformed its status towards PLC to adhere to regulation

requirements. A certificate of registration as Credit Operator was obtained from the National Bank of

Cambodia. In August 2011, Chamroeun was granted as a Licensed Microfinance Institution.

Targeted population:

Primary objective of Chamroeun is to create strong positive impact on the living conditions of poor

households, particularly micro entrepreneurs such as small market stallholders, ambulant vendors and

other small scale activities which comprise over 85% of Chamroeun’s clients/partners.

GOAL AND CONTENT


SOCIAL BUSINESS //

Key Financial Figures:

The indicators in the table show that Chamroeun has grown tremendously over the last year. There is an

increase of 65.7% in partners, 29.6% in active borrowers and 32.8% in loan portfolio. However, the

portfolio at risk has risen from 0.05% to 0.12% due to uncertainty derived after a political deadlock in

Cambodia as well as natural disasters such as floods.

Key Social Figures:

Apart from providing loans, savings and micro-insurance services to the poor, Chamroeun offers

business and skills trainings for micro entrepreneurs to unlock potentials of their businesses.

Subsequently, they found out that financial trainings alone are not sufficient for the clients/partners. This

led Chamroeun to offer social training and social counseling to solve the root cause of a destructed

society. As seen from the table, there is a robust growth in business and social trainings beginning, which

almost quadrupled from the year 2008 to 2011.

Chamroeun is run as a social business. This means that focus is on maximization of social impact,

dividends are not distributed, additional profit is reinvested and there is progressively a reduction in the

interest rate charged on client each year since 2010. Moreover, a Special Performance Management

Committee was set up to protect the institution’s social mission while maintaining its financial

sustainability.

Chamroeun provides very small and flexible loan terms to micro entrepreneurs. The average loan size is

125 USD for business start-ups. There are 40 offices nationwide to reduce client’s transportation cost and

time. Products are tailored to fit the business needs and characteristics. For example, micro insurances

can go as low as 6 USD per year. It also provides a wide range of non-financial services such as financial

literacy and business training, social training, skill training, FOC social and business counseling.

GOAL AND CONTENT

Indicators 2012 2013-9

Number of offices 35 40

Personnel 213 328

Number of loan officers 102 165

Partners 56,783 94,139

Active of borrowers 41,480 53,769

Loan Portfolio $5,073,467 $6,737,663

Number of loan disbursed 58,551 46,922

Portfolio at Risk + 30days 0.05% 0.12%

Operation Support System 104% 107%


SOCIAL BUSINESS //

Chamroeun Foundation Association (CFA) was established to implement charity activities such as

scholarships to partners/client’s children and responding to disaster from the profit of Chamroeun

microfinance activities.

Both financial and social ratings are mandatory to update every 2 years. Chamroeun also started a Social

Performance Task Force. In Cambodia, Chamroeun is one of 10 MFI to allow the certification of client

protection. Social Performance Index (SPI) Benchmark acts as auditor to measure the performance of a

social business. According to SPI Benchmark Chamroeun over-performed other organizations in 3 major

areas- targeting/outreach, social responsibility and benefit to clients.

Question: How does Chamroeun handle the costs of administration and staff with regards to the training

and counseling services offered?

Answer: The costs for trainings and counseling services are sustained under the balance sheet of the

organization. Chamroeun is able to sustain its business activities while staying committed to its social

cause.

Question: What are the initiatives offered to students as a MFI?

Answer: Chamroeun Foundation works closely with other NGOs that meet the needs of poor students,

such as providing scholarships and capital for young entrepreneurs to start a business.

Question: A researcher from University Technology Mara, Malaysia found out that a domestic dispute will

lead to a spiral affect to one individual’s life, consequently leading to a failure in business. How does

Chamroeun’s business counseling overcome this issue?

Answer: Business counseling is a big challenge faced by Chamroeun, as the counseling staff are young

graduates from university who lack experience to handle complicated business problems. When the

problems become too overwhelming, they seek assistance from relevant NGOs that offer professional

services.

GOAL AND CONTENT


SOCIAL BUSINESS //

Case study ACAD/Palestine

Speaker: Jürgen Hammer (Chief Investment Officer Grameen Crédit Agricole)

ACAD started its lending activities in 1988 as a NGO. In 2013, ACAD went to a transformation into a for-

profit Limited Liability Company (LLC), ACAD for Finance and Development. ACAD has a strong desire to

maintain its fundamental positioning and philosophy in social causes. They seek assistance with

Grameen Crédit Agricole and few major investors located in Europe to define together the new business

concept for the transformation of a NGO to a social business MFI. Defining a LLC into social business

needs is challenging, particularly in terms of profitability. The concept is very young and there are no case

studies in the world available yet for them to duplicate. Hence, they sit together to design a new Social

Business Charter Structure and Methodology that meets the needs of ACAD transformation.

The existence of Social Business Charter Structure is necessary for a company, as it represents a

fundamental statutory documentation of the organization, which future shareholders must adhere. There

are 7 principles listed in the charter, alongside 1 to 3 commitments per principle. The principles are based

on Prof. Yunus’ Seven Principles of Social Business. Each and every principle must be explicit and

transparent with all partners involved in order to allow the application of the principles to have effect into

business activities. The commitments are the translation of the principles into concrete, measurable

engagements adaptable to ACAD business structure, to which GCAMF and the partner MFI agreed

upon. To ensure commitments are met, precise indicators from a standardized and widely used dataset

are practiced for benchmarking. Indicators are to be measured and analyzed on a regular basis.

Jürgen concluded that a longer discussion is needed to fully develop an understanding of this topic. The

Social Business Charter is a set of framework that is very detailed in the beginning stage, as it can be a

vital tool during strategy planning. He added that an absence of detailed set of targets in the beginning

stage can lead to a tremendous damage to the firm’s future economic and social sustainability, as seen

on the examples during 2008/09 global financial crisis. Jürgen puts much faith in the Social Business

Charter for a MFI to be appreciated as a standardization of tools to reduce the burden of the organization

planning, while fulfilling their main task to be socially active for the needy.

GOAL AND CONTENT

// 4 // SCALING UP: HOW TO

GROW AND SCALE SOCIAL

BUSINESSES //



BUSINESSES //

Format: Training Session

Level: Pilot

Moderators: Ellynita Lamin (Executive Director Social Enterprise Alliance Malaysia),

Md. Ashraful Hassan (MD Grameen Fabrics and Fashions)

GENERAL INFORMATION

Goal of Focus Group

The focus group aimed at providing the participants with the knowledge foundation of scaling a social

business. Several examples of successfully scaled up social businesses were presented as well as the

lessons learned on the way. It also allowed for participants to exchange their experiences and to explore

potential steps to scale specific business models proposed by participants of the session.

Session Flow

The focus of the training session was not to have a theoretical discussion but a real world scaling

experiences from social businesses.

The session started by sharing the participants’ expectations, including the precaution to scale, the

technical and theoretical tools to scale, the internal articulation of vision, and the barriers to scale such as

environmental concern, human resources, and competition management.

Both moderators shared their experiences by presenting case studies or recommendations from social

entrepreneurs.

Finally participants worked on recommendations for the scaling mechanism for 3 Grameen social

businesses.

GOAL AND CONTENT



BUSINESSES //

Definition of scale:

There are different stages for scaling, usually started with an idea, followed by R&D and a proof-of-

concept pilot. When the idea is proven, the organization has to understand the “limited expansion”, i.e.

look internally what areas have to be changed in order to scale. The final stage is “outward” where the

business is scale demographically, geographically, etc.

A very important question to ask when scaling is “what stage are we at?” Every stage has its scalability

roadmap and limitation. For instance, it is not reasonable to go global during the seed phase. It is also

crucial to understand whether the scaling is going broad or going deep.

Key recommendations from social businesses from 11 countries:

Spend bulk of money on talent in order to have capable and strong personnel to take the business to

another stage

Setting up a system is more important than getting funding. This has loud echo from Indonesia. If

there is no Standard Operating Procedure in place, having money can bring the business to nowhere

Social businesses should always listen to customer and community needs. Sometimes we assume

their needs and bring the wrong solution.

Ride one horse at a time: social entrepreneurs are passionate and sometimes want to solve a lot of

problems but we need a clear focus to scale our impact.

Social entrepreneurs have to be selective to projects and kill the unhealthy baby such as projects that

is non-revenue generating. If the unhealthy baby brings marketing value, think of other ways to achieve

the same goal using fewer resources.

When the social business decided to scale, the leader should manage the team expectation due to the

limited resources by dividing the estimate growth by 2.

After going through the basics of scaling, Md. Ashraful Hassan who is leading 4 Grameen companies –

Grameen Telecom, Grameen Knitwear Ltd., Grameen Distribution Ltd., and Grameen Fabrics & Fashions

Ltd. presented 3 scaling cases, namely Grameen Fabrics & Fashions Ltd., Grameen Babylon, and

Grameen Distribution Ltd. These social businesses were selected because all were started with less

amount of money and investment increased gradually. For example Grameen Fabrics & Fashions

started with only 1 million USD and grew to 60 million USD.

GOAL AND CONTENT



BUSINESSES //

Grameen Fabrics & Fashions Ltd.

Grameen Fabrics & Fashions Ltd. started in 2009 and is active in the textile-based health-conscious

product industry. With an 8-year payback period, the objective is to establish the largest social business

in Bangladesh. It started to manufacture the chemical-treated mosquito net to prevent diseases like

Malaria and Dengue. This is a product of BASF Grameen Ltd. which is a joint venture of BASF SE

(German chemical company) and Grameen Healthcare Trust. The initial production capacity of treated

mosquito net was 25,000 per month and now increased to 75,000 per month. The goal is to increase the

production capacity to 225,000 per month by 2017.

However, since the design from the German company is different from the traditional ones, there is

acceptance issue among the communities so they have been communicating with BASF SE to review

the design. The growth is limited since the demand fell short of the production capacity so the company

had to create demand through education. In addition, the lack of utility like electricity has been slowing

down the set up of dying unit and thus the expansion of the project. The project also requires a large

amount of finance so the company is now looking for partnership with banks.

Grameen Babylon

Grameen Babylon sells low cost sanitary napkins. Due to lack of awareness or lack of income, ladies in

rural Bangladesh do not use sanitary napkin. They might only use some cloths which is leading to

hygiene issues. The market price of a piece of sanitary napkin is almost 10 euro cent which is

unaffordable to the poor. Grameen Babylon set up a factory to produce the napkin selling at 3 euro cent

and will bring it down to 2 euro cent. The current production capacity is 700 pieces per day and will go up

to 7,000 pieces per day. They are selling 10 pieces in one pack. Some take credit and some give cash so

Grameen Babylon adapts.

Grameen Distribution Ltd.

No matter what is being produced by Grameen companies, it has to be delivered to the target group.

Grameen Distribution started as the distributor of Nokia in Bangladesh in 2009. Then they started a pilot

project by distributing basic commodities along with few other items in 2011. Therefore, Grameen

Distribution employed saleswoman from rural areas to sell products from door to door. Within 8 months,

there were 300 sales people.

These ladies receive products with guaranteed quality and expected price from Grameen Distribution

without establishment cost. People in the rural areas do not have good information about products so

they usually go for the cheapest product but they often suffer from low quality.

GOAL AND CONTENT



BUSINESSES //

Since the pilot was successful, they are now distributing telecoms, renewable energy products, lamps,

etc. In 2012, there were 5,000 rural salesladies. As of today, there are 9,108 salespeople self-employed

by associating with the project. Grameen Distribution is confident in hitting the goal of reaching out to

10,000 salespeople in 2013.

The key challenges of Grameen Distribution are that the demand of customers differs from one region to

another and sometimes the customers are tied up with the local brands which are not interested in selling

in this channel. The sales force's capacity was weak so they had to be trained. Also due to religious

reason, there have been salesladies dropping out.

Question: How do you register a social business in Bangladesh?

Answer: In Bangladesh social business is a company, which can have 3 forms – partnership,

proprietorship and limited. It has to be registered under the company act. The only difference from

mainstream businesses is that social business gives no dividend after equity return.

Question: What is the HR mechanism to manage 20,000 saleswomen?

Answer: When the company started, there were 300 saleswomen in 6 months. Through word of mouth

and the ladies seeing how others earned money, the women came for their own benefit.

Question: What are the rules that the salesladies have to follow?

Answer: There is only one rule – no territory crossing, which is hard to follow. Since every product has its

designated price range in a particular region – richer area pays higher price. If a saleslady crosses the

territory and sells at a lower price to another territory, it is hurting the market.

Question: How to measure the social impact of Grameen Distribution?

Answer: 5 salesladies are in one group and 1 chairman manages the other 4. The model is similar to

Grameen Bank. The impact measurement lies in the amount of products taken by the group.

GOAL AND CONTENT



BUSINESSES //

5Rs in scalability – readiness, receptivity, resources, risk and returns:

Distribution channel and financial are under the consideration of resources. To evaluate the risk, social

business has to estimate how bad the business can turn out if the scaling is not implemented well. Last

but not least, the social business has to acknowledge the bottom-line regarding to the financial

sustainability.

Barriers to scale are mainly opportunity cost and capacity gaps. Strategic and operation misalignment

happens when the team is not able to support the growth. It is also related to the investment of

corporates where the investor’s expectations like corporate visibility and PR KPI have to be addressed.

The risk of premature scaling is the lack of market. In the case of the Grameen mosquito nets, the

product was on the news so it got very hot and the company produced a lot. Yet, when the hype died out,

the demand could not satisfy the supply. The learning of this case is the importance of market study and

flexibility in changing the strategy early enough to adapt to the market.

There are 3 scaling models – self, replication and collaboration:

Self implies a large-scale expansion implementation in delivery, distribution, production and market.

To replicate, the social business can choose the models between wholly owned, affiliation and

dissemination. The example of wholly owned is Bodyshop (before got bought over) which has tight

control. Wholly owned is preferred if revenue is potentially high and receptivity is low. SpringVision, a

franchise of eye care kits in India, is an example of affiliation. Other affiliation models are joint ventures,

partnership, licensing, etc. For dissemination, National Cancer Society is one of the examples, which has

loose control of the open source platform of information. It is preferred if the revenue is low and when you

are educating and promoting the brand.

