Using the designs of windmills in a book, William Kamkwamba started building windmills to generate electricity to help power his rural community in Malawi. A social entrepreneur at the center of the movement's eye, William saw moving windmills as a solution to multiple everyday problems. Though at times castigated as a witch, he persevered in his attempt to change the lives of the people around him in a positive way. To see what he achieved, and listen to his story, click on the video below:

William's windmills, in conjunction with the Play Pump (see two posts below), make me wonder whether it might be possible to attach solar panels on the outside of the scaffold supporting the actual wind turbine on top, while on the scaffold's inside, a water pump could be placed (connected to a Merry-go-around). Sound good? Any thoughts? Who has heard of anything like that?

A friend forwarded me a link to Martin H. Klein's website. About a year ago, Martin defended his Ph.D thesis at the Erasmus University in Rotterdam. His thesis evolved into a book called Poverty Alleviation through Sustainable Strategic Business Models. In this book, he essentially deals with question: How can private companies and the bottom of the pyramid ("BoP") work together in a financially, mutually beneficial way?

His main contribution to the BoP literature is the articulation of a management support model for developing profitable pro-poor business models. Using a dataset comprised of 143 BoP companies involved in 105 countries, his research reveals some interesting points about the BoP approach, some of which I want to briefly emphasize and touch upon in the following.

First, robustness is more important than flexibility for BoP business models. What this basically means, is that companies should develop business models that place more emphasis on scalability rather than adaptivity to local environmental changes and differences. In the author's words, "it is the ability to buffer, rather than the ability to adapt to environmental changes that explains success at the BoP" (p.126). He later includes this insight in the formulation of his new business model, by emphasizing that although a business model must be anchored around scalable structures, certain, more contextual activities such as for example "marketing, distribution, and content development," can be "localized instead of centrally planned" (p.192). (Side-step: Kind is trying to basically trying to balance the problem of institutionally embedded agency, a problem I'm currently trying to solve!).

Second, bottom-of-the-pyramid innovations can also be applied to the middle-of-the-pyramid and the top-of-the-pyramid. For instance, Klein asserts that "higher-income people in developed countries now also make use of micro credit" (p.216). Quoting C.K. Prahalad, he also gives the example of Aravind, and Indian manufacturer of medical equipment that produces one of its products (I'll spare you the details) "for $3 each, instead of importing them for $60 to $100 each. The quality is so good that Aravind now exports 50 percent of its production to the United States and other countries." The idea of having innovation spreading from the bottom to the top of the pyramid is as beautiful as it is powerful and attractive. Klein effectively turns the idea into a fact by providing compelling evidence.

Third, in contrast to social performance, environmental performance does not seem to correlate (in any way) with financial performance. This finding is important for firms when creating products for and at the BoP. Specifically focusing the benefit of a product on social value creation versus environmental value creation can significantly affect performance of BoP products. Reasons include "people’s pressing social needs (making value propositions that do socially well highly valued), the importance of personal relationships, [and] the social orientation of potential partners" (p.248). This is not to say that the BoP does not value environmentally friendly products and approaches, but firms and social entrepreneurs do not have a financial incentive to create them. This insight tells us that we need to make sure that the environment isn't recklessly sacrificed for economic gain - using, for example, control mechanisms such as NGO's and (my favorite) education.

I found this on Guy Kawasaki’s Blog:

It’s a Merry Go-Round attached to a pump to generate water, called Play Pump.  Ever spin sends clean water to a storage tank.  And the best thing is that it pays for itself!

 

 

I was trying to explain a new project I am about to take on in Zimbabwe to a friend, and was asked what a social entrepreneur really is. Unsatisfied with my own answers (notice the "s" at the end), I set out to look for a succinct, coherent, and accurate definition. The best one I found was on the Skoll Foundation website. It first explains the more general who and what of entrepreneurship:

"Entrepreneurs are essential drivers of innovation and progress. In the business world, they act as engines of growth, harnessing opportunity and innovation to fuel economic advancement. Social entrepreneurs act similarly, tapping inspiration and creativity, courage and fortitude, to seize opportunities that challenge and forever change established, but fundamentally inequitable systems."

Before explaining more specifically:

"Distinct from a business entrepreneur who sees value in the creation of new markets, the social entrepreneur aims for value in the form of transformational change that will benefit disadvantaged communities and, ultimately, society at large. Social entrepreneurs pioneer innovative and systemic approaches for meeting the needs of the marginalized, the disadvantaged and the disenfranchised – populations that lack the financial means or political clout to achieve lasting benefit on their own."

I love these two sentences. It gets to the core of what it means to be a social entrepreneur. Working at and with the bottom of the pyramid, a social entrepreneur strives to achieve measurable and meaningful success both on a very human as well as monetary level. Projecting that the expression "very human" might appear weird to some of you, let me point towards the housing bubble. "Making the American Dream a reality!" Entrepreneurs were sprouting out of every corner of the land, providing ways for families to live on land and in houses that they couldn't afford. Focusing on the entrepreneurs, what were they focused on: the money or the human value?

