The purpose of this course is to introduce you to current global challenges in conservation and development, including changes in both sectors. This course will inspire you to rethink assumptions to address global challenges in conservation and development, and introduce you to new models and approaches that harness technological, behavioral, and financial innovation. This course will equip you with the insights, skills and approaches necessary to successfully overcome these obstacles. In addition, this course will provide participants with the tools, models, and approaches to address global grand challenges in conservation and development, to question fundamental assumptions, and to create and execute new solutions. Course participants will be trained in the processes around innovation and design to address global grand challenges. This includes content focused on constructing innovation pipelines, principals of design and engineering unique to the developing world and to conservation (Design for the Other 90%), on harnessing and developing disruptive technologies, principles of behavior and marketing, and on overcoming the challenges with setting up social ventures. The course format will facilitate the development of a global community of innovators who will help solve the current and future grand challenges our planet faces in conservation and development, and will encourage thinking about how to do so that rethinks traditional assumptions and approaches within both conservation and development. This course will leverage the incredible idealism and interest in social entrepreneurship, design, and innovation among the millennials, in the US and abroad, and is intended to appeal to those interested in the maker movement. It also seeks to engage individuals in the developing world who are closest to the problems of conservation and development, who would benefit from the approaches taught in the course, and who can leverage their own knowledge of local culture.
Social Entrepreneurship, Part 1
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Innovation and Design for Global Grand Challenges
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À partir de la leçon
Entrepreneurship
Once you have your idea or innovation, how do you translate it into an enterprise (entrepreneurship) or a startup within a company or institution (intrapreneurship)? How do you influence other companies to adopt your novel approach (extrapreneurship)? How do you create a social enterprise, a value-driven organization that borrows heavily from tools of the private sector, or a new for-profit venture that has a double bottom line – the twin aims of both profit and impact? This module is an introduction to the art of the start – from understanding how to think about your business model, to putting together a team, to pitching for funding, and getting to scale. <p> To get started, view the video "Introduction to Social Entrepreneurship."</p>
Rencontrer les enseignants
Alex Dehgan, J.D., M.S., Ph.DThe Chanler Innovator in Residence and the Inaugural David M. Rubenstein Fellow
Innovation & Entrepreneurship
First of all, can I get a set of hands, before you took this class,
how many of you had heard of social entrepreneurship before, okay?
Can I get some gut reactions now, not looking for text book here,
but what is social entrepreneurship?
I was to ask you for it, what does it mean to you?
And there is no right answer here okay, be curious.
This hand here.
>> Business solutions for social impact >> Okay, so
business solutions for social impact.
So there's kind of an aspect of business or commerce there and
leading to some sort of positive impact.
Okay what would you say?
>> Business were monetary profit isn't the only goal
>> Okay, so for
you there's kind of maybe a double or
a triple bottom line essentially it's business.
But the overriding purpose isn't just economic.
>> Profit's important to make a business function,
but you're also trying to deliver social goods.
>> Okay, so there's gotta be some financial sustainability to sustain
the venture, very cool.
What else? Who else has thoughts on what social
entrepreneurship is?
Well we've got a colleague up at New York University, Paul Light,
who wrote a book looking at 27 different definitions of social entrepreneurship, so
we could poll the class and I'm sure we'd find a lot of different things.
But I'm seeing and hearing some things around business,
around sustainability, around impact.
Well I'll give you a sense of how we think about it at Case.
For us, very simply we can think of it as a process of pursuing innovative
sustainable solutions to social problems and
when I say social problems I mean environmental problems as part of that.
Problems that we have in society.
But we think of innovative and sustainable,
my colleague Greg Dees wrote the most widely cited essay on that called,
The Meaning of Social Entrepreneurship and he goes into about five pages of depth.
If you blow it down that's kind of what he came out to.
Greg unfortunately, passed away about a year and a half ago.
He was really the pioneer of the field of social entrepreneurship.
First known academic to start research and
teaching about this back, originally when he was at Yale, School of Management.
And then at Harvard he taught the first known class on social entrepreneurship and
started writing when I was in the Peace Corp in the mid 90s,
I came across one of his articles in the Harvard Business Review,
Enterprising Non Profits, thinking about how non profits could use earned income
which we'll talk about in a bit and really affected my own career.