To collaborate, it is either a network approach or partnership. The synergy between Grameen Babylon

and Grameen Distribution is the example of network. The key questions before leveraging with existing

systems are whether they fit with what the social business is doing and how to retain control so the value

proposition is shared.

GOAL AND CONTENT



BUSINESSES //

Group exercise

In a 20 minute exercise participants brainstormed around the building blocks of the scaling mechanism of

the 3 Grameen companies – mission, big idea, impact, behavior mapping, interventions, route to scale,

and revenue model. The 18 participants were separated into 3 groups to work on Grameen Babylon,

Grameen Fabrics & Fashions Ltd. and Grameen Distribution Ltd.

Results of group exercise

Grameen Babylon

The mission of Grameen Babylon is to improve productivity, health and dignity at the bottom of the

pyramid. There were innovative channels to provide affordable sanitary napkin such as multi-level

marketing, peer group and self-serve kiosk to reduce inhibitions. The impact is reducing the lost

workdays and providing preventive health care. The behavioral change involved switching from traditional

to modern substitute and from zero cost to positive cost. The team believed the intervention should

include key influencers in the rural areas such as mothers and peers. The route to scale started with

generating awareness through PHCs, health care workers and schools and then providing free sample to

incentivize regular purchase. Possible revenue models included cross-sell sampling, sales through PHC

staff, celebrity endorsement and bundling sale.


The mission of Grameen Fabrics & Fashions Ltd. is making effective mosquito nets to reduce malaria

and dengue by creating chemical mosquito net. To stimulate the purchase behavior, the company can

start with creating awareness of the net, the disease, the benefits of using the net and how it leads to

better quality of life. The route to scale involves giving free samples, appointing a spokesperson,

rebranding, and getting support from ministry of health.

Grameen Distribution Ltd.

The mission of Grameen Distribution Ltd. is making women economically aware and providing a fair

access to markets or consumer goods. The impact is financial empowerment. The interventions

brainstormed are door-to-door retail network, financial management training for distributors, distributing

freebies to capture buy-in, accepting pre-orders and personal saving groups.

GOAL AND CONTENT

// 5 // BEHAVIOR INFLUENCE

APPROACHES: HOW TO

OVERCOME NON-FINANCIAL

PURCHASE BARRIERS AT

THE BOTTOM OF THE

PYRAMID (BOP)? //


APPROACHES//


Level: Pilot

Moderators: Dr. Faiz Shah (Director, Yunus Center at AIT, Thailand), Christopher

Eldridge (Visiting Adviser, Yunus Center at AIT, Thailand)

GENERAL INFORMATION

Goal of Focus Group

To introduce some guidelines for using ‘behavior influence methods’ to help make communications more

effective at the Bottom of the Pyramid, and among key stakeholders.

1. Introduction

Chris Eldridge asked participants to reflect on the past 30-50 years and describe any significant shifts

that have taken place in their countries during this time.

Participants mentioned, for example, that in Bangladesh there was the struggle for independence; in

Nepal, the overthrow of monarchy; in the Philippines the move from dictatorship to diplomacy; in France,

the large-scale switch to the service sector; in Thailand, infrastructural growth and increasing political

awareness; in Malaysia, the challenge of moving from an agrarian to a manufacturing economy; and in

Pakistan civil unrest and internal conflict.

Chris remarked that whenever people of various backgrounds are asked, in a variety of contexts, to

mention significant changes in their country’s recent history, two linked changes are almost never

mentioned; they were also not mentioned in this introductory exercise. These linked changes were

summarized in his presentation:

The environment of influence

Development involves changes of various kinds. Two linked changes are

changes in the behaviors of individuals, communities and organizations: the behaviors of people

living in air-conditioned houses who drive to work in cities are very different from the behaviors of low-

income farmers in villages, who walk to work in their fields; urban people and rural people also have

different leisure activities.

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changes in the influences on these behaviors. These contribute to changes in behaviors: the

influences on urban people, who now receive many hundreds of marketing messages every day from

newspapers, magazines, billboards, TV, the internet, and their mobile phones are mostly very different

from the influences on people who lived in the villages of developing countries 50 years ago.

These influences are of two general kinds: influences that occur by

default: these come from the people we are with, our family, friends, work colleagues, and the places

we are in - the built environment of buildings, roads and cities, and the natural environment of fields,

forests, rivers, lakes, coastal areas and national parks.

design: these mostly come from organizations which try to influence us in various ways; commercial

businesses produce by far the largest number of designed influences (particularly those targeting

consumers) but public sector and third sector organizations also aim to influence the behaviors of various

target groups.

Designed influences are produced by ‘behavior-influence methods’ (abbreviated to BI methods) of

various kinds. These BI methods, together with the influences that occur by default, comprise ‘the

environment of influence’ which is less visible than the built and natural environments, but is equally

important.

Behavior-influence methods, unsustainable behaviors and behavioral crises

Over the past 5-6 decades many thousands of BI methods have been developed, largely in the private

sector. Most of these promote various unsustainable behaviors. These unsustainable behaviors can be

grouped in 3 main categories:

unsustainable lifestyle behaviors, such as smoking, excessive alcohol consumption, low levels of

physical activity, and unhealthy eating patterns which lead to obesity; these behaviors tend to lead to

various ‘lifestyle diseases’ and medical conditions that shorten life expectancy or diminish the quality of

life.

unsustainable environmental behaviors, these include

• the unsustainable use of fossil fuels, leading to anthropogenic climate change

• the unsustainable use of natural resources, leading to deforestation, habitat loss and

biodiversity loss

• the unsustainable disposal of waste from production and consumption, leading to air, land and

water pollution, and various forms of environmental degradation.

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unsustainable finance sector behaviors: for example, unsustainable borrowing, coupled with the

often aggressive marketing of housing loans to low-income people (many of whom could not afford

repayments), were major factors underlying the financial crisis that erupted in the US in 2007-8.

These behaviors lead to 3 clusters of international crises, which might be termed ‘behavioral crises’: the

pandemics of obesity and lifestyle diseases; climate change and various global environmental problems;

and financial crises.

Promoting sustainable behaviors using BI methods

Over the same period that commercial BI methods have increased in number, variety and sophistication,

behavioral scientists, as well as practitioners in the public and third (and also private) sectors, have

developed BI methods that can promote sustainable behaviors - the kind of behaviors that occupy the

opposite end of the sustainability spectrum from the 3 kinds of unsustainable behaviors mentioned

above.

BI methods have several attractive features. They are often cost-effective, time-efficient and locally

appropriate. Most are low-tech. Some can be precisely targeted to particular behaviors.

This year’s GSBS theme is: Changing individuals, communities, villages, cities and countries.

These BI methods have important roles to play to help bringing about these changes. For this focus

group, one particular group of BI methods was chosen - those that can be applied to help produce and

disseminate effective messages.

To illustrate the above features of BI methods, the group was engaged in 4 practical tasks described

below, using the following guidelines:

2. Designing and disseminating effective messages

2.1 8 SUCCESSH guidelines for designing effective messages

Messages, if properly designed and disseminated, are an effective way of influencing behaviors.

However, messages produced by organizations promoting sustainable development are often much less

effective than those produced by commercial enterprises – an example of the ‘Last Mile Problem.‘ As a

result, large sums of money can be spent on communication campaigns with little or no influence on their

target audiences.

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The following 8 guidelines are based on research by behavioral scientists. When properly applied, these

‘SUCCESSH’ guidelines will help social businesses design effective messages. It is not necessary for all

eight to be applied in every context, but in general the more are used, the more effective the message

will be.

Effective messages should be designed to be SUCCESSH-ful:

S imple - focus on the single most important thing you want to convey; then repeat it. What is the core

idea?

U nexpected - messages that surprise, or that evoke the unexpected, attract attention and promote

retention.

C oncrete - use vivid, sensory (especially visual) images and metaphors, and specific language.

C redible - make sure that messages relate to the recipients and their situation, so they can see for

themselves that they are relevant.

E motionally appealing - sad stories elicit sympathy, uplifting stories inspire: help people to feel what you

are trying to communicate.

In addition,

S tories show people how to act: they describe behavior, not just abstract information. People tend to

remember – and repeat to others - messages packaged as stories better than messages on their own

S ocial influences help people relate to the message, and they help disseminate messages; 3 principles

of social influence are summarised below.

H umour, when used in a culturally appropriate manner, can help people to firstly pay attention, secondly

to remember the message, and thirdly to repeat it to others.

2.2 Guidelines for effectively disseminating messages.

Messages can be disseminated in many ways. Commercial marketers use advertisements on billboards,

TV, in newspapers and magazines, on the internet and on mobile phones. Most of these dissemination

channels are too expensive for social businesses. However, ordinary social networks (such as Facebook,

Twitter etc.) can be a low-cost way of disseminating messages to well-defined target groups and market

segments. They are more likely to be effective if certain guidelines, outlined below, are kept in mind.

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Three types of people with important roles in disseminating messages

Malcolm Gladwell, in ‘The Tipping Point,’ identified 3 types of people with important roles in

disseminating messages:

1. Mavens (technical experts): people with extensive knowledge about a given subject who are

keen to impart their knowledge to others, to help them use it effectively.

2. Salespeople: people who are particularly effective in influencing others.

3. Connectors: people who have ties in different realms and act as conduits between them, helping

to promote the spread of influences on people’s behavior.

Three principles of social behavior that help disseminate messages

Scientists researching social behavior and social networks have identified a number of principles that

underlie the workings of social networks. Dissemination strategies designed with these principles in mind

are more likely to enhance the spread of effective messages. They include:

Similarity – people spend more time with and communicate more effectively with people who are similar

to them.

Authority – people tend to be influenced by authority figures & by people respected for their knowledge

or skills.

Imitation – people tend to imitate the behaviors of similar people, and people whom they respect.

2.3 Discussion of commercial adverts

At this stage, the video shown at the start of the focus group and several commercial advertisements –

print and audio-visual – selected by the moderators were shared around the group, together with several

advertisements brought by the participants as part of the pre-assignment task. Each was discussed in

turn from the perspective of the 8 SUCCESSH guidelines for designing effective messages.

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3 Focus Group Results

Participants each outlined one or more communication problems which their social business was facing.

The group then discussed ideas for resolving these problems, using the guidelines for designing effective

messages and the principles for disseminating them.

FRANCE

Communication problems

Renault is providing a car repair service for low-income people at a greatly reduced cost. However,

1/ it is not easy to target this message to low-income people: there is a risk that other people will also

demand the service.

2/ some people feel stigmatized by asking for a low-cost service, and so they do not use it.

The communication challenge is: how to get messages to low-income people in ways that overcome

these two problems.

Ideas to think about:

Find low-income people who have used the service and are satisfied with it. Perhaps find them from

sales records; if such records do not exist at present, ask people using this service to provide their

contact details. Select a few of these people to act as messengers and as models to persuade other low-

income people to use the service. These “champions” should relate their own concrete, credible, and

emotionally appealing stories of how the service benefits them and their work, and how it provides

privacy – using it does not involve stigmatisation

Selection of “champions” could be based on interviews to identify those who are good persuaders, and

preferably also good networkers. (Perhaps give them a commission for each person they persuade to

use the service?). They should be similar to the customers if possible - it would be preferable, for

example, to have female ‘messengers’ for female customers, older messengers for older customers, and

ethnic minority messengers for ethnic minority customers. They should be encouraged to disseminate

their stories at places frequented by other low-income people.

Visual messages publicising the service, designed with the 8 SUCCESSH principles in mind, would, if

displayed in these places, allow eligible clients to become aware of the service without being stigmatised

in the process.

If these ideas lead to too much demand for the service, the garages could consider asking for proof of

income; or perhaps for a recommendation from a previous buyer.

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NEPAL

Communication problems:

VHS Bhaktapur is an NGO in Nepal that (among other things) helps young Nepalis to go to Germany as

Au Pairs (in a form of cultural-exchange program) or as students. While the program has generally

worked well so far, two problems are that:

1/ some young Nepalis end up being exploited as cheap labour

2/ some stay on illegally after the end of the 1-year program

The communication challenge is: how to safeguard students from exploitation and how to encourage

them to return?

Some ideas to think about:

Find people who have been on the program and who are now in Nepal - some who have had positive

experiences, some negative. They should be similar to the prospective students. Use them as

messengers and as models for prospective students - ask them to tell the story of their experiences as a

cultural exchange student.

They should stress the emotional aspects of their experiences, both positive and negative. If possible,

they should illustrate their stories with photos or videos – visual images have a much greater influence

than words alone.

Modify the program so that a proportion of the students' pay is kept back and is only paid when the

student returns to Nepal. This involves the behavioural principle of ‘loss aversion’ – an important

motivation is the motivation to avoid losses. In this case, if the students do not return to Nepal at the end

of their contract, they will lose money.

In addition, perhaps a proportion of their pay could be paid to the student’s family in Nepal?

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THAILAND

Communication problems:

There is a need in Thailand to increase awareness of social businesses, and of how these are different

from profit-making businesses. Some profit-making business-people are exploiting the idea of social

businesses, so some consumers think that the profits go to those running social businesses.

Two factors that influence people’s purchases are price and quality. These are often connected in

people’s minds: so if they see a product produced by a social business which is sold at a lower price

than similar products, they may think it is of lower quality, even if it is not.

The communication challenge is: how to address these problems?

Ideas to think about:

Find ways to tell a story about each product, which involves the place it comes from and the individuals

who produce it. This story should clearly explain the benefits that buying the product would have on the

buyer as well as the producer and seller in a way that elicits positive emotions. The message should

differentiate the social business product from products made by competing profit-making businesses.

This will make the product story credible; its credibility will be reinforced if consumers can check in some

way that the product really is being produced by a social business in a particular community. This could

be done by placing a hotline number on the package, or obtaining a certification mark.

In marketing, use concrete visual images which show the location and the people involved in the social

business. Encourage consumers to visit the social business, either through personal visits or internet

tours, to see for themselves the benefits that their purchases generate. Tours help outsiders learn about

the local community and thus bring in money to the community.

Ask people who have bought the product to recommend it to their friends. They can repeat the story of

the social business. Careful thought needs to go into the story, to ensure that it can be easily

remembered and repeated.

Consider the price and packaging of the product. It may not be a good idea to sell it at a lower price than

similar products made by profit-making businesses, and it should be packaged in an attractive way.

Consider joining a product certification program, or help establish an independent organization which can

certify the origin and the quality of (certain) social business products.

