Scaling Strategies for Social Entrepreneurs - A Market Approach

von: Urs Jäger, Felipe Symmes, Guillermo Cardoza

Palgrave Macmillan, 2019

ISBN: 9783030311605 , 237 Seiten

Format: PDF, OL

Kopierschutz: Wasserzeichen

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Scaling Strategies for Social Entrepreneurs - A Market Approach


 

Preface

5

Acknowledgements

9

About This Book

11

Contents

12

About the Authors

13

List of Figures and Photos

15

List of Tables

18

1 Introduction: Scaling a Social Enterprise by Exchanging Impact for Resources

20

Phase I: Negotiating Impact for Resources

30

Phase II: Designing Operations

31

Phase III: Integrating Financing and Impact Logics

32

References

33

2 A Market Approach to Scaling Impact

35

How a Market Approach Supports Efforts to Scale Impact

35

A Contextual Approach to the Impact Logic Model

36

Extending the Ecosystem of Social Enterprises by Establishing a Market-Based View

37

The Roles of Actors Who Interact with Social Enterprises Throughout the Scaling Process

38

The Relationship Between Impact Investors and Social Enterprises

39

Negotiating Impact for Resources

40

Defining the Standards that Structure Relations

42

Avoiding Mission Drift

43

The Three Phases of a Market Approach to Scaling

45

Phase I: Negotiating Impact for Resources

48

Phase II: Designing Operations

49

Phase III: Integrating Financing and Impact Logics

50

References

53

3 Phase I: Negotiating Impact for Resources

56

Exploring Actors That Can Support a Market Approach to Scaling

56

Impact

57

Resources

58

Standards

58

Negotiation

60

The Diseclar Case

60

The Case: Securing Venture Capital for a Social Enterprise in Latin America

62

Recycling in Colombia

64

Development Stages of Diseclar

65

Stage 1: The Idea

65

Stage 2: Incubation at Campus Nova

66

Stage 3: SENA and the Emprender Fund

67

Stage 4: Financial Awards as a Source of Funding

68

Stage 5: Formalization and Development of a Minimum Viable Product

68

Diseclar as of 2015

70

Mission and Vision

70

Target Market

70

Products

71

Costs and Competitiveness

71

Assurance of Raw Material

72

Infrastructure and Assets

72

Finances

72

Organization and Work Team

74

Sustainability as a Competitive Advantage for Negotiating Impact for Resources

74

Defining the Company’s Future

77

Option 1: Negotiating with a For-Profit Investor

78

Option 2: Negotiating with an Impact Investor

79

The Decision

79

Additional Information of the Case

81

The Entrepreneur and the Start of His Venture

81

Diseclar’s Value Proposition

82

Initial Target Market Segment

83

Teaching Note on the Diseclar Case

84

Learning Objectives

84

Reflection on the Market Approach to Scaling Diseclar’s Impact

85

Tying the Diseclar Case to Phase I of the Market Approach to Scaling

86

Discussion Questions

87

References

88

4 Phase II: Designing Operations

90

Operations for Scaling

90

Supply and Assets

91

Products and Services

92

Distribution and Revenue

93

The Kingo Case

94

The Case: Scaling a Solar Energy Business at the Base of the Pyramid

95

Guatemala’s Solar Energy Industry at the Base of the Pyramid

97

Alta Verapaz

97

Petén

98

Development Stages of Kingo

100

Stage 1: The Advent of an Idea and the Selling of Solar Energy Kits via the Quetsol Model

100

Stage 2: Selling Solar Energy Services via the Kingo Model

101

Stage 3: Raising Economic Funds for Initial Growth

102

Kingo’s Distribution Channel

103

The Kingo Unit and Its Related Services

103

Hiring, Development, Culture, and Results-Focused Hierarchy

105

The Importance of Community Training and Customer-Relations in Accessing New Areas of Service

106

Distribution Through Neighborhood Shops

107

Assistance to End Users

108

Flexibility on Revenue Process Based on Payment and Energy Use Options

108

The Challenge of Scaling

110

Option 1: Manage the Shopkeeper Sales Channel In-House

110

Option 2: Outsource the Distribution Channel to Estrella Digital

111

Additional Information on the Case

111

Kingo Case Photographs

111

Teaching Note on the Kingo Case

113

Learning Objectives

114

Reflection on Kingo in the Context of the Market Approach to Scaling

116

Tying the Kingo Case to Phase II of the Market Approach to Scaling

119

Discussion Questions

119

References

121

5 Phase III: Integrating Financing and Impact Logics

123

Exploring How to Integrate Financing and Impact Logics

123

Mission

124

Leadership

125

Communication

125

The FUNDES Case

127

The Case: Managing Change at FUNDES

128

MSMEs in Latin America

129

The Role of MSMEs in the Socioeconomic Development of Latin America

129

Differences Between the Countries in Which FUNDES Operated

130

MSMEs’ Need for Business Development Services

130

Business Development Service Providers

130

Inclusion of MSMEs in Large Firms’ Value Chain

133

Development Stages of FUNDES

134

Stage 1: Using Donations to Provide Access to Micro Loans (1984–1996)