I never expected to one day be working with him here at Duke.
And he went on to the Stanford Graduate School of Business.
Where he founded the Center for
Social Innovation and came to Duke in 2001 to set up Case.
So another way to think of it is recognizing resourceful pursuing
opportunities to create social value.
The idea of the over riding purposes is creating value for society,
not primarily an economic value that accrues to one person,
overall there should be a societal value.
Now, one great book to read if you're really interested in this is
David Bornstein's, How to Change the World.
It may be a little dated at this point, but still really insightful, where he
traces the paths of a number of social entrepreneurs that are a part of Ashoka,
which is the global network of leading social entrepreneurs.
And he likes to say that what business entrepreneurs are to the economy,
social entrepreneurs are to social change.
They're the driven, creative individuals who question the status quo,
exploit new opportunities, refuse to give up, and remake the world for the better.
So the idea of a change agent.
So Greg's definition really kind of really talks about this change agent idea.
That they create a mission to sustain and maximize social value.
So there's a mission driven there.
They're relentless in pursuing opportunities and
adaptive, taking opportunities to learn and refine their innovations or models.
They act boldly.
The difference between entrepreneur and the rest of us perhaps is someone who sees
an opportunity and seizes that opportunity and acts on that opportunity.
How many of you had a parent, maybe who was an entrepreneurs?
Commercial entrepreneur?
Social entrepreneur.
Anybody? A few of you.
I had a father who was an entrepreneur.
Not always so successful, but growing up I saw what it meant to take risks.
And that's something that sometimes separates entrepreneurs from
non-entrepreneurs, a willingness to take but manage risk, smart risk right?
Holding themselves accountable.
In our case, for social entrepreneurs, for
achieving an impact while using the resources wisely.
We are in a sector, the social sector, that has a lot of priority placed on
how we're using funding that's entrusted to them through donations for example.
And then one of the things that's kind of interesting for us is that this is drawing
upon some of the best thinking in the social sector, in the commercial sector.
I would also argue in the public sector as well.
And so that you see social entrepreneurship manifest itself in
non-profit forms and for profit forms, in hybrid forms, large,
small organizations, faith based organizations, grass roots organizations.
And even in corporations and so forth.
So it's a phenomenon that you can observe in a lot of different ways.
One of the great folks in our field is Sally Osberg,
who is the president of the Skoll Foundation.
Jeff Skoll was the first president of Ebay and
through his philanthropy he likes to fund and celebrate social entrepreneurs.
Maybe on NPR, you may hear their adds in the mornings sometimes and
she likes to say that the social entrepreneur is to the entrepreneur
as Ginger Rogers is to Fred Astaire.
Now for those of you who may know from maybe your parent's generation,
Ginger Rogers and Fred Astaire danced and sang sometimes through the old movies and
so she says that Ginger has to do everything Fred has to do, but
she has to do it backwards and in high heels, all right?
>> [LAUGH] >> So that the social entrepreneur
has certain constraints, certain limitations,
certain challenges that the commercial entrepreneur perhaps doesn't.
Sometimes when I'm with my entrepreneurship colleagues, they like to
say well, entrepreneurship, social entrepreneurship, it's all the same thing.
And Greg and I and others would argue, well yes and no.
In fact, social entrepreneurs deal with a different set of constraints.
There are complex stakeholder environments.
There's a complex value we're trying to create.
It's not just an economic value that returns to the shareholders, but
there are stakeholder environments one has to consider.
There are different capital markets.
If you're going to start a social venture that has a nonprofit form of incorporation
for example, the way you attract capital looks different than in
a traditional commercial business.
There are all sorts of challenges around measuring impact.
Right? How do we understand and
communicate outcomes, changes in environment or
in natural settings and so forth, versus just a bottom line, a number?
We all strive for a social return on investment, but
it's a pretty subjective calculation.
So there's a lot of things that I think are unique and special about social
entrepreneurs that require or deserve special study, attention,
and education that may not be at first apparent in the entrepreneurship world.
So you see a lot of the same characteristics of entrepreneurs.
Now who knows this fellow Muhammad Yunus?
We could easily spend two hours just talking about Yunus.
Now actually, we turn to him as an example a couple times, but
really is the pioneer of the micro finance movement.
