Posts Tagged ‘ social business

Starting a revolution, in my own way

This blog post is part of Akhila’s “Be the change” series and is also posted on her website here. Much thanks to Akhila for hosting this awesome series – I suggest you check out all the other entries! All have great insight :)
——————————

I’ve been attempting to find time and contribute to this awesome blog series “Be the change” thanks to Akhila, and of course, I am writing this instead of working on a paper that’s due in a few days. :)

Prior to attending school at UC Berkeley, all I knew was that I was interested in “business” and “changing the world” (or more specifically, I used to say “starting a revolution”). Little did I know that individuals such as Muhammad Yunus were already doing so! My friend introduced me to the concept of “social business” and “social entrepreneurship” around second semester of my freshman year, and that was when it all began.

I embarked on a Google-ing, internet-searching quest to learn more about this concept, and ended up first reading Yunus’ book, Creating a World Without Poverty: Social Business and the Future of Capitalism. From then on, I’d continue to read articles, books, and scour the Internet for more about social entrepreneurship and social business.

I often stop and reflect on why it is I seem to have this insatiable need and want to help others and improve the lives of the less fortunate. For the most part, I think it’s because I have grown up with so much opportunity laid in front of me, the privilege of living in a nice community and have the comfort and support of my parents. Maybe I was too comfortable that I became uncomfortable with my comfort. Does that make sense?

Perhaps it’s why I want to pursue a career in poverty alleviation through the power of social business and entrepreneurship. I happened to be born into a family that gave me the opportunity to obtain a good education. It was chance that I was born in Taiwan to parents who wanted to pursue a better life in the United States and brought my sister and I here. What about others who live in poverty and are not presented with the opportunity of obtaining an education, of living a privileged life? How is it their fault?

It’s not, and it’s a thought that resounds in me and propels me forward. I joined a student grassroots organization CalPIRG my freshman year, and by the second semester my friend and I started the Hunger and Homelessness Campaign, where we tried to tackle food insecurity in West Oakland. I then proceeded to help plan, in collaboration with two other student groups on campus, a conference on hunger and homelessness in the Bay Area. On the side, I worked with a local homeless shelter to establish and implement recycling and composting programs through another student organization BEACN. These experiences have helped me improve my skills and have provided me more insight in ways of addressing poverty. However, the models and methods of social business and social entrepreneurship are what really motivate me.

I’ve found it difficult to advance much in attempting to be more “in” the field (I am so inspired by social businesses such as the one I interned with this past summer World of Good, and projects such as the Allyu Initiative), because I often find myself constrained in my schoolwork and the fact that I am still in school. I’m often impatient in my demands, and too much of the time I’d rather be out there and immerse myself in a community and area to learn about the issues and critically evaluate ways to tackle them. I have to stop and remind myself that my getting an education is an important aspect: I need to focus on learning as much as I can in school so that I can apply it later on.

In the meantime, I have found the Twitterverse and the blogosphere to be of great company. It’s been absolutely inspiring and just plain awesome to be connected to other Gen Y-ers such as Akhila, Dwight, and Leslie and know that there are so many who are interested in similar topics and care about issues other than the best way to maximize profits and how to make the most money. So, I’d like to conclude by thanking Akhila once again for encouraging others to engage in social change and bringing together awesome individuals in this blog series!

Blog Action Day 2009: Climate Change

I’m excited to be participating in Blog Action Day 2009!

Climate change and global warming are terms we are all familiar with and have heard a million times by now. While most of us know that climate change will affect all of us, what we don’t always talk about is how climate change will hit hardest those who are poorest.

