Social Entrepreneurship 210809

National Conference on

SOCIAL ENTREPRENEURSHIP: DIMENSIONS AND DEVELOPMENT ORIENTATION

(Sponsored by University Grants Commission) August 21-22, 2009 Organised by

SAINT MARY’S COLLEGE (Affiliated to Mangalore University)

SHIRVA- 574116, UDUPI DISTICT Karnataka – India www.smcshirva.com

August 21, 2009 Technical Session I: 11 AM – 1PM Emerging Models of Social Entrepreneurship: An Overview Key Speaker: Prof Chowdari Prasad, Professor, T A Pai Management Institute, Manipal Chairperson: Dr Jayaprakash, Director, AJ Institute of Management, Mangalore Paper presentation by Scholars / Researchers =============================================================================== 1

Emerging Models of Social Entrepreneurship: An Overview Key Speaker: Prof Chowdari Prasad, Professor T A Pai Management Institute, Manipal Udupi Dist. Karnataka – 576104 Email: [email protected] “Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned and practised. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. And they need to know and to apply the principles of successful innovation.” – Peter Drucker Paradigm Shift: The combination of Entrepreneurship Education in Schools and Colleges, the hassle-free flow of Venture Capital and evolution of good market would give momentum for the National Growth – Dr APJ Abdul Kalam, President of India on the eve of the Republic Day, January 26, 2004. Introduction: It is said that Entrepreneurs are born and not trained. In India, there have been a large number of entrepreneurs even during the British Rule period who were motivated to enter into businesses which were traditional as well as into new products and services. Technological innovations, Industrial Revolution, Modernisation, Economic/Financial/Land/Legal Reforms including enactment of Trade Union Laws and Industrial Laws as also setting up of specialised financial institutions in consonance with the planned economic development of the country afforded newer opportunities to these risk takers to take up host of economic activities. Over the last six decades of independence, India witnessed many entrepreneurs, techno-preneurs and edu-preneurs taking up employment and income generation activities. Interestingly, religious leaders like Matha Amritanandamayee, Satya Sai Baba, Maharshi Yogi and others have also been catering to the highly needed University education in private sector while other IT-Czars like Narayana Murthy and Nandan Nilekani of Infosys and Azim Premji of Wipro have been diversifying into certain social enterprises by setting up Leadership Institutes and Educational Foundations for taking up adult literacy and child education. It is heartening to note that organisations like Dhirubhai’s Reliance and Adani Group venturing into education in Gujarat, Vedanta’s Agrawal setting up a University in Orissa as part of their Corporate Social Responsibility. Dr TMA Pai being a Medical Doctor from a remote place like Udupi took up revolutionizing the private enterprises in Medicine, Engineering, Management, Pharmacy, Education, Nursing, etc., over fifty years back which venture now is an internationally known Private University in Manipal and is emulated by many others in India. Who is an Entrepreneur? An Entrepreneur is an innovator or developer who recognises and seizes opportunities; converts these opportunities into workable / marketable ideas; adds value through time, effort, money, or skills; assumes the risks of the competitive marketplace to implement these ideas; and realises the rewards from these efforts. National Knowledge Commission’s Report on Entrepreneurship in India released in August 2008 is a very important document which