There were other folks who were innovating around these topics around the same time,
but really we look to him as the real founder of micro finance or
micro credit, as he would say, and he, of course, received a Nobel Prize in 2006.
We used to like to joke that we give out an award for leadership
in social entrepreneurship every year from Case, and we gave him our award in 2004.
So we scooped the Nobel Prize winning by about two years.
But so, and other folks want to share their thoughts on Yunus, so
you were going to add to that.
>> Well I was going to say wasn't he the one who
came up with the accountability idea.
>> Yeah. There are a lot of things.
>> [INAUDIBLE] >> Absolutely,
and we'll probably come back to it in a minute, but in a few moments.
But there are some really interesting aspects of his innovation among putting
together small groups of women to be peer groups, and dropping requirements for
loan documentation, and actually having the loan officers come to the village and
not requiring a collateral.
There's a handful of things that real innovations whose modeling we can chat
about in a few moments briefly, that are replicated and
adapted in certain ways around the world.
There's some different models for micro finance.
You can see him as a classic example of social entrepreneurship.
And so, when we talk about this definition of social entrepreneurship for us,
social refers to the objectivity.
End of the day, the purpose is.
The creation of social value is not just a nice bi-product.
If you're a company and you are selling baked goods and
you're giving 1% of your profit to shelters or food kitchens,
or food pantries and so on, that's fantastic.
I wouldn't necessarily call that social entrepreneurship,
it's corporate philanthropy, it's corporate responsibility.
We tend to think of social entrepreneurship as for
the purpose of social impact and that can be a hard line to draw.
How do you judge that?
Well we tend to think of it's how people make decisions.
What's the primary interest in making decisions and
it's social impact, social value kind of the end purpose essentially.
It's different from just responsible business, it's about this impact,
it's about entrepreneurial and it can take a variety of organizational forms.
I think one of the most interesting areas today, is some of the innovations
coming around corporate form, the whole B corporation movement,
for example, looking at private companies that can have social, environmental
sorts of impact accounted for in their business model and in their operations,
and shareholders can't sue them just because they're not maximizing profit.
And so that's some innovation going on in the world that's going to fascinate us.
Other sorts of things that we're seeing especially in the non-profit side.
And experimentation with earned income and other sorts of
use of what we traditionally see is business methods, using market forces.
Using pricing, using tools of marketing,
such as social marketing to change behaviors.
Now these sorts of things are very common.
We're also seeing interesting cross sector alliances, public private partnerships
where you know an NGO may be partnering with a corporation like one of my masters.
I'm doing a masters project right now with a student whose looking at Toro and
the work they are doing with an NGO on water and how they've been working
together to develop and distribute some devices in developing world.
So this growing a lot of reasons behind that.
We can talk about that.
Intersecting cross sectoral sorts of issues.
New industries emerging and new forms of philanthropy.
Some of the folks like Jeff Skolls of the world are not kind of your Carnegies and
Forbes, they're venture philanthropists.
They're often entrepreneurs who've been successful and
want to use their philanthropy in a different way.
They want to not just give a check but they want to get involved and
help invest in capacity of organizations, help ensure innovation and
sustainability, and, of course, this whole emerging world of impact investing,
investing for financial as well as a social or environmental return.
It's just fascinating where you have a lot of research on that case right now.
So really interesting area.
I want to just take a quick moment to step back a little bit, because I think it's
helpful in understanding some of the tensions in our field.
You can get five
researchers on entrepreneurship together in a room and from among them seven or
eight different definition of entrepreneurship will emerge.
So it's not surprising, that have different ways of thinking about this.
The feel of entrepreneurship itself, although it's been studied for many years,
to the back to French economist of late 1700's.
In fact the careful study of this,
the academic study is really only been especially evident since the '70's and
'80's, so it's still an emergent field of academic work as well.
You didn't find a lot of faculty teaching around entrepreneurship in the 50's
and 60's.
Same thing in the social entrepreneurship world more recent.
But what's interesting if you think about it,
if you look back to some of the early thinking around entrepreneurship.
You know the word entrepreneurship comes from the French word to undertake, right?
So someone that does something is undertaking a venture.
In a lot of the early theories were around moving
resources from lower productivity to higher productivity.
And so if you understand the field of entrepreneurship, and
you apply that to the field of social entrepreneurship,
there's two really interesting things that emerge, I think.