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MALAYSIA

Communication problem:

Recovr Resources is a social business that aims to divert waste from landfills and incineration centers

into more value-adding streams, such as upcycling or recycling.

The communication challenge is: how to develop and disseminate effective messages that will influence

corporations to increase upcycling recycling and thus reduce waste?

Some ideas to think about:

People make decisions using their eyes and their hearts, not just with their minds. Facts and figures

alone are not enough to motivate people to buy a social business product, or to change their behaviour -

this also applies to organisations. Therefore, for a particular company, try producing a concrete, visual

representation of the waste it produces: photograph it or produce a short video of it (maybe with a graph

or chart, too). It would be even better if the waste could be collected – e.g. paper, plastic – and piled up

to produce an unexpected, concrete image.

If possible, find an individual story that illustrates the problems that waste and pollution can cause: a

person or family or community that has been badly affected – this may help produce an emotional

response from senior managers.

And, if possible, work out how much money the company loses through wastage. For example, work out

how much it is losing by having the office or factory thermostat set at the current temperature compared

with 1degreeC higher. This involves the principle of ‘loss aversion’ referred to above.

Do some personnel research – find out who the best person is to present the above to someone who is

in a position of power and who is also sympathetic to making the changes you want. If you can establish

personal contact, you could discuss with him/her which of the above would be the best way of influencing

others in the company to bring about change. If possible, take the manager to a nearby spot where you

have piled up the company’s waste products and/or take him/her to a person or community affected by

the company’s waste.

The above will vary according to the company in question. A more formal ‘behavior-influence analysis’

(see the Conclusion below) will be needed for each company.

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4 Conclusion

In recent decades behavioral scientists, and practitioners working in the public, private and third sectors,

have developed a large number of BI methods, used for a wide range of purposes. These BI methods

are applicable at every stage in creating and managing a social business, and are relevant to all

stakeholders. Some have been grouped together to create particular approaches; the ‘SUCCESSH’

guidelines comprise one of many such approaches.

This focus group introduced participants to the use of behavior-influence methods, by applying them to

one key issue – the communication of effective messages. In just one hour of discussion a number of

ideas were generated for four different problem situations in four different countries across the income

spectrum – thus illustrating the widespread applicability of BI approaches in general, and of the

‘SUCCESSH’ approach in particular. The way in which these ideas were generated illustrates another

important set of features of behavior-influence methods. They do not necessarily require the purchase of

externally produced technology; rather, they tap into fundamental principles of human behavior.

Insights from research in the behavioral sciences suggest that social businesses reflect some of these

fundamental aspects of human nature: those involving social interactions.

Interestingly, the visions of two Nobel Peace Prize Laureates from two different continents converge on

these same features. Professor Muhammud Yunus has developed the notion of social businesses;

Archbishop Desmond Tutu frequently invokes the idea of ‘Ubuntu,’ a southern African term which he

defines as meaning that ‘a person is a person through other people.’

4.1 Behavior-influence analysis and a behavior-influence perspective

However, to apply these ideas effectively and appropriately, a more rigorous process is needed. Such a

process needs to take particular account of the local context. A ‘behavior-influence analysis’ of the

particular situation is needed, followed by field testing of the messages which such an analysis

generates. This kind of analysis involves critically examining the current and potential influences on the

key behaviors of various people and organizations.

Behavior-influence analysis is part of a broader behavior-influence perspective. This differs from the

profit-focused perspective that is the main, though not the only, perspective of businesses in the private

sector. It is not opposed to the latter: many profit-making businesses also use a ‘behavior-influence’

perspective in marketing, but in the private sector it is dominated by the profit-focused perspective.

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A ‘behavior-influence’ perspective is, arguably, necessary for organizations working in the field of

sustainable development. It is particularly appropriate for social businesses, which, as Professor Yunus

pointed out at the launch of this year’s GSBS, provide an important way of creating positive change in

societies from the bottom up.

Participants learned that creating positive change from the bottom up involves influencing a wide range of

behaviors in ‘individuals, communities, villages, cities and countries’ – to quote from the GSBS program –

and in organizations. To help achieve this, the Yunus Center at AIT, Bangkok, is currently developing a

‘ThinkFluence’ initiative, outlined below, which aims to provide 4 linked sets of resources relating to the

use of BI methods and transmission mechanisms. Two of its main purposes are firstly to collate and

connect these methods - those discussed in this focus group are only a tiny fraction of those currently in

use - and mechanisms, and secondly make them accessible to organizations working in the field of

sustainable development. It is probably the only initiative of its kind in Asia’s developing countries.

4.2 The ThinkFluence initiative at Yunus Center at AIT

Over the past 5-6 decades, behavioral scientists have identified various fundamental principles of

behavior; these underlie the behaviors of individuals, groups, and organizations; they are also involved in

social networks and other transmission mechanisms. Over the same period many methods for

influencing BEHAVIOR have been developed, both by researchers in the behavioral and related

sciences, and by practitioners in the private, public and third sectors. An understanding of these

principles, methods and transmission mechanisms can help improve the effectiveness and cost-

effectiveness of existing social businesses; they can also help generate new social business projects.

The ‘ThinkFluence’ initiative will make these principles, methods and transmission mechanisms

accessible to those involved with social businesses, and to other organizations working in the field of

sustainable development.

‘ThinkFluence’ refers to thinking about, leveraging and linking influences on behavior. The initiative will

produce and make available to these organizations 4 main sets of resources. These are designed to

expand their knowledge of the ways in which behaviors can be influenced, and to promote best practices

among organisations working in the field of sustainable development:

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An online encyclopedia explaining the fundamental principles of behavior, BI methods and transmission

mechanisms for behavior-influence ; it will describe relevant research in the behavioral and related

sciences.

A series of courses and workshops designed to create awareness about the importance of BI methods

and and transmission mechanisms, and to impart practical ways of using them.

A network of individuals and organizations, comprising an expanding community of learning and practice

for the use of BI methods and transmission mechanisms.

An online library of stories, entitled ‘B+ve,’ illustrating how these methods and transmission mechanisms

can help bring about positive changes and thereby contribute to sustainable development.

It should be accessible to all those involved with social businesses by the time of the next GSBS, in

November 2014. It may also be relevant to the World Bank’s 2015 World Development Report which, for

the first time in 4 decades, will focus on ‘the behavioral and social foundations of development.’

AIT = the Asian Institute of Technology, Bangkok, Thailand

Additional comments

The session engaged participants with real life communication challenges while introducing them to a few

of the advances in the behavioral and related sciences over the past 5-6 decades. The time constraint

kept the moderators from sharing more of the materials they had prepared, despite the participants’ keen

interest. However, participation by members of an ideal-sized group meant that the focus group’s

objectives were achieved. Discussion of the 8 ‘SUCCESSH’ guidelines, together with some underlying

principles involved in social networks, helped delegates to take away practical ideas for helping social

businesses working at the bottom of the pyramid in grassroots communities to develop and disseminate

effective messages.

----

A longer version of this report, with references, is available from Chris Eldridge:

[email protected]

GOAL AND CONTENT

// 6 // TRANSFORMING NOT-

FOR-PROFIT MODELS INTO

SOCIAL BUSINESSES //





Level: Start-up

Moderators: Nurfarini Daing (CEO myHarapan), Jamali Samsuddin (Managing

Director myHarapan), Veronica Colondam (CEO YCAB Foundation),

Abser Kamal (Managing Director Grameen Shakti)

GENERAL INFORMATION

Goal of Focus Group

1. To present successful models of social businesses

2. To identify both barriers and propellers for the transformation of non-profits into social enterprises

3. To come up with ways to apply all the learning into your own social venture

Session Flow

After a quick round of introduction of all moderators and participants Ms. Colondam presented the story

of her company, YCAB, founded in 1999. She first introduced the landscape in Indonesia: 1 in 2

Indonesians live under USD$2 a day; unemployment is very high; for every minute, 6 children cannot

continue their education, meaning some 3 million children drop out of school every year. After this

presentation Abser Kamal presented Grameen Shakti. A famous social business that started as not-for

profit and was successfully transformed into a social business over time.

After lunch Jamali Samsuddin took over to get the participants to write down their learning from the

previous presentations and also to brainstorm on how to transform a non-profit into a social business. A

vivid discussion about the critical factors for transforming not-for profit organizations into financially self-

sustainable social business closed the focus group.

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Focus Group Results

YCAB is investing in their education as a way of expressing love for children (YCAB, Yayasan Cinta Anak

Bangsa, translates into “Loving The Nation’s Children Foundation“). Some 33.000 children have been

educated so far in basic and vocational skills, and the company is based on three pillars, which were

launched in 1999: 1) HeLP, or Healthy Lifestyle Promotion; 2) HoLD, or House of Learning and

Development; and 3) HOpE, or Hands-on Operation for Entrepreneurship / Economic welfare creation.

In 2000, the company started to developed its for profit arm. In 2008, it was one of the few companies in

Asia to hold the ISO 9001 certification. The YCAB evolution from a non-profit to a social enterprise meant

going from “impact only” to “impact first”. Its business units were created to properly sustain YCAB’s

operations.

The company has also established pilots in other countries such as Myanmar, Afghanistan and Sudan. In

2012, its microfinance program achieved 11,000 active clients. This is an important part of the program,

since providing economic stability to the families helps them maintain their children at school. Proving

that their children are receiving proper education is actually one of the required conditions for a family to

receive the loan. In a secondary step, these families are required to identify a child who went out of

school and bring him/her to the program.

Abser Kamal presented the company Grameen Shakti, which started in 1996. Grameen Shakti’s vision is

to provide clean energy at affordable cost. There is plenty of sunshine in the country and the product is

suitable for off-grid and inaccessible areas. Grameen Shakti offers microcredit-based financial models.

The company provides customer friendly and innovative financial packages for customers.

Steps to start a social business:

Organizational readiness

Opportunity identification

Feasibility study

Business plan

Launch preparation

Startup capital

Evaluation

Growth

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Reasons behind success:

Vast-country network

Innovative microcredit financial model

Ability to create awareness and demand for Renewable Energy (RE)

Adaptation and dissemination of latest technology

Quality materials and smooth supply chain management

Effective after-sales service

String monitoring and auditing

Creation of green jobs and poverty reduction

Challenges and barriers:

High costs

Limited investment due to risks and uncertainty

Knowledge and awareness gap

Limited consumer financing

Lack of trained people

Lessons learned:

RE (renewable energy) will be dominant in the future

Environmentally friendly and reduces greenhouse emission

Women empowerment through entrepreneurship

Green jobs created and poverty reduced

R&D should be strengthen in the RE sector

Financial and policy supports from government are essential

After lunch Jamali Samsuddin took over to get the participants brainstorm on how to transform a non-

profit into a social business. Therefore, the participants were divided into four different groups.

GOAL AND CONTENT




Group 1:

The first group concluded that the non-profit and social business sectors overlap to some extent, but

there are many examples in which the first cannot be transformed into the second. They used an

example of a school in a slum in Bangladesh: if the children of a poor family do not go to school, it does

not necessarily mean that the parents refuse to provide / pay for their education. It is more likely that they

cannot afford it.

There is a huge pressure from the market, and the education sector seems to be a clear example in

which it is hard to make a profit and reinvest. A solution presented by the group was to run a profitable

business in parallel and use the money to reinvest in an educational project in poor communities.

Group 2:

The second group started presenting what they learned from the lectures:

1) A company should create profit and use it to sustain the social organization;

2) A sustainable way to do this is to have beneficiaries pay for services or product offered;

3) Increasing professionalism justifies charges for a service;

4) The money gets “recycled” to support other social businesses;

5) Social businesses should operate like a company while maintaining social objectives.

Their ideas for transforming a non-profit into a social business were summarized as:

1) It is essential to create a “corporate” culture;

2) Establishing joint ventures between NGOs and bigger companies can help in the transformation. It

should be an exchange: big companies provide the business knowledge, NGOs provide the social

projects;

3) Mentorship and advisory should be established in an NGO in order to promote the right mindset and

positioning in the market. This mentorship can come from Strategy Consulting companies or

partnerships with big companies;

4) Ways to generate profit include capitalization of research and establishment of government and

corporate grants;

GOAL AND CONTENT




5) NGOs should not forget their “not-for-profit” policies. There should be an emphasis on the value of

being an NGO.

Group 3:

The third group has learned from YCAB that it is very important to have a vision of goals to achieve with

the social business in order to remain focused and faithful to those objectives. It is also essential to

create an efficient business model so that the profit can be translated into social impact through a social

enterprise. Another very relevant point is to make sure that the social business is legitimate through

audits that are conducted regularly in order to provide more transparency and trust. From Grameen

Shakti they learned how microcredit and technical innovations are enabling the improvement of basic

fundamental needs of populations, especially those located in rural areas.

Group 4:

The key takeaways of the fourth group were the importance of having a clear structure and vision, key

alliances and finance options. From the YCAB presentation, they learned that the three profitable

companies covered the administrative costs, and the microcredit program provided means for the social

project to run efficiently.

To transform non-profits into social businesses, NGOs should create ways to get constant revenue and

develop a holistic vision, aiming to provide a deeper impact. One of the participants mentioned a situation

that she was personally going through: she works with an NGO that focuses on research and advocacy

for children rights, and discussed how difficult it is to monetize such an organization and transform it into

a social business. Her organization aims to remain a rights-based approach organization, and cannot be

transformed into a need-based approach institution; there has to be a change in consciousness that

children have inherent rights. The organization can sell research but few people are willing to pay for it,

so she concluded that some organizations cannot be turned into social businesses.

GOAL AND CONTENT

// 7 // IMPACT

MEASUREMENT AND

ASSESSMENT OF SOCIAL

BUSINESSES //

// 7 // IMPACT

MEASUREMENT //

Format: Expert-led presentation & discussion

Level: Pilot

Moderators: Sophie Eisenmann (CFO Yunus Social Business), Dr. Ingo

Ballschmieter (Advisor to the EB Bertelsmann Stiftung), Brune Poirson

(Head of Sustainability and CSR Veolia Water India), Dr. Shariha Khalid

(Executive Director Scope Group)

GENERAL INFORMATION

Goal of Focus Group

1. Establish a common understanding on:

Different impact measurement methodologies

The relevance of impact measurement

The challenges of impact measurement

2. Showcase practical examples of how impact is measured in different organizations

3. Engage participants in defining best practice approaches for impact measurement as well as

brainstorm on how to overcome operational challenges

Session Flow

The session began by giving an introduction on why impact measurement is key for social business

entrepreneurs. After that, the challenges of impact measurement were identified such as how

measurement is often extremely time, cost, and resource intensive and how time horizons for impact

measurement are long. The next items covered were on the importance and objectives of measuring

impact. Experts presented different impact measurement approaches and how they are applied in

practice. Participants also worked on recommendations related to the focus group goals.

