template : social enterprise development action plan in saarc countries

Anil Kumar Gade WhatsApp@+91-94900 69000 1 | P a g e

Action Plan for launching

Social Enterprise Development Program


CONTENTS

1.1. Introduction 03

1.2. The South Asian Association for Regional Cooperation (SAARC) 03

1.3. South-South cooperation (SSC) 04

1.3.1.Key principles for South-South cooperation 05

1.3.2.Objectives of South-South Cooperation 06

1.3.3.Benefits of South-South Cooperation 07

1.4. Triangular cooperation (TrC) 08

1.5. The Global Goals 08

1.6. Social Enterprise 11

1.7 Innovation 11

1.8 Social Innovation 11

1.9 Diffusion of Innovation 12

1.10 Innovation Systems 13

1.11 Enterprise Ecosystem 14

1.12 Innovation Commercialization 16

2 Action Plan

2.1 Preliminary Scope Research 18

2.2 Activity 1: Social Enterprise Development Facilitation

2.2.1 Identification 19

2.2.2 Due Diligence 19

2.2.3 Connecting with Markets & Investors 19

2.2.4 Support system for development 19

2.3 Activity 2: Incubation Centers Development

2.3.1 Setting up of Incubation Centers 21

2.3.2 Type of services offered in incubation centers 21

2.3.3 Stages in setting up an incubation center 22

2.3.4 InfoDev network of World Bank 23

2.3.5 Declaration 23

Figures

1. The Global Goals 09

2. Five stages of innovation diffusion / adoption 13

3. Entrepreneurial Ecosystem 15

4. Action Plan – Way forward 17

5. Activity 1:Sustainable Social Enterprise Development Facilitation Process 20

6. Activity 2: Incubation Centers Development 22

7. Support from World Bank 23 & 24


Action Plan for launching Social Enterprises Development Program

1. Introduction

Asian–African Conference that took place in Bandung, Indonesia, in 1955 has

"provided the first major instance of the post-colonial countries collective resistance

to Western Dominance in International relations." This Bandung conference laid the

first seeds of South - South Cooperation idea.

Subsequently in 1978, the United Nations established the Unit for South–South

Cooperation to promote South–South trade and collaboration within its agencies.

However only in late 1900’s, the idea of South–South cooperation started to

influence the field of development. Gradually South–South cooperation has been

successful in decreasing dependence on the aid programs of developed countries and

in creating a shift in the international balance of power.

1.1. The South Asian Association for Regional Cooperation (SAARC)

On the other side the idea of co-operation in South Asia was discussed in at least

three conferences: the Asian Relations Conference held in New Delhi on April 1947;

the Baguio Conference in the Philippines on May 1950; and the Colombo Powers

Conference held in Sri Lanka in April 1954.

In the ending years of the 1970s, the seven inner South Asian nations that included

Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka agreed upon

the creation of a trade bloc and to provide a platform for the people of South Asia to

work together in a spirit of friendship, trust, and understanding.

In 1983, the international conference held by Indian Minister of External Affairs P.V.

Narasimha Rao in New Delhi, the foreign ministers of the inner seven countries

adopted the Declaration on South Asian Association Regional Cooperation (SAARC)


and formally launched the Integrated Programme of Action (IPA) initially in five

agreed areas of cooperation namely, Agriculture; Rural Development;

Telecommunications; Meteorology; and Health and Population Activities.

Officially, the union was established in Dhaka with Kathmandu being union's

secretariat-general. SAARC was founded in Dhaka on 8th December,1985 and

hosted by the President of Bangladesh Hussain Ershad.

SAARC is the regional intergovernmental organization and geopolitical union of

nations in South Asia. Its member states include Afghanistan, Bangladesh, Bhutan,

India, Nepal, the Maldives, Pakistan and Sri Lanka. SAARC comprises 3% of the

world's area, 21% of the world's population and 3.8% (US$ 2.9 trillion) of the global

economy, as of 2015. It launched the South Asian Free Trade Area in 2006. SAARC

maintains permanent diplomatic relations at the United Nations as an observer and

has developed links with multilateral entities, including the European Union.