Let me give you another rhetorical example:: TOMS Shoes. For every shoe they sell, they give one away. If you have a look at the shoes, and you know something about the apparel business, you'll quickly discover that they are selling $70 shoes that cost less than $1 to produce. Now, the main reason why these shoes are so expensive, is because they are heavily marketed as doing good for poor children in Latin American countries. Simply put, I'm asking: Is this a marketing trick, the true reason for being, or "merely" a genuine concern of TOMS Shoes? Whatever the true answer may be, I would at least argue that TOMS business model is just another Western approach that, intentionally or unintentionally, maintains and sustains a form of global imperialism cultivating hegemonic structures instated at and dating back to the time of Conquest. A social entrepreneur provides holistic solutions to problems faced by the poorest in the world. He does neither "nourish" nor "feed" the poor - he empowers the poor. Such is my position and understanding about what it means to be a true social entrepreneur. Do not give to the marginalized, disadvantaged, and disenfranchised, but empower them!

Check out this great, informative video about social entrepreneurship and social entrepreneurs:

http://www.youtube.com/user/skollfoundation

My friend Abby Fuller, a graduate from the USC School of Cinematic Arts, has produced a movie called "Do You Dream In Color?" about blind people. She explores how the power of animation can bring their dreams to life. It a full length documentary feature movie, and post production is completed. On their website you can find out more about the movie, watch a trailer about a few extraordinary blind teens, and get involved. More generally, I believe they have put a cool twist on their fight for greater awareness, appreciation, and respect for the often marginalized community of blind people. Here a fascinating short video of Shelby's dream:

My friend and musician Tien Nguyen will be playing at their fundraising party in two weeks in Los Angeles at The Wilson House.You can check out his songs on his website.

(RED) is one of the initiatives Cases for a Cause is currently promoting in order to help raise funds against the spread of AIDS in Africa. It was a brand initially started by one of the most successful musicians in the world, U2's Bono, as well as Bobby Shriver from DATA. Portions of all product sales, i.e. 25% in (and for) our case(s), go the Global Fund to help fight AIDS in Africa. The initiative has had major backing with diverse and iconic brands such as Apple, Converse, and Armani supporting it. Check out the awesome 15sec video with Chris Rock:

He's got the right spirit, and we got the right cases. Support a great cause and a few budding social entrepreneurs by stopping by our website and buying a case. It's not just for you, your girl- or boyfriend, or USC alumn dad, but also for those who suffer of a preventable disease in Africa. Take action now!

Through my network I just received notice of a new competition by the William James Foundation targeted towards social entrepreneurs. I thought I'd pass this along to you, so you can have a look at it, an maybe a piece of the $100,00 pie if you play your cards rights! Check out the info below.

The William James Foundation supports entrepreneurs who are starting for-profit businesses with defined social and/or environmental goals. We can best help entrepreneurs who are passionate about their expertise (e.g. renewable energy, sustainable agriculture, moving people out of poverty, etc.) but are new to starting their own for-profit business. These entrepreneurs come from all over the world, and range from teenagers starting a community business to PhDs with multi-million dollar ideas for renewable energy.

We provide this help through a Socially Responsible Business Plan Competition. Entrants start by submitting a short executive summary (no more than five pages) by December 4th, 2009. Almost all entrants will receive an average of ten pages of constructive feedback per plan per round. This feedback comes from our pool of hundreds of experts from the worlds of finance, academia, in-the-field practice, and other entrepreneurs. This is an excellent opportunity for entrepreneurs to learn from those who have successfully combined their passion for a better world with the rigor of financial sustainability. The top entrants will also have a shot at dozens of prizes that are together worth more than $100,000. Please visit the criteria page to see who can enter and how to do so.

India is finally stepping up and backing social entrepreneurs in its own country. I've been following the development for quite a while, and it looks like finally there seems to be some real change underway. I mean in no way to take away any glow from the amazing work of Mohammed Yunus and the Grameen Foundation / Bank or associations such as the Self Employed Women's Association, but the following article underlines the symbolic work and movement towards achieving strong national support for social entrepreneurs and their ventures. It's not that far away! Check out the following article: http://www.livemint.com/2009/10/05215025/Investors-back-social-initiati.html?h=B.

Also, some of friends went with the USC Global  Impact program to India this past summer. Dan Greenberg kept a blog about what he did, as did Bronson Chang, whose venture I described in the previous post. It's wonderful to see that opportunities and outlets for students to engage in social ventures are sprouting across American Universities. The recently instated Stevens Institute at USC is managing the USC Global Impact Program, and has partnered up with the Deshpande Foundation to provide financial and organizational support for a prolonged summer break during which students tackle pressing issues at the bottom of the pyramid in developing countries. They will be accepting applications soon, so be on the look out!

Charity Water is one of the great organizations iPhonebundles is partnering with to make this world a better place. Charity water is a non profit organization bringing clean, safe drinking water to people in developing nations. They give 100% of the money raised to direct project costs, funding sustainable clean water solutions in areas of greatest need. By selling only 20 cases, we can give one person in a developing nation clean water for 20 years!

With over 1 billion people not having access clean and safe drinking water, providing it is central issue in today's society. One of my friends and fellow social entrepreneur, Bronson Chang, spent last summer in India and tackled the water problem in person. Check out his blog at www.changethroughbusiness.com to read up on him planning, funding, and implementing a reverse-osmosis water plant in Gadag, providing clean drinking water for over 500 families! It's great to see another dedicated social entrepreneur making it happen. And since I'm already talking about him, let me help him promote his latest business, Planting Life. You can buy and even sponsor "Grow-It-Yourself Tree Kits" that empower other people to be change-makers who profoundly and directly impact the environment of our local community and communities around the globe. Check it out, get inspired, and create some meaningful change!

Aloha!