Posts Tagged ‘Social Entrepreneurship’

Creating a Sustainable Enterprise and a Sustainable Future

Posted on: April 27th, 2012 by socialventurenetwork No Comments

Written by Teju Ravilochan Co-Founder and VP of Partnerships and Communication

Not that many plenary sessions include speakers who include their own DJ to illustrate their points through sound. But this one did, leading to spontaneous dance sessions of the 200 or so entrepreneurs and investors in the room.

The spirit of joy and dancing ran through the whole not, framed as speakers Bryan Welch and Leen Zevenbergen recalled Emma Goldman’s quotation, “If I can’t dance, I don’t want to be part of your revolution.”

In the same way, Bryan and Leen illuminated simple truths about starting a business by challenging fundamental assumptions about it. Bryan Welch, who runs a media company dedicated to sustainable lifestyles called Ogden Publications, began by talking about what it meant to build a business. He explained, “The process of building a business is inspiring others to see a piece of the world the way you see it.” He explained that rallying the participation of others then was the chief job of an entrepreneur. “The one thing that inspires others to that participation,” he expanded, “is beauty. Yet we don’t talk about it when we build businesses. The other part of inspiring that vision is abundance.” In other words, people are drawn to a world they can marvel at and a world of plenty. “What we call abundance is referred to as capital in business. With insufficient capital, you can’t innovate, you can’t take risks.”

Bryan explained that the lack of money is one of the chief concerns of all entrepreneurs or even those who think about becoming entrepreneurs. “But we invented money!” he bellowed. “So, there’s always enough money! There may not be enough belief, enough beauty, but there’s always enough money.” The pursuit of money through work, in essence the “service of money” is not how the world ought to be. Instead, money, our creation, should serve us. “Entrepreneurship is the process that makes this possible,” explained Bryan.

Leen took his turn to explain that in entrepreneurship, it’s better to ask for forgiveness than permission. Most people with jobs and bosses explain that if they lived according to this maxim, they’d get fired, to which Leen retorts, “Good! If you’re fired, you finally get rid of your boss!”

The courage and inspiration it takes to leave beyond a job where you’re not producing the value that you can and to strike out to create something on your own is not easy. And Leen attributes that heavily to the how little our education teaches us about creativity and about inspiration. He explained there’s no “sparkling” in an MBA program, no sense of inspiration. This was painfully clear when he once gave a speech at a hospital where 20 of the attendants had Down Syndrome. He asked the audience, “What inspires you?” and every single attendant with Down Syndrome stood up immediately and said exactly what came to mind. The rest of the attendants, consisting of hospital administrators and leaders, had to think deeply about the question.

Fundamentally, without understanding what inspires you, you cannot effectively create a vision of beauty and abundance for other people. Without such a vision, you cannot engage the participation of others to build a business. Through simple stories, Leen and Bryan drove home a crucial point: building a business isn’t all business. Business is offering others an opportunity to step into their humanity and in so doing feel compelled to participate in the creation of something greater than themselves, and that is most assuredly the ticket to a sustainable future.

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SVC/SE Conference for Latin America, Caribbean and Florida – DAY 3

Posted on: March 22nd, 2010 by socialventurenetwork No Comments

Written by Vanessa Keating, Executive Director of COPRODELI USA.

The third and final day kicked off with a dynamic panel discussing funding for MFIs in Latin America. Bob Annibale of Citigroup discussed how private sector banks were becoming a driving force in the micro-finance sector and what their role was in trying to establish standardization and automation in the field. Investment and lending has been made more difficult due to the current financial crisis. Defaults are increasing, though for many investments, ROI hovered around 8-10% – not bad in this climate!

The next session with Matthew Cole from North Bay Equity Partners was a good lesson in leveraging for-profit principles, practices, and mechanisms in the non-profit field. While the ‘mission’ is extremely important for non-profits, its not enough to ensure success. A focus on raising capital, establishing a good management team, and attracting ‘customers’ is equally as valuable in the non-profit field. Thinking like an entrepreneur will ensure successful and efficient management and administration of the organization.

Managing social venture challenges and opportunities is a constant tug-of-war for social entrepreneurs. The informality of the environment in which they work requires creative strategies to ensure financial success, growth, and maintainable and growing social impact. Clara Hildron, an Ashoka Fellow and Executive Director for Amichoco, and Sergio Arango also an Ashoka Fellow and founder of Fundacion Espave, strongly conveyed the need to keep a balance between social impact and growth. Scale is important, but not at the loss of quality control. Grant funding is key to get social enterprises underway. While VC funding might be an incredible opportunity, it can also be very intimidating when success is still largely questionable. These were just some of the topics covered in learning more about the dynamics involved in investing in social community business ventures.

Overall, the SVC SE conference did not disappoint. As I reflect on my own experience, in particular as it relates to Coprodeli USA, the non-profit organization I manage, I realized that while we are successful in many aspects, there is ample room for growth and development. For example, planning an exit strategy and succession plan, identifying ways to strategically align our brand with for-profit businesses, and continuing to focus on developing unique ideas to raise capital are just some of the key lessons I learned.

