1
00:00:00.850 --> 00:00:04.050
In this sub-session we are going to talk about

2
00:00:04.050 --> 00:00:06.960
the business model of the social enterprises

3
00:00:07.680 --> 00:00:12.720
So now you understand what is the business model is

4
00:00:14.960 --> 00:00:17.310
From now on we are going to talk about

5
00:00:17.410 --> 00:00:21.280
very interesting business model of the social entrepreneur company

6
00:00:21.280 --> 00:00:25.230
that differentiated them from the pure businesses

7
00:00:25.780 --> 00:00:27.320
from the pure charities

8
00:00:28.120 --> 00:00:32.470
The first business model would be the low-income client

9
00:00:32.970 --> 00:00:35.520
So the social entrepreneur companies sell the product

10
00:00:35.570 --> 00:00:37.299
or services to the beneficiaries

11
00:00:37.599 --> 00:00:41.149
So the product or services are carefully designed

12
00:00:41.149 --> 00:00:45.349
for the low-cost for the low-income communities

13
00:00:46.499 --> 00:00:49.929
Low-income community

14
00:00:49.929 --> 00:00:52.179
Low-income consumers are typically person

15
00:00:52.979 --> 00:00:58.750
with limited financial resources and limited infrastructures

16
00:00:59.250 --> 00:01:03.730
They don't have any money, they don't have even electricity

17
00:01:04.430 --> 00:01:09.330
So the product that they use must be functional

18
00:01:09.680 --> 00:01:11.320
and at the same time affordable

19
00:01:13.120 --> 00:01:15.570
so in order to meet these types of needs

20
00:01:15.670 --> 00:01:17.220
social entrepreneur company

21
00:01:17.220 --> 00:01:20.519
should design the low-cost version of standard product

22
00:01:20.519 --> 00:01:25.290
This product or service is not just a simple imitation

23
00:01:25.390 --> 00:01:30.500
This could be innovative and cost-effective solutions

24
00:01:30.950 --> 00:01:34.300
tailored to the needs of the low-income communities

25
00:01:34.550 --> 00:01:39.259
The well-known example of this type of product is KickStart Pump

26
00:01:39.659 --> 00:01:41.159
You can see the picture

27
00:01:41.159 --> 00:01:44.869
KickStart Pump is kind of a manual water pump

28
00:01:45.219 --> 00:01:50.219
It's not just expensive electricity water pump

29
00:01:50.419 --> 00:01:52.230
It is a kind of manual water pump

30
00:01:52.280 --> 00:01:56.680
and you can just step on this pedal then you can get the water

31
00:01:56.880 --> 00:01:59.149
This is a manual water pump

32
00:02:01.049 --> 00:02:03.349
The KickStart, which is a social company

33
00:02:04.149 --> 00:02:06.999
carefully designed this type of water pump

34
00:02:07.699 --> 00:02:12.600
and distribute this water pump to the farmers in Africa

35
00:02:13.300 --> 00:02:14.710
Think about in Africa

36
00:02:14.860 --> 00:02:17.960
There is no electricity and no infrastructure

37
00:02:18.660 --> 00:02:23.800
So the pump should be durable and simple to use

38
00:02:23.950 --> 00:02:27.250
and it requires minimal repair

39
00:02:27.400 --> 00:02:30.400
Which is very crucial in the rural area

40
00:02:32.550 --> 00:02:35.800
So when you approach it to the kind of

41
00:02:35.800 --> 00:02:38.770
underdeveloped country, underdeveloped community,

42
00:02:39.170 --> 00:02:41.929
you carefully design your product services

43
00:02:42.990 --> 00:02:46.040
It's pro services tailored to

44
00:02:46.040 --> 00:02:49.300
the real needs of these types of community

45
00:02:49.500 --> 00:02:51.850
Think about low-income client

46
00:02:52.750 --> 00:02:55.250
I want to give you another example

47
00:02:55.250 --> 00:02:57.930
to target the low-income client

48
00:02:58.930 --> 00:03:01.230
This company is the delight hearing aid

49
00:03:01.530 --> 00:03:05.330
Delight hearing aid was founded by this guy

50
00:03:05.580 --> 00:03:08.229
when he was around 25 years old

51
00:03:09.379 --> 00:03:14.819
And he tried to help the disabled people

52
00:03:15.719 --> 00:03:20.970
Then he want to create some affordable hearing aid for them

