Share final presentation yunus centre

“Social Business towards 2020” Report

7th May 2010

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The project

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2

Team – the work of 26 students from 7 countries and 10 prestigious universities

Here today

Project managers Hugo

Augustin

Nicolas

Usama

Members

Arghya

Mirajul

Flora

vPM

Universities

• Mines de Paris • EPFL • University of Porto

• LUMS

• IIM Indore • IIM Ahmedabad • ISI-K Copyright ©2009 ShARE. All Rights Reserved

• Dhaka University

• Fudan University

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A 3 month project with several interactions with the Yunus Centre

Jan

Feb

March

April

May

Output 1: Social alternative models Output 2: Advocacy of alternative models Output 3: Awareness among students Output 4: Towards Social business in 2020

Output 5: Recommendations for the Yunus Centre

17 Jan

Review meeting

29 March

18 April 28 April

Kick-off

5th May Formal presentation of outputs

All Outputs In Dhaka

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5 outputs in 7 countries summarized in today presentation x 7 countries ( >500 slides) ~36 interviews of experts Output 1 Alternatives social models

“Social Business towards 2020” Executive Presentation

5th May 2010

Today

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~800 students surveyed

Output 2 Advocacy

Output 3 Students survey

“Social Business towards 2020” Executive Presentation

5th May 2010

Executive presentation (~25 slides)

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“Social Business towards 2020” Executive Presentation

5th May 2010

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“Social Business towards 2020” Executive Presentation

5th May 2010

~ 3 focus group discussion with students (video)

Output 4 Social Business in 2020

Output 5 Recommendation

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“Social Business towards 2020” Executive Presentation

5th May 2010

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“Social Business towards 2020” Executive Presentation

5th May 2010

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5

Interviews conducted (1/4) Executive name

Designation

Ms. Autumn QIU

Company/ organisation

Type of company

NPP (New Philanthropy Partners

Social consulting

Mr. YU Hai

Professor

Fudan University

Advocacy

Ms, BIAN Jingwen

Founder

Be your eyes

Social enterprise

Ms. WU Jingrong

Manager

NPI (Non-profit incubator)

Social consutling

Ms. QIU Qingqing

Manager

China Social Entrepreneur Foundation (youchange)

Social funds

Mr. Vicent ZHU

Founder

Xingeng Workshop

Social resp. firm

Mr. YU Zhihai

Founder

1 kg more

NGO

Mr. Ramji Raghavan

Founder

Agastya International Foundation

Social business

China

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Interviews conducted (2/4) Name

Bangladesh

Prof. MM Akash Dr. M. Khairul Hossain

Professor Professor

Company/ organisation University of Dhaka University of Dhaka

Dr. M. Mosarof Hossain

Professor

University of Dhaka

Advocacy

Professor

University of Dhaka

Advocacy

Professor

University of Dhaka

Advocacy

Professor

University of Dhaka

Advocacy

Professor

University of Dhaka

Advocacy

CEO National Coordinator

Bijoy

Advocacy Advocacy

Founder

Swanirvar Bangladesh

Advocacy

Researcher,

UNIL-Social Work

University

Mr Marc Gruber

Professor, head of E&I chair

EPFL-MTE

University

Ms. Vivian Gee

Head of Asia

Schwab Foundations

Foundation

Founder, Socail entrereneur

1 Coach

Social Business

Dr. Durgadash Bhattachariya Dr. Mahboob Uddin Chowdhury Mr. Sagar Sen Mr. Mohammad Asad-UzZaman Ms. Parveen HUDA Mr. Mohibul ISLAM Mr. Samanta Bhadra Barua Mr Michael Gonin

Switzerland

Mr Jean Philippe Lambelet

Designation

HoV

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Type of company Advocacy Advocacy

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Interviews conducted (3/4) Executive name

Ms. Sophie KELLER

France

Ms. Aurélie MARCHAIS Ms Marie Flodrops Mr Perron

Portugal

Designation Head of Entrepreneurial Incubator AntropiaESSEC Co-founder of Babyloan In charge of communication Head