1.2. South-South cooperation (SSC)

The Framework of operational guidelines on United Nations support to South-South

and triangular cooperation defines South-South cooperation (SSC) to be “a process

whereby two or more developing countries pursue their individual and/or shared

national capacity development objectives through exchanges of knowledge, skills,

resources and technical know-how, and through regional and interregional collective

actions, including partnerships involving Governments, regional organizations, civil

society, academia and the private sector, for their individual and/or mutual benefit

within and across regions. South-South cooperation is not a substitute for, but rather

a complement to, North-South cooperation”.

The definitions for South-South and triangular cooperation are based on the Nairobi

Outcome Document ii, negotiated in the UN High-Level Conference on South-South

Cooperation and adopted by the UN General Assembly in December 2009.


South-South cooperation (SSC) is a broad framework for collaboration among

countries of the South in the political, economic, social, cultural, environmental and

technical domains. Involving two or more developing countries, it can take place on

a bilateral, regional, subregional or interregional basis. Developing countries share

knowledge, skills, expertise and resources to meet their development goals through

concerted efforts. Recent developments in South-South cooperation have taken the

form of increased volume of South-South trade, South-South flows of foreign direct

investment, movements towards regional integration, technology transfers, sharing

of solutions and experts, and other forms of exchanges.

1.2.1. Key principles for South-South cooperation

Common endeavor of peoples and countries of the South, based on shared

experiences, common objectives, and solidarity

Guided by the principles of respect for national sovereignty, ownership and

priorities as defined on national development plans and strategies.

Partnership among equals and free from conditionalities

Continuing to increase mutual accountability and transparency, while coordinating

with other development projects and programs on the ground

Embracing a multi-stakeholder approach, including non-governmental

organizations, the private sector, civil society, academia and others that contribute

to meeting development challenges and objectives in line with national

development strategies and plans.


1.2.2. Objectives of South-South Cooperation

The basic objectives of South-South cooperation are interdependent and mutually

supportive and contribute to the broader objectives of international development

cooperation. These objectives are to:

Foster the self-reliance of developing countries by enhancing their creative capacity

to find solutions to their development problems in keeping with their own

aspirations, values and special needs;

Promote and strengthen collective self-reliance among developing countries

through the exchange of experiences; the pooling, sharing and use of their

technical and other resources; and the development of their complementary

capacities;

Strengthen the capacity of developing countries to identify and analyse together

their main development issues and formulate the requisite strategies to address

them;

Increase the quantity and enhance the quality of international development

cooperation through the pooling of capacities to improve the effectiveness of the

resources devoted to such cooperation;

Create and strengthen existing technological capacities in the developing countries

in order to improve the effectiveness with which such capacities are used and to

improve the capacity of developing countries to absorb and adapt technology and

skills to meet their specific developmental needs;

Increase and improve communications among developing countries, leading to a

greater awareness of common problems and wider access to available knowledge

and experience as well as the creation of new knowledge in tackling development

problems;


Recognize and respond to the problems and requirements of the least developed

countries, land-locked developing countries, small island developing States and the

countries most seriously affected by, for example, natural disasters and other

crises; and

Enable developing countries to achieve a greater degree of participation in

international economic activities and to expand international cooperation for

development.

1.2.3. Benefits of South-South Cooperation

Strengthening of the voice and bargaining power of developing countries in

multilateral negotiations;

Use of experience and capacity that already exists and the development of new

capacities in developing countries;

Opening of additional channels of communication among developing countries;

Promotion and strengthening of economic integration among developing countries

on as wide a geographic basis as possible;

Enhancement of the multiplier effect of technical cooperation;

Fostering of economic, scientific and technological self-reliance;

Increased knowledge of and confidence in the capacities available in developing

countries;

Coordination of policies on development issues relevant to a number of developing

countries;

Development of indigenous technology and the introduction of techniques better

adapted to local needs, particularly in traditional subsistence sectors such as

agriculture;

Promotion of:

National science and technology plans;

Economic and social planning;

Linkage of research and development with economic growth;


Project planning and evaluation;

Use of human and natural-resource potential;

Modern management and administration;

Technical, scientific and administrative manpower; and

Accelerated professional training at different levels.