53
00:03:22.670 --> 00:03:24.320
But hearing aid itself very expensive

54
00:03:24.770 --> 00:03:29.139
But he thought that if he removed the price bubble

55
00:03:29.590 --> 00:03:33.990
by innovation, in terms of innovation

56
00:03:34.290 --> 00:03:37.240
for kind of distribution structure

57
00:03:37.540 --> 00:03:42.590
Then he thought he can provide very cheap

58
00:03:42.690 --> 00:03:46.269
and affordable hearing aid to the people

59
00:03:48.569 --> 00:03:52.859
So instead of relying on multiple kind of middlemen

60
00:03:53.559 --> 00:03:56.530
he streamlined the supply chain

61
00:03:56.880 --> 00:04:02.530
and offer the high quality hearing aid at a much lower prices

62
00:04:03.580 --> 00:04:05.689
So this approach

63
00:04:05.839 --> 00:04:10.699
not only made the hearing aid more accessible
for the underserved population

64
00:04:11.389 --> 00:04:16.100
but it also demonstrated the kind of viable business model

65
00:04:17.809 --> 00:04:20.559
So after one year after the founding

66
00:04:21.259 --> 00:04:23.890
delight hearing aid was acquired by

67
00:04:23.890 --> 00:04:26.690
one of the big pharmaceutical company in Korea

68
00:04:26.690 --> 00:04:28.769
for around $4M

69
00:04:29.119 --> 00:04:31.569
When he was 26 years old

70
00:04:31.669 --> 00:04:36.440
he successfully sold his company to the bigger company

71
00:04:40.619 --> 00:04:43.769
Then he cashed out successfully

72
00:04:45.119 --> 00:04:47.569
Anyways this example shows us

73
00:04:47.569 --> 00:04:51.089
how social businesses can be successful

74
00:04:52.889 --> 00:04:55.789
by combining some kind of innovation

75
00:04:55.789 --> 00:04:59.950
and deep understanding about their beneficiaries needs

76
00:05:00.150 --> 00:05:01.300
So please remember

77
00:05:01.300 --> 00:05:05.289
low income the client and there could be opportunities

78
00:05:07.889 --> 00:05:13.120
Look at another example which is a fee-for-service business model

79
00:05:14.920 --> 00:05:18.470
Social companies packages the social service

80
00:05:18.670 --> 00:05:22.379
and sell them directly to its beneficiaries

81
00:05:23.529 --> 00:05:24.779
Look at this picture

82
00:05:25.579 --> 00:05:28.830
The company was Essex Cares

83
00:05:29.380 --> 00:05:33.380
UK based organization that provides some kind of service

84
00:05:33.780 --> 00:05:35.730
to support independent living

85
00:05:35.730 --> 00:05:39.359
especially for the elderly and disabled individuals

86
00:05:40.259 --> 00:05:43.729
They offer a wide range of the services such as

87
00:05:44.779 --> 00:05:50.340
day programs, mobility assistant,
and empowerment support

88
00:05:51.290 --> 00:05:53.540
This model work very well

89
00:05:53.540 --> 00:05:58.139
when the beneficiaries are willing to pay for the services

90
00:05:59.190 --> 00:06:00.340
But don't worry about it

91
00:06:00.340 --> 00:06:04.150
The most organizations provide

92
00:06:04.620 --> 00:06:09.520
some kind of support for their service fee

93
00:06:10.620 --> 00:06:14.610
So the disabled person get reimbursed from the government

94
00:06:15.360 --> 00:06:19.459
Anyway by charging for the service

95
00:06:20.239 --> 00:06:22.089
even at a low prices

96
00:06:22.289 --> 00:06:24.959
this organization, Essex care, this organization

