Yunus Video from AshokaDVD

Check out Ashoka's terrific video library.

http://www.youtube.com/user/AshokaDVD

Here is a video from Dr. Yunus defining limitations of current system for starting social business and pointing out current lack of institutions that support social biz development.



It is a general description of the current challenging environment for starting Social Business Enterprise with an inspirational ending, rather than being full of answers and examples. He effectively points out that there is no shortage of entrepreneurial activity around social business, what is lacking is institutional support.

A quote from the video:

"If we're going to run a social businesses enterprise right now we run into alot of problems because we have not set up supportive institutions alongside."

and...
"There will be initial problems, but if it sticks, if it grows, you can create your own world."

Create your own world! love that...
enjoy...
Kala

Haitian microcredit just says no to kiva

I have been learning about Haiti lately. Too much to say about that "topic" in this blog - as if you can refer to the incredible human suffering taking place a short plane ride from Miami with such an impersonal word as "topic"

I emailed Leigh Carter, the ED of Fonkoze, a terrific microcredit group in Haiti - very well organized and professional, but no loans on Kiva? Here was her response.

from my email:

By the way, I am sure you are aware of Kiva and similar sites like OptInNow. I looked for Haitian loans recently on both of those sites and did not see any. Do you know why that might be?

[Leigh Carter] For now, here is our explanation around why we are not currently a partner with Kiva:

Fonkoze has analyzed whether partnering with Kiva is a prudent strategy for advancing its mission, and at this time (especially as the organization is faced with massive hurricane recovery) is not prepared to establish such a partnership.

The most important reasons for this decision, based on discussions with industry experts and organizations that have worked with Kiva, are as follows:
(1) Kiva's reporting requirements appear relatively burdensome,
(2) Fonkoze does not want to take on more foreign exchange exposure (dollar denominated debt) at this time (and is prioritizing securing debt in local currency, savings mobilization, and equity infusions),
(3) Fonkoze does not believe that Kiva has taken adequate steps on privacy issues vis-à-vis micro-loan recipients (though there has been some progress), and
(4) as a matter of principle and operational workability, Fonkoze believes that decisions on the approval and timing of individual loan disbursements should be determined by the borrower, her solidarity group, and the local loan officer rather than by Kiva. To the extent Kiva addresses these limitations of its model, Fonkoze and many other MFIs that do not now participate are likely to do so in the future.

Over-Socialized: Defining Social Business terms.

This post references core ideas in parsing out the social business terminology milieu. The background is from Dr. Yunus' discussion defining Social Business via this excerpt from the online version of his book.)

The terminology for socially conscious business models is confusing because the ideas are enjoying a wider audience and the specifics of implementing social ventures are in process. One service of the ASBG is to encourage more specificity in the discourse so that terms become distinct, not interchangeable.

This is not just an exercise in semantics; clarity is always helpful in moving ideas forward. Two examples for you:

1. Precise definitions help discourage green-washing and hype. If there is general acceptance of precise definitions of the language of business related social activity - social ventures, social businesss, corporate social responsibility, social entrepreneurship, social-profit companies (see .pdf of Philip and Sandy Berber's ideas), then it encourages those who use such terms to be accountable to what they really mean.
   
   
2. Practically speaking, as social venture funds proliferate and begin to approach investors for funds it will be important for all players to be in agreement as to what terms mean. An investor who is interested in helping a social business grow may not be as interested in a non-profit angle and vice versa.
   

Dr. Yunus provides a framework for this:

Social Entrepreneurship is a broad category that includes social business (as defined below) as well as other social ventures that may or may not be for-profit, or self-sustaining.

According to Dr. Yunus, there are two types of social businesses:

1. Companies that focus on providing social benefit rather than maximizing profit for their owners, and are owned by investors seeking social benefit rather than monetary return. The nature of the product or service of the company creates social benefit.

2. Companies that are owned by poor or disadvantaged. Their goods or services may or may not create direct social benefit.

He also points out that social businesses must work toward and achieve sustainability. One of the most innovative of his proposals (at least for US business) is that social investors would agree to forgo earning monetary interest on their investment in businesses that produce a social profit or benefit. Within the ASBG we wrestle with questions about the practicality in the U.S. of a pure social business model as defined by Dr. Yunus, given our system's rigid bifurcation between for-profit and non-profit business "containers".

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Of course this is all distinct from Social Media, further proof that "social" may be the most overused term on the web right now, even being paired up with "community" for a dose of double exposure. How many online social communities can you name in 5 seconds or less? The latent introvert in me cringes a bit.

Even so, social media has its place in the Social Entrepreneur's toolbox, but I'll let someone else tackle manifesting the good karma and synergy via social media for social business ventures.

OK, if you made it this far and would like more info, here is the background reference from the top of the post - read the excerpt from the online version of his book.

Thanks for all you do-
Kala