1.3. Triangular cooperation (TrC)

The UN’s working definition for triangular cooperation (TrC) is “Southern-driven

partnerships between two or more developing countries, supported by a developed

country (ies) or multilateral organization(s), to implement development cooperation

programs and projects”.

Through triangular cooperation, Southern development assistance providers can

benefit from the financial and technical support, experience and technical know-how

of multilateral and developed-country partners. The increased capacity to tackle

development challenges, strengthened partnerships and enhanced regional

integration benefits everyone.

1.4. Social Development

Social Development theory attempts to explain qualitative changes in the structure

and framework of society that help the society to better realize aims and objectives.

Development can be defined in a manner applicable to all societies at all historical

periods as an upward ascending movement featuring greater levels of energy,

efficiency, quality, productivity, complexity, comprehension, creativity, mastery,

enjoyment and accomplishment.

1.5. The Global Goals

The Sustainable Development Goals (SDGs), officially known as “Transforming our

world: the 2030 Agenda for Sustainable Development” is a set of seventeen

inspirational "Global Goals" with 169 targets between them. Spearheaded by the


United Nations, through a deliberative process involving its 194 Member States, as

well as global civil society, the goals are contained in paragraph 54 United Nations

Resolution A/RES/70/1 of 25 September 2015.

1. No Poverty - End poverty in all its forms everywhere

2. Zero Hunger - End hunger, achieve food security and improved nutrition and

promote sustainable agriculture

3. Good Health and Well-being - Ensure healthy lives and promote well-being

for all at all ages

4. Quality Education - Ensure inclusive and equitable quality education and

promote lifelong learning opportunities for all

5. Gender Equality - Achieve gender equality and empower all women and girls


6. Clean Water and Sanitation - Ensure availability and sustainable

management of water and sanitation for all

7. Affordable and Clean Energy - Ensure access to affordable, reliable,

sustainable and modern energy for all

8. Decent Work and Economic Growth - Promote sustained, inclusive and

sustainable economic growth, full and productive employment and decent work

for all

9. Industry, Innovation and Infrastructure - Build resilient infrastructure,

promote inclusive and sustainable industrialization and foster innovation

10. Reduced Inequalities - Reduce income inequality within and among countries

11. Sustainable Cities and Communities - Make cities and human settlements

inclusive, safe, resilient and sustainable

12. Responsible Consumption and Production - Ensure sustainable consumption

and production patterns

13. Climate Action - Take urgent action to combat climate change and its impacts

by regulating emissions and promoting developments in renewable energy

14. Life Below Water - Conserve and sustainably use the oceans, seas and marine

resources for sustainable development

15. Life on Land - Protect, restore and promote sustainable use of terrestrial

ecosystems, sustainably manage forests, combat desertification, and halt and

reverse land degradation and halt biodiversity loss

16. Peace, Justice and Strong Institutions - Promote peaceful and inclusive

societies for sustainable development, provide access to justice for all and build

effective, accountable and inclusive institutions at all levels

17. Partnerships for the Goals - Strengthen the means of implementation and

revitalize the global partnership for sustainable development


1.6. Social Enterprise

A social enterprise is an organization that applies commercial strategies to maximize

improvements in human and environmental well-being—this may include maximizing

social impact alongside profits for external shareholders. Social enterprises can be

structured as a for-profit or non-profit, and may take the form of a co-operative,

mutual organization, a disregarded entity, a social business, a benefit corporation, a

community interest company or a charity organization.

1.7. Innovation

Innovation can be defined simply as a "new idea, device, or method". However,

innovation is often also viewed as the application of better solutions that meet new

requirements, unarticulated needs, or existing market needs. This is accomplished

through more-effective products, processes, services, technologies, or business

models that are readily available to markets, governments and society. The term

"innovation" can be defined as something original and more effective and, as a

consequence, new, that "breaks into" the market or society.

As per Crossan and Apaydin in Organisation for Economic Co-operation and

Development (OECD) manual, Innovation is: production or adoption, assimilation,

and exploitation of a value-added novelty in economic and social spheres; renewal

and enlargement of products, services, and markets; development of new methods

of production; and establishment of new management systems. It is both a process

and an outcome.

