Negocios sociales como la norma competitiva de las industrias del mañana- MICHAEL BROHM.

Social Business to change the

world

Michael Brohm

The Grameen Creative Lab

Speed Dating

Norman Borlaug Martin Luther King Mother Teresa Aung San Suu Kyi Nelson Mandela Elie Wiesel

„I believe that we can create a world without

poverty, because it is not the poor who

created poverty.“

Prof. Muhammad Yunus,

Nobel Peace Prize Laureate,

Founder of Grameen Bank

Initiator of Social Business

Founder of The Grameen Creative Lab

What is Grameen

97% of borrowers are

women

8,500,000 borrowers in Bangladesh only

36,000,000 family

members profit from program

$11,000,000,000 have been distributed by Grameen Bank in the form of microcredits since 1983

96.7% repayment rate

99% of the children of the borrowers can read and write

50% of the borrowers have

less than two children

… and many more

Grameen is more than a bank

Grameen

Trust

Grameen

Healthcare Trust

Grameen

Shakti

Grameen

Krishi Grameen

Check

Grameen

Shikkha

Grameen

Telecom

Grameen Uniqlo

Grameen

Kalyan

BASF

Grameen

Grameen

Veolia

Grameen

Foundation

Grameen

Distribution

Ltd.

Grameen

Fabrics and

Fashion Ltd.

Grameen

Danone

Grameen

Cybernet

Grameen

Otto

Grameen

America Grameen

Bank

Grameen

Creative Lab

0%

10%

20%

30%

40%

50%

60%

70%

80%

Grameen Bank Industry average Mexico

Income generating loans – Interest rate

Question Lab

What is Social Business

A social business is a no loss,

no dividend company with the

only purpose of solving a

social problem.

"Social business unites the dynamism of traditional business with

the social conscience of charity" - Prof. Yunus

NGOs/Public Sector Social Business Traditional Business

Ends

Means

Social/

ecological use

maximization

Donation financed

Social/

ecological use

maximization

Self sustainable

Profit maximization

Self sustainable

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 (non-loss)

3. Investors get back their investment amount only.

No dividend is given beyond investment money (non-

dividend)

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

Defining the spectrum

For-profit

business

Social

Business

Social

Entrepreneurship

Non-profit

organisation

Social Entrepreneurship is an activity with the goal of solving a social problem using entrepreneurial principles to

organize, create and manage a venture to achieve the social goal. The entity is called social enterprise.

Definition

Hybrid non-

profit

Profit-

maximizing

Business

Responsible

Business

Inclusive

Business

Social Business

Non-Profit

Hybrid non-profit

W

h

a

t

a

b

o

u

t

p

r

o

f

i

t

?

W

h

a

t

a

b

o

u

t

d

i

v

i

d

e

n

d

?

Pure Profit /

dividend

Good Profit /

dividend

Make profit /

dividend and

do good

Make profit but

no dividend

Charity, no profit,

no dividend

Profit-

maximizing

Business

Responsible

Business

Inclusive

Business

Social Business

Non-Profit

Charity, (no) profit,

no dividend Hybrid non-profit

Pure Profit /

dividend

Good Profit /

dividend

Make profit /

dividend and

do good

Make profit but

no dividend

Charity, no profit,

no dividend

Profit-

maximizing

Business

Responsible

Business

Inclusive

Business

Social Business

Non-Profit

Profitable business that aims to maximize shareholder value

without a direct social mission.

Profitable business that pays dividends to its investors, acts

responsibly according to a high code of conduct

and leverages profits to engage in CSR activities.

Target low-income communities at the Bottom of the Pyramid with a

profitable business model

and thus benefit sustainable livelihoods.

Profitable business with zero-dividend policy that has the sole

mission of serving society’s needs.

Charity organizations that follow a social objective

and are mainly financed through donations.