97
00:06:25.559 --> 00:06:29.109
can achieve the financial sustainability

98
00:06:30.309 --> 00:06:33.920
While solving the social problem

99
00:06:34.720 --> 00:06:37.320
please remember fee-for-service model

100
00:06:37.320 --> 00:06:42.740
is a well-known business model for the social companies

101
00:06:44.190 --> 00:06:48.950
Let's take another example about
the fee-for-service business model for the social enterprises

102
00:06:50.300 --> 00:06:55.050
This is a company in Korea, the name is Cizion

103
00:06:55.100 --> 00:06:57.079
and she established this company

104
00:06:57.529 --> 00:07:00.829
Cizion's main service is LiveRe

105
00:07:00.829 --> 00:07:02.189
What is a LiveRe?

106
00:07:02.339 --> 00:07:05.439
LiveRe is a socialcommenting platform

107
00:07:06.589 --> 00:07:09.139
Social commenting platform what it is

108
00:07:09.389 --> 00:07:15.370
Basically it tried to reduce the kind of toxic behaviors

109
00:07:15.970 --> 00:07:18.750
when people put their comment online

110
00:07:20.100 --> 00:07:24.200
If people read a news article through the online

111
00:07:24.650 --> 00:07:27.609
then they put kind of a comment

112
00:07:28.579 --> 00:07:30.879
Some comments are good some comments are bad

113
00:07:31.379 --> 00:07:33.729
So if other people read a bad comment

114
00:07:33.729 --> 00:07:36.229
and the people feel humiliated

115
00:07:36.579 --> 00:07:38.029
this could be a social problem

116
00:07:38.879 --> 00:07:42.719
So she thought how to reduce this social problem

117
00:07:43.369 --> 00:07:47.029
So she and her partner developed technology and provided

118
00:07:47.929 --> 00:07:51.879
a unique service to the media companies in Korea

119
00:07:52.179 --> 00:07:56.810
So this effort and this service significantly

120
00:07:57.760 --> 00:08:00.010
reduced the toxic behavior online

121
00:08:00.010 --> 00:08:03.749
and also promote the healthier environment

122
00:08:04.499 --> 00:08:07.999
in terms of kind of a conversation online

123
00:08:08.449 --> 00:08:09.899
it could be very valuable

124
00:08:10.299 --> 00:08:15.119
and also this company specialized in processing

125
00:08:15.119 --> 00:08:19.119
big data from the online reactions such as like,

126
00:08:19.519 --> 00:08:22.789
such as comment, such as the reviews and then provide

127
00:08:22.889 --> 00:08:28.239
very unique and insightful the report to the consumers

128
00:08:28.339 --> 00:08:33.250
So the consumers can in this case consumers are media companies

129
00:08:33.350 --> 00:08:37.949
Media companies already subscribe this service for fee

130
00:08:40.849 --> 00:08:43.749
Anyway so the media companies get the benefit from

131
00:08:43.749 --> 00:08:46.119
this specialized report

132
00:08:48.019 --> 00:08:51.899
So the LiveRe which is a social comment platform

133
00:08:52.099 --> 00:08:55.249
that reduce again the toxic behaviors

134
00:08:55.799 --> 00:08:58.549
throughout the social media login

135
00:08:58.549 --> 00:08:59.720
This is their approach

136
00:08:59.720 --> 00:09:01.070
Social media login

137
00:09:01.070 --> 00:09:03.519
If you are logged in the social media

138
00:09:03.769 --> 00:09:07.119
If you write down comment and this bad comment

139
00:09:07.469 --> 00:09:09.409
distributed quickly to your friend

140
00:09:09.509 --> 00:09:15.059
Then you know this fact so you reduce your the toxic behavior

141
00:09:15.509 --> 00:09:20.460
Anyway this company and this service is a great example

142
00:09:20.460 --> 00:09:24.080
to combine technology and the social impact

143
00:09:24.880 --> 00:09:29.900
this company relies on fee for services
so this company make a lot of money

144
00:09:32.000 --> 00:09:34.900
Social entrepreneurial company can make money

145
00:09:36.300 --> 00:09:38.410
What other business model can be?