GOAL AND CONTENT

// 7 // IMPACT

MEASUREMENT //

Overview of examples of impact measurement methods ranging from more

analytical quantitative approaches to more holistic qualitative approaches:

Impact Reporting & Investment Standards (IRIS)

Acumen Fund: The Best Available Charitable Option (BACO)

Social e-valuator: Measurement of Social Return On Investment (SROI)

The Boston Consulting Group: Quantifying Social Impact

William Davidson Institute: Base of the Pyramid Impact Assessment Framework

Ashoka: Measuring Effectiveness

Expert presentations about approaches to impact measurement

Sophie Eisenmann, Yunus Social Business

Yunus Social Business (YSB) helps create social businesses around the world through the concept of a

Social Business Fund. Among the objectives of YSB’s impact measurement are investor education and

attraction, identifying long-term change, proof of concept, and to substantiate YSB’s position as a thought

leader. YSB’s framework of measuring the impact of its social businesses is:

1. Stakeholders

Definition

Key people groups and organizations involved in and affected by the social business among three

dimensions: sellers, buyers, and communities.

2. Input

Definition

Financial and non-financial resources of the various stakeholders involved.

3. Output

Definition

What: The technical results of the social business and what the social business produces and what

the beneficiaries receive.

How: The direct effects of the social business and its immediate benefits generated (future state

hoped to achieve by completing the outputs)

GOAL AND CONTENT

// 7 // IMPACT

MEASUREMENT //

4. Outcome

Definition

Why: Wider effects on the society and longer-term effects created by the social business

(tendencies or dispositions as a result of many outcomes)

5. Impact

Definition

What If Not: What would the situation be like otherwise? Who are the baseline and control groups?

Moving on, sector specific approaches (individual social business, social business sector, and social

business concept) are taken. Outcome indicators, stakeholder survey, and entrepreneurial survey are

used for each sector respectively to measure the impact. The collection of data is performed via a SAP

tool which has specifically been tailored for YSBs purposes.

Dr. Ingo Ballschmieter, Bertelsmann Stiftung

Bertelsmann Stiftung is the largest operative foundation that focuses on theoretical and practical

groundwork on topics associated to society and the coming up of solutions for societal challenges.

The model used is the Input-Output-Outcome-Impact (IOOI) model. Projects done should be assigned to

a phase and the phases, in order, are:

1. The offerings/measures are realized as planned, on time, in budget, etc. From this phase, the

outcome is observed.

2. The beneficiaries that should be addressed are reached, are aware of the services, activities in the

desired quantity, etc.

3. The beneficiaries reached accept the services, activities, and are happy with them.

4. The beneficiaries have gained new knowledge or skills, have reinforced/changed their attitude,

formed a new opinion, etc. The outcomes are observed from this phase onwards.

5. The behavior of the beneficiaries reached has been changed as desired.

6. The circumstances of the beneficiaries reached have been changed as desired (e.g. the financial

situation, social safety, etc.)

GOAL AND CONTENT

// 7 // IMPACT

MEASUREMENT //

7. The desired social, ecologic, economic, or the changes in the entire organization, region, society,

etc. take place. The impact is observed on this phase.

Indicators are an important element of proper project planning and controlling in order to achieve social

impact goals. It can be used for comparisons. The types of indicators include direct, indirect, quantitative,

and qualitative. The key question to ask when developing indicators is “How could I observe whether my

activity contributed to achieving a specific target?”

Some examples of different methods of impact analysis were identified such as collecting anecdotes,

monitoring of participant numbers, demands, etc., and longitudinal studies with control groups.

Brune Poirson, Grameen Veolia Water Ltd.

Grameen Veolia Water Ltd. provides clean and safe drinking water to inhabitants in rural areas. Their

approach to social impact measurement is more on improving rather than proving. The rationale is that

measuring impact should be an ongoing process rather than a one-size-fits-all tool. It should nurture the

work of the company on an ongoing and iterative basis. They are working very closely with the research

laboratory (the Institute for Social Innovation and Social Entrepreneurship) of one of France’s leading

business schools – ESSEC –to devise a methodology of “action-research”. Action-Research is research

carried out “with” and not “on” a company or field initiative. The company learns from its experience and

adapts the way it does things as the project goes on, it can then in turn apply this knowledge to other

projects. The key steps of the “action-research” methodology are:

1. Testing relevance and assumptions

2. Defining performance issues

3. Defining KPIs

4. Strengthening data reliability

5. KPIs follow-up and reporting

6. Setting up objectives

GOAL AND CONTENT

// 7 // IMPACT

MEASUREMENT //

Grameen-Veolia Water Ltd. believes in “shared measurement” (Kramer, Parkhurst, & Vaidyanathan,

2009) as a way to achieve collective impact and to struggle against atomization of the nonprofit sector

(Kania & Kramer, 2011). The company believes that a common assessment framework can be designed

for a community of social enterprises sharing similar characteristics. A shared evaluation framework for

“social businesses” as conceptualized and promoted by Prof. Muhammad Yunus should be promoted.

Dr. Shariha Khalid, Scope Group

Scope Group is an international impact consultancy. It was noted during this session that impact

measurement is not just about graphs, charts, and numbers. While those are very important, anecdotes,

narratives, and stories are the selling points that will get investors to want to contribute to the social

business. The method of impact measurement highlight was Social Returns on Investment (SROI). The

seven principles of SROI are:

1. Involve stakeholders

2. Understand what changes for those stakeholders

3. Value what matters

4. Only include what is material

5. Do not over-claim

6. Be transparent

7. Verify the result

The indicators have to be based on the SMARTASS criteria:

S – Specific

M – Measurable

A – Attainable

R – Realistic

T – Timely

A – Added/asked

S – Stakeholders

S – Standard measures

GOAL AND CONTENT

// 7 // IMPACT

MEASUREMENT //

Q&A Session

Question: What are some of the non-financial resources as an indicator? (referring to the input on YSB’s

framework for impact measurement)

Answer: Hours would be an example like the hours of incubation work.

Question: Why is it important to do these measures?

Answer: In order to convince ourselves (the social business entrepreneur) that the model is working. It

is also to drive the team and to change cultures e.g. to inspire investors to invest in social businesses,

to convince the public, and to tell the media what was achieved.

Question: Referring to Dr. Ballschmieter’s examples of different methods of impact analysis, why is

publicly sourced data like the ones that can be collected from Twitter, not in it?

Answer: Some, especially those in developing countries don’t know what the internet is. The collection

and compilation of the data is also very costly and very expensive for social businesses. However, when

collecting this data, it is important to get data related specifically to the work you do as a social business.

Question: What are financial proxies?

Answer: Financial proxies are basically the amount of money that you put into a certain thing. For

example, if you keep someone out of prison, what is the dollar amount of keeping that person out of

prison? What is the cost saved of not having to police someone so much?

GOAL AND CONTENT

// 7 // IMPACT

MEASUREMENT //

Focus Group Results

Group 1

Can you identify a “best practice” approach to impact measurement? How should a “best”

practice approach to measurement look like?

The first group used the seven principles of the SROI to target this question. Two levels of assessments

were identified: one that is applicable to most social businesses and one that only applies to individual

social businesses e.g. if a social business’s core activities is digging wells, different metrics will be used

and measurements that are relevant and appropriate to that particular social business. KPIs for one

social business will differ from another social business.

It is also important to involve the stakeholders and know the beneficiaries. Longitudinal studies are vital

and should go on longer than eight years. This is to help people understand the importance of

generational work; helping their children and helping their children help their children. A long-term

strategic view is important.

Group 2

What are key operational challenges? How can you ensure that data is actually received?

Time needs to be spent on figuring what kind of data the social business needs and wants and to find out

whether the data is credible or not. It is important to understand that while a social business may have

the right data, they may have the wrong person. Not everyone can understand and work with data. It is

vital that the right person is found for the right job.

As social businesses, data is extremely important and ensures the survivability of social businesses.

Customers and clients may not have the same interests and stakes as social businesses hence they do

not have the incentive to provide that kind of data for social businesses. Technology is a good solution for

tackling this issue. There are many technologies and collaborative work that are able to help social

businesses.

GOAL AND CONTENT

// 7 // IMPACT

MEASUREMENT //

A standard or a base-line for data needs to be discovered so that improvement can be measured.

Enough time should be time on secondary data. Tools for collecting primary data need to be designed or

existing tools can be modified.

Group 3

Is it possible to establish industry wide impact measurement standards? What does it take to

define a “best” practice approach as an industry wide standard?

It is possible to establish industry wide impact measurement standards. There are industry standards

already being developed. Industries are breaking out and developing them on their own. Some examples

include IRIS and BCG. Some industries are already breaking out and developing them on their own.

However, there is no social business industry. There is only a ‘macro industry’. There are micro segments

within this industry.

Rather than building new standards, it was suggested that the standards be refined instead. Trust –

believing in the numbers – is an important component. Trust has a lot of personal incentives. It is also

vital to have a legal component to recognize those standards.

To define a “best” practice approach as an industry wide standard, conveners that would bring together

the different players in the field like the Global Social Business Summit are important. This is to inform

what tools and standards are available and are currently being used. There are going to be people that

will come up with standards like those regards to financial services. The human capital standards will

take time to come up with and this is where the trust component will be vital.

GOAL AND CONTENT

// 8 // NUTRIENTS FOR ALL:

SOCIAL BUSINESS MODELS

FOR NUTRITION RELATED

ISSUES //




ISSUES //

Format: Workshop

Level: Start up

Moderators: Dr. Kerstin Humberg (Engagement Manager McKinsey & Company)

GENERAL INFORMATION

Goal of Focus Group

Discuss and develop ideas for the complex issues related to nutrition:

Share lessons learned from nutrition-related social business in different countries

Explore new social business ideas to achieve nutrition for all

Session Flow

The workshop started with the 3 case study presentations of nutrition-related social businesses. After that

participants worked on social business ideas related to hidden hunger and food education.

GOAL AND CONTENT




ISSUES //

Sharing lessons learned

Using case studies, lessons learned from nutrition-related social businesses in Bangladesh, Columbia

and Malaysia were presented.

Case study 1

Vitalius is a social business fighting hidden hunger in Columbia

What is hidden hunger?

Micronutrient (vitamin and mineral) deficiency in a person’s diet often without visible warning signs

Causes

Basic diet fails to provide enough vitamins and vital minerals to sustain a person’s mental and/or

physical health

Malnutrition of the mother during pregnancy

Lack of capital & knowledge

Consequences

Stunts the development of children and diminishes their potential to live a full and productive life

Diseases and death

Lack of:

o Vitamin A - Blindness

o Iodine - Mental retardation

o Iron - Weakens immune system

World statistics

2 billion people suffer hidden hunger – 1 in 4

Vitamin and mineral deficiencies account for 10% of the global health burden

GOAL AND CONTENT




ISSUES //

Anaemia kills more than 50,000 women a year during childbirth

18 million babies are born mentally impaired due to iodine deficiency each year

2 million children may die unnecessarily each year because they lack vitamin A, zinc or other

nutrients

In Columbia

14% suffer from hidden hunger

Chronic undernourishment: 13.6% of children < 5 years

Deficiencies of zinc: 50% of children < 4 years

Anaemia: 25% of children < 4 years

Social consequences of hidden hunger:

nutrition Heath Education Income POVERTY

Possible solutions:

GOAL AND CONTENT




ISSUES //

Vitalius is a social business that has fortified traditional food in order to contribute to the nutritional status

of the Columbian population. Vitalius’ product is fortified Panela (dehydrated sugar cane) and Panela

was chosen because of the following factors:

32 kg annual per capita consumption

2nd agronomical sector

1.2 million tons

18.000 trapiches (Traditional Factors)

363.000 jobs

15g of fortified panela gives:

80% Vit B1 RDA

70% Vit B2

70% Vit B3

30% Vit B9

30% Vit B12

10% Iron

10% Zinc

Vitalius social impact

Helping the children grow to their full potential

Market price is the same as normal panela

Fortified panela delivered: 8.5 tons (Feb. 2013)

Fortified panela Sold: USD 12,000

Associated institutions: 27 in Colombia

Beneficiaries: 3,678 (Range: 1 – 12 years old, 60 > years old)

Aguapanela cups produced: 415,250

GOAL AND CONTENT




ISSUES //

Vitalius’ social business model

Q&A Session

Question: Can you eat fortified panela with Diabetes? Why promote/endorse the consumption of sugar?

Answer: Panela is a traditional food consumed daily in the Columbian culture so it is eaten either way. It

is very hard to change cultural habits. Nutritional status of a community will be improved much quicker by

fortifying a traditional food type that is consumed daily than introducing a new product. Not a perfect

solution but a step in the right direction.

Question: How does this business differ from other food fortified food retailers?

Answer: Vitalius abides by the social business principles according to Prof. Yunus.

GOAL AND CONTENT




ISSUES //

Case study 2

Grameen Danone Foods Ltd. is the first multinational social business joint venture that started

production in Bangladesh.

Social mission: Poverty reduction through employment/income creation and improved nutrition

Business model: Local production and distribution of fortified yogurt for poor children at an affordable

price

Social business principles: Viable business model (“no loss”), no shareholder dividends, payback of

initial investment

The product

Shokti Doi consists of pure, full cream cow milk, live fermenting cultures, data molasses, and sugar.

Fortified with a high dose of micronutrients, a 60 gram cup covers 30% of children’s daily needs of

vitamin A, zinc, iron, and iodine. The product was produced to look and taste like local Doi.

Business analysis (2008-2011) pointing to start-up related, but also structural challenges

Low performance against business original objectives due to internal and external factors

(unrealistic business plan, governance issues, external shock)

Challenges in rural marketing and sales (lack of infrastructure, socio-cultural challenges, lack of

purchasing power)

However, impressive learning curve and few trade-offs

How to ensure the distribution of fresh yoghurt products in rural Bangladesh?