A big THANK YOU to John Rosser for organizing such a dynamic array of individuals, agencies, foundations, banks, investors, and entrepreneurs focused on driving development and social impact in Latin America.

You can read more of Vanessa’s thoughts on the SVC/CE Conference on her blog here.

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SVC/SE Conference for Latin America, Caribbean and Florida – DAY 2

Posted on: March 19th, 2010 by socialventurenetwork No Comments

Written by Vanessa Keating of COPRODELI USA

Attendees and panelists delved deeper into the world of impact investing, multi-level investment outlooks, and the use of private capital to finance social enterprise in the region on Day 2 of the SVC / SE Conference in Miami. Questions around standardization of ‘industry’ terminology (What qualifies a social entrepreneur? What is technical assistance and who is responsible for providing it?), how to scale entrepreneurial activity, and how is sustainable impact measured, generated conversation well after the sessions time limit.

The first session I attended addressed impact investing in Brazil. The young panelists, Leonardo Letelier from Sitawi and Kelly Michel from Vox Capital, had different goals in financing entrepreneurs (profit impact vs. social impact), but shared similar growing pains as they discussed Brazil’s expansion and acceptance into the field.

The second session addressed the investment outlook for South America, including how important political support was in encouraging foreign and multi-lateral investment. Ian McCluskey from Thought Leadership International did an excellent job as moderator, asking probing, engaging questions.

The next session encountered differences of opinion, perspective, and experience. Randall Kempner from ANDE, Ben Powell from Agora Partnerships (and 2009 SVN Innovation Award honoree), and Ueli Frei from Fundes fielded questions on the importance of technical vs. financial support for SME sustainability. How much support is too much? Should entrepreneurs pay for resource assistance and technical training? Can you teach someone how to be entrepreneur?

Jonathan Lewis from Microcredit Enterprises provided the first keynote address, urging a call to action. “Its time to roll back the scourge of poverty…the Base of the pyramid is a massive, massive business opportunity but its also a cauldron of misery.” Everyone should be getting engaged in developing sustainable solutions to end poverty – everyone.

The second keynote address was a panel of investors and investment fund reps. Alvaro Rodriguez’s organization Ignia is a VC firm that leverages various financing tools and mechanisms to fund high-growth projects in Mexico. Last year, average ROI hovered around 8-10% per fund – a point Alvaro enjoys bringing up to individuals skeptical of using the word “social” in the same sentence as “investment.” Gil Crawford runs MicroVest, an organization that provides credit and management oversight to MFI’s in emerging markets across the globe. His push for top-notch due diligence has enabled him to build a brand as well as faith from outsiders that ‘all of this’ actually works.

Stay tuned for one final entry covering Day 3 of the SVC/SE Conference!

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SVC/SE Conference for Latin America, Caribbean and Florida – DAY 1

Posted on: March 18th, 2010 by socialventurenetwork No Comments

Written by Vanessa Keating of COPRODELI USA

So much brain power, so much talent, so much ingenuity, all under one roof! Day 1 of the Social Venture Capital / Social Entrepreneurship Conference in Miami proved not to disappoint. Multiple panel discussions ran in parallel, so picking and choosing which sessions to attend was (and will be for the next two days) an interesting challenge.
SVC CE
The first session focused on building a social investment brand by leveraging multiple partnerships to create or support social enterprises. One non-profit, Seven Bar Foundation, found a way to merge luxury lingerie and cosmetics with top retailers to fund 4 pre-existing microfinance institutions. They are now in the process of creating a hybrid model, adding a for-profit component to the Foundation, to further drive revenue and increase their lending portfolio. Their approach was definitely very “business oriented” but their end result – funding MFIs to increase loans to low-income individuals, was always the primary goal.

The next session focused on the growth of microfinance, specifically in Haiti. Finca and Fonkoze were meeting community needs in 80% of Haiti, pre-earthquake. Now, as the country seeks to rebuild itself and clients start from 0, the institutions are evaluating alternative lending models, restructuring debt, and forming strategic partnerships, including those with shelter organizations to expedite the rebuilding process.

The third and final session of the day was a fascinating discussion on leveraging mobile technology as a platform for development. While not particular to Latin America, the experience the three panelists offered was applicable across the continent. Steve Hardgrove from Gray Ghost Ventures explained how their portfolio including a diverse mix of businesses that met the needs of the Base of the Pyramid as well as more sophisticated technology utilized by a higher income market. Healthcare, banking, and multi-media are among the many industries that will be transformed as this space continues to mature.

Following the session, I had the fortunate opportunity to run into fellow SVNers, Jonathan Lewis (of Microcredit Enterprises) and Brad Michaels (of SociaLab). Leaders in the microfinance and social entrepreneurship field, Brad and Jonathan were there to teach – and to learn. Their experiences and various ventures have helped mold opportunities in Latin America and create sustainable platforms for entrepreneurial growth. Their experiences, along with the energy of up-and-coming social entrepreneurs, create a dynamic conference atmosphere.

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