The Millenium Development Goal #7 is addressing environmental sustainability, and makes a connection between global warming and poverty reduction:

Reducing poverty and achieving sustained development must be done in conjunction with a healthy planet. The Millennium Goals recognize that environmental sustainability is part of global economic and social well-being. Unfortunately exploitation of natural resources such as forests, land, water, and fisheries-often by the powerful few-have caused alarming changes in our natural world in recent decades, often harming the most vulnerable people in the world who depend on natural resources for their livelihood. [Source: End Poverty 2015]

It’s not surprising to me that climate change will affect the most those at the bottom of the pyramid. Not only will price increases (in the case of drought –> less grains / food –> increase in food prices, etc.) impact the most those with lower incomes, climate events such as droughts, heat waves, and storms will hit — literally — those who are the poorest. Those that live in areas that lack the infrastructure that could withstand severe weather conditions will undoubtedly face the impacts of storms and hurricanes. Farmers whose crops fail due to drought will have to find another way to sustain themselves and their families. The list goes on.

But instead of highlighting all the problems that climate change causes, it’s even more important to think about solutions — more specifically, the role social entrepreneurship could play in addressing global warming.  In reading C.K. Prahalad’s The Fortune at the Bottom of the Pyramid, I came across a case study about a company that does just that.

Prahalad sheds light on the work of a rural energy finance company E+C0. E+Co found the connection between energy and poverty: one reason people cannot escape poverty is due to the lack of access to modern energy (mostly electricity) that allows them to be more productive. E+Co conducted a study and realized that the demand for electricity at the bottom of the pyramid exists, and that there is “potential for widescale adoption of renewable energy technologies” because the majority of costs for renewable energy is up front, while “fuel” costs (wind, solar, etc.) are essentially free (Prahalad 140).

E+Co’s mission was:

the provision of clean, modern energy to the world’s poor via locally developed, market-based solutions

E+Co emphasizes “energy through enterprise”; they seek entrepreneurs in developing markets to develop products and services that will meet the energy needs in the local communities. E+Co invests in these entrepreneurs or companies, one of them being Tecnosol, a company that “sells and installs distributed solar PV, wind, and hydroelectric power systems to mostly rural unelectrified populations throughout [Nicaragua]” (Prahalad 144) and has installed over 3,500 PV systems, 20 wind systems, and also some hydroelectric systems (145).

Here, we see a pretty interesting partnership being forged between a company (E+Co) that is the investor and local entrepreneurs and companies that serve its communities and target a need (energy – clean energy).

Another example of a successful partnership working towards sustainability is one I’ve highlighted in my research paper on social entrepreneurship I wrote over the summer.

A successful three-way alliance between entrepreneurial BOP business WasteConcern, large fertilizer company Map Agro, and the Bangladeshi government solved a waste buildup problem in Dhaka, Bangladesh. In short, WasteConcern identified the market opportunity to convert the majority of the waste generated – food – into compost for rural agriculture businesses to use as organic fertilizer to produce more food, generating a mutually beneficial and sustainable cycle. In order to implement the project, Waste Concern approached Map Agro, the largest fertilizer company in Bangladesh that had the resources and capital to transform and produce the organic compost.

In both of these examples, we see a partnership being forged through a market-based approach that BOP businesses to address a particular need within the communities.

I am personally really excited by success stories such as these, and I think it’s really important to remember that while global warming statistics and the situation in general is dire and sometimes seems hopeless, that is just more reason we cannot give up. Taking a social entrepreneurial approach to climate change is one that I am particularly interested in, although it is most definitely not the only solution!

Personally, I often feel like I don’t do enough in attempting to address climate change. I have made adjustments in my lifestyle to be more sustainable, and am (and have been) involved in student organizations that work towards sustainability. But I never feel like it’s enough. And while it is true that “something is better than nothing,” that’s not good enough for me. We should all be looking to be more sustainable in our lives and be more aware of the impact we have on our planet. Wherever we are now in individual progress now, it’s awesome, but that should not be the stopping point. I am going to make more of an effort to be more environmentally-friendly in my lifestyle, and strive even more towards sustainability in whatever I do.

Today, I’m starting off by this Blog Action ’09 post on climate change. Tomorrow, it will be something else–OK, I’ll be on my way to LA for the weekend..but carpooling with two other friends! :)

What are you going to do to make your lifestyle more sustainable? How are you going to address global warming today? Comment and let’s share ideas!

