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7/13/11
Helping build local economiesthrough 3BL social entrepreneurship
Foundation for a Sustainable Society, Inc. 2011-2016
7/13/11
Outline • FSSI, its roots & reason for being• Our societal view and development
approach• Triple bottom line: Social Enterprise
development and helping build local economies & sustainable ecosystems
Our Roots
Philippines Debt
to the SwissGovernment
50% Payment Cancelled
50% Counterpart
Fund
FSSI Endowment
Facility
Product of a debt relief program
“Development requires debt relief”
Our Network
Our VisionA just, sustainable and empowered communities, recognizing diversity of cultures, respecting
integrity of creation and
realizing the fullness of life.
Our Mission
A sustainable resource institution committed to
social investments
that facilitate the entry and participation of poor
Filipino communities for the development of just,
local economies.
Our Core Values
• SOCIAL JUSTICE
• STEWARDSHIP
• ENVIRONMENTAL SUSTAINABILITY
• GENDER EQUALITY
• GOOD GOVERNANCE
• CULTURE OF EXCELLENCE
FSSI through the years
Working towards alternative development paradigms:
• First decade: Sustainable livelihood & ecosystems approach
• 2004 to 2010: Social enterprise and sub-sector development
• 2011 to 2016: 3BL SEs towards LED and sustainable ecosystems
7/13/11
Structure of Philippine Society
Pulse Asia: July 2005
33 out of 100 Filipinos are poor
7/13/11
Pathways out of PovertyPROSPERITY
POVERTY
Government PolicyMacro-Economic Conditions
Human capital
development
Physical infrastruct
ure developm
ent
VOICEParticipat
ion in Governa
nceMarket
Enterprise Participation
in the EconomyCapital
Environmental Protection & Conservation
Source: Econ Briefing by D. Songco
InfoTechnology
“Creating a space in the market”
Source: DTI, 2001
MSMEs in the Philippines
Source: DTI, NSO, 2001
99.6%MSM
Es
EmploymentGeneration
70%
30%
Value-Adding
32%GDP
68%
• Compared with our Asian neighbors, the country's MSME productivity is low
MSMEs in the Philippines
Role of MSMEs in Poverty Reduction
MSMEs stimulate local economic development
Can facilitate increase in social equity and a potential
force for sustainable development
Our Approach
Participatory Local Economic Development
(LED)
3BL ENTREPRENEURSHIP
thru
What is participatory LED?
• Multi-stakeholder convergence
• Finding local solution to common economic challenges
• Combines the concerns of economic growth and stability with a more fair production and distribution of wealth;
• Primary objective is developing an economy that strengthens community (improvement in economic opportunity and quality of life through community-led decisions and actions)
FSSI Program Focus & Scale2011 to 2016
Commodity/ Economic Dimension
Ecological/ Ecosystem Dimension
Social Sector Dimension
• Convergence or focus areas where sustainable local economy development happens.
• Sustainable communities = confluence & interaction of people (& their culture), economic produce, and ecology
Commodity/ Economic Dimension
Ecological/ Ecosystem Dimension
Social Sector Dimension
Economically viable & ecologically sound and/or regenerative enterprises across ecosystems
Community stewardship; DRR & disaster preparedness practices
Profitable & value-adding enterprises that exhibit social equity & participation
FSSI Program Focus & Scale2011 to 2016
Commodities Eco-systemSocial Sector
Food & derivativesHealthPublic utilities
Small farmersFishersIPsWomen & GenderAgricultural workers
Forests & protected areas
Production areasWater resources
Air and soilCoastal resources
Ancilliaries:•Microfinance services•Organic farming production•Market product and research•Technology and innovation•Renewable energy technologies•Green services
FSSI Program Focus & Scale2011 to 2016
Our Approach
BECAUSE… sustainable development is BEYOND economic values…
BUSINESS DISCIPLINESOCIAL PURPOSESOCIAL OR ECO- ENTREPRENEURSHIP
Innovative for-profit ventures benefiting a community, the marginalized sectors or public at large social purpose business ventures hybrid organizations mixing not-for-profit
and for-profit or earned income elements
Social Entrepreneurship
The MARKET is an arena for CHANGE
Market System
Source: http://www.zeromillion.com/econ/how-the-market-system-works.html
SEs Communities Socially-prepared LED- & Social Enterprise ready LGU-supported
Assessing the value chainWhere are the poor in the value chain?
