Why An International Institute On Solidarity Economy?

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 Enterprises

Social Enterprises

Solidarity Economy

Supply Chain

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 “doas-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. – –

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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 businesspeopleentrepreneurs. 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 Economy • Profit is supreme • The “invisible hand” rules • Resources are scarce • People can adjust to economic dislocations • Free access to information

Socially Responsible or Solidarity Economy • “Triple bottom line” • Organized stakeholders get a handle on the market • Resources can be renewed and recycled • Learning organizations allow people to acquire new knowledge/skills • Stakeholders participate 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

Building Shared Vision (for individuals)

Fundamentals of Financial Stewardship

Building Shared Vision (for enterprises)

Shared Vision Savings & Credit Coop

IT Cooperative

Supply Chain Management

Project Management

Module 3

Module 4

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. 2. 3.

What is your vision for a better Philippines? What is the role of IISE in realizing this vision? 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)