Creating an own sales force was significantly more complicated and time consuming than expected

Sales ladies confronted with various socio-cultural challenges

GOAL AND CONTENT




ISSUES //

How to foster regular consumption in the absence of nutritional awareness and sufficient

purchasing power?

Educating poor women and children about nutrition – that‘s the objective of Grameen Danone‘s

mini events

However, behavior changes require time

Even urban expansion proved to be challenging for Grameen Danone

Additional transportation cost

Illegal sales

Lack of fridges

Low margins

Sales of expired products

Despite challenges in business operation, Grameen Danone contributes to poverty reduction

Access to beneficial products at an affordable price

Access to economic resources (e.g., yoghurt stock, rickshaw van) and new social capital

Increase in income and food security Gain in human capital (e.g., computer and accounting skills)

In general, customers and sales ladies show positive reactions to Grameen Danone‘s

entrepreneurial effort

Customers: access to micronutrients for kids

Gain study pointing to positive health impact, but extremely poor consumers left out, and major

difficulties in customer retention

Sales Ladies: income and food security, empowerment, identity, status

GOAL AND CONTENT




ISSUES //

Residents benefiting from new customers and income potential as well as infrastructure

improvements

"Noise and plastic waste are a sign of development" Improvement of local infrastructure (streets,

energy, shops)

Rather few negative effects (e.g., health and security issues for sales ladies, production helpers

and customers)

Conclusion

Argument for investments in market-based solutions with growth potential that allow for direct

poverty reduction in line with the MDGs

Shared value creation: Integration of the poor into business cycles as active market participants

(inclusive business) and transformation of time-bound development projects into viable business

solutions

Mobilization of additional private sector resources and instrument that allows for new strategic

alliances

No panacea, but complementary approach with its own specific opportunities, limitations (e.g.,

inclusion of extremely poor consumers, challenges in social impact measurement) and risks (e.g.,

corporate misuse, mission drift)

Plea for social entrepreneurship in the third sector (i.e., more efficient use of philanthropic

resources, competition, innovation, and scale)

GOAL AND CONTENT




ISSUES //

Case study 3

Project Igra is an initiative being developed to educate young people in Malaysia about nutrition

By conducting practical and affordable workshops/ cooking classes in orphanages, schools and

dedicated learning centre’s, the initiative aims to educate young people about how to cook healthy food in

the home on a budget in an attempt to overcome health problems such as obesity and improve the

countries nutritional status.

Results from a survey conducted on 16 children living in an orphanage in Kuala Lumpur indicated that

whilst in theory the children could identify nutritionally good food types, and showed enthusiasm for

learning, they did not know how to source or cook affordable healthy food. Food preparation and cooking

classes are not performed in schools and with an increasing ‘eating out’ culture cooking skills are rarely

taught in the home. Knowledge transfer of cooking in orphanages is non-existent.

A more practical approach to educating the youth of Malaysia about nutrition is ‘food education’. Project

Igra is currently working together with a nutritionist to develop a workable syllabus that includes teaching

how to prepare and cook healthy meals people will want to eat.

GOAL AND CONTENT




ISSUES //

Group Exercise

Group 1 –Hidden hunger

Guiding questions:

1. What is the root cause for hidden hunger?

Adoption of American diet model (fast cheap food, high sugar convenience foods) due to

marketing, branding, media and ‘time’ constraints of the modern world

In some countries fruits and vegetables are not part of traditional diet e.g. Costa Rica

Belief or perception that good, nutritionally rich food is expensive

Lack of knowledge and awareness of ‘what’ micro, macronutrients are, do not know ‘how’ to

source/ prepare/ cook, do not understand the importance of good nutrition for growth and

development of young children.

2. What are social and economic implications?

Poor nutrition = poor health = poor performance at school = poorly educated = lower income potential =

POVERTY

3. How could Yunus’ social business approach help us to overcome the hidden hunger phenomenon?

Educate, educate, educate…

Possible channels of education discussed: Parents, schools, food packaging, point of sale, media

Create healthy, affordable fast food alternatives based on business models similar to that of

‘Vapiano’ in Germany – a European fast food restaurant serving fresh, healthy, ready to order,

pizza, pasta and salads.

GOAL AND CONTENT




ISSUES //

Group 2 – Food Education

Guiding questions:

1. How do nutritional food prices impact underprivileged communities?

2. Fast food is cheap, ways to find, and easy to prepare – what are the consequences?

3. How to teach children hands-on how to prepare affordable and healthy meals – and why?

Due to time constraints the outcome of this discussion was not presented.

Conclusion

Before the end each delegate shared one thing they learned from the workshop:

Trending insights…

Difficulty transforming ideas into successful social businesses that can be tangibly measured to

make a difference to individuals, villages, communities and countries

Social businesses face different challenges from place to place, country to country

Find the right product!

Nutrition is at the heart. If we can successfully educate villages, communities and countries about

nutrition, we have an opportunity to reduce all the social consequences that result – poor health,

poor education, reduced potentials for income and ultimately poverty.

GOAL AND CONTENT

// 9 // SOCIAL BUSINESS

SOLUTIONS FOR WASTE

MANAGEMENT //


SOLUTIONS FOR WASTE

MANAGEMENT //

Format: Workshop

Level: Start-up

Moderators: Rogerio Oliveira (Country Director Yunus Social Business Brazil)

GENERAL INFORMATION

Goal of Focus Group

1. Exchange ideas and learn from each others waste management projects/social businesses

2. Discuss problems related to waste management

3. Case studies on waste management legislation systems

4. Generate concrete ideas for a social business dealing with organic waste

Session Flow

The session began by giving an introduction on the problems related to waste management and

presented two case studies on legislation systems. Afterwards the participants developed own social

business ideas dealing with organic waste in small breakout groups. Finally the ideas were presented to

the whole group.

GOAL AND CONTENT


SOLUTIONS FOR WASTE

MANAGEMENT //

Waste management plans around the globe

Waste management planning has become increasingly important due to the growing environmental

consciousness of people around the world. Population growth has also lead to the growth of solid waste.

Furthermore, changes in lifestyle and consumption standards, industrialization and economic growth are

generating more waste for the world. There is an emerging trend that sees the management of solid

waste as business opportunities.

Most common mistake in dealing with waste management

The most common mistake most people make in dealing with waste management is to consider it as a

technical subject such as constructions, infra-structure, financing. However, a great waste management

plan considers all social interactions: local human behavior and communication. Waste management is a

complex chain with many stakeholders, hence, integration is obligatory.

Priorities in dealing with waste management

Prevention should always be the first priority in dealing with waste management, followed by mitigation,

reuse, recycling, and recovery. Disposal should only come as the last resort of waste management.

The effect of legislation on waste management

As mentioned, waste management is a complex chain with many stakeholders and government’s

involvement is imperative. The moderator shared the results of sanitary landfill banishment in Europe.

Statistics showed that many countries in Europe achieved significant improvement in waste management

as a result of sanitary landfill banishment because people are forced to manage their waste in a new way.

Japan pioneered in creating waste management related legislation since 1954, since then, it has

demonstrated tremendous impact on waste management, most importantly, it has created a positive

culture of waste management among the citizens of Japan.

In countries like the US, Canada and Australia, people pay for the waste they generate.

GOAL AND CONTENT


SOLUTIONS FOR WASTE

MANAGEMENT //

Case studies

TerraCycle

TerraCycle is a highly-awarded, international upcycling and recycling company that collects difficult-to-

recycle materials and repurpose it into affordable, innovative products and sells it through online

platforms and major retailers. Examples of products that TerraCycle is selling include flower pots, plastic

lumber, plastic pavers, bike racks, park benches, and garbage and recycling cans. TerraCycle also works

with major brands such as Mars Incorporated and Wrigley’s to repurpose their pre- and post-packaging

waste into products such as messenger bags, binders, notebooks, and tote bags. Major retailers such as

Home Depot Canada, and Wal Mart Canada are currently carrying TerraCycle’s products. To date, Terra

Cycle is working with more than 100 major brands in the U.S. and 22 countries overseas to collect used

packaging and products that would otherwise be destined for landfills.

Projeto Libelula

Projeto Libelula partners with fashion brands to collect their waste fabrics and up-cycle them into

stunning fashion products. As a partner, rather than disposing the waste fabrics, which is harmful to the

environment, fashion brands will send their leftover fabrics to Projeto Libelula’s centre. Projeto Libelula

will then engage unemployed women/women from rural communities throughout Brazil to repurpose the

waste fabrics into gorgeous, versatile and feminine dress/fashion products. The end products will then be

sent back to the fashion brands and are sold through their retail stores. The products that Projeto Libelula

produces provide a unique value proposition for its customers. When buying a product from Projeto

Libelula, consumers can feel the satisfaction of supporting the underprivileged women from Brazil.

Both TerraCycle and Projeto Libelula are good examples of how social entrepreneurs can leverage on

the branding objective of major brands/companies to formulate strategic partnerships with the purpose of

increasing sales.

GOAL AND CONTENT


SOLUTIONS FOR WASTE

MANAGEMENT //

Focus Group Results

The main goal of the session was to generate concrete ideas for a social business to deal with organic

waste taking into consideration the different dimensions. The delegates were separated into 2 different

teams to brainstorm ideas. The moderator shared that one of the effective ways to start brainstorming for

a social business idea is to identify the social problem to be solved. When the social problem is too

broad, then specify which region/target needs to be identified.

Here is an overview of the ideas generated and which one was selected to develop a rough business

model:

Group A Ideas

Biomass collection

Vertical Garden Kit (Selected)

Organic fertilizer collection & production

Community reverse vending machine

Collect old/unsold vegetables from large super market to make compost and sell to contract farms

Group B Ideas

Recover waste from flower shops and transform it into products that can be used for external

decorations.

Collection of organic waste to create organic arts to be sold to household (Selected)

GOAL AND CONTENT


SOLUTIONS FOR WASTE

MANAGEMENT //

Group A – Virgin Green

Group A came up with the idea to turn organic waste into a “do it yourself (DIY)” vertical garden

installation kit for customers to create their own beautiful vertical garden. The kit would comprise of items

such as seeds, racks, compost machine, etc. The target markets of the business are urban communities,

residence association, teachers/parents via schools, eco/sustainable hotels, and government

department. The value proposition for the respective target markets are as follows:

Urban community: Opportunity for them to create a beautiful neighborhood themselves.

Teacher/parents: Opportunity for them to develop their student/children to become responsible

environmental kids.

Eco Hotels: Increase the hotel’s eco proposition, opportunity to minimize cost and sell the

plants/flowers to hotel guests

Government department: To be a good example for the citizen

The business would carry out main activities such as organizing waste management awareness

campaign, “The Most Beautiful Vertical Garden” competition, collecting organic waste, turning them into

vertical garden installation kit, creating job opportunities for the underprivileged, etc. In addition to that,

the business could also organize eco-tourism activities such as inviting people to visit the beautiful

vertical garden.

GOAL AND CONTENT


SOLUTIONS FOR WASTE

MANAGEMENT //

Group B – Upcycle Human Beings

Group B came up with the business idea to create organic arts from the waste from restaurants and

households. The business will engage restaurants and households to form partnership with them to

collect their organic waste. It will then engage with renowned artists to transform the organic waste into

organic arts that could be sold to households.

The business will be generating revenue from (1) direct sales of the organic arts (2) auction leveraging on

the fact that for the organic arts are produced by famous artists. The value proposition for the business is

that consumers get to buy unique and innovative organic artwork and at the same time contribute to

helping the environment,

GOAL AND CONTENT

// 10 // THE NEW ROLE OF

ACADEMIA: COMBINING

SOCIAL BUSINESS

TEACHING WITH

INCUBATION SERVICES FOR

LOCAL SOCIAL VALUE

CREATION //


ACADEMIA //

Format: Expert-led Presentation & Discussion

Level: Pilot

Moderators: Martin Löffler (Director California Institute for Social Business Channel

Islands)

GENERAL INFORMATION

Goal of Focus Group

1. To explore the possibilities of universities engaging their students in social business

2. To explore the possibilities of future universities and their role in social development

Session Flow

The session officially began with expectation settings. The rest of the session was centered on the

California Institute for Social Business Channel Islands and the internal practices it uses to tackle most of

the questions raised.

Upon returning from an hour long lunch break, Martin gave a quick recap of what happened in the first

half of the session, and then proceeded to ask the room a tricky question: “What’s the difference between

a NFP that is financially sustainable, and a social business?”

As the session drew to a close, Martin turned the audience’s attention to the programs and initiatives he

hoped to see in CISB and other universities in the future, as well as the outstanding questions that had

been collected at the beginning of the session during expectation setting.

GOAL AND CONTENT


ACADEMIA //

Summary of expectations and questions raised by the participants

1. How can we generate theories to support social business development? (role of academia)

2. How to involve students in the creation of social businesses as consultants?

3. How can social business help resolve problems of democracy and capitalism in crisis?

4. How do we introduce social business to elementary, middle or high schools?

5. How do we engage professors in social business, specifically those from social sciences?

6. What should be the characteristics of a social business teacher?

7. How can we create material to teach social business?

8. How can we create online educational content for social business? (How to use multiplier? How to

open-source intellectual property?)

9. What are the alternative ways to disseminate social business practices to students? (Through

games, video recordings)

10. How to adopt a multi-disciplinary approach towards social business?

11. What social issues should be tackled via social business? (role of academia)

12. How to motivate/convince parents to send their children into social business?

13. How to really create an entrepreneur – just purely education, or otherwise?

Presentation on California Institute for Social Business Channel Islands (CISB)

The CISB is a part of the California State University Channel Islands (CSUCI) network, which supports

the idea of building a holistic educational experience for all. Under the CSUCI network, students are

encouraged to be exposed to things beyond their primary disciplines, ultimately creating “whole

individuals” who are in touch with both their selfish and altruistic sides through social business.

Perhaps the most unique thing about CISB is that it teaches students to be job creators instead of job

seekers. It builds a strong foundation for students to solve social problems and contributes back to

society. They believe that the role of university is not just to teach, but to be an epicenter of change in the

GOAL AND CONTENT


ACADEMIA //

community, harnessing the power of students to combat social problems.

