Chapter 2

Social Entrepreneurship and

Innovation

Profit focus vs Impact focus

A) organizations with no focus
B) organizations focused on achieving a purpose
other than profit (old school not for profits)
C) organizations maximizing profits at the expense
of other purposes (old school corporations)
D) organizations aligning purpose and profit
maximization (new school entrepreneurs)

Bottom of the Pyramid

http://www.youtube.com/watch?v=CP
nx6gLcfK4&feature=related
http://www.youtube.com/watch?v=lHE
zFlfHUjU&feature=related

Business Model Canvas

http://www.free-power-pointtemplates.com/articles/businessmodel-canvas-and-presentations/

Social Entrepreneurship
Defining social venture using the
Business Model Canvas
Define the enterprise, both the social
side and the revenue-generating
side.
How the venture will achieve an
impact on the social issue that is
being targeted.

Yellow stickers = Coca Cola ; Green stickers = Partner (Sabco); Orange stickers = Manual
Distribution Centers owed by independent entrepreneurs who coordinate distribution to small
shops and restaurants= 80% of distributed sales volume in East African countries

Grameenphone
Goal: to provide universal access to
telecommunications services in remote, rural
areas of Bangladesh
Villagers were too poor to afford telephones
Partnered with Grameen Bank, microfinance
institution, to provide local women with
microloans to purchase mobile phones
The women sold calling services in their
villages, repaid the loans, earned income,
and improved their social status

Grameenphone
For-profit model with a positive impact on rural
Bangladesh
The company eventually provided over 200,000
women in rural areas with income-earning
opportunities
Raised their social status
Connected 60,000 villages to mobile phone
networks
Reached 100 million people
Turned a profit
Became Bangladeshi governments biggest
taxpayer

Grammenphone Business
Model

Customer Segments
Defines the different groups of people or
organizations an enterprise aims to serve.
Group them into distinct segments with
common needs, common behaviors, or
other attributes.
Decision about which segments to serve
and which segments to ignore.
Understanding of specific customer needs

Value Propositions
Describes the bundle of products / services
that create value for a specific Customer
Segment.
Reason why customers turn to one company
over another.
Solves a customer problem / satisfies a
customer need.
Some Value Propositions are innovative and
represent a new or disruptive offer. Others
are similar to existing market offers, but
with added features or attributes.

Channels
Describes how a company
communicates with and reaches its
Customer Segments to deliver a Value
Proposition.
Communication, distribution, and sales
channels
Customer touch points that play an
important role in the customer
experience.

Customer Relationships
Describes the types of relationships a
company establishes with specific
Customer Segments.
Relationships can be from personal
to completely automated.

Revenue Streams
Cash a company generates from each
Customer Segment (costs must be
subtracted from revenues to create
earnings).
For what value is each Customer Segment
truly willing to pay?
Each Revenue Stream may feature a
different pricing mechanism or technique,
such as fixed list prices, bargaining,
auctioning, market dependent, volume
dependent, etc

Key Resources
Describes the most important assets
required to make a business model
work.
Key resources can be physical,
financial, intellectual, or human.
Key resources can be owned or
leased by the company

Key Activities
Describes the most important things
a company must do to make its
business model work.
They are required to create and offer
a Value Proposition, reach markets,
maintain Customer Relationships,
and earn revenues.

Key Partnerships
Describes the network of suppliers
and partners
Companies create alliances to
optimize their business models,
reduce risk, or acquire resources.

Cost Structure
Describes the most important costs
incurred under a particular business
model.
Creating and delivering value,
maintaining Customer Relationships,
and generating revenue all incur costs.
Costs can be calculated relatively
easily after defining Key Resources,
Key Activities, and Key Partnerships.