1.8. Social Innovation

Social innovations are new strategies, concepts, ideas and organizations that meet

the social needs of different elements which can be from working conditions and

education to community development and health — they extend and strengthen civil

society.


Some of the noted social innovations are: Emissions Trading, Fair trade, Community

centered Planning, Habitat Conservation Plans, International Labor Standards, Micro

finance, Socially responsible investing, Open source platforms etc.,

1.9. Diffusion of Innovation

In Everett Rogers, a professor of rural sociology in his book “Diffusion of

Innovations” proposed diffusion theory in which, Diffusion is the process by which an

innovation is communicated over time among the participants in a social system.

Rogers proposes that four main elements influence the spread of a new idea:

the innovation itself, communication channels, time, and a social system. This

process relies heavily on human capital. The innovation must be widely adopted in

order to self-sustain. Within the rate of adoption, there is a point at which an

innovation reaches critical mass.

Diffusion occurs through a five–step decision-making process. It occurs through

a series of communication channels over a period of time among the members of a

similar social system. Rogers' five stages (steps) are awareness, interest, evaluation,

trial, and adoption. An individual might reject an innovation at any time during or

after the adoption process.

Based on the adoptability to innovation, there are four categories of adopters

such as innovators, early adopters, early majority, late majority, and laggards.


Five–step decision-making process

1.10 Innovation Systems

The concept of the innovation system stresses that the flow of technology and

information among people, enterprises, and institutions is key to an innovative

process. It contains the interactions between the actors needed in order to turn an

idea into a process, product, or service on the market.

According to innovation system theory, innovation and technology development are

results of a complex set of relationships among actors in the system, which includes

enterprises, universities and research institutes.

Innovation systems have been categorized into

Local innovation systems

National innovation systems

Regional innovation systems

Technological innovation systems and

Sectoral innovation systems

1 • Knowledge

2 • Persuasion

3 • Decision

4 • Implementation

5 • Confirmation

Accept

Reject


1.11 Entrepreneurial ecosystem

Entrepreneurial ecosystem refers to the social and economic environment affecting

the local/regional entrepreneurship. "Ecosystem" refers to the elements –

individuals, organizations or institutions – outside the individual entrepreneur that

are conducive to, or inhibitive of, the choice of a person to become an entrepreneur,

or the probabilities of his or her success following launch. Organizations and

individuals representing these elements are referred to as entrepreneurship

stakeholders. Stakeholders are any entity that has an interest, actually or

potentially, in there being more entrepreneurship in the region.

Entrepreneurship stakeholders may include government, schools, universities,

private sector, family businesses, investors, banks, entrepreneurs, social leaders,

research centers, security systems, labor representatives, students, lawyers,

cooperatives, communes, multinationals, private foundations, and international aid

agencies.

There are several conditions that typically define a healthy ecosystem. The

ecosystem:

is tailored around its own unique environment – it does not seek to be something

it isn’t, like the “next Silicon Valley”

operates in an environment with reduced bureaucratic obstacles in which

government policies support the unique needs of entrepreneurs and tolerate failed

ventures

actively encourages and invites financiers to participate in new ventures -

although access to money isn’t without barriers for those planning new business

ventures

is reinforced, not created from scratch, by government, academic or commercial

organizations


is relatively free from, or is able to change the cultural biases against failure or

operating a business

promotes successes, which in turn attract new ventures

is supported by dialogue among various of the entrepreneurship stakeholders

Entrepreneurship Ecosystem


1.12 Innovation to Commercialization

Innovation & Entrepreneurship are critical drivers of a social and economic

development. Innovative people drive society and economy of a country forward. Innovation can be triggered by training the youth and by facilitating the ecosystem

suitable for creative exploration of ideas. Developing youth’s innovative skills will make them future resilient. Currently the government system too is promoting

entrepreneurship.