Ms. Joana Afonso

Microcredit agent

Ms. Carlota Quintão

PhD in Sociology, A3S’s Board President

Ms. Ana Luísa Martinho

Third sector consultant

Company/ organisation

Type of company

ESSEC

Economic schools

Babyloan

Social Enterprise

Le relais

Socially responsible Firm

Grameen Credit Agricole

Social fund

ANDC – National Association for the Right to Credit A3S - Association for social entrepreneurship and third sector’s sustainability A3S - Association for social entrepreneurship and third sector’s sustainability

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Association

Association

Association 8

Interviews conducted (4/4)

Executive name

Mr. Dhruv Lakra Mr. Devendra Shukla

India

Mrs. Irene Almeida

Designation Founder and CEO Director Administration Incharge

Company/ organisation

Type of company

Mirakle Couriers

Social firms

Jaipur Rugs Foundation

Social firm

Lijjat Papad

Social enterprise

Dr Bhaswar Moitra

Professor

Department of Economics, Jadavpur University

Dr. Farooq Naseer

Professor

LUMS

Ms. Afia Salam

Program Director

IUCN

Mr.Asif Iqbal

Company Secretary

SPDC

Pakistan

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Some outputs

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779 students surveyed from more than 30 leading universities of 7 countries

University Fudan university Jiatong University Tsinghua Universty Zhejiang University Total

University University of Dhaka BUET North South AIUB IUB BRAC Est-west Total Source: ShARE survey

# 90 20 20 20 150

# 90 35 7 8 2 4 4 150

779 students surveyed • 326 engineers

(42%)

• 319 business/eco (41%) • 134 others

University ParisTech ESCP/HEC/Dauphine ENS University of Porto UNIL EPFL Total

(17%)

# 30 14 6 77 17 53 197

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University IIM-I IIM-A IIT-R NUJS Presidency St Xavier Total

# 30 30 70 10 10 10 160

University LUMS UET Other Total

# 94 13 15 122

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Around 30% of the students surveyed have a good awareness of the concept of Social business 29% of the students know what social business is

China and Europe are the 2 regions where the awareness are the lowest ones

“Do you know what social business is?

“Do you know what social business is?

38%

39%

39% 65%

14%

53% 26%

Good notions

18% 3%

No

Wrongly know

Fully aware

41%

7%

22%

34% 5%

Yes-fully aware Wrongly know

Source: ShARE survey Copyright ©2009 ShARE. All Rights Reserved

29% 11%

Yes

Yes: answers correctly to the questions “where do the profits go?” Fully aware: same as above + good answer on “what is the first private firm which spinned off a SB” & “process of registration of a SB”

89%

29% 4%

22%

6%

2%

3% 2%

Yes-good notion no 12

68% of those who don’t the concept of “Social Business” know the concept of “Micro finance” For those who replied “no” to “do you know what social business is” ?

About 68% of the people who don’t the concept “social business” know the concept “micro finance”

“Do you know what micro finance is ?”

About 34 % of the people who don’t the concept “social business” know who Prof Yunus is

“Do you know who Prof Yunus is?”

Yes- Nobel prize Yes- business leader No

% of yes

5% 22%

25%

14% 36%

39%

42%

50%

60%

95% 68%

75%

64%

61%

58%

6%

86%

34%

Source: ShARE survey Copyright ©2009 ShARE. All Rights Reserved

52%

8%

10%

42%

38%

76%

83%

24%

17%

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High job attractiveness of social business except in China

“Would you like to be employed in a social business”

% of yes

67%

64%

54%

53%

50% 29%

Total

Pakistan

Bangladesh

Europe

Source: ShARE survey Copyright ©2009 ShARE. All Rights Reserved

India

China

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Career and personal interest are the 2 key factors to choose a job “After graduation/ 5 years/10 years, what kind of job are you looking for” ..one which…

