The topic of this session is social entrepreneurship
Have you heard about the social entrepreneurship in your life?
The social entrepreneurship is kind of a specialized types of the entrepreneurship
But in this session,
we plan to learn about understanding social entrepreneurs
and the business models of the social entrepreneur companies
and how social entrepreneur companies measure the performance
and why is the outside fund and scale them up
so before we delve into the the main topic,
I would like you guys to watch this video together
because this video is a great explanation about
what the social entrepreneurship is. let's watch it together
What about the video? It's great
Then do you have any idea what is the social entrepreneurship?
let's go into the main topic today
what is the social entrepreneurship?
how to define the social entrepreneurship?
social entrepreneurship can be defined as doing business for
a kind of social problem. Doing business is a social problem
so scholars define the social entrepreneurship like this
Social entrepreneurship uses business principles for making social change,
not for addressing a consumer problem
what do you mean by that? Let's break that down
what about the business principle? it means that
the social entrepreneurs think and act like
the business people, not like a social activist
they think and act like a business person
And what about the for making social change?
It means that the social entrepreneur companies
aim to solve the social issues
Instead of aiming to maximize their profit
What about social issues? Social issues is things like the poverty
What about the poverty? Poverty, dirty water,
and the climate changes, and what about the educational inequality,
and the crime, discrimination, etc. etc
Or a job, jobless, homeless
So their goal is not just money, but for the impact on the society
and what about addressing, not for addressing a consumer problem?
this is a kind of key distinction between social companies,
social entrepreneur company, and just a traditional commercial company.
traditional entrepreneurs try to solve the consumer's problem
For example, how can I make ride-sharing more convenient?
Or how can I deliver the groceries much faster?
this is a kind of consumer's problem,
but social entrepreneurs ask themselves,
how can I help marginalized students learn better?
or how can I create some kind of jobs, or relevant jobs, or
qualified jobs? it's decent jobs, decent jobs in
underserved communities, or for the disabled person,
So now you understand what is the social entrepreneurship
Again, the social entrepreneurship is
doing the business for the social problem
Look at this table
Well, on the left side, there is a kind of not-for-profit organizations
On the other hand, on the right side, there's a for-profit organizations
Among the not-for-profit organizations,
there are kind of pure charity organizations
On the other hand, among the for-profit organizations,
there is a pure businesses
pure charity organizations are the mission-oriented,
and they rely solely on the donations
the best example of the pure charity types of organizations would be
Heart and Stroke Foundation, or
Canadian Cancer Society
They didn't make money, but they received the donation
on the other hand, the pure business organizations, and
they are the business-oriented, and also they make money,
then they achieve the sustainability by making money
the best example of the pure businesses are a lot
for example, Microsoft, and Apple, and Samsung Electronics, and
Google, and there are tons of the businesses
And so far, we focused on these types of organizations,
as an entrepreneur. But think about
inside the not-for-profit organizations, there are
very different types of not-for-profit organizations
the not-for-profit organization with earned income,
these types of organizations try to make money,
although they are not-for-profit organizations
in order to achieve the self-sufficiency. the best example of
these types of organizations would be Goodwill,
and Charity Water, and the Housing Works Ashoka Foundation
We are going to talk about later
And what about the other types of
organizations located in the for-profit area?
there is a very unique for-profit
organization with mission-oriented
They just pursue the mission first, and then the business second
This is very, very weird. And they made money
so they achieved the sustainability,
but their approach is a little bit different.
The best example of these types of organizations would be
the Gramin Bank, and Toms Shoes or Revolution Food
Those are all for-profit organizations,
but they pursue social mission first
and this area, this, middle area,
we say it is the social enterprises
the social enterprises' goal is to make money, is to make money
While solving social problems at the same time
in other words, they want to create sustainability without sacrificing impact
In order to do so, they don't rely solely on donations,
but they also don't put the priority on making profit overall
So, these types of businesses are kind of increasingly popular these days
And anyway, the social enterprises
the located social enterprises is located
somewhere between the pure charity and the pure businesses
it's not about helping the people
it's not about making money
it's about market-based approach to solve the social problem
now we understand, what is the social enterprises as an organization
Let's move on
so let's talk about the key characteristics of the social
entrepreneurship and social enterprises
social enterprises pursue the social mission first
So social mission is kind of core of the businesses
The primary goal is not profit
but a positive impact on the society
And second one their approach is not, it's not charity types approach
Their approach is a kind of business types approach
Entrepreneurial approach, which means that
social entrepreneurs apply the business principle,
innovative technology, or resourcefulness, to resolve the social problem
And another one is they try to achieve the sustainability
Unlike charity, social enterprises or social entrepreneurs
often generate their own revenues
and these are all the unique characteristics of the social entrepreneurship
Think about, what about social issues?