134

Stage 2: Acquiring Financial Resources for a Training and Business Environment Development Program (1996–2002)

134

Stage 3: Acquiring Financial Resources for Coaching and Consulting (2002–2009)

136

FUNDES’s Mission and Vision

136

FUNDES’s Organizational Structure

137

FUNDES’s Income and Cooperation

137

FUNDES Cooperation Partners

138

The Challenge of Balancing FUNDES’s Historically Nonprofit Model with Its Newly Emerging Market Orientation

139

Project I: COPROCA

140

Project II: CSH

140

The Decision

143

Teaching Note on the FUNDES Case

144

Learning Objectives

144

Reflection on FUNDES’s Market Approach to Scaling

145

Tying the FUNDES Case to Phase III of the Market Approach to Scaling

146

Discussion Questions

149

References

150

6 Examples of Scaling Strategies

152

Scaling Through Co-creation in Low-Income Contexts: The uSound Case

152

The uSound Case

154

The Case: Using Co-creation to Bring Technology from Northern Argentina to the World

155

The Context of Jujuy

156

uSounds’ CEO

156

The Birth of uSound: A Problem Identified, an Opportunity Discovered

157

uSound: From Smartphone Application to Social Enterprise

158

New Challenges and Opportunities

159

Additional Information of the Case: uSound Case Photographs

160

Teaching Note on the uSound Case

161

Learning Objectives

161

Reflection on uSound’s Market Approach to Scaling

162

Reflection on Using the Co-creation Strategy

163

Discussion Questions

165

Scaling Through Collective Impact: The Warmi Case

166

The Warmi Case

168

The Case: Hilandería Warmi (the Warmi Spinning Mill): Collective Impact Produced by Business Collaborators and Indigenous Communities

168

The Textile Industry in the Jujuy Region

170

Contextual Reality

170

The Textile Industry

171

A Vision for Developing the Puna

171

Stage 1: The Warmi Suyajsunqo Association

171

Stage 2: The Creation of Different Projects to Develop the Puna

173

Stage 3: Hilandería Warmi (the Warmi Spinning Mill)

173

Warmi’s Organizational Structure

174

Operations and Structure

174

Changing the Practices of the Textile Industry

177

Target Market and Sales

180

The Challenge: Moving the Mill Operations to the Puna

180

Financial Situation

180

Scaling Impact in the Puna

184

The Decision

187

Additional Information of the Case: Warmi Case Photographs

188

Teaching Note on the Warmi Case

188

Learning Objectives

188

Reflection on the Warmi Spinning Mill’s Market Approach to Scaling

189

Reflection on the Warmi Spinning Mill’s Collective Impact Strategy

190

Common Agenda

191

Shared Measurement Systems

191

Mutually Reinforcing Activities

191

Continuous Communication

191

Discussion Questions

196

Scaling Through Replicating Business Models: The Ciudad Saludable Case

196

The Ciudad Saludable Case

197

The Case: Replicate a Nonprofit Branch or a Hybrid Organization?

198

Peru and the Problem of Solid Waste

200

The Emergence of Ciudad Saludable

202

Stage 1: Founding the Nonprofit

202

Stage 2: Standardization of Services

202

Stage 3: The Naissance of PWI

203

Stage 4: The Social Enterprise “Ciudad Saludable”

204

Initial Conversations with EUVestment

205

Proposing a Scaling Strategy

206

The Decision

207

Additional Information of the Case

208

Teaching Note on the Ciudad Saludable Case

208

Learning Objectives

209

Reflection on Ciudad Saludable’s Market Approach to Scaling

210

Reflection on Designing a Replication Strategy

211

Discussion Questions

214

References

215

7 Guidelines for Teaching the Market Approach to Scaling Impact

217

Courses and Workshops on Scaling the Impact of Social Enterprises

218

Experiential Learning as a Pedagogical Guideline

220

Experiential Learning to Tackle Major Challenges

224

The Four Roles Instructors Play When Using Experimental Learning Techniques

225

Instructors as Lecturers

226

Instructors as Analysts

227

Instructors as Moderators

228

Instructors as Mentors

229

References

231

Index

233