Social Entrepreneurship: Strengthening Institutions, Influencing Policy

Srikrishna Ramamoorthy, Kinara Capital 6th Annual International Conference on Public Policy and Management IIMCentre for Public Policy, IIM-Bangalore December 28th, 2011

Kinara Capital
Founded in Sep 2011, providing loan capital to small and growing businesses Loan size: Rs. 1 lac to Rs. 10 lacs; filling the gap between microfinance and commercial capital USP - Plug into the supply chain with channel partners Plan to build a loan portfolio of around 1.5 cr. in a year and grow from there

The business of doing good

Merging business savvy and values What rules - The heart or the head?

Photo: Unitus

Social Entrepreneurship 1.0

Muhammad Yunus, founder of the Grameen Bank and father of microcredit, provides a classic example of social entrepreneurship. The stable but unfortunate equilibrium he identified consisted of poor Bangladeshis limited options for securing even the tiniest amounts of credit Yunus confronted the system, proving that the poor were extremely good credit risks by lending the now famous sum of $27 from his own pocket to 42 women from the village of Jobra. Yunus brought inspiration, creativity, direct action, courage, and fortitude to his venture, proved its viability, and over two decades spawned a global network of other organizations that replicated or adapted his model to other countries and cultures, firmly establishing microcredit as a worldwide industry.

Source: Social Entrepreneurship: The Case for Definition, Roger L. Martin and Sally Osberg, Stanford Social Innovation Review/spring 2007

Transformation
Arrival of social capital Markets help themselves Push for efficiency and low-costs Scale, scale, scale! - Expand the impact and reach to effectively solve the problem Beneficiary becomes Customer

Life of a Social Entrepreneur

Small window of opportunity

- External environment challenges -Organizational challenges -Mission drift -Etc etc

Challenges and Success Factors

HR
-Talent - Org. Culture

Capital
-Investors/ Donors -Board -Profits

Product innovation

Severity of the Social Problem

Political/ Govt. support Program Outreach

Scale of Social Impact Breadth and Depth

Media

Graphic: Center for the Advancement of Social Entrepreneurship Fuqua School of Business, Duke University

Giving them a fish Or Teaching Them HOW to fish?

Actually, it is neither!

Provide her access to capital to create a sustainable fishing business at a fair rate of return and change the world Heard on Wall Street?

Well, if you think about it , it really is about enabling the stakeholders to take care of the lake or sea, farm the fish, add value to it make it a special product -, market it and sell it
PS: and if it fails, move on to eco-tourism, fishing nets, fish racing, or research on fish scales!

Email: sri@srikrishna.in

Social Entrepreneurship: Strengthening Institutions, Influencing Policy

Srikrishna Ramamoorthy, Kinara Capital 6th Annual International Conference on Public Policy and Management IIMCentre for Public Policy, IIM-Bangalore December 28th, 2011