Yeah, we have a lot of social issues that we face right now
What about it?
what about the poverty? poverty is one of the big social issues,
According to the data, over three billion people live on less
than 2.5, dollars per day
think about it. They just live their life
with the 2.5, less than 2.5 dollars
2.5 dollars is less than one of the cup of coffee prices
what about it? more than 1.3 billion live in
extreme poverty, less than 1.25 dollars a day
So, anyway, this is not just economic statistics
It is the extreme poverty means
no access to the education
no access to the basic health care,
and kind of no access to the job opportunity
it is really big issues, Really big,
So, one of the social enterprises
try to resolve these poverty issues. So, this company is Kiva,
Kiva provides some kind of a mobile
the platform to connect the people
through the lending the money to the people who suffer from poverty,
Let's watch the video and then you understand what Kiva
is and how they work. Let's watch it together
so the Kiva founders were inspired by
the Muhammad Yunus. You watched the video
In the video Muhammad Yunus is a founder of the Grameen Bank
Anyways, they were inspired by Muhammad Yunus and applied the
technology to help underserved people
Kiva is the world's first online lending platform
So, for as little as $25, you can lend to
kind of entrepreneurs around the world
These entrepreneurs are kind of very small entrepreneurs
So, anyways, Kiva provides some kind of working capital
for those entrepreneurs to increase their businesses
So, this not only helps them scale their businesses
but also helps them attract larger
or institutional follow-on funding as well,
So, that's why Kiva is very
innovative to solve this kind of poverty problems
Let's move on to another social issue
But what about the water issues?
Over 1 billion people do not have access to clean water,
And one in five children are without access to the safe drinking water
And over 440 million school days
were missed by the children due to the water illness,
So, why this matters? So, we live in the society
where clean drinking water available, but think about in Africa,
And not many people access the clean water,
So, there's some problem, as you can see
And why cleaning water matters?
Water is the kind of basic human need
But many people cannot access the water
It is a kind of daily struggle,
Without clean water, the children cannot stay healthy
And without clean water, the children often miss schools
because they spend tons of hours to collecting water
And without safe water,
entire communities are locked in poverty and disease,
So, let's look at the social companies or social
enterprises to resolve these water issues
this organization is a non-profit organization,
But not pure charity. This non-profit organization tries to
solve the dirty water problem in Africa
let's watch the video together and you realize,
you can realize, who they are and what they work
Let's watch together
So did you watch the video clip?
And what about it?
Did you have any special impression from his explanation?
this charity Water, again, is a non-profit organization
founded by Scott Harrison
Well, at that time, Scott Harrison was kind of a music club coordinator
And then he traveled to Uganda in Africa
and over there, he decided to
start this type of organization to resolve,
dirty water problem in Africa
So, he wanted to provide some safe drinking water
to the people in developing countries
So, according to this organization,
by October 2024, it has funded
more than 170,000 projects in 29 countries
This organization has raised more than 400 million dollars so far
Wow, huge success. What do you think?
so my question is why this organization was successful?
Although there are tons of similar organizations,
that try to solve the same problem
but this organization is successful. In other words,
what makes this organization different from others
What do you think? Think about it
What is the key to success of this organization?
Yes, in my opinion
they were very good at marketing. Marketing
Do you remember the definition of the social entrepreneurship?
social enterprises apply the business principle
into the social issues
what they used as a business principle was marketing
They are really good at marketing
They are really good at persuading people
to get involved into their project
Let me tell you my personal experience
Many years ago in Korea, I was walking down the street
and someone approached me and asked me to
do a survey
They said that they need some opinion to help young people
young children in Africa. So, I did a survey
Why not? And they kept asking,
don't you feel sorry for the children in Africa?
Do you want to sponsor them regularly?
Are you willing to put your money regularly to help them?
What do you mean by that?
Then I realized that their real purpose is not to take my opinion
but they forced me to sponsor the children in Africa regularly
without my preference and without my willingness
Although I want to help them,
I don't want to participate in these types of activities,
So, what if I don't sponsor them at that time?
Then, probably, they will criticize me
I feel really bad about it
If you compare my experience to,
Scott Harrison's, Cheryl Waters' marketing,
then you realize that how sophisticated,
Cheryl Waters is in its marketing, the advertisement
So we should learn how they persuade other people
Let's move on to another social issues
Well, this is a kind of health care issues
One in seven children have no access to health care service
22,000 children die every day
from largely preventable disease or illness in the developing worlds
in the developing countries
And during our class today over 1,000 children under age five
will die from preventable disease.
This is the big social issues
Not in your country, but in all of the world
It's a big issue. And I want to introduce
one of the social enterprises to resolve these types of issues
this organization is Aravind Eye Hospital located in India,
I would like you guys to watch this video,
and then they prepared the short video clip that explains very well how they work
Let's watch together
how about the Aravind Eye Hospital?
Isn't it amazing?