It is observed that innovative people tend to exhibit five major attributes

Creativity

Self efficiency Energy

Risk Propensity Leadership

The modern word, ICT has opened up many platforms for innovation. We can observe that it has lead to innovation in ICT & also ICT enabled innovations

To understand the country’s innovation support system, one can administer

Innovation Radar Methodology. This will study the following elements

Innovation Potential Indicator of an ecosystem can be studied by measuring

following three parameters such as

Innovation Readiness Indicator Innovation Management Indicator

Market Potential Indicator

Innovators capacity can be assessed from innovators ability and innovators

environments such as internal and external bottle necks, real time monitoring of business, business culture among innovators, innovation progress checks,

assessment of policy support and framework etc.

After studying the gap areas and existing development framework mapping, strategy document / action plan has to be developed.

After innovations are generated, a well handholding with better market connectivity and required resources will ensure into successful commercialization and

development of Innovative Entrepreneurs.


2. Action Plan: Curators for Social Enterprises in the new media age requires

knowledge in

Social Work Community Development

Entrepreneurship Environment Sciences

With this academic background and professional experience, I propose the following action plan to be executed in the next two years.

Research

SED Facilitation

Identification

Selection

Mentoring

Investment & Market

Connectivity

Incubator Network

Identify Existing

Gap Areas

Develop New

Training and Coordination

Gap Identification

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2.1. Preliminary Scope Research

Initially the research has to be conducted from primary and secondary resources

regarding the market analysis, stake holder mapping. This research being the inter governmental in nature involving seven countries would take nearly 3 months to get

the research conducted and analyzed to feel of the needs / situation.

Initial Research

Research of existing situation in SAARC innovation system

Mapping incubation centers in SAARC region

Identify the gap areas

Device the action plan in consultation with stakeholders

Mapping investors / VCs, Banks, HNI, PE, Training institutions

Mapping service providers

Mapping innovators existing in the field

list of colleges, it is, Universities etc for innovation mapping

Continuous

Prepare Knowledge reports (Sector Based)

Make central database of all innovations for easy access

Research will give fair knowledge to execute the proposed activities with a better

confidence lever and control over the situation. Proposed activities are

Social Enterprise Development Facilitation

Incubator Network Coordination


2.2 Activity 1:

Social Enterprise Development Facilitation

Facilitation of Social Enterprise Development has four phases

2.2.1. Identify - innovative green products, technologies and services

- Call for business plans announcement - Conducting Road Shows

- News Paper advertisements in different countries - Website notification

2.2.2 . Due Diligence - Provide mentoring with their business development

- Assessment of business idea - Business model

- Benefit to the environment - Social impact

- Management team - Market assessment

- Sector analysis

2.2.3. Connect - With capital and markets

- Sector analysis - Business advisory services through

o Coaches Network o Pro-bono Mentoring

- Training program - Skill development program

- Market connectivity

2.2.4. Support System Development - For company’s overall development

- Investor Network - Investor Forum

- Investor Summit - Investor Meetings

- Deal flow sessions - Incubator Development

- Partnership building with other stakeholders


Social Enterprise Development Facilitation Process

Continuous engagement of enterprise development facilitation would be an year

round cycle. Market research, information material on sector wise scope for investments would be prepared; establishment and strengthening the entrepreneur

ecosystem would be carried out as a continuous process.

2.2.5. Key Performance indicators (KPIs)

- Number of innovations mapped

- Number of business plans received - Quality of business plans received

- Trainings and workshops delivered - Improvisation in innovators abilities as entrepreneurs

- Number of companies successfully running after due diligence - Number of investors connected

- Number of investors joining the investors network / steering committee - Number of stakeholders connected

- Entrepreneurial ecosystem created - Social impact created

- Environment impact measured


2.3. Activity 2:

2.3.1. Setting up of Incubation Centers

Enterprise Incubation Centers are considered as the brooding grounds where future

companies are hatched. These innovations and enterprises are critical for the development of social and economic development of a nation.

Business incubation processes will assist in unleashing the fullest capacity of human ingenuity, ability to compete and create sustainable jobs. Venture initiation process

is something very much similar to hand holding with an expert of the sector. A well developed enterprise ecosystem will create favorable environment to the success of

the ideas by adding value in the form of services and products.

The global market place is a competitive world, it demands high end international

networks to qualify the business idea and there are many opportunity for replication. International networking, knowledge sharing, experiential learning from divergent

communities can add value to the business ideas in a quick span of time and it needs facilitation in the form of incubation centers.