146
00:09:39.010 --> 00:09:41.410
I want to introduce employment

147
00:09:41.410 --> 00:09:44.940
the business model for the social the companies

148
00:09:45.459 --> 00:09:50.509
The social enterprises employees, the beneficiaries

149
00:09:51.259 --> 00:09:57.059
 and provide them with the training and support and the others

150
00:09:58.659 --> 00:10:03.019
So the social entrepreneur company
not only hire them but also again

151
00:10:03.019 --> 00:10:06.269
to provide the training support and structured working bottom

152
00:10:07.069 --> 00:10:13.290
So the goal is to help them develop their skills and gain confidence

153
00:10:13.390 --> 00:10:16.550
and participate in the economy through the meaningful work

154
00:10:17.500 --> 00:10:21.850
One of the good example is Bear Better in Korea

155
00:10:23.150 --> 00:10:25.069
I prepared for the short video clip

156
00:10:25.069 --> 00:10:27.130
and let's watch it together how they work

157
00:10:32.239 --> 00:10:33.749
What about the video?

158
00:10:34.889 --> 00:10:41.300
Bear Better hires individuals with developmental disabilities

159
00:10:41.850 --> 00:10:46.760
and train them to perform the task like the documentary deliveries

160
00:10:47.360 --> 00:10:52.560
and packaging and snack productions for the corporate clients

161
00:10:53.960 --> 00:10:57.010
This model is very meaningful in two ways

162
00:10:57.010 --> 00:11:01.610
The first one this model created

163
00:11:01.660 --> 00:11:04.179
dignified employment opportunity

164
00:11:04.179 --> 00:11:07.530
for the people who often discriminate in the society

165
00:11:08.180 --> 00:11:12.880
Secondly, this model also produced kind of

166
00:11:13.630 --> 00:11:16.119
marketable goods and services

167
00:11:18.680 --> 00:11:21.180
So throughout this marketable good and services

168
00:11:21.980 --> 00:11:25.809
the social enterprises can make money

169
00:11:26.709 --> 00:11:30.959
And can become self-sufficient

170
00:11:31.409 --> 00:11:35.330
This is a good point for the employment business model

171
00:11:37.880 --> 00:11:42.999
The social enterprises hire their beneficiaries

172
00:11:43.249 --> 00:11:46.139
So throughout this employment opportunity,

173
00:11:46.499 --> 00:11:49.599
this company solve the social problem

174
00:11:49.699 --> 00:11:53.279
which is unemployment problem, which is a disabled problem

175
00:11:53.629 --> 00:11:55.379
which is a discriminant problem

176
00:11:55.379 --> 00:11:57.669
I will show you another example

177
00:12:02.569 --> 00:12:06.019
This company is HomeBoy Industry

178
00:12:07.569 --> 00:12:11.069
I prepared for the short video clip and let's watch it together

179
00:12:17.619 --> 00:12:19.569
Did you finish watching the video?

180
00:12:19.569 --> 00:12:21.690
What about the HomeBoy Industry?

181
00:12:22.390 --> 00:12:24.540
HomeBoy industry is just a bakery shop

182
00:12:26.240 --> 00:12:30.940
But their mission is not to make money from

183
00:12:31.640 --> 00:12:33.659
baking the bread

184
00:12:34.059 --> 00:12:40.909
Their purpose is to hire some kind of the beneficiaries

185
00:12:41.459 --> 00:12:46.329
Hire beneficiaries and provide them with the relevant training

186
00:12:47.129 --> 00:12:50.269
So who are beneficiaries for the HomeBoy Industry?