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captures the status in the country with detailed analysis on opportunities in each of the States based on various parameters. Entrepreneurship Education In recent times, Entrepreneurship Education is catching up in Indian Academia at Collegiate level. Almost all the Universities, IITs, NITs, IIMs and other special institutions like Entrepreneurship Development Institute of India (EDII), Ahmedabad have been offering specialised courses on entrepreneurship to motivate the young budding professionals and managers to be on their own as job creators instead of job seekers by turning to be entrepreneurs. Some of these institutes are also organising Business Plan Contests every year and invite reputed Venture Capitalists and Private Equity players to selecting the prospects. They are also maintaining Incubation Centres to impart necessary training and guidance to the start-ups. Leading Management Institutes like Amrita Institute of Management-Ettumadai (TN), Great Lakes Institute of Management-Chennai, Indian School of Business (ISB)-Hyderabad, Management Development Institute (MDI)-Gurgaon, SP Jain Institute of Management & Research-Mumbai, T.A. Pai Management Institute (TAPMI)-Manipal, Xavier Institute of Management and Entrepreneurship (XIME)Bangalore, etc., have also been focussing on imparting of entrepreneurship education as part of their management programs. Other organisations like The Indus Entrepreneurs (TiE), National Entrepreneurship Network (NEN), Venture Capitalists Association of India (VCAI), Small Industries Development Bank of India (SIDBI) and other Banks and Financial Institutions are also campaigning about their various financing schemes for Micro, Small and Medium Enterprises. Small and Medium Enterprises Rating Agency (SMERA) has been created four years back in 2005 to offer rating services to the small business units to strengthen their ability to raise credit from organised sources. The following diagram gives a very good action-oriented model for Entrepreneurship Education:

Source: ISB, Hyderabad If educational institutions engaged in entrepreneurship program adopt the suggested steps, India can be proud to produce highly qualified, talented, committed and dedicated entrepreneurs from out of whom, we may also see good number of Social Entrepreneurs.

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Millennium Development Goals announced by the then UN Secretary General Kofi Annan in 2003 lead the world to look at Financial Exclusion and Inclusion issues in developed and developing countries. Several Non-Governmental Organisations (NGOs), Self-Help Groups (SHGs), Voluntary Organisations, Business Consultants and Business Facilitators have sprung up in recent years to supplement the efforts being made by the formal banking system towards rural finance and development. Inclusive Growth is accorded high importance in recent years in order to extend offering of affordable financial services to people at the grass root level. Vijay Mahajan of BASIX, and Vikram Akula of SKS Finance – both belonging to Andhra Pradesh are role models in this line. Ashoka Foundation is yet another example of Indian Social Entrepreneurs rendering yeoman services in Africa for poverty alleviation. In the year 2008, Dr Nachiket Mor, Executive Director of ICICI Bank gave up his position and illustrious career in the bank to take up micro finance work through IFMR, Chennai. Mr Amit Chugh, an MBA from TAPMI (1991-93) switched from his lucrative career and founded Cosmos Ignite to take energy to rural India. We can list out many more such names and examples of Social Entrepreneurs. Social Entrepreneurship:

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Social Entrepreneurship is an emerging field that offers opportunity to young professionals to create societal / economic value on a sustainable basis.

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According to some reports, globally this is the fastest growing sector and perhaps the only sector that is creating gainful employment worldwide.

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Social Entrepreneurship is the process of recognizing and resourcefully pursuing opportunities to create social value and craft innovative approaches to addressing critical social needs.

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By “Social Entrepreneurs,” we mean leaders of social-purpose organizations that demonstrate the following behaviors and values:

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Focus on impact

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Primacy of mission

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Private initiative

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Willingness to blur sector boundaries

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Opportunity orientation and

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Innovation and resourcefulness.

Social Entrepreneurship Education abroad: A quick search at the list of leading Business Schools abroad offering courses and programs at graduate level and above reveals the following names.

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Skoll Center for Social Entrepreneurship (Oxford Said Business School)

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Center for Advancement of Social Entrepreneurship (Faqua Business School, Duke University)

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Catherine B Reynold Program for Social Entrepreneurship (New York University)

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Entrepreneurship in Social Sector Program (Harvard Business School)

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Schwab Foundation for Social Entrepreneurs (University of Geneva) and Social Entrepreneurship Course Series (Stanford University)

TheMultiplier Effect of BOP Entrepreneurship Creates rural employment

Spawns multilayered economic development

Stimulates rural growth

Entrepreneurship at BOP Evolves regional role models for others to emulate

Improves local economic activity Enhances productivity and efficiency at local level

The above diagram affords an idea as to the advantages of Entrepreneurship at the Bottom of Pyramid. Social Entrepreneurship is concerned with concern for others by these individuals who create enterprises. They operate far above the ordinary mortals. Social Entrepreneurship in some sectors: We may list out a few sectors where Social Entrepreneurship is already set in and where potential exists: •

Education

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Energy

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Environment

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Rural / Community Development

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Rural Markets

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Healthcare

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Micro-Credit

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Rural Informatics

Some prominent examples of Social Entrepreneurship Ventures in India are: 1.