CISB boasts a unique structure – it is one part Academia and one part Incubation & Advisory. Under

Academia they have (i) teaching and (ii) research & publications; under Incubation & Advisory, on the

other hand, they focus more on (i) individual entrepreneurs and (ii) existing entrepreneurs. Please see

the graph below:

GOAL AND CONTENT


ACADEMIA //

CISB created the first Social Business textbook. It is called “Social Business – Theory, Practice and

Critical Perspectives” and will be published by Springer in January 2014. It contains 8 case studies and

has been polished by more than ten authors from all around the world. It combines theoretical

explanations with practical examples that have been proven to work.

On the subject of teaching, the CISB provides plenty of resources to get students started on their social

business journey. There is a Social Business center that is going to be converted into a full-fledged co-

working space for students. At the moment, the 27 students enrolled in the Social Business program use

the Social Business center for consultation services. The CISB follows a very praxis-oriented approach of

teaching where all the theoretical knowledge acquired should be applied immediately in the creation or

design of a real social business. The student body is split into 5-7 teams, and each team is tasked with

consulting a non-for-profit (NFP) organization to create a sales-based revenue stream for them in order

to convert them into a self-sustainable NFP or even a social business.

An interesting example would be an NFP organization that offers parenting classes to low-income Latino

families. The spillover impact is predicted to be significant as good parenting eradicates crime,

unemployment and a slew of other social problems. The students under the Social Business program

came up with the simple solution for the organization – an embedded business model that offers the

same services to well-to-do households, for a higher fee. The revenue that the organization generates

from the wealthy families will be channeled back into their social work of educating low-income families.

In CISB, they are also planning to offer a Train the Trainer program in which they will equip teachers with

the necessary expertise to teach social business. An ideal social business teacher would be someone

who combines pedagogical knowledge with real-life entrepreneurial experience. Most teachers do not

have an entrepreneurial background, so how would they be able to impart that kind of spirit to their

students? Hence, the process of selecting and training social business teachers has to be decidedly

rigorous. Many teachers may choose to teach the theory themselves, and invite actual social business

entrepreneurs to provide real-life examples.

A discussion was started by the following question: “What’s the difference between a NFP that is

financially sustainable, and a social business?” While both entities can generate profit (surplus)

GOAL AND CONTENT


ACADEMIA //

and serve a social purpose, the main difference actually lies in legal and organizational discrepancies.

Harvard University, for example, could be categorized as a social business for its generation of profits

and social value through quality tertiary education provision. However, in terms of ownership structure

and legal status, it is not a social business. Social businesses usually use for-profit legal entities and are

not tax-exempted, as social businesses want to be an equal member of the business community that

does not require any special treatment.

Another idea from CISB is to establish a social business fund. CISB students who consult NFP

organizations are unable to redirect them to traditional funding sources. To create social businesses,

financial resources are required. Thus, a social business fund should be created.

The CISB will also engage in organizing social business entrepreneurship competitions for

undergraduate students as a great way to raise awareness about the existence of social business. There

is a strong value proposition for presidents of the universities in creating a social business institute

because their university will be branded as a hub for innovative new ideas that help society. This in turn

generates more students, and consequently, more profit.

Offering social business classes across several academic disciplines was another topic. Getting the

professors on board is challenging. For example, sociologists are habitually of the opinion that ‘social

business’ is an oxymoron. Business or economics professors often do not see the theory behind social

business reflected in their economic theories. Martin’s message to them was simple: “Business may not

the right thing for you – but social business is a tool to solve social problems, and we can teach you how

to use it.” Now, Martin is working with several chairs of his university to design specific social business

education programs for their respective needs. All follow the same principle: “Social Business incubation

is a way to apply knowledge in a meaningful manner.”

On local shores, Malaysia too has an educational foundation that strives to emulate CISB in terms of

creating social impact. The Jeffrey Cheah Foundation is a NFP, non-IPO organization that runs a host of

academic institutions, including Sunway University. In Sunway, they are planning to launch the Institute of

Social Entrepreneurship. Their mission is to build a generation of socially conscious students via social

business. Jane Poh was the Jeffrey Cheah Foundation’s representative at the session. She revealed that

GOAL AND CONTENT


ACADEMIA //

once she receives the buy-in from the top, it will create a proverbial ‘black hole’ that sucks in all the other

faculties, so they can all offer courses in relation to social business.

The session officially concluded with Martin offering us some valuable reference materials for additional

reading, like the Social Business Academia Report 2013 (found on the Grameen Creative Lab website) and the Social Business Students Forum (which features a creative online social business game).

GOAL AND CONTENT

http://issuu.com/grameencl/docs/gcl_academia_report_2013_web

http://www.sbsf.com.bd/game project.html

// 11 // REACHING AND

KEEPING TALENT: HOW TO

RECRUIT AND TRAIN

PEOPLE FOR SOCIAL

BUSINESSES? //

// 11 // HOW TO RECRUIT AND

TRAIN PEOPLE FOR SOCIAL

BUSINESSES? //

Format: Workshop

Level: Start-up

Moderators: Alex Finlayson (Social Business Consultant British Council)

GENERAL INFORMATION

Goal of Focus Group

The focus group deals with the issue of human capital in social business. The aim is to encourage active

discussion and response among the delegates about this issue. Delegates are highly encouraged to

bring in their own experiences and knowledge of the recruitment process and human resource

management throughout the session. Questions such as how to find the right person and how to match

talent with the business prompts delegates to discuss the characteristics of people in social business and

available channels to communicate the available positions in social business. The question of how to

support staff loyalty and development facilitates the discussion of practical methods to inspire and

incentivize staff.

Participants share their thoughts on the ideal characteristics of people working in social business. The

perspective of different groups of people on social business is explored by discussing the benefits and

barriers of working for social business for each group. The benefits and barriers are analyzed to see how

these groups of people can be attracted to work with social business. The recruitment process especially

of job promotion is discussed. The possible channels involved in a recruitment process are also identified

and evaluated. The case study leads to the participants applying what they have discussed before to a

given scenario. Views on effective methods to manage the social business and the potential long term

goals of the social business are exchanged. The energizer brought four different reasons and

perspectives of issues related to social businesses.

GOAL AND CONTENT



BUSINESSES? //

Session Flow

The session was an interactive break-out session. The moderator used different styles of workshop

moderation. Styles included a presentation of experiences and case studies such as the Waterhouse

Restaurant that addresses social issues in London by offering Blue Marble Training, Gardening and

Growing Programme and Community Events space.

In an Icebreak-Session the participants were asked to write down four words such as adjectives to

describe a person working in social business and were later analyzed.

After lunch, the session resumed with a brief look into the recruitment process. The recruitment process

of job promotion was highlighted. The possible channels for the promotion of job opportunities and

questions such as how could partner strengthen a social business ability to recruit more effectively were

analyzed. In another case study of a social business the participants worked in groups to follow the

framework of a tree diagram to come up with ideas to manage the social business effectively. The last

activity was the four corners debate where three questions were asked and participants move towards

each corner of the room according to whether they strongly agree, strongly disagree, agree or disagree

with three key question:

1. Do people work harder when making money?

2. Should working in social business be for life?

3. Should social businesses always favor the employment of marginalized people?

Participants shared opinions for choosing a particular corner and a debate between different positions

was initiated.

Focus Group Results

The icebreaking session with the activity of listing down four words to describe a person in social

business brought forth a sharing session of what the delegates think are the ideal characteristics of

people in social businesses. Words such as open-minded, caring, passionate, informed, flexible,

generous, visionary and empathetic were used. Delegates explained what made them chose the

characteristics with answers mostly hinting at the idea that people in social business build the culture of

the business and ensures its sustainability.

GOAL AND CONTENT



BUSINESSES? //

The next activity of listing down the barriers and benefits of working for social businesses led to a very

active discussion. This activity identified the possible motivations to work in social business while

acknowledging the existing barriers and the possible ways to reduce it. Three groups of people under the

categories of graduates, career changers and post careers were discussed.

For fresh graduates, the barriers or challenges that need to be overcome in order to attract this group

into social business includes social pressure. There is a common perception that people will be more

successful if they join the corporate world because of family, media influences and society expectations.

These young people grew up with the society emphasizing on the greatness of the corporate world. They

are brought up with the idea that success can only be found in the corporate world. The concept is not

well known yet so that people almost always assume people working for social business are underpaid

and of lower status. The line of perception between social businesses and charities are also often

blurred.

The benefits involved for fresh graduates to work for social businesses include the characteristics of the

Generation Y which are being idealistic, innovative and creative. They are usually not slumped down with

responsibilities such as mortgages, loan repayments and high family commitments. The younger

generation will also have a vision for their own future which they can be part of making it. The Maslow

hierarchy is used to explain the fact that more people from the Generation Y are already looking to

achieve their purpose in life and self actualization as their first and second level of the Maslow hierarchy

dealing with safety, security and love are already satisfied.

For the second group which is career changers, the barriers include insecurity of venturing into a new

sector. They would potentially have to climb the ladders again and build a new reputation for themselves.

They could occupy leading positions in the corporate world and refuse to start off again at the bottom.

People might also lack motivation in switching over to the social business world.

The benefits involved for career changers to work for social businesses include the ability to look or

achieve their purpose in life. Working in the corporate world is very inflexible so therefore people get

drained and tired of it. These people having already satisfied the lower levels in the Maslow hierarchy

seek personal satisfaction that can be achieved by working with social business. Financial motivation in

GOAL AND CONTENT



BUSINESSES? //

the corporate world does not solve the problem of demotivated employees.

The post career group benefits include that these people are still in demand for their expertise despite

retiring from their job. This group should be explored as they are of high potential to venture into social

business. The emergence of the growing populations such as in the United Kingdom should be taken

advantage of. This group can be reached out to via rotary clubs, societies and events. Inverse mentoring

can occur where the older generation passes down industry knowledge to the younger generation while

the younger generation equips the elderly with technological information.

However, the barrier involved with this particular group is the generation gap. Social business must also

take into consideration their capabilities and willingness in line with the expectations. As such, there

needs to be flexibility in terms of working hours in the employment. Another challenge of having post

careers in social business is the possibility of them initiating many projects and then leaving the company.

The issue of social business advertising is then discussed in relation to the promotion of job

opportunities. LinkedIn is agreed to be a suitable platform while media involvement such as TV

programes, reality shows and documentaries should be used more to promote the concept of social

business. Examples of those existing ones are the reality shows involving chefs Jamie Oliver and Gordon

Ramsey.

The question if government should get involved with social business recruitment brought about different

views from the group. The key reason of supporting government intervention is the economic value that

exists since government spending can be reduced in the giving out of welfare benefits if they help social

businesses enabling them to channel government funds somewhere else. The multiplier effect would also

amplify the desired effect. The key reason of opposing government intervention is that there is a lack of

trust in the government’s ability and capability since social problems should’ve been solved by them in

the first place. Example of intervention is through education policies where social business is made

compulsory for a certain period of time in school curricula.

The practical methods to inspire staff were explored through a tree diagram. The roots represented the

skills and attitudes needed for social business staff. The trunk represented methods to set a positive

GOAL AND CONTENT



BUSINESSES? //

working culture. The leaves showed the long term outcome of the social business. The participants chose

the case study of a social business involved in education in the form of a children literacy centre. The

scenario is that the centre is in Kuala Lumpur, having 300 children and 20-30 employees.

At the root section, delegates included empathy, well informed, patience and persistence, passionate,

outgoing, cheerful, responsible, and trustworthy among the skills or attitudes needed to work in a social

business such as the one mentioned. The person must possess good listening skills and EQ

management as they will be dealing with kids who might need some creative ways of teaching to get

them engaged. The person must also be able to adapt and respond accordingly as they might be faced

with unforeseen circumstances. Personalities such as outgoing and cheerful would be appropriate when

dealing with kids.

The trunk section includes the promotion of flexibility in the working hours and working place especially

among post careers. There could be gratitude sessions held and encouragement of teaching others to

teach as well to create a domino effect. Invert mentoring, staff meetings and feedback sessions could

ease any culture or communication problems that exist. There must also be measurement of impact to

motivate staff. The approach taken should always be fun, creative, innovative, open minded and self

sustaining.

The leaves section includes the outcomes of building partnerships, network and achieving income.

There would be better qualifications for the children and more marginalized children can be reached. A

second centre can be opened and the concept can be replicated in other places. The same framework

can be used to tackle another social problem. Staff and founders achieve self satisfaction which ensures

the continuation of the social business.

The final activity of the four debate corners brought forth these responses from the participants:

Question 1: Do people work harder when making money?

The response was mixed with some choosing agree and some choosing disagree. One of the delegates

who agreed with the questions said that she stripped the question down to the basic premise that people

GOAL AND CONTENT



BUSINESSES? //

work for money. If a person is rich, he would not work extra if he already has millions in the bank. If a

person is poor and in need of it, they would work harder when given money.

Question 2: Should working in social business be for life?

The response was also mixed with the younger participants disagreeing and the older participants

agreeing. One reason for agreeing is because once a person has discovered their purpose in life, they

will follow it and only be happy if they achieve it. The ones who disagreed gave the reason that they

might want to pursue other passions or interests in life.

Question 3: Should social businesses always favor the employment of marginalized people?

The response was a mixture of disagree and strongly disagree.

The reasons given were it is not efficient for the social business to run when employing marginalized

people. It is also hard if we have the blind leading the blind. It depends on the things that need to be

done. You have to be capable to help others first. The question of what about those who are not

marginalized led to the possibility that favoring the employment of marginalized people will reduce the opportunity for other people.

GOAL AND CONTENT

// 12 // CASE STUDIES ON

SOCIAL BUSINESSES

DELIVERING HEALTHCARE

SERVICES TO

UNDERPRIVILEGED

COMMUNITIES //


SOCIAL BUSINESSES

DELIVERING HEALTHCARE //

Format: Case Studies

Level: Pilot

Moderators: Aarti Wig (Country Director Yunus Social Business India), Dr. Huzaifa

Khorakiwala (CEO Wockhardt Foundation), Imamus Sultan (MD

Grameen Kalyan), Lutfi Fadil Lokman (Founder Hospitals Beyond

Boundaries)

GENERAL INFORMATION

Goal of Focus Group

1. Present and discuss healthcare case studies around the globe including countries such as Malaysia,

India, Cambodia and Bangladesh

2. Identify problems / challenges within the healthcare sector

3. Develop solutions, collaborations or partnerships between different organizations to provide a better

primary health care services to the underprivileged communities

Session Flow

Every country agrees in the principle that everyone should have the right to access basic healthcare. In

the developed countries, this movement is a hotly debated topic and on average they spend about 4-6%

of GDP on healthcare. In developing countries like India only an estimate of 1% GDP is given for

healthcare. The public healthcare facilities available are poorly managed and this gaping hole is often

filled by private sectors in which they focus on revenues that are not affordable by the poor. However, the

innovation of social business models are proved able to reduce this gap by providing quality healthcare

services through the collaboration of the private sector with social conscience of the public sector to the

poor. Some of these models from 4 different countries (Bangladesh, India, Malaysia and Cambodia) were

presented as a real life case studies during the focus group discussion.