Charity, (no) profit,

no dividend Hybrid non-profit

Charity organizations that follow a social objective

and are financed through donations and some revenue generating

activities

Bu

siness M

eans fo

r So

cial Go

od

So

cial En

trepren

eursh

ip / S

ocial E

nterp

rise

Products Operations

Social Impact

Ownership

Product/

Service

Production 2

Product 1

Purchasing 3

Distribution & Sales 4

Marketing 5

Logistics 6

Operations

So

cial

Imp

act

Product/

Service

Production 2

Product 1

Purchasing 3

Distribution & Sales 4

Marketing 5

Logistics 6

Operations

In developed countries the

product is not always the one that

creates the main social impact

In developed countries social

businesses often create impact

through the way the product is

made available to the society and

the way the business operates

Soc

iety

So

cial

Imp

act

Case Study – Grameen Shakti

70% of population in Bangladesh without energy

100+ Mio live in rural areas

No

production

after sunset

Lack of

access to

energy

Lack of

economic

power

Lack of

efficiency

Limited

business

activity

largest rural based renewable energy company

Grameen Shakti

Can also be used to charge cellular phones

SHS are highly decentralized

Yearwise Installation of SHS (cumulated)

Design for women empowerment

> 1000 women technicians have been trained

3% of Bangladeshis receive natural gas for cooking

Most depend on biomass, crop residues, animal dung and wood for fuel

Yearwise Biogas Plant Construction Growth

Highest amount of energy used for cooking

Indoor cooking causes indoor pollution

Market potential of at least 2 million ICSs

Yearwise ICS Growth

• Electrification through

solar PV technology

• Community

involvement

• Organic fertilizers from

slurry (by-product of

biogas)

• Production of energy

transforming cow

dung, poultry &

biomass waste into

biogas

Solar Home Systems

(SHS) Biogas

Organic Fertilizer

Program

• Promotion of

environmental friendly

stoves

• Protects women from

in-door air pollution

Improved cooking

stove program

(ICS)

5 million 100,000 205,000

SHS Biogas Green Jobs Creation

5 million

ICS

Case Study: Dialogue in the Dark

WHAT IS IT LIKE IF YOU CAN‘T SEE ANYTHING?

› There is an estimated 650 million

people with disabilities

Dialogue in the Dark

The Initial Social Problem

› About 160 million people are visually impaired

worldwide

› 45 million of them are blind

› About 87% of the world‘s visually impaired live

in developing countries

› Approximately 85% of all visual impairment is

avoidable globally

› Even in developed countries like Germany,

only about 15% have a job

Dialogue in the Dark

The Initial Social Problem

Dialogue in the Dark

The Initial Social Problem

43

› Interaction between “abled” and “disabled”

people is hindered by stereotypes, fears,

avoidance and prejudice

› Levels of understanding, support and access

to education, information, jobs etc vary from

country to country

› The prevailing opinion that disability is “less

worthy than normal” leads to discrimination

and marginalisation of the blind and disabled

worldwide

Social inclusion of marginalized people on a global basis

Employment of disabled people

7 million visitors to date

Dinner in the Dark

Blind waiters serve a surprise four-course dinner

17 permanent establishments around the world

Different Product for different sences

Question Lab

How to start a social business

51

Have a clearly articulated purpose

52

Make sure the business model is sustainable

You need to build something that financially sustains itself at a minimum

53

Make sure that both what and how

you do it are about excellence

54

Don’t go it alone:

Partner with people, build

knowledge & expertise

around you

Be ready for tough 36

months

55

Test and pilot new ways of doing things

56

Measure results

57

Implement with joy

The nine building blocks

Customer &

Customer

Segments

1

Customer

Relationships

5

Sales Channels

and Distribution

3

Products and

Services /

Value Proposition

2

Cost Structures

9

Key Activities

5

Key Resources

6

4

Revenue

Streams

Key

Partnerships

8

Top

Prio

rity

If th

ere

is s

till t

ime

Source: Alexander Osterwald & Yves Pigneur (slightly modified)

Let’s work!

1

Short group discussion to

identify the Social Problem

(5 minutes)

Brainstorm Social Business

Ideas

(10 minutes)

2

Develop Social Business

Model

(45 minutes)

3

The steps for a successful Breakout Session

Presentation of Results

Social business – Do it with joy!