187
00:12:51.040 --> 00:12:55.090
As you saw in the video they are all kind of

188
00:12:55.090 --> 00:13:00.600
former gang members and they are kind of former prisoners

189
00:13:03.450 --> 00:13:09.739
They were trained to work in the area
like the baking or catering and cafeteria

190
00:13:12.589 --> 00:13:15.499
What do you think?
It's really really interesting

191
00:13:16.549 --> 00:13:19.249
So anyway, the purpose of this business is

192
00:13:20.099 --> 00:13:24.369
to make them kind of great citizens again

193
00:13:25.069 --> 00:13:27.619
So, it is kind of a transformative intervention

194
00:13:27.869 --> 00:13:29.819
They want to provide

195
00:13:29.819 --> 00:13:33.369
the transformative intervention to the beneficiaries

196
00:13:33.769 --> 00:13:35.869
Throughout this employment model

197
00:13:35.869 --> 00:13:39.199
this company solves the social problems

198
00:13:39.499 --> 00:13:40.449
Remember

199
00:13:40.449 --> 00:13:43.449
Employment model is very useful

200
00:13:43.799 --> 00:13:47.850
and commonly used business model in the social enterprises

201
00:13:50.100 --> 00:13:52.559
This business model is very unique

202
00:13:52.759 --> 00:13:55.009
It is called as market connector

203
00:13:55.859 --> 00:14:00.750
So social enterprises kind of a bridge the gap

204
00:14:00.750 --> 00:14:03.050
The bridge the gap between

205
00:14:03.050 --> 00:14:07.119
the beneficiaries and donors and other stakeholders

206
00:14:08.819 --> 00:14:13.119
Social enterprises try to connect different stakeholders

207
00:14:13.919 --> 00:14:18.299
Instead of directly the producing good or services

208
00:14:18.299 --> 00:14:21.730
or provide some job opportunity of the beneficiaries

209
00:14:22.500 --> 00:14:26.800
these types of social enterprises try to create

210
00:14:26.850 --> 00:14:32.080
some kind of places where different stakeholders meet together

211
00:14:33.680 --> 00:14:36.730
The best example in this area is KaBoom

212
00:14:36.730 --> 00:14:37.780
KaBoom in America

213
00:14:37.780 --> 00:14:39.969
Have we heard about this company?

214
00:14:40.219 --> 00:14:44.639
Let's watch the short video clip that I prepared

215
00:14:50.519 --> 00:14:51.969
What do you think?

216
00:14:51.969 --> 00:14:54.119
Now you understand how KaBoom

217
00:14:54.119 --> 00:14:56.969
connect different the stakeholders

218
00:14:58.119 --> 00:15:02.240
Basically KaBoom partnered with corporate sponsors

219
00:15:02.440 --> 00:15:06.990
to fund the playground creation, playground construction

220
00:15:07.340 --> 00:15:13.109
And at the same time KaBoom attracts the volunteers

221
00:15:13.359 --> 00:15:17.029
and the local resident to help with the actual building process

222
00:15:17.879 --> 00:15:19.079
Through this collaboration

223
00:15:19.079 --> 00:15:22.860
KaBoom is able to provide some high quality playground

224
00:15:23.010 --> 00:15:28.429
at a low cost at very low cost while empowering communities

225
00:15:29.200 --> 00:15:32.750
and building the social capital

226
00:15:33.550 --> 00:15:35.259
This is very innovative

227
00:15:36.109 --> 00:15:40.509
The KaBoom asked corporate to fund this project

228
00:15:40.909 --> 00:15:44.620
and ask the local government to support this project

229
00:15:44.970 --> 00:15:48.920
probably by kind of securing volunteers

230
00:15:48.920 --> 00:15:52.639
And also the KaBoom asked some construction companies

231
00:15:52.689 --> 00:15:55.380
to participate to build up this playground

232
00:15:56.930 --> 00:15:59.830
The KaBoom connect the different stakeholders

233
00:15:59.830 --> 00:16:02.830
to solve the social problems

234
00:16:04.380 --> 00:16:08.119
I want to introduce another very interesting company

235
00:16:08.619 --> 00:16:11.179
that adopted the market connector business model

236
00:16:11.779 --> 00:16:14.429
This company is a big work in Korea

237
00:16:15.629 --> 00:16:18.229
Big work basically mobile application

238
00:16:18.229 --> 00:16:20.109
they developed a mobile application

239
00:16:20.609 --> 00:16:23.509
That tracks your steps

240
00:16:23.509 --> 00:16:24.830
Think about your steps

241
00:16:25.180 --> 00:16:28.380
The big work try to connect the users

242
00:16:28.430 --> 00:16:31.630
and companies and non-profit organization

243
00:16:31.980 --> 00:16:32.919
How it works?