In one area,
is how do you apply that to forms of income, and business, and operations.
Another is how do you apply that to the novel approaches, the innovation.
And so really in our field there's two streams, there's two camps.
The social enterprisers and
the social innovators, and somewhat I'll just give you a little bit of quick
background on that because I think it's helpful in understanding the field.
The social enterprisers are the folks who draw on a classic
definition of entrepreneurship as someone who starts a business,
someone who creates an enterprise for earning income.
And so what we've seen especially in a profit role, especially in a 70's,
80's and oniIs non-profits that
are increasingly adopting earned income ventures, ways to make money so
that they can sustain themselves beyond just the charitable donations.
And this is common, you see from museum stores and Girl Scout cookies,
but you also see it in, All sorts of ways.
And probably as kids growing up you did some of this yourselves.
You may have been in Scouts or in band and you started selling products.
And so that's not all that surprising,
that's how I encountered it when I was in the Peace Corp in Romania.
It was a country that was post communist there had not been an NGO sector.
Under communism, other than the sport leagues and the youth
group young pioneers, actually the entire culture of philanthropy disappeared.
And so when NGO's rushed in after
the execution of the dictator Ceausescu and his wife.
People say what are this NGOs doing?
And why should I give them my hard earned money?
Aren't they providing services that the sate is suppose to provide?
And so, a lot of this NGOs that I was working with were struggling to
sustain themselves.
And so, if it's for example a group home for homeless kids, they would have
the kids make candles or maybe do simple repairs on things to bring in the income.
So that's how I first experienced it, nonprofits, NGOs seeking to make income to
supplement the meager, at that time, philanthropic donations.
This is the group that tends to think about applying business.
I love this quote from Steve Case who's actually going to be in town in a few
weeks, he says that too many people still act as if the private sector and
social sector should operate on different axis,
where one is all about making money and the other is serving to society.
He says that a better approach is to integrate these missions so
that businesses that are not only for profit and social service groups that have
earned income for positive, durable, significant social change now
this is kind of a quote that would typify the social enterprise point of view.
And lots of examples locally, nationally, globally,
I'm sure you're familiar with some of these, there's some challenges.
When you're operating in this world, how do you make a decision between mission and
money, right?
What takes precedent?
Do you need to focus more on money early on so
that longer term you can sustain your mission?
How do you recapture all the full costs because
if you're a non-profit trying to operate a business, well many businesses.
Go out of business right.
And what does that look like if you create a venture
that's not going to sustain itself and
you actually have to draw from other core operating expenses to sustain it.
Is that worth it or not?
Potential negative reactions both for
profits it can say you're unfairly competing.
Also what happen when you make a lot of money, and
does that money get captured by some of the managers or others?
Is that fair or not, so?
A lot of issues in this area.
Now, contrast that with the social innovation school.
These are the folks who see, entrepreneurs as you think of reforming, revolutionizing
patterns of production, some of this entrepreneurship theory, right?
People who bring about new products, new services, new markets and so forth.
And so the social innovators are the folks who tend to go how do we break patterns?
How to make significant change builds right in the founder of typifies us.
He'd say, it's not just about giving a person a fish or
even teaching a person to fish that the social entrepreneur doesn't rest
until the entire fish Industry is revolutionized, right?
That's this idea of system change, new equilibria,
new ways of doing things, pattern breaking sustainable change.
And after a time some things that were Common today,
like hospice care, were pretty innovative.
End of life palliative care, we see that as common today.
But it wasn't until the Connecticut Hospice and
some folks in the UK started experimenting, taking this,
sharing with other folks, that really kind of grew significantly.
Habitat for Humanity, another interesting example coming out of the 60s.
Providing affordable housing through not giving away a house,
but actually selling a house at a zero interest mortgage and
having sweat equity where the homeowner works not on just their home but others.
These are things that were pretty innovative at the time.
Now they're pretty commonplace.
This idea of a new or novel solution that was mentioned earlier.
It's maybe applying something from another field.
It's a new way of doing things, a new approach, a new quality and so
forth moving from problems to solution.
What's cool about this is this doesn't necessarily mean radical
innovation, right?
It could be providing something in a better way, having a financing mechanism.
Maybe something that's more responsive to people.
