“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
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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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