244
00:16:33.069 --> 00:16:36.519
Basic idea behind the big work business model is

245
00:16:37.419 --> 00:16:40.879
the big work create some mobile application again

246
00:16:41.029 --> 00:16:45.429
And then users, get like us, users download the mobile application

247
00:16:45.829 --> 00:16:48.129
then you just take a walk

248
00:16:49.780 --> 00:16:53.930
Then the mobile application calculate your steps

249
00:16:53.930 --> 00:16:58.600
and convert your steps into the donation into the money

250
00:16:59.150 --> 00:17:04.300
This concept is called as walk to donate concept

251
00:17:04.300 --> 00:17:06.039
walk to donate mechanism

252
00:17:06.889 --> 00:17:07.689
But don't worry about it

253
00:17:07.689 --> 00:17:10.520
You don't have to pay the donation

254
00:17:10.820 --> 00:17:14.050
Then who donate the money

255
00:17:14.809 --> 00:17:18.459
The corporate that agree with the big work model

256
00:17:18.709 --> 00:17:23.179
donate the money to the selected non-profit organization

257
00:17:23.429 --> 00:17:26.929
So basically you just open up the mobile application

258
00:17:26.929 --> 00:17:28.800
and you just take a walk

259
00:17:28.800 --> 00:17:31.300
and the mobile application track your steps

260
00:17:31.850 --> 00:17:37.480
Track your steps and and convert your steps into the money

261
00:17:37.580 --> 00:17:43.430
then the corporate donate the money

262
00:17:43.430 --> 00:17:46.620
based on your total amount of the steps

263
00:17:47.120 --> 00:17:48.170
Which is very interesting

264
00:17:48.170 --> 00:17:50.829
Anyway the big work connect

265
00:17:51.439 --> 00:17:54.339
several different types of stakeholders

266
00:17:54.339 --> 00:17:57.949
such as general individual like us consumer

267
00:17:59.199 --> 00:18:03.299
and the corporations corporate who care for

268
00:18:03.299 --> 00:18:05.049
the corporate social responsibility

269
00:18:06.099 --> 00:18:10.869
and the non-profit organization that they need they need donations

270
00:18:10.869 --> 00:18:15.019
So the big work connect these three different stakeholders

271
00:18:15.519 --> 00:18:19.799
Next business model is called cross compensation business model

272
00:18:20.199 --> 00:18:25.290
Basically we have two different types of the consumers

273
00:18:25.740 --> 00:18:28.040
One group of consumers pay

274
00:18:28.040 --> 00:18:30.419
full prices for your product and services

275
00:18:31.069 --> 00:18:35.739
and you can use this product this profit I'm sorry this profit

276
00:18:36.489 --> 00:18:39.189
to provide very similar services

277
00:18:41.339 --> 00:18:44.129
to the people who cannot afford to it

278
00:18:44.829 --> 00:18:48.379
Do you understand the compensation cross compensation model?

279
00:18:48.929 --> 00:18:52.969
So the previously do you remember the Aravind eye hospital

280
00:18:53.019 --> 00:18:56.740
Aravind eye hospital adopted the cross compensation model

281
00:18:58.540 --> 00:19:01.339
So the paying consumers can support

282
00:19:03.389 --> 00:19:06.439
three consumers who cannot afford to it

283
00:19:06.939 --> 00:19:08.339
This is a cross compensation

284
00:19:08.339 --> 00:19:09.630
I want to introduce

285
00:19:09.630 --> 00:19:12.930
another company that adopted cross compensation model

286
00:19:13.830 --> 00:19:16.500
This company, BioLite

287
00:19:16.900 --> 00:19:20.300
BioLite designed and sell

288
00:19:20.450 --> 00:19:24.519
very innovative energy related product such as

289
00:19:25.040 --> 00:19:31.140
smokeless stoves and solar lights and charger

290
00:19:34.490 --> 00:19:40.550
These products are marketed to the outdoor enthusiasts