Social Entrepreneurship

Today, I came across an article: The business of doing good: How to start a social enterprise. Over the past year or so, I’ve learned about “social business” (as first introduced to me through Muhammad Yunus’ book, Creating a World Without Poverty), its principles nicely defined on Mike’s blog post. Since then, I’ve browsed the web, searched for articles about social entrepreneurship/social business, and read about different accomplishments by social entrepreneurs. I’ve decided that the terms “social business”, “social entrepreneurship”, and “social enterprise” all pretty much embody the same message – using business to provide a social benefit. The three terms do mean different things, although I think as of now there has not been as much distinction between the three. The “business of doing good” article, I believe, refers to “social enterprise” as also a “social business.” I just came across an article that defines each, which after reading, I believe my goal is a social purpose business (“social business”).

The article that I came across today just so happened to very concisely put together different aspects of a social enterprise, so I figured I’d share (for my own future reference as well) parts of the article.

What exactly is the difference between an entrepreneur and a social entrepreneur?

Social entrepreneurs differ from their traditional counterparts in the way they view the world. If your sole concern is to expand your own bank balance then the sector isn’t for you but if you want to make a difference beyond putting the odd pound in a charity box, setting up a social enterprise could be the perfect way to achieve your aims.

I remember the first time I was introduced to the concept of a “social business.” For the longest time, I knew I wanted to “use business to change the world”, as I used to say. I didn’t know that such a concept was already in place and in practice (this tends to happen quite a lot – humans are way smarter than I give them for..naive me!). I remember being thrilled by this realization.

So how does a social enterprise “provide a social benefit”?

How you decide to invest your profits is another key early stage decision. Some businesses give away their income, while others provide a product or service which directly benefits a social cause and reinvest the profits back in the business for staff and product or service development issues.

What I’ve always dreamed of is the latter part – using business itself as part of the solution, directly benefiting society in some way.

Lastly, the one aspect of starting and running a social business that both daunts and excites me is that not only does a social business provide a social benefit, it must — as all businesses must — be profitable. There are reasons why businesses are successful. And although I sometimes do not like to admit it (and sometimes do not support the most “profitable businesses”, since some businesses/corporations engage in exploitation, etc.), at the end of the day, money a one of the most key factors in a business. But this is why a social business makes perfect sense to me:

Cliff Prior, chief executive of social enterprise funding body UnLtd, believes persistence is key. “It’s tougher for social entrepreneurs because they’ve got to watch a double or even triple bottom line rather than solely cash and profit,” he explains. “They will face some obstacles and lack of understanding from potential investors or business partners so they must have an extra degree of resilience to tackle it.”

So, at the end of the day, the conclusion is the same one I arrived at last year, when I found and realized that starting a social business is my life calling – that not only do I have to be great, I have to be exceptional. Now the question is – do I have what it takes?

Sometimes I feel like I do, and most other times I feel completely inadequate. I always feel as if I have no experience, no knowledge of just what “social benefits” I’d want to target and provide. I see so many problems in the world — even just in the Bay Area or even back home in Orange County — but I don’t seem to know where I’d ever start to tackle the problems. I also feel as if me being in school doesn’t help much either, because although I’m living in a community where hunger and homelessness is a prevalent and serious issue, I don’t feel involved enough in attempting to alleviate the problem. My work with the hunger and homelessness campaign I co-ran last year, along with my experiences volunteering at a youth shelter, and even my participation in planning a hunger & homelessness conference don’t seem enough. I only feel as if I am just on the outskirts of fulling understanding the issue.

I think what I really need to do is get out there and allow myself to experience full immersion into a community, with the real locals, for me to even begin to understand the underlying problems of a greater issue, but I don’t think me being in school will really allow me to do that. Or am I just making excuses for myself? There is a time for “book learning” as they call it, and there is also a time for “real-world application,” and right now I’m only getting a small dab of each. I think I’m going to look into some programs or “travel scholarships” (read: The Fulbright Program) to further enrich my knowledge, so that I actually have a clue about what I’m talking about and then one day (hopefully not too far in the future) start a social business.