A business incubator in business speak is an office that helps new and startup

companies to develop by providing services such as management training or office space. Business incubators differ from research and technology parks in their

dedication to startup and early-stage companies. Research and technology parks, on the other hand, tend to be large-scale projects that house everything from

corporate, government or university labs to very small companies. Most research

and technology parks do not offer business assistance services, which are the hallmark of a business incubation program. However, many research and technology

parks house incubation programs.

There are wide variety of services an incubation center can offer. Since startup companies lack many resources, experience and networks, incubators provide

services which helps them get through initial hurdles in starting up a business. These hurdles include space, funding, legal, accounting, computer services and other

prerequisites to running the business.

2.3.2. Type of services made available in an incubation center:

Help with business basics

Networking activities Marketing assistance

Market Research High-speed Internet access

Help with accounting/financial management


Access to bank loans, loan funds and guarantee programs

Help with presentation skills Links to higher education resources

Links to strategic partners Access to angel investors or venture capital

Comprehensive business training programs Advisory boards and mentors

Management team identification Help with business etiquette

Technology commercialization assistance Help with regulatory compliance

Intellectual property management etc.,

2.3.3. Stages in setting up of Business Incubation Centers

Gap

Research Planning Stage Marketing

Identification of Client

Financing Management

Assistance

Monitoring Financial Planning Commercialisation

Virtual Incubation Networking Continuous

Learning


SAARC Development Fund (SDF) will do the initial survey of existing incubation

centers in the SAARC countries. This will be done by primary and secondary data and gap areas will be identified.

Basic premise is, having the technically sound infrastructure, capital equipment,

operating facilities, availability of experts for advising will help the ideas to transform into enterprises.

Incubation centers can be established for various sectors such as manufacturing, transport, energy, health, education, agriculture, water and sanitation etc. Social

Enterprise more over requires many such centers in many under privileged regions close to the communities. This can be taken up as a social venture in itself. These

incubation centers will not discriminate the intake of any innovation and will encourage SMEs and interested individuals or organizations to join them to assist

them in the process of idea generation to commercialization.

To have the distribution across the nation, incubation centers can be established in Public, Private and Community Partnership (PPCP) Model. Interested and competent

individuals, companies, colleges, universities, technical schools, hubs and clusters

can apply for the support from SDF in the form of funds for infrastructure, technology or working capital for initial few years. After 5 years of operation, these

incubation centers are expected to become self sufficient and generate their own funds by commercializing their services

Major challenge is identified as the handholding needed for these incubation centers

itself in becoming self sustainable. It requires continuous training of incubation managers, continued marketing of services, upgrading of technologies, networking

with experts and facilitating the companies in business facilitation services etc. All these approximate five years, SDF should work very closely with the incubation

centers and there after too should coordinate with them in a network.

2.3.4. InfoDev initiative of World Bank

classified incubation centers into:

■ Business incubators

■ Science and Cyber parks ■ National Associations

■ Foundations and not-for-profit organizations

■ Universities and research institutions

■ Other (private sector, consulting) organizations


So far it has supported incubation centers in three forms of grants

Operational Grants

Capacity Building Grants Planning Grants

In Asia (East and South), between 2003 to 2006 total of 22 grants have been

awarded in the tune of USD 3,970,000

Research plays an important role in understanding the market gap areas. Learning

from one country can be verified its applicability with other countries and process of operations can be further streamlined.

A detailed plan with activity based budgeting can pay a path forward for successful and efficient execution of this project. This would work as a two pronged approach to

attract not only social enterprises but also many SMEs to get benefit from the incubation facilities.

2.3.5. Declaration

As a person exposed to this whole gamut of activities for six years, I feel confident to propose myself as a competent person to execute this project beyond India in all the

SAARC nations with little inputs.

My education in Social Work, Environmental Sciences, Experience in Community organizing, interaction with SMEs and innovators in entrepreneurship development

would be a opt for to operate as Assistant Director – Sustainable Social Enterprise Development Facilitation program at SAARC Development Fund.

Look forward to present myself before you.

template : social enterprise development action plan in saarc countries

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