Amul and Verghese Kurien in Anand

2.

Basix and Vijay Mahajan, Hyderabad

3. Bhagavatula Charitable Trust, Vizag, AP founded by Dr Parameswara Rao 4. Child Relief (Rights) and You (CRY) founded by Rippan Kapur of Mumbai 5. Grameen Bank, Bangladesh and Dr Mohd Yunus 6. Foundation for International Community Association (FINCA) – Village Banking and Dr John Hatch in Bolivia 5

7. Food King of Sarath Babu, Chennai 8.

Lizzat Papad (SGMU), Mumbai

9. Polyhydron and Suresh Hundre, Belgaum 10. SEWA, Ahmedabad and Ms Ela Bhatt If one goes through the above individuals, the enterprises created by them and their achievements through which their contribution to the rural society in India at large, we can appreciate the need for more and more Social Entrepreneurs in our society. Subroto Bagchee on Mother Teresa Subroto Bagchee, the co-founder of Mind Tree Consulting in Bangalore belongs to one of the backward states in India – Orissa. He is an Arts Graduate from Bhubaneswar and started his career as a Lower Division Clerk in a Government Department in Orissa. Having been unable to cope with the work culture in his job, he shifted as a Management Trainee in Delhi Cloth Mills after about five years. Even in Officer cadre in a leading private company in the capital city of New Delhi, he had mixed experiences in management career. He then shifted to Sales profession in Wipro Ltd., and Lucent Technology in Bangalore and experienced different line while India was undergoing economic reforms as also when Information Technology was gaining its importance. After reaching higher positions with successful assignments, he co-founded a new company named Mind Tree Consulting during the end of last century while IT industry was also facing tough times. He narrates all his encounters in his career and life in two of his books released recently ie., “The High Performance Entrepreneur” and “Go Kiss The World”. The following are a few sentences from his second book wherein he terms Mother Teresa as an Entrepreneur. We know that Mr Bagchee himself is a role model for the India’s youth as an outstanding person / employer as also a Social Entrepreneur par excellence. Bagchee says in his book: “I always like to think of Mother Teresa as one of the greatest entrepreneurs of our time. She started with an angel investment of five rupees in 1948 from the Archbishop of Calcutta. By the turn of the century, her Missionaries of Charity had 602 homes in 125 countries and her band of 4,000 sisters from as many as 40 different national origins marched to the same mission, vision and core values. How did she build that institution? What was the impetus? Disease and death that crawled in the gutters of Calcutta and nudged her sari each time she walked past? Was it the negative energy of her surroundings? Or was it the possibility of positive outcomes? Or, spreading love, joy, seeing a dying destitute as an angel of peace? It wasn’t the former. She was to recall later that she had, in fact, ‘received’ her call…” Conclusion: Mother Teresa can also be referred as one of the earliest Social Entrepreneurs in India. Like it is said in the beginning, Social Entrepreneurs are also born and not trained or made. Name, Fame, Money, Greed or Power do not influence these individuals in their actions. They operate above their selfish motives. They have no personal ambitions or ambitions. They are mostly unsung and unheard heroes of our society. Many of them sacrifice their personal comforts and careers and work hard for social issues and welfare. They are the change agents working for emancipation of the society. Individual stories of 50 Social Entrepreneurs in India covered in a Special Issue of Outlook Business are at Annexure A. Now, a fair idea of the emerging models of social entrepreneurs can be had.