291
00:19:41.150 --> 00:19:46.010
and campers who are willing to pay full prices

292
00:19:46.360 --> 00:19:52.079
In the meantime, BioLite reinvented this profit to

293
00:19:52.210 --> 00:19:57.260
subsidize the people living in

294
00:19:57.960 --> 00:20:00.189
kind of developing countries

295
00:20:02.470 --> 00:20:03.970
This model is very effective

296
00:20:03.970 --> 00:20:08.010
because it doesn't rely solely on the donation

297
00:20:08.010 --> 00:20:11.800
and also it uses sustainable the business strategy

298
00:20:12.150 --> 00:20:16.800
to serve two distinct consumer segment

299
00:20:18.950 --> 00:20:21.519
This business model is so smart

300
00:20:21.519 --> 00:20:23.719
because it can achieve the both

301
00:20:23.719 --> 00:20:28.500
market success and also kind of make a huge social impact

302
00:20:29.450 --> 00:20:32.100
I prepared for the short video clip

303
00:20:32.100 --> 00:20:34.210
and we can watch it together

304
00:20:40.210 --> 00:20:43.660
This product is just normal product

305
00:20:44.610 --> 00:20:48.089
that be marketized to the outdoor environment

306
00:20:50.189 --> 00:20:53.830
So the campers campers in developed country

307
00:20:54.730 --> 00:20:57.330
are willing to purchase these types of product

308
00:20:57.780 --> 00:21:01.600
Then again, BioLite used the profit and

309
00:21:01.800 --> 00:21:05.879
reinvented this profit to serve underdeveloped country

310
00:21:06.979 --> 00:21:09.569
This is a cross compensation business model

311
00:21:11.020 --> 00:21:12.670
Let's discuss about

312
00:21:12.670 --> 00:21:16.120
the cooperative business model which is one of the oldest

313
00:21:16.420 --> 00:21:20.770
and the most democratic forms of the social businesses

314
00:21:22.770 --> 00:21:25.820
This cooperative business model is typically

315
00:21:26.070 --> 00:21:28.950
fee-based membership of the organization

316
00:21:29.150 --> 00:21:30.679
Fee-based membership organization

317
00:21:30.800 --> 00:21:34.800
owned and operated by its members

318
00:21:35.700 --> 00:21:41.250
These members can be workers and can be consumers

319
00:21:41.500 --> 00:21:43.940
can be producers or even residents

320
00:21:44.540 --> 00:21:47.389
What makes this model unique is that

321
00:21:47.639 --> 00:21:50.489
it is not driven by external shareholders

322
00:21:50.839 --> 00:21:54.730
Instead the members themselves own the businesses

323
00:21:54.980 --> 00:21:57.480
They make a decision together

324
00:21:57.480 --> 00:22:01.589
democratically and share in the profit

325
00:22:03.039 --> 00:22:07.539
One of the most famous and the biggest example

326
00:22:07.539 --> 00:22:10.070
of the cooperative business model is that

327
00:22:10.670 --> 00:22:15.220
is Mondragon Cooperative in Spain

328
00:22:15.220 --> 00:22:17.649
Have you heard about this cooperative?

329
00:22:17.949 --> 00:22:22.399
Mondragon Cooperative in Spain was founded in 1950s

330
00:22:25.349 --> 00:22:30.529
This cooperative operates multiple industries

331
00:22:31.079 --> 00:22:33.679
Such as manufacturing or retailing

332
00:22:33.679 --> 00:22:37.519
or finance and education and etc.