Where in the value chain is the environmental impact (+/-) created?
Production
EXPORT
DOMESTIC
Suppliers of raw materials Labor supply in processingConsolidator/Trader
Consumer
RetailerProcessor
Marketing & Distribution
SUPPORT MECHANISMS
• Poverty is multi-dimensional; needs to be understood in its context and complexities
• Other forms of poverty goes beyond income
levels such as gender inequality, environmental
injustice, political repression, forced migration,
landlessness, malnutrition, illiteracy and illness
• Though, the most imminent form of poverty is
economic poverty
• Poverty is multi-dimensional; needs to be understood in its context and complexities
• Other forms of poverty goes beyond income levels such as gender inequality, environmental injustice, political repression, forced migration,
landlessness, malnutrition, illiteracy and illness
• Though, the most imminent form of poverty is economic poverty
Our 3BL Parameters
Our 3BL Parameters
VALUE CREATION : Where do we create the highest economic value in the chain?ENABLING ENVIRONMENT: Policy environment; barriers to entry & exit, research & technological support, financial investmentsINTERNAL COMPETENCIES: Capital, entrepreneurial ability, labor supply, etcMARKET SYSTEM: What is the prevailing rules of the game? Who are the players? Is the market efficient? Is it democratic or does it perpetuate inequity? Does it destroy or enhance the environment?
ECONOMIC VIABILITY
Our 3BL Parameters
ENTRY & PARTICIPATION OF THE POOR: Will it involve a significant number of marginalized communities? Will it facilitate access to new knowledge, skills or technologyBENEFITS TO THE POOR: Can they derived gainful employment? Does it promote fair labor practices? Can it facilitate equal access to social goods & servicesOWNERSHIP & CONTROL: Is there opportunity for participation in decision-making, for equitable distribution and sharing of resources, for access to productive assets?
SOCIAL EQUITY
Do we facilitate the poor to participate in the value chain itself, not just as end-user
but as an active, creative actor in the production process…. participants who
can, in fact, contribute to a nation’s economy and the profitability of business?
Our 3BL Parameters
TECHNOLOGY/PRODUCTION PROCESS: Are the raw materials needed renewable? What environmental impacts are created (waste/pollution, energy, water)? Can it be mitigated? What systems can be integrated to reduce environmental impacts? REGULATORY SYSTEM: Does the market system recognizes impacts to the environment? Are there resources, standards or legislations needed to improve environmental performance of enterprises in the sub-sector?PRODUCT USE: Can the product be used to protect or enhance the environment? Is the market willing to pay premium or value for environmental protection? If not, what can be done?
ECOLOGICAL SOUNDNESS
GREEN is the new
BLACK
“There is no
business to be done
on a
dead planet”.
David Brower, Executive Director- Sierra Club
3BL Model Building
Mainstreaming
Strengthening
Start-Up
Growth
Mature
EE Conceptual Model
Operations reflect EE agenda
Business operations demonstrate 3BL
outputs
3BL effects achieved & sustained
3BL as the competitive advantage
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Second Outline Level
Third Outline Level Fourth Outline
Level Fifth
Outline Level
Sixth Outline Level
Seventh Outline Level
Eighth Outline Level
• Ninth Outline LevelClick to edit Master text styles
• Second level
• Third level
• Fourth level
• Fifth level
Partnership Building Perspectives Towards 3BL-LED