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References:

1. Business & Management Chronicle, A Magazine for MBA Aspirants – Special issue on Entrepreneurship of July, 2009 2. How to Change the World – Social Entrepreneurs and the Power of Ideas by David Bornstein (2009) 3. Ingrid Srinath at CRY : Combining Values and Viability in a Social Venture by Philip Anderson Case Study of INSEAD on Child Rights and You (CRY) published in DARE.CO.IN – monthly magazine Volume 2, Issue 10, July 2009

4. Introduction to Social Entrepreneurship by Prof Madhukar Shukla, XLRI, Jamshedpur (a Course being offered in MBA) 5. Occasional Paper – OP No. 05/14 dated June 2005 : Social Entrepreneurs directly contribute to Global Development Goals by (1) Christian Seelos, Visiting Lecturer, Senior Researcher, IESE Business School, Universidad de Navarra, Avda, Pearson, 21-08034 Barcelona, (IESE) – [email protected]; (2) Kate Ganly, Research Assistant, IESE; and (3) Johanna Mair, Professor of General Management, IESE.

6. Outlook Business for Decision Makers : Independence Special (23rd August – 05 September 2009) : Volume No.4 : Issue 18 featuring 50 Social Entrepreneurs of India and How They are Making India Better. (See Annexure A)

7. Searching for Social Entrepreneurs : Who they might be, Where they might be found, What they do by Paul C. Light, Robert F. Wagner School of Public Service, New York University - Paper prepared for presentation at the Annual Meetings of the Association for Research on Non-profit and Voluntary Associations, November 17-18, 2005.

8. Stay Hungry Stay Foolish – The inspiring stories of 25 Indian Institute of Management, Ahmedabad Graduates who chose to tread a path of their own making by Rashmi Bansal (2008) published by Centre for Innovation Incubation and Entrepreneurship (CIIE) at IIM, Ahmedabad

9. Supporting Rural Entrepreneurship by Brian Dabson, President of the Corporation for Enterprise Development, an independent national non-profit organisation that promotes asset-building and economic opportunity strategies, particularly in low-income communities and distressed regions. For further information, see www.cfed.org.

10. (1) The High Performance Entrepreneur – Golden Rules for Success in Today’s World (2006) and (2) Go Kiss The World – Life Lessons for the Young Professional (2008) by Subroto Bagchi, Co-Founder of Mind Tree Consulting, Bangalore.

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ANNEXURE ‘A’

50 Social Entrepreneurs in India (Source: Outlook Business – Independence Special : Sept 05, 2009)

S No.

Name(s)

Enterprise

Line of Activity

01 02 03

Ms Saloni Malhotra Ms Anita & Kalyan Paul Prashant Lingam & Ms Aruna

DesiCrew, Chennai Grassroots, Naini village Bamboo House India

Rural BPO Women empowerment Sustainable livelihood for Tribals in

04 05 06

Kappagantula Ms Marie and Stan Thekaekara Rajendra Joshi Ms Gita Ram & Ms Neelam

Just Change, Nilgiris, TN Saath, Ahmedabad Industree Crafts, Bangalore

Tripura Fair Trading between buyers and sellers Enriching Slums Artisan Connection

07

Chibber Ms Umadevi Swaminathan

Rudi Multi Trading,

Farm to Market

08 09

Ms Prema Gopalan Ms Ishita Khanna

Sabarkantha, Gujarat Sakhi Retail, Marathwada Ecosphere Spiti, Himachal

Women Retailers Greener Pastures

10

Adarsh Kumar

Pradesh Livelihoods Equity

Profitable Unions

11 12 13 14 15

Arbind Singh Kaushlendra Solomon JP William Bissell Varun Sahni & Anant kumar

Connect, Jodhpur/Jaipur Nidan, Patna Samriddhi, Bihar LabourNet, Bangalore Fabindia, LifeSpring Hospitals,

The Deliverer Farming Out Profit Worker Hotline Artisans United – Micro Finance Affordable Births

16 17

Ms Kousalya Periasamy Dr. Devi Shetty

Hyderabad Positive Women Network Narayan Hrudayala,

HIV Positive Women in Tamil Nadu Heartcare Hero

18

Rajeev Kher

Bangalore Shramik Sanitation

Mobile Toilets

19 20

Santanu Bhattacharjee Nishant Saxena

Systems, Pune Technable Solutions, WB Elements Akademia,

Skill Diviner Service Matters

Kanpur

S No.

