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APS 1015: Social EntrepreneurshipClass 1: Introduction to Social
Entrepreneurship and Social Systems
Monday, September 9, 2013Instructors:Norm Tasevski ([email protected]) Alex Kjorven ([email protected]
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Before we begin…
This course is designed for those that want to generate social change
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Course Director – Norm Tasevski
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Teaching Assistant – Alex Kjorven
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What Makes YOU a Budding (Social) Entrepreneur???
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Agenda
• Class Intros• Syllabus and Class Structure• Ground Rules• Defining Social Entrepreneurship • What motivates the social entrepreneur?• Break• Introduction to Social Systems• What did we learn?• Next week
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Syllabus
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Class Rules
– Participation - quality, not quantity!
– No stupid questions (only stupid answers)
– Respect your classmates – attend and be punctual!
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Defining Social Entrepreneurship…
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The Roots of Social Entrepreneurship
In the beginning…
Then…
Private Sector
• Earn $• Pay tax• Donate to charity
Public Sector
• Collect tax• Run programs• Grant to charity
Nonprofit Sector
• Receive donations/grants
• Run programs
Nonprofit Sector
• Donations
• Grants
• Sustainability
Response? Nonprofit Sector
Private Sector Activities
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Caveat…
Social Entrepreneurship is no longer a nonprofit-only activity!!!
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To Understand Social Entrepreneurship, we need to understand entrepreneurship...
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A test…I am:• A retailer• Sells goods at rates affordable by low-income
individuals• Employs individuals with barriers to employment• Goals:
– 92% of imported goods from green factories– 95% of waste redirected from landfill– Desire to be supplied 100% by renewable
energy by 2015
Social Enterprise or Not?
Facts:• $115M raised for charity since
1995 ($18M in 2009)• Over 1,000 environmentally-
approved products on sale• 1700 new jobs created in Canada
in 2009
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CONTENT
1. HOUSE KEEPING2. WHY ARE YOU HERE?3. HOW DOES CHANGE
HAPPEN?4. HOW DO I MAKE
CHANGE?
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QUESTION
WHY ARE YOU INTERESTED IN SOCIAL
ENTREPRENEURSHIP?
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ENTREPRENEURSHIP=
MAKE SOMETHING PEOPLE WANT
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PROBLEM
OPPORTUNITY
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KIVA
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THE REMIX PROJECT
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BREAK…
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Introduction to Social Systems…
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Systems =
sets of interlocking business models
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systems change when business models change
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DISRUPTION AS SOCIAL CHANGE
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High
Medium
Low
Clay Christensen’s model of disruption
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“Your margin is my opportunity”
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Disruption: from ownership to sharing
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Disruption: disintermediation
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Disruption: unlocking & liquifying inventory
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Disruption: commodifying a source of value
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Disruption: servicing non-consumers
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Disruption: changing the capital/risk sequence
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Disruption: commoditizing production
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Characteristics of disruptions
Fundamentally change the economics:• Initial products are less good, but good enough• Less profitable (lower margins), but higher volume• Ultimately grow the market by servicing non-
consumers
Results:• Increased access• Drive costs down
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Sinking business models• Scarcity• High margin human services• Informational imbalance
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HOW DO I MAKE CHANGE?
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DAY 1
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VS.
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