10%

12%

24%

20%

31%

17%

Contributes to society

19%

Favorises high remunaration

31%

Meets personal interest

28%

Opmtises career

35%

31%

After grad

After 5 years

24%

After 10 years

Source: ShARE survey Copyright ©2009 ShARE. All Rights Reserved

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8 models of organizations identified which serve a social cause and are financially self sustainable Financially sustainable social organization models (FiSSO) Indirect The poor receive social benefits by their role in the exercise of the business

Direct The poor receive a social service or product

Source of revenues

donation

NGO

CSR*

Employees are the poor, disabled

Out of scope

Foundation

rich

Sust. NGO

5

4

1

Capital market

Suppliers or contractors are the poor, disabled

Social firms

Social resp. firms

2

Social business I

Social enterprise

Shareholder are the poor, disabled

Stays in company for expansion

Goes to shareholder

Social business II

3

poor

Profit distribution

6

Cooperatives

Support Sustainable organisation which provides funds or consulting services to direct or indirect FISSO 7

Provides debt/equity to FiSSO * If the CSR is not sustainable

Social funds

8

Social consulting

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Sells consulting/services to FiSSO 16

Foundation and social firms are widespread models in China Financially sustainable social organization models (FiSSO) Direct The poor receive a social service or product

Indirect The poor receive social benefits by their role in the exercise of the business

Foundation Social firms

Social resp. firms

~600 000 employees

Sust. NGO Social enterprise Cooperative

Social business I

Social business II

Support Sustainable organization which provides funds or consulting services to direct or indirect FISSO

Social fund

* If the CSR is not sustainable

Social consulting

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Social firm was the first model to emerge followed by foundations, social enterprise at very recent stage Before 1950

1960

1970

1980

1990

1995

2000

2005

2010

Foundation New non-public foundations set up focus on socialissues

China Songqingling Foundation, the first one, set up in 1982

Sustainable NGO First batch of traditional NGOs appear in early 1990s,

Social enterprise

Social firms

Appear as early as PRC established

First batch of traditional SEs appear in early 1990s, e.g Hetong

Grow very quickly in early 1980s

Second batch of new model NGOs appear around 2005,

Second batch of new model SEs become popular after 2004

Peak amount in 1995, then began shrinking

Social responsible firms Fair trading is popular since very recent Source: ShARE analysis Copyright Š2009 ShARE. All Rights Reserved

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A few articles on “Social entrepreneur” have been published, not in a number to influence people Occurrence of word combination in the archives of the Xinhua Press From 2008 jan – 2008-Dec

794

29100

15700

zoom 5700

139

87

2710 794

Source: baidu news archive; ShARE analysis

788

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0

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In China, most of social entrepreneur come from the social sector…

Field of Expertise before setting up the SE

Profiles of founders of SE/SB Holds a MBA

Finance

11

7

Social study / Public sector

Law

12

8

Business (startt-up, marketing,…)

13

1

9 2

6 15

16

4

14

5

3

Engineering/IT

Others

10

0-2 years

2-5 years

5-10 years

10-30 years

Source: Literature Search; Team analysis Copyright ©2009 ShARE. All Rights Reserved

Retirement

Working experience befor e starting the SE

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Cross country analysis

Output 1

Development of social sector Advancement of alternative models Most developed alternative model

Main obstacle

Social enterpise

Social firm

Sustainable NGO

Awareness

Awareness

Awareness

Awareness

+10 years

+10 years

+10 years

+10years

Cooperatives

Cooperative

Sust. NGO SB Engagement of freshly graduated talents

Social firms

Awareness & Government

Output 2

Media coverage Social entrepreneur exp.