Name(s)

Enterprise

Line of Activity

21

Aditya Natraj

Kaivalya Education

Grooming Government School Principals

22

Anand Kumar

Foundation, Rajasthan Ramanujan School of

Cracking IIT

8

23 24

Shriram Ayer Amitabha Sadangi

Mathematics Nalandaway, Chennai International Development

Helping disadvantaged children in life Water Wealth

Enterprise, Delhi Financial Information 25

Manish Khera

Network & Operations,

Doorstep Banking

26 27 28

Vijay Aditya Anurag Gupta Sulax Shah

Dharavi, Mumbai Ekgaon Technologies, A Little World, Mumbai Shree Kamadhenu

Cash & Camera Walking Cashier Milk Manager

29

Vivek Gupta

Electronics, Gujarat Saran Renewable Energy,

Rural Power

30 31

Ned Tozun & Sam Goldman Harish Hande

Patna, Bihar D.Light Design, Orissa Selco, Bangalore Comprehensive Rural

Lighting Lives Sun hai na

32

Ms Shobha and Rajnikant Arole

Health Project or Jamkhed

Basic Health care to Rural poor

33

Ashok Khosla

Project, Kusadgaon, MH Development Alternatives,

Eradicate poverty and rebuild the health of

34

Ms Ela Bhatt

Delhi SEWA, Ahmedabad National Centre for

the environment To co-opt women into war on poverty Making society more sensitive to the

35

Javed Abidi

Promotion of Employment

physically challenged

36

Bunker Roy

for the Disabled People Barefoot College, Tilonia,

Empower Communities to solve their own

37

Jockin Arputham

Ajmer District, Rajasthan National Slum Dwellers

problems. Focus on women needs. Empowering Slum Communities and

38

George Abraham

Federation, Sewri, Mumbai Score Foundation,

integrating slums into city development Improving the standard of living of visually

39

Dr G Venkataswamy

Safdarjung, South Delhi Aravind Eye Hospital,

impaired people Affordable eye care for all. About 40% of

Madurai, Tamil Nadu

patients get free treatment.

S No.

Name(s)

Enterprise

Line of Activity

40

C V Madhukar

PRS Legislative Research,

Provides research on Bills to 790MPs

41

Samir Mehra

Bangalore Suminter India Organics,

Organic Router to support farmers

Surendranagar, Gujarat Gijs Spoor, 42

Cotton Spoor – provides organic cotton

Edapalil Mathai Koshy and

Zameen Organic,

farmers with sustainable agricultural

Satish Chukkapalli

Hyderabad Former Panchayat

livelihood. Super Sarpanch – Set up 300 model

43

Rangaswamy Elango

President, Kuthambakkam,

villages by 2011, along the lines of

44

Anshu Gupta

Chennai, Tamil Nadu Goonj, Khooni Darwaza,

Kuthambakkam in TN Kapda Aur Dignity – Collecting clothes

9

near Delhi Gate, New Delhi Grassroots, Purushwadi

and other items for needy rural folk. Pinheiro Travels – to promote rural tourism

45

Inir Pinheiro

Village, off Mumbai

by developing villages as tourist

46

Milind Ranade

Kachra Vahtuk Shramik

destinations The Trade Unionist – to organise dalit

Sangh, Mumbai Toxic Link, Okhla Industrial

labourers, especially conservancy workers Detoxifying Agent – to spread awareness

Area, South Delhi

on the hazards of improper disposal of

47

Ravi Agarwal

toxic waste. Recycling Evangelist – Disposing of part 48

B L Soni

Ecoreco, Mumbai

of the 400,00 tonnes e-waste churned out in a year. Beyond the Slums – Helps slum kids

49

Ashok Rathod

Oscar, Mumbai

realise their potential and drive change in

50

Gopinath Parayil

Blue Yonder, Kerala

society. Watering the River – To focus on local community development through tourism

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