So, the Aravind Eye Hospital is a hospital chain in India
and the model of Aravind Eye Hospital has been
applauded outside and has become a subject
for the numerous the study cases across the world
And think about it. There are two different types of patients,
There are patients who pay the service,
and the patients who are poor and not paying,
The patient who pays is to help three other poor patients
And the hospital also uses its own materials to
lower the prices and uses an efficient system,
like a McDonald's to lower the prices
So, that's why they can provide kind of a
free treatment to the patient in India
what are the
benefits for the doctors? think about it
From the doctor's point of view
treating a huge number of patients
has the advantage of the kind of
clinical experience than any hospital
so there are kind of a win-win system
another social issue is about food surplus
About 30 percent of the food produced in the world
every year gets lost or wasted
Between 33 to 50 percent of all the food produced globally is never eaten,
and the value of this wasted food is worth over one trillion dollars
At the same time over 815 million people suffer from lack of food
So there's a big difference between food surplus and lack of food
What is happening? This is a kind of social problem
So, one of the companies tried to solve
this problem as a social enterprise
Let's watch this video, and then you understand how it works
the company in this video was Copia
Copia helped the business redistribute high-quality food surplus
to the people in need. Copia is the company
that uses mobile technology to connect both sides
and help you easily donate the food that is thrown away
They thought the main reason food was thrown away
was not because people don't want to help others,
but because it was very difficult to donate it
so they had kind of a different approach,
to solve the problem
This is a social, entrepreneurship.
This is a social enterprise
from now on, we are going to talk about the role
of the social entrepreneurs
The social entrepreneurs identify critical needs and
redefine
they try to redefine the problems
Basically, they observe the root,
behind the causes
for the social problems
And also, they bring the innovative solutions
to resolve these social problems
They try to create some kind of very unique model
and product or services that solve the social problems
in a sustainable way
And they try to empower the individuals
and communities to solve their own problems
using some kind of local knowledge or tools
I want to give you examples
Well, look at these dirty water problems,
And right now you will look at how social entrepreneurs
identify the real problems inside,
behind the apparent problems
How to resolve the dirty water problems
In response to this unsafe water,
one of the Switzerland company, one of the Swiss company,
developed some kind of very unique product called LifeStraw
Have you heard this LifeStraw?
It is a portable, it's a life-saving straw that
filters out the 99% of the bacterias
And it requires no electricity,
no batteries, and extremely affordable because it's very cheap
It is now used in schools and
refugee camp and disaster zone worldwide
What do you think?
Their approach, social entrepreneurs approach is totally different
because they try to,
define the problem again and again
and in a different way
This is a kind of perfect example
of kind of social entrepreneurship
Let's look at another example
Water is kind of far
So, that's why the student
kids in Africa should work for a long time, long way
It takes a long time, so that's why they cannot attend the schools
It causes additional problems
It causes the injury, it causes the lack of the education
Look at this, water far away and efficient water carrying
So, one of the social entrepreneurs
designed kind of a new ways of water carrying
he created this unique types of drums
These containers that can be rolled like a wheel
So the children and elderly people
can now roll this drum very easily,
and then they can carry the large amount of the water
It is very efficient
So then they don't have to go several times
They just carry this drum
What do you think?
Again, it is very simple, but powerful
It is a kind of a different solution
from social entrepreneurs
Let's take another example
This is a shelter suit foundation
Look at him
His name is De Bastema,
a fashion design student in the Netherlands
Then in 2014, something tragic event happened
So more specifically, his homeless friend's father
died of hypothermia
Basically, he didn't have a way to stay warm,
so that's why he died
This event hit Bastema deeply,
and Bastema realized that he was studying fashion,
and he has a skill to make a stylish
and kind of warm clothing,
which is these types of kind of, I don't know,
it's a camping-style coat, I don't know
So he developed the shelter suit
It is a kind of a sleeping bag coat
There is a combination of the coat and sleeping bag
Which is very interesting
Anyway, the shelter suit is waterproof and windproof,
and you can use this suit
like a blanket
It keep people warm, dry, and mobile
Which is very interesting, though
So the production cost is pretty cheap,
just $164, making it highly affordable
for the donation program
What do you think?
So he founded the shelter suit foundation
together with his friends,
and he tried to distribute this shelter suit
across Europe and America and the others
What do you think?
You know, this is an amazing example
of the mission-first initiative
that used fashion and your skills
and your entrepreneurship and your innovation
for the social goods
Let's take another example
This is the last example in this session
The name of this example was Big Issue
Have we heard about the Big Issue?
Yes, you did,
The Big Issue, founded in 1991 in UK
as a street magazine
And two people founded the Big Issue
One guy, the left side
one guy is Gordon Roddy,
and the right side, his name was John Bald
John Bald was poor,
and Gordon Roddy was rich
Anyway, these two people started this business
to help homeless people in UK
So their approach is a little bit different
from the other charity-based organization
Well, instead of giving money to them directly,
they want to provide some job opportunity for them
to be self-sufficient and self-reliance
So more specifically, the vendors
Vendors should be homeless
Homeless people can be qualified
as a vendor of this street magazine
Then they purchase, they can purchase magazine,
a street magazine, at a discount
The price is from the Big Issue
Then they sell this magazine on street
Then they can make money
because there is a price difference
Price difference
Anyway, then later on, they do again and again this process
Then they accumulate the money
This is a kind of a job opportunity
to help and to resolve the homeless problems
What do you think?
Again remember, the social entrepreneurship
is about it's about solving social problem
Through the business principle
It could be technology, it could be marketing,
it could be business model
Anything related to the business principle,
then you can apply those business principle
to resolve the social problem
Then you can be social entrepreneur