aps1015 class 1 - introduction to social entrerpreneurship

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APS 1015: Social Entrepreneurship Class 1: Introduction to Social Entrepreneurship and Social Systems Monday, September 9, 2013 1 Instructors: Norm Tasevski ([email protected]) Alex Kjorven ([email protected]

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Page 1: APS1015 Class 1 - Introduction to Social Entrerpreneurship

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APS 1015: Social EntrepreneurshipClass 1: Introduction to Social

Entrepreneurship and Social Systems

Monday, September 9, 2013Instructors:Norm Tasevski ([email protected]) Alex Kjorven ([email protected]

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Before we begin…

This course is designed for those that want to generate social change

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Course Director – Norm Tasevski

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Teaching Assistant – Alex Kjorven

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What Makes YOU a Budding (Social) Entrepreneur???

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Agenda

• Class Intros• Syllabus and Class Structure• Ground Rules• Defining Social Entrepreneurship • What motivates the social entrepreneur?• Break• Introduction to Social Systems• What did we learn?• Next week

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Syllabus

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Class Rules

– Participation - quality, not quantity!

– No stupid questions (only stupid answers)

– Respect your classmates – attend and be punctual!

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Defining Social Entrepreneurship…

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The Roots of Social Entrepreneurship

In the beginning…

Then…

Private Sector

• Earn $• Pay tax• Donate to charity

Public Sector

• Collect tax• Run programs• Grant to charity

Nonprofit Sector

• Receive donations/grants

• Run programs

Nonprofit Sector

• Donations

• Grants

• Sustainability

Response? Nonprofit Sector

Private Sector Activities

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Caveat…

Social Entrepreneurship is no longer a nonprofit-only activity!!!

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To Understand Social Entrepreneurship, we need to understand entrepreneurship...

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A test…I am:• A retailer• Sells goods at rates affordable by low-income

individuals• Employs individuals with barriers to employment• Goals:

– 92% of imported goods from green factories– 95% of waste redirected from landfill– Desire to be supplied 100% by renewable

energy by 2015

Social Enterprise or Not?

Facts:• $115M raised for charity since

1995 ($18M in 2009)• Over 1,000 environmentally-

approved products on sale• 1700 new jobs created in Canada

in 2009

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CONTENT

1. HOUSE KEEPING2. WHY ARE YOU HERE?3. HOW DOES CHANGE

HAPPEN?4. HOW DO I MAKE

CHANGE?

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QUESTION

WHY ARE YOU INTERESTED IN SOCIAL

ENTREPRENEURSHIP?

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ENTREPRENEURSHIP=

MAKE SOMETHING PEOPLE WANT

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PROBLEM

OPPORTUNITY

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KIVA

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THE REMIX PROJECT

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BREAK…

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Introduction to Social Systems…

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Systems =

sets of interlocking business models

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systems change when business models change

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DISRUPTION AS SOCIAL CHANGE

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High

Medium

Low

Clay Christensen’s model of disruption

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“Your margin is my opportunity”

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Disruption: from ownership to sharing

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Disruption: disintermediation

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Disruption: unlocking & liquifying inventory

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Disruption: commodifying a source of value

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Disruption: servicing non-consumers

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Disruption: changing the capital/risk sequence

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Disruption: commoditizing production

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Characteristics of disruptions

Fundamentally change the economics:• Initial products are less good, but good enough• Less profitable (lower margins), but higher volume• Ultimately grow the market by servicing non-

consumers

Results:• Increased access• Drive costs down

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Sinking business models• Scarcity• High margin human services• Informational imbalance

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HOW DO I MAKE CHANGE?

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DAY 1

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VS.

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