Why an International

Institute on Solidarity
Economy?
 CSRSME Vision
An alternative, compassionate
economy built up through solidarity
and cooperation by small and medium
enterprises (SMEs) who are motivated
by the social responsibility of achieving
the common goal of sustainable
development rather than by perverse
competition for self-gain and
aggrandizement.
Small and Medium Social
Supply Chain
Enterprises Enterprises

Solidarity
Economy
 4 Issues in Transforming Individuals
into Social Entrepreneurs

Issue # 1.
How do people who have been employees for
most of their working lives switch from “do-
as-you-are-told” to “do-whatever-it-takes” ?
How does a company create jobs
(microbusiness) in which employees can
behave like businesspersons?
 Approach to Issue #1

1. Teach your employee how to develop a

business plan – not for the company, but
for his own business project.
2. Customize the job, turn the job into a
business.
3. Enable the employee to do the
engineering on his/her own
 Approach to Issue #1

4. Inculcate what entrepreneurs have in

common
• They offer more intellect, less materials.
• They add value thru their imagination.
• They deliver professional services
 Entrepreneurship in Big Companies

“Microsoft’s only factory asset is the human

imagination.” Fred Moody, The NY Times
Magazine

“It’s up to you to invent a job, to figure out

how to add value. You do that by creating
projects, finding internal clients, and then you
simply move ahead on your own.” MCI,
telecommunications company
 Entrepreneurship in Big Companies

“Doing it means figuring out how to it

yourself. If your way works most of the time,
you’ll get promoted.” Burt Reinhardt, Turner
Broadcasting
“Get rid (almost entirely) of the center; shift
responsibility to modest size, human-scale
units.” Percy Barnevik, CEO Area Brown
Boveri (ABB)
 Entrepreneurship in Big Companies

ABB broke the 190,000 company into 5,000

pieces – each a profit center, each employing
an average of about 40 people.
– Each profit center is exceptionally autonomous.
– Each is led by a chief and 4 associates: the head
of finance, engineering, operations, and
marketing/sale.
– Almost every center has its own profit & loss
statement, its own balance sheet, and its own
customers.
 Lessons
Turn the small unit into real business, and the
unit leaders into genuine entrepreneurs.

Entrepreneurizing of every job: One hundred

percent of employees turned into “business
people”, transforming the company into an
organization/ association of businesspeople-
entrepreneurs.

The logical limit of deorganization is the

entrepreneur – the business unit of one.
Issue # 2:
What type of ‘entrepreneurial economy does
the entrepreneur contribute to develop?

“In an entrepreneurial economy, every position at a

company must be created from scratch, a far cry from
finding someone to fit a real job description.” Bill
Charland, Career Development Expert.

Every person’s concept of an entrepreneurial economy

is a mental image, a mental model, or a vision.
- Profit oriented, “me first” economy
- Socially responsible economy
 Traditional Market Socially Responsible
Economy or Solidarity Economy

• Profit is supreme • “Triple bottom line”

• The “invisible hand” • Organized stakeholders
rules get a handle on the
market
• Resources are scarce • Resources can be
renewed and recycled
• People can adjust to • Learning organizations
economic dislocations allow people to acquire
new knowledge/skills
• Free access to • Stakeholders participate
information in market systems
design and application
 Government Single Bottom Line
“For Profit” Company

Social “Triple-Bottom-Line” Enterprises

There is a need to strengthen Social Enterprises as

the third pillar of the economy.
Issue #3:
What educational program is relevant to
transform individuals into entrepreneurs?
1. It (education program) appeals to a higher calling  Building
Shared Vision

2. It enables the individual to mobilize resources locally 

Fundamentals of Financial Stewardship

3. It equips the individual to build up the supply (value added)

chain of his/her business  Supply Chain Management

4. It inculcates both knowledge and skills on how to set up,

mobilize resources for, operationalize, evaluate, and grow a
small business project  Project Management
 The Social Entrepreneurship
Discipleship Program
Module 1.1 Module 2
Shared Vision Savings
& Credit Coop

Building IT Cooperative
Fundamentals
Shared Vision
of Financial
(for
Stewardship
individuals)
Supply
Project
Chain
Management
Management

Building Shared Vision Module 3 Module 4

(for enterprises)

Holding Company
Module 1.2
Issue #4:
What kind of learning institution is best suited
to implement the said educational program?
1. Staff is mainly the “core academics”, well paid,
independent business people, package and transmit
their materials in a variety of ways (i.e. core group
members)
2. Academic Facilitators: bring lead academics and
practitioners in dialogue with students (i.e. IISE)
3. Educational consultants: help each student to use
personal contact with academics and books to pursue
his/her own education as effectively as possible (i.e.
experts outside the core group)
4. University is a talent bank and a library which can
be applied across space and time to serve the
individual needs of students (e.g. partner learning
institutions with innovative learning systems like
distance learning, etc.)

5. Students are not merely chasing a degree but

pursuing social enterprise both as a business and as a
ministry/ social mission (e.g. human resources of the 4
core institutions and other partners)

Source: Beyond Universities: A New Republic of the

Intellect by Douglas Hague, Oxford University
 Workshop Questions
1. What is your vision for a better Philippines?
2. What is the role of IISE in realizing this vision?
3. What resources (attitude, time, talents [funds,
products, projects, services, patents, company])
are you willing to contribute and capable of
contributing to enable the concerned institution
to effectively play its role?
4. Are you willing to make your resources available
starting October 1, 2009? (Capital Build Up ,
Membership fee, Registration fee to SEDP)