GOAL AND CONTENT


SOCIAL BUSINESSES


Case Study India

Wockhardt Foundation is an India based, secular, non-profit organization engaged in human welfare and

social service activities founded by Dr. Huzaifa . Majority of its project include healthcare services to

those in need. The opportunities in healthcare are mainly because of the poor health care infrastructure,

research and medical tourism. Mobile 1000 a recent project by Workhardt Foundation is being used as a

case study discussion topic. Mobile 1000 has the vision of operating 1000 Mobile Health Vans to provide

free primary healthcare to 25 million people in rural India. The objectives of Mobile 1000 project is based

on 3 aspects: Awareness, Diagnosis and Cure. The rural area make up 70% of the total population, but

66% of rural population do not have access to critical medicine and 31% of the population travels more

than 30 kms to seek healthcare in rural India. The mobile health van not only provides free mobile

healthcare but at the same time sells some health related consumer goods (for example water

purification tablets, toothbrushes) to earn profit in covering the cost of the doctor’s salaries, fuel etc.

However, the prices are kept low because the rural population has no high purchasing power. By this

action, not only the cost can be covered but at the same time it can solve a lot of health related problems.

Case Study Bangladesh

Grameen Kalyan (GK) is providing quality and affordable primary healthcare services to the less

privileged population in the rural areas in Bangladesh since its inception and pioneering a micro health

insurance system, health care facilities in Bangladesh are currently in a poor situation. One of the main

activities is eye care (80% of blindness in Bangladesh are caused by cataract). GK is not a charity body,

but a social business providing quality health care services with low charges and cross-substitution,

where only 50% of the cost is paid by the poor.

Case Study Malaysia/Cambodia

Hospitals Beyond Boundaries (HBB) is a non-profit organization for youths of various educational

backgrounds, united by a mission to build hospitals where it is needed most. HBB is involved in

developing the surrounding community socially and economically by empowering them to sustain the

health care services they provide. HBB looks at health care beyond the hospital boundaries to include

adequate shelter, nutrition and health education. The major project is currently conducted in Cambodia.

He expressed that 87% of the population are poor and although there are more than 2,000 generous

GOAL AND CONTENT


SOCIAL BUSINESSES


donors and NGO organizations in Cambodia but most of the hospitals are built by foreign NGOs which

lacked cultural competence when treating the locals. This caused the poor to have more faith in

traditional healing .Thus it is HBB’s responsibility to build local hospitals, recruit staffs from the local

community and train them. Hospitals will not run on full charity, but on empowerment of the poor through

social business. This is because nobody wants to be permanently dependent on others. People are

motivated to know that they have the capability to take care of themselves and other people. Through

social business, jobs and economic opportunities are provided for the community.

Key challenges and solutions in building a sustainable healthcare social business

1. Creating awareness of need for healthcare in the community

2. Affordability of healthcare services by the community

3. Balancing affordability and sustainability in the healthcare system

4. Creation of a pool of healthcare workers

1. Creating Awareness

Dr. Huzaifa has led several outreach programs with his mobile health vans. When he first

approached a community, the team faced a number of challenges. Among them were the

doubtfulness of the villagers on the intention of the doctors. Another main problem is connected with

the healthcare accessability of the villagers. If the mobile health vans did not approach the

community on a regular fixed date basis, the villages will not know when the doctors are coming. On

the other hand, Mr. Sultan expressed that to train healthcare workers itself is a challenge because

the capacity to deliver proper training which includes medicinal knowledge and ability to detect

symptoms and diagnose a health problem is a difficult task. Thus, he suggested that awareness and

education should be targeted at mothers, students and maybe even the whole household. According

to Mr. Lufti a lot of the people in Cambodia are of rich backgrounds. The disparity is very huge. The

concept to solve this is easy: we charge the rich and subsidy the poor. This serves as a persuasive

method to make people pay for healthcare services provided by social businesses.

GOAL AND CONTENT


SOCIAL BUSINESSES


2. Affordability of healthcare services

Once awareness is created, the next thing to tackle is the ability to pay. For people living just above

the poverty line, one major illness can send an entire family into poverty.

In order to scale up micro-insurance, Mr. Sultan stated that it is important to raise the volume

(number of people registered) in order to reduce the cost. Bangladesh has no proper health

insurance system. The idea is that when there is a doctor there will be an increase in premium,

when there is no doctor less premium need to be paid.

3. Balancing affordability and sustainability

Mr. Sultan stated that the challenge here is to maintain sustainability when proving quality service

and to charge at a low cost. There is a need to subsidize from external organizations and parties in

the form of donations. It is proposed that a system where 50% of the cost are free of charge, 30%

externally subsidized and 20% charged by the consumer. Free services are not provided, because if

not the people will not appreciate it.

In India, to lower cost of delivery a mobile diagnostic application is conveniently utilized by

paramedics to conduct tests like biosensor anemia tester, urine tests, etc. Telemedicine services are

also available.

4. Creation of a pool of healthcare workers

Mr. Lufti expressed that in Malaysia, the government provides a lot of scholarship opportunities to

medical students with a bonding of 10 years while those without scholarship also have a bond of 2

years with the government after graduating as a doctor. The government then has the power to

allocate any new doctor to either urban or rural area, but usually they are allocated back to their city

of origin. The main problem is a lack of specialists in certain fields. Although there is availability of the

local community to work in the rural areas, a lot of the volunteers are not willing to provide their

services permanently. In order to solve this problem, a non-permanent voluntary program should be

encouraged to be conducted, for example every 3 weeks or 3 months a medical team should visit

the rural area and provide medical assistance.

GOAL AND CONTENT

// 13 // EXPERIENCE

DIALOGUE IN SILENCE BY

DID HONG KONG LIMITED //

// 13 // EXPERIENCE

DIALOGUE IN SILENCE //

Format: Workshop

Level: Start-up

Moderators: Fiona Wat, DiD Hong Kong Ltd

GENERAL INFORMATION

Goal of Focus Group

1. To understand that communication occurs on many levels and dialogue can happen via non-verbal

forms of expression such as body language, hand gestures and facial movements

2. To encourage participants’ awareness of personal responsibility when communicating

3. To develop a greater understanding of the patience and creativity required to overcome challenges

when communicating within a team

Session Flow

'Please don't speak once your headphones are on or listen with your ears, our trainers will lead you

through the experience. You can use your face and your body to express yourself. You have all the tools

you need with you already!‘

Participants leave belongings on a table to free their hands, 'you will have a lot of movement to do to

communicate today!' and come together, standing in a circle. We meet trainers Michael & Connie and

noise-cancellation headphones (3M Optime 105) are given out to each person.

Non-verbal communication begins: Michael and Connie use hand gestures, facial expressions, "finger

drawing” and mime to check everyone is ok, happy, comfortable with their headphones before an "ice-

breaker" exercise where one participant generates an arm movement and offers it to the person next to

them. The movement continues, repeated around the circle and with each cycle, it becomes more

GOAL AND CONTENT

// 13 // EXPERIENCE


dramatic and dynamic.

Michael and Connie offer alternative methods of communication using the body as a tool of expression

and gradually the group learns through repetition. Rather than clapping, praise is offered through hand

shaking above ones head, smiling is constantly encouraged and as participants began to understand

information from their deaf leaders, more smiles appear.

Workshop Tasks

1st task: Acting "what's in the box": individuals improvise around the circle, in mime, pulling out different

imaginary items: a basketball, a camera, a tennis bat and ball, food, drink. Everyone seems to be having

fun!

2nd task: Miming facial expressions to reflect "Happiness" or "Anger". Participants have to copy leaders

with exaggerated facial movements and each person is encouraged to communicate the emotion in the

most dramatic way. The group divides into two teams on separate tables where Connie and Michael

encourage team bonding through gestures.

3rd Task: Michael mimes a story about a cat stuck in a fire up a tall building using different body

movements and facial expressions to communicate each character and mimic all sounds, actions and

objects.

Each table is given a collection of picture cards and have 10 minutes to select pictures relevant to

Michael's story, placing them in order of appearance. Both Connie and Michael communicate whether the

pictures are in their correct order through silent explanation and congratulate participants after successful

completion of the task.

4th Task: Each person is given a card with a short, written script which Connie and Michael remind must

be kept secret! Participants are encouraged to think about how to perform their script and that each

picture is part of a little story so as a team, they must work out the order of each segment to create the

"bigger picture". Each team forms a circle, acting out their individual card and then together, the group

arranges the order for a full performance of their story to the other team. Both Connie and Michael give

personal feedback on how each person did in the task through sign language and visual validation, which

GOAL AND CONTENT

// 13 // EXPERIENCE


is gratefully received.

5th Task: Each table is given a sheet of paper setting the scene of a magazine editorial meeting.

Participants read that they must discuss, in silent dialogue, what the magazine content and cover photo

will be before acting out their meeting to the other team. Connie and Michael encourage engagement

through offering "smile" gestures, "thumbs up" and dynamic "ok" signals. There is a real sense of

achievement when understanding occurs amongst team mates and great feedback and encouragement

is offered from Michael and Connie, particularly when they notice certain body language across the

groups i.e. participants who appear nervous, shy and physically "quiet".

At the end of this 15 minute task the headphones are removed, 'welcome back from silence!'. The group

forms a circle to discuss the workshop and there are smiles and laughter amongst participants at the

opportunity to speak again. Fiona translates, through sign language, between the deaf trainers, Michael

and Connie and the session participants. A short 2minute film is shown explaining the "Silent Dinner

Cabaret" experience, a world first and additional project lead by Deaf trainers.

Focus Group Results

At the beginning of task 1 a clear, non-verbal dialogue begins to develop amongst participants and

natural communication roles start to appear i.e. group leaders. During the 4th task there seems to be a

more natural use of hand symbols and gestures to direct team understanding accompanied by lots of

smiles and silent laughter.

By the 5th task participants are more confident using gestures, using hand signals, using items as props,

using exaggerated facial expressions and acting out ideas to fellow teammates. Understanding from

individual body communication is quicker and seems more enjoyable than at first when there were more

frustrated interactions.

After the workshop tasks the group shared and agreed on the value of the experience.

Q: What are your thoughts?

'I was able to feel the frustration someone must have when they cannot express meaning, when they

aren't able to convey desired meaning to others'

GOAL AND CONTENT

// 13 // EXPERIENCE


'I was thinking I was the only one who didn't understand'

'I had to attune to a greater level of sensitivity as I continued to be in state of silence. Over time I began

to have greater understanding to what meaning we were communicating, learning through repition of

gestures and particularly gaining understanding through the eyes of my team mates'

'At the very beginning everyone is rather closed off, figuring things out and by the end, frustration turns

into functionality and again, into happiness. We see how you must open up to communicate effectively'

'Michael and Connie were great trainers, teaching us a completely new language. It was amazing to have

no typical language barriers. You have to be very clear, using different parts of brain rather than relying

on comfortable, known communication with words'

.

Q: What can we take away from this for social business?

'We can bridge the gap between those with challenges by exposing people to the modality of silence so

they can appreciate what they have'

'In the social business spectrum we have to be particularly sensitive to learn how to overcome stress and

challenges and to see the end of the darkness. In business you meet many different people and this is

helpful in understanding how someone may react to you through all aspects of your personal

communication'

'When you are silent your level of alertness, your awareness is heightened and you have to really focus .

I feel tired because you have to be fully engaged at all times!'

'Everyone has a different definition of words, it was insightful to connect to each other through unifying

gestures'

'We [Dialogue in Silence] showcase the abilities of those who are different to us, our hearing impaired

GOAL AND CONTENT

// 13 // EXPERIENCE


colleges, which takes us back to the social business pendulum: the power of co-creation.

Our two aims are:

1. "Innovation": that everybody is co creating in an experience.

2. " To Provide a Showcase Platform": to learn from our human and social differences which is itself the

spirit of social business. We all come from different countries, speak different languages, but in silence

we use our own bodies as a tool to communicate which shows that we are the same. Disability becomes

a strength; an opportunity to learn.

GOAL AND CONTENT

// MARKETPLACE OF

SOCIAL BUSINESS //

// Grameen social businesses as well as companies engaging in social business or

interested in exploring social business presented their concepts and products at

exhibition stands visited by participants during breaks and free-flow times //

// MARKETPLACE OF SOCIAL

BUSINESS //

Grameen Communications

The not-for-profit company Grameen Communications (GC) aims to bring the information communication

technology to disconnected people in rural areas of Bangladesh. GC has become one of the leading

providers in Bangladesh to prop up rural development by concentrating on microfinance software

development, improvement and implementation, ensuring hardware support, hands-on training and

exerting research projects.

Today international microfinance organizations such as the Grameen Bank, Grameen America or

Grameen Aval use GC’s services and beyond that various sales and asset tracking, accounting software

and document management systems have been developed and successfully distributed.

Grameen Distribution

Grameen Distribution Limited (GDL) strives to create employment opportunities for the poor and makes

them reliant in terms of livelihood. It distributes imported, local and own manufactured products all over

Bangladesh. Besides that, GDL develops specialized products that are essential for the underprivileged

rural people in the country.

The Grameen Marketing Network (GMN) used by GDL has perhaps had the largest impact, as it has

reached out to 1.5 million poor rural households with quality and affordable products. The women who

have been involved as distributing associates are making an additional income besides their regular

earning. In 2012 the number of members on GMN exceeded 5,000.

Grameen Shamogree

Grameen Shamogree (GSG) was founded to rejuvenate the handloom textile industry, and support the

weavers. Grameen Check is the brand through which GSG markets its products at home and abroad. In

keeping with the spirit of poverty alleviation and the need to accelerate the pace of Bangladesh’

development efforts, its mission is to promote and expand the handloom industry to both local and

international markets.