Maybe it's taking a model from one part of society and adapting it and
applying it somewhere else, like Arvin Nikerov.
People know of Arvin Nikerov.
I'll mention them now, I was going to mention them later.
They're essentially taking the idea of the assembly line, where Ford would move cars.
And I'm from Detroit, so it is important to my family history.
But how do you move someone through cataract surgery?
You don't just have to have one surgeon who is skilled and doing the whole thing,
but you can train a variety of technicians in one or two steps.
And that brings dramatically down the cost and increases
the volume of services you can provide and allows you to cross subsidize and
provide free or reduced cost services for the poor.
So, whole new organizational forms.
So it's not just radical innovation but it could be incremental innovation as well.
This is Bill Drayton, the quote I mentioned earlier about revolutionizing.
I don't know if you went to Montessori school, for example.
I've got a five-year-old right now who's in a Montessori school in Hillsboro and
Maria Montessori was a social entrepreneur in the field of education.
Florence Nightingale really revolutionized nursing and
moved it from, actually professionalized it.
It wasn't just people who were cleaning floors and stuff but
who were really involved in patient care and advocates for patients.
So she herself was a social entrepreneur of her time.
Now this had some challenges too.
There's sometimes maybe a argument that maybe they lack market discipline,
because on the social enterprise side you're focused on an earned income stream.
And therefore that may provide some discipline that maybe
on the social innovation side.
Maybe there's a challenge in how do you scale this.
How do you take a radical innovation that works in one place to another place and
how do you make those changes, how do you sustain that?
One thing that happens in this part of the social entrepreneurship world,
we tend to celebrate the new heroes, the Eunices and the Wendy Kopp Teach for
America and folks like that who are all the usual suspects essentially.
There are folks who say social entrepreneurs are one in a million so
it's an unattainable standard of innovation.
And there's a challenge.
I don't know if you read a few weeks ago.
You probably wouldn't have.
In the Chronicle of Higher Education, our own Eric Lynn here, the director of Duke
and Gage, had a thought provoking article about, well, if we're teaching social
entrepreneurship, are we just teaching the students to create something new.
New isn't necessarily better and
how do we make sure that we're holding up and scaling what works and
not just creating a bunch of new things that are maybe wasting resources.
Interesting argument to be involved in.
It's been kind of fun to talk about.
Okay, so we're really interested in the intersection of these.
How do you bring social innovation and social enterprise together,
because both recognize a need for the other.
You need income, you need sustainable financing to take your innovation to
the next level, and on the enterprise side you don't just want to create a bunch of
fishing stories as we said.
How do you actually use business models to serve your innovation?
So we're kind of interested in this intersection,
the idea of enterprising innovation.
So how do you have effective, sustainable,
scalable impact that experiments with methods crossing boundaries, and
treats organizational structure and financing options as tactics?
In other words, for us, financing
organizational structure is a tactical decision not a strategic decision.
It's a means to an ends,
versus the ends itself, so some some examples there of that.
How many have been to TROSA?
Anybody been to TROSA here in Durham?
Triangle Residential Options for Substance Abusers.
They're a residential, therapeutic community for
folks who have been struggling with drug or alcohol addiction.
They come together for two years.
They have a variety of different groups and individual therapy, but
they're also involved in a variety of earned income ventures.
So maybe you bought your Christmas tree there.
Or you're going to go get your diploma framed or
you're going to buy some of their used furniture or use their moving services.
They had a grocery store for a while.
They have all these different ventures where folks work in them.
A, it brings in income for the organization, but B,
it teaches kind of job skills and training.
Some of the folks in Moving will get their chauffeurs license for example, so
they have a trade when they leave at the end of two years.
So there's a much more comprehensive approach.
So a lot of interesting examples of this.
I love this quote from Yunus.
He says, when we want to help the poor, we usually offer them charity.
Most often we use charity to avoid recognizing the problem and finding
the solution for it, and charity becomes a way to shrug off our responsibility.
Charity is no solution to poverty,
it only perpetuates poverty by taking the initiative away from the poor.
It allows us to go ahead with our own lives
without worrying of those of the poor.
It appeases our consciences.
Wow, that's pretty profound.
You may know he was our graduation speaker a few years ago, so
it was exciting to have him on campus again.
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