333
00:22:38.219 --> 00:22:43.719
So as I already mentioned that

334
00:22:44.019 --> 00:22:46.119
the employees are all co-owners

335
00:22:48.269 --> 00:22:51.789
Anyway this cooperative business model kind of promote

336
00:22:51.939 --> 00:22:56.339
economic inclusion and stability of the job

337
00:22:56.639 --> 00:22:59.379
and share the responsibility

338
00:22:59.629 --> 00:23:04.329
The workers are also owners

339
00:23:04.379 --> 00:23:09.049
There could be greater loyalty and higher productivity

340
00:23:09.449 --> 00:23:14.049
and more kind of equal chance

341
00:23:14.199 --> 00:23:17.519
Equal opportunity in terms of the income

342
00:23:17.519 --> 00:23:23.010
or in terms of kind of promotional opportunity something like that

343
00:23:24.010 --> 00:23:27.210
Anyway this is a very unique business model for

344
00:23:27.210 --> 00:23:29.709
the social enterprises

345
00:23:29.709 --> 00:23:31.279
cooperative business model

346
00:23:34.029 --> 00:23:35.429
Let's move on another one

347
00:23:35.429 --> 00:23:38.740
This is empowering, marginalized individuals

348
00:23:39.240 --> 00:23:43.969
social enterprises try to help people

349
00:23:44.319 --> 00:23:47.869
throughout the job opportunity and then so that

350
00:23:47.869 --> 00:23:51.080
the beneficiaries can make their own money

351
00:23:51.630 --> 00:23:54.080
by working hard

352
00:23:55.030 --> 00:24:00.360
Then through this process the beneficiaries can gain independence

353
00:24:00.760 --> 00:24:06.020
and can be the self-sufficient and self-reliant

354
00:24:06.720 --> 00:24:12.120
so it is much better than just pure donation

355
00:24:13.720 --> 00:24:16.459
The best example would be big issue I already mentioned

356
00:24:16.459 --> 00:24:18.459
We already talked about big issue before,

357
00:24:18.659 --> 00:24:21.179
so you are pretty familiar with Big issues

358
00:24:21.529 --> 00:24:22.479
Let's move on

359
00:24:24.279 --> 00:24:29.540
In this session this is a last the business model that

360
00:24:29.840 --> 00:24:33.890
social enterprises adopted this is a service subsidization

361
00:24:34.390 --> 00:24:39.270
Basically the social enterprises try to fund the social programs

362
00:24:39.870 --> 00:24:42.510
By selling their own product and services

363
00:24:43.260 --> 00:24:47.360
so they sell their product or service in the real market

364
00:24:47.360 --> 00:24:50.180
then they make money so with that money

365
00:24:50.180 --> 00:24:54.480
they supported to kind of a very relevant to social programs

366
00:24:54.830 --> 00:24:57.480
For example ByMoM

367
00:24:57.480 --> 00:24:59.170
ByMoM is a Korean company

368
00:24:59.170 --> 00:25:02.020
Their main product was indoor tent

369
00:25:02.420 --> 00:25:06.350
In order to make a make a house warm inside

370
00:25:08.250 --> 00:25:10.900
So this company provides some kind of indoor tent

371
00:25:12.150 --> 00:25:16.990
Anyway so this is an indoor tent inside this tent is kind of warm

372
00:25:17.540 --> 00:25:22.590
So you don't have to pay the electricity

373
00:25:22.840 --> 00:25:24.890
to make your room warm

374
00:25:25.290 --> 00:25:28.540
Anyway so this company provide design

375
00:25:28.540 --> 00:25:31.000
and provide these types of tent

376
00:25:31.000 --> 00:25:33.100
and make money and with that money

377
00:25:33.300 --> 00:25:38.699
the company supported some single mom's educational program

378
00:25:38.699 --> 00:25:40.799
or a single mom's kind of training programs

379
00:25:41.799 --> 00:25:46.999
By doing so the company try to make society brighter

380
00:25:48.299 --> 00:25:50.899
Try to solve the social problems

381
00:25:51.799 --> 00:25:55.630
Again, this is a service subsidization business model

382
00:25:55.630 --> 00:25:57.530
that social enterprises adopted

383
00:25:57.880 --> 00:26:02.119
So far we have discussed about several interesting

384
00:26:02.119 --> 00:26:07.710
and very unique business model that social enterprises adopted

385
00:26:07.960 --> 00:26:09.530
Thank you for listening