Main university

N/A

HEC

Main contest

N/A

HEC contest

University of Geneva LUMS Schwab Social Entrepreneurs of the year

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N/A

+10 years & young TISC

~10years

10 years

University of Dhaka

Tsinghua university

Yunus Center

Google

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Major social needs in China are life necessity, education &healthcare Good potential for social business model* (assessed by ShARE students)

Life Necessity*

+

 Shortage of clean food & water in rural areas • 300 million population drink polluted water (> 60% from industrial pollution) • ~3% population starve

 Environment pollution • Plants direct emission to air &water, e.g: Cyan bacteria crisis in Tai Lake • Poor regulation of food industry, e.g. Sanlu milk powder scandal “Food safety is of great potential”

-

 Surging housing price • Unaffordable for even mid-level income in large cities like Shanghai and Beijing

Education  Education resource disparity • Regional concentration of educational resource enrollment rate after high school by province

Healthcare  Expensive Medical bills • Very expensive medical expense (kickbacks…)

• ~60% paid by personal cash

compulsory 9-year education rate

 Lack of basic education for kids of migrated workers • ~8mn migrated kids need primary education while only 70% satisfied • Very few school accepts migrated kids because of Hukou issue***

 Lack of care to the old-aged • Obvious aging trend in China • elder people live alone due to single child policy  Lack of care to the disabled • 80million disabled • Income level is only 50% of the national average

* Potential is defined from the Importance and implementation feasibility for social business ** tangible stuff including food, clothing, living and etc. *** Hukou is Chinese residence system. Every Chinese has a “hukou”, usually birth place and can only attend the school under the Hukou region Source: literature research, workshop with ShARE members on 8th Apr, 2010 Copyright ©2009 ShARE. All Rights Reserved

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Active financial and labor supply will support social business to meet social needs by 2020 Social Business Landscape in China, 2020* Financial system Equity (Stock, VC)

0.4%

Total cap. $100trillion

Debt (bank loan)

0.4%

Total debt. $10trillion

Education social equity

40%

cap. $50 billion

Social business**

Social Debt

Healthcare

cap. $5 billion

0.5% GDP

Non-social business

30%

Labour system

Total labor 0.7billion

0.4%

Old-age care: 50% Disabled care:30% Other: 20%

Total GDP $8 trillion

99.5% GDP

Labor

Skill-based training: 80% Supplement public education:20%

Life Necessity Shift from CSR, traditional charity or set up one as a ex-businessman

20%

social Labor

Environment protection: 80% other:20%

Foreign trade

Total 6million

University

10%

* Financial and labor market methodology are in backup **including all the social business models like social enterprise, social firms, social resp. firm and etc in output 1 Source: literature research, workshop with ShARE members on 8th Apr, 2010

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Fair Trading Public: 70% 80% Cultural Personal:30% expansion 20%

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Yunus Center still has a lot to do to widely spread Social Business in China

2015 Target in China  Raise awareness from 10% to 30%  Raise attractiveness level from 30% to 50%  Build 1-2 successful examples of Social Business Strategy for Yunus center Visit  Annual visit to China from 2010 to 2015  Expand city coverage to west China, e.g: Kunming, Xi’an

Event

 Hold Social business proposal contest in universities  Attend conference on social entrepreneurial

Cooperation  Set up Social business lab in China  Seek cooperation with famous social foundations

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Joint Venture  Set up Grameen example social business in China

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Some photos

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Before the meeting – visit of a village where Grameen bank operates The village following the team Mirajul Team

The European team

Augustin

Hugo Flora and Echo in the middle of the microfinance meeting

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Before the meeting – visit of social business Danone and Eye care Eye care

Danone factory

Flora

Echo Team

Yogourt

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Before the meeting - preparation Hugo dressing up Augustin

Flora practicing

Team working

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The meeting 1 The team just before the meeting

Flora presenting China part

Prof Yunus The meeting room

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The meeting 2 Prof Yunus

Usama and Arghya

Sebastien & Yunus Centre team

The team

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The meeting 3 – afternoon workshop Mirajul, Sabrina and Fahim

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After the meeting Back to hotel

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The victory 

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Other The boys lost in Dhaka The hotel The food

Team

Echo not happy ;)

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