Already, more than 2,550 design samples have been produced for fashion conscious buyers worldwide

and created herewith productive employment opportunities in Bangladesh. To date, GSG has exported

more than 15 million yards of Grameen Check fabrics to Europe and the United States.


Grameen Fabrics and Fashion Ltd (GFFL) aims at successfully establishing the concept of social

business and eliminate social problems such as unemployment and poverty. With the completion of an

industrial park named ‘Social Business Industrial Park’, the company will create employment

opportunities for 10,000 underprivileged people of the country by 2020.

The company will set up environment and worker-friendly factories to manufacture composite knitwear

and treated mosquito nets for protection against malaria, dengue and other mosquito transmitted

illnesses. One production unit of the company is already producing Bangladesh’s first Long Lasting

Impregnated Mosquito Nets. The production capacities of the unit will be enhanced to 6,000 pieces of

nets per day for the local market from 2014.


BUSINESS //

Grameen Shakti

Grameen Shakti (GS) is one of the leading social businesses in the world taking renewable energy

solutions to the rural areas of Bangladesh. It has achieved a milestone by improving the rural livelihood

through access to green energy in a sustainable manner. GS has developed one of the most successful

market-based programs with a social objective for popularizing Solar Home Systems including other

renewable energy technologies.

GS reached the landmark of installing one million solar home systems in the country’s rural areas in

2012. This enabled around eight million people to light their home and businesses using cheap and

environment-friendly solar power. And now, GS plans to reach two million homes by the end of 2015.

Grameen Telecom Trust

The Grameen Telecom Trust (GTT) is the flagship entity responsible for implementing and facilitating

social business ideas. Once innovative business ideas with social objectives are set forth, GTT

formulates them into prototypes that can be replicated in a sustainable manner. GTT has formed a Social

Business Learning and Innovation Fund to promote the implementation of social business projects.

GTT is planning to expand to a large scale by 2020. Projects worth over USD 520 million are in planning

and implementation stage. These projects include five eco friendly social business parks, one health

complex, one health city, eleven hospitals, and over seventy different education facilities.


BUSINESS //

Yunus Centre

The Yunus Centre (YC) grew out of the Yunus Secretariat which was created in 2006 after Prof. Yunus

jointly received the Nobel Peace Prize with the Grameen Bank to meet the growing international interest

in learning about Prof. Yunus’ work and philosophy. In July 2008, YC was formally created and has been

the one-stop resource centre for all Yunus social business related activities in Bangladesh and globally.

YC helps to forge lasting, productive relationships among all social business institutions around the world

and keeps the spirit of the movement high by organizing various events, through its social media,

publications, and websites. The YC serves as a global hub for Nobel Peace Laureate Prof. Muhammad

Yunus’ global engagement and operates as a technology centre, research and development group that

enables social businesses to grow into effective problem-solving enterprises.


BUSINESS //

The Grameen Creative Lab

The Grameen Creative Lab (GCL) is a joint venture co-founded by Prof. Muhammad Yunus and Hans

Reitz to promote social business. The company focuses on spreading awareness of social business by

organizing events and workshops, speaking at conferences and bringing social business into universities.

It also supports and consults companies and organizations in the initial process of creating social

business ideas and concepts. GCL’s flagship event is its annual Global Social Business Summit held

every year in November in changing destinations.

Interested organizations can invite GCL to conduct a Social Business Lab to learn in depths about social

business and jointly develop a social business concept. Social Business Labs can be conducted with any

stakeholder. GCL also offers a variety of services to universities incl. teaching and content development.

For hosting the Global Social Business Summit or a regional forum in your country, organizations join an

official bidding process. GCL also advices on the implementation of the “Social Business City” concept.


BUSINESS //

Genovasi

HPI School of Design Thinking @ Genovasi is the only Design Thinking school in Malaysia and the

leading regional partner for the Hasso Plattner Institute (HPI) School of Design Thinking. Design Thinking

is a human-centred approach to innovation that employs multidisciplinary teams, flexible environments

and a creative process to generate user-focused products, services or experiences.

Genovasi has used the concept successfully to re-orientate business strategies of organizations and also

as a challenge-solving tool for developing user-centric solutions. Their vision is to inspire, create and

empower a movement of innovators for the betterment of self, environment and the world.

Grameen UNIQLO

Grameen UNIQLO (GU) is a joint venture between UNIQLO owned by Japan’s Fast Retailing Co Ltd and

the Grameen Healthcare Trust. Grameen UNIQLO supplies high-quality clothing at affordable local

prices. Grameen UNIQLO only works with local factories that support the concept of social business.

Grameen ladies are not only building a path to financial independence through face-to-face sales, they

receive and share customer feedback and thus are key partners for growing this business.

GU provides products that reflect the needs and preferences of local people and address social concerns

such as poor sanitary conditions. Especially women and girls learn about how underwear and sanitary

products can help to improve hygiene. GU has recently opened two fashion stores in Bangladesh and

their ambitious goal is to manufacture and sell one million items by the third year of operations.

myHarapan

myHarapan is a Youth Trust Foundation dedicated towards empowering young Malaysians by supporting

youth projects and initiatives that contribute to current nation-building efforts. We achieve this through

providing various platforms and opportunities that help them scale, sustain, expand and multiply their

impact.

Under the Youth Engagement pillar, activities and programs are geared towards engaging and inspiring

the youths to contribute to nation-building. The Funding arm provides conditional grants under two main

products: the Youth Action Grants (micro-funding of up to MYR 15,000 (ca. USD 5,000) and the Social

Venture Fund (of up to MYR 250,000 (ca. USD 80,000) to selected projects and organizations who

deliver social and economical impact. Through Research & Policy Development, we also aim to profile of

Malaysian youths across the nation, to allow us to be able to provide the most compatible platforms and

accurately measuring social impact.

Social Business City Wiesbaden

In multiple visits to the city of Wiesbaden, Prof. Yunus has inspired citizens and stakeholders about the

concept of social business. In 2010, the seeds he planted during his earlier visits grew into a network of

local stakeholders that share a common vision to form Wiesbaden into a global leader and pioneer for

social business in cities. Together with a network consisting of the Major of Wiesbaden, EBS University,

Wiesbadener Kurier (a local newspaper), Berufswege für Frauen (a local initiative for professional

business women) and the Wiesbaden Foundation, The Grameen Creative Lab is working towards

addressing social challenges in Wiesbaden.

The first social businesses such as Variomondo (online platform for selling products from social

businesses), Heimathafen Wiesbaden (co-working space), Lalaland (a meeting place for families and

children) and Perfect Day Coffee are in place. Furthermore, local campaigns like Urban Knitting, YY24

Refugee Camp and Cirque Bouffon support community building and awareness creation for social

problems.


BUSINESS //

// Individual social business entrepreneurs, start-ups and incubation hubs presented

their work, ideas and products at exhibition stands visited by participants of the

summit during breaks and free-flow times //

// SPACE FOR

ENTREPRENEURS //

// SPACE FOR

ENTREPRENEURS //

Sistema Bive is a social business that connects the

opportunities and needs of the health care sector in

Colombia enabling people with low income to gain access to

high quality health care services.

http://grameencaldas.com/en/negocios/bive/

Bive

Blue Impact

Blue impact is South East Asia's first ever social model

biotechnology company to cultivate edible fungus

(mushroom) 100% completely with recycled agricultural

waste, cradle to cradle, from incubation to after harvesting

production cycle.

http://www.facebook.com/blueimpact.cc

DiB Coffees of Hawaii serves the best and most unique

coffees and tisanes (herbal tea) from the island of Hawaii

with a team being equally unique. 100% of the staff is deaf/

hard of hearing and are guided by a few hearing coaches.

The social business concept aims to guide, teach, coach

and mentor these precious people so that they can be

gainfully employed.

http://www.dibcoffeesofhawaii.org

DIB Coffees of Hawaii

http://www.sistemabienestar.com/

Fairwind is world-wide the first Micro-Wind-Turbine where the

blades are made from plastic-bottles. This makes their

windmill a universal, cost-effective and eco-friendly mini-

power-generator.

http://www.fairwind.info

Fairwind

Grameen Veolia Water

Grameen Veolia Water has set up a water treatment plant

to provide safe drinking water to people living

in villages in rural Bangladesh. The project aims to provide

100,000 people with drinking water that meets

the highest WHO standards, at a price they can afford.

http://www.grameenveolia.com/

HBB’s mission is to help build hospitals where it is needed

most. They develop the surrounding community socially

and economically by empowering them to sustain the

health care services we provide. They look at health care

beyond the hospital boundaries to include adequate shelter,

nutrition and health education.

http://www.hbb.org.my/

Hospitals Beyond Boundaries

// SPACE FOR

ENTREPRENEURS //

Mammú

MAMMU is a social business fashion company following

Grameen principles. The company sells high quality fashion

produced by single mothers from Latvia.

http://www.mammu.lv/

Panther Social is a Bangladesh based social business with

the aim to provide opportunities and help improve the lives

of people in need. Advertising on rickshaws is used to earn

additional income to better the lives of some of

Bangladesh's poorest and hardest working citizens, the

rickshaw pullers.

http://panthersocial.com/

Panther Social

// SPACE FOR

ENTREPRENEURS //

The Recovr Initiative aims to empower individuals with

disabilities and the underprivileged community through high

quality employment in the recycling industry in Malaysia.

http://recovr.com.my

Recovr

Ruralife

Ruralive is a touristic social business that generates income

for vulnerable households from the rural areas of the

department of Caldas, Colombia while improving the

touristic infrastructure in the region.

http://grameencaldas.com/en/negocios/ruralive/

s.b.INNOVENT is a platform, carried out in the form of a

collaborative competition, that invites participants with

different ideas, cultures, beliefs and realities to come

together to solve social problems through viable social

business solutions.

It strives to create a global impact by empowering young

people around the world to take responsibility for the social

problems in their community.

s.b.INNOVENT

// SPACE FOR

ENTREPRENEURS //

SEA advocates social entrepreneurship as a tool to address

social issues and stimulate community growth. As a result,

SEA has evolved into a hub of information and education for

aspiring and existing social entrepreneurs. The programs are

geared towards developing a pool of social entrepreneurs

and enterprises in Malaysia by providing support and a safe

space for organizations to grow.

http://www.socialenterprise.org.my/

Social Enterprise Alliance Malaysia

SOLS 24/7

SOLS 24/7 offers education solutions with the mission

‘Education for all’. SOLS 24/7 provides service for humanity

through its comprehensive two-year training and boarding

program for disadvantaged and at-risk youth from poor

communities.

http://www.sols247.org/home/

Sonas is a social business focused on providing business

support and education to small entrepreneurs in developing

countries. It is their mission to eradicate poverty, promote

progress and social development via financial inclusion and

microfinance, helping to turn poverty-stricken and

disadvantaged areas into sustainable communities.

http://www.sonas.org

Sonas

// SPACE FOR

ENTREPRENEURS //

Panela Fortificada in Colombia uses a type of food that is

already massively consumed - the panela (sugar cane) - in

order to reach the most vulnerable people with

micronutrients, improving the nutrition conditions without

changing their diet.

http://grameencaldas.com/en/negocios/panela-fortificada/

Vitalius

Yunus & Shiiki Social Business Research Centre

Yunus & Shiiki Social Business Research Centre in Japan

aims to study, research, and promote social business. The

center envisions to produce skilled social architects, build

partnerships with related organizations in the world, create

replicable social business models to combat the global

issues (poverty, health, environment, energy, education,

natural disaster crisis, etc.).

http://sbrc.kyushu-u.ac.jp/english/

// IMPRESSIONS //

// More photos, videos and media coverage can be found here:

http://www.gsbs2013.com/media/news.html //

// SOCIAL BUSINESS //

Thus the social business is a new type of company

and "social business entrepreneurs" (SBE) are a

new type of entrepreneurs who are not interested

in profit-maximization. They are totally committed

to making a difference in the world. They want to

give a better chance in life to other people and they

want to achieve this objective through creating and

supporting sustainable business companies.

Social business follows 7 principles, which serve

as its defining elements.

The seven principles of social business:

1. Business objective will be to overcome poverty,

or one or more problems (such as education,

health, technology access and environment)

which threaten people and society; not profit

maximization.

2. Financial and economic sustainability.

3. Investors get back their investment amount only.

No dividend is given beyond investment money.

4. When investment amount is paid back, company

profit stays with the company for expansion and

improvement.

5. Environmentally conscious.

6. Workforce gets market wage with better working

conditions.

7. …do it with joy.

With the idea of social business, Prof. Muhammad

Yunus has introduced a new dimension for

capitalism: a business model that does not strive to

maximize profits but rather to serve humanity’s

most pressing needs.

Thus, the first motive of a social business is not

profit, and second, it does not pay its investors

dividends. Instead, it aims at solving social

problems with products and services at affordable

prices, or giving the poor and marginalized people

ownership in a business and therefore allows them

to share in its profits.

A social business pays back only its original

investment and reinvests its profits in innovations

or further growth that advance its social goals.

Although the social business is pioneering in its

aims, it is traditional in its management. Its

workforce is professional and paid according to

market wages.

This type of business may or may not earn profit,

but like any other business it must not incur losses

in order to be able to sustain itself.

In every sense the social business is sustainable:

in its direct environmental impact, its impact down

the value chain, and critically, in its financial

independence.

This is a key difference between social business

and charity. Once its initial investment is repaid, the

social business aims to be financially self-

sustaining, giving it the independence and security

to focus its efforts on the long-term improvement of

the lives of the disadvantaged.



// INTERACT //

// INTERACT //

Join the Grameen Creative Lab Facebook page:

http://www.facebook.com/#!/GrameenCreativeLab

1

2 Visit our website

http://www.grameencreativelab.com

http://www.gsbs2013.com

5 Contact us directly and share your ideas and questions

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https://twitter.com/#!/grameencl

4 Sign up for our Newsletter:

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// CONTACT //

The Grameen Creative Lab

Christina Jäger

[email protected]

www.grameencreativelab.com

Global Social Business Summit 2013 Follow Up Report

Documents

yunus social business

social business fund

idea of social business

social businesses

concrete social business

variety of social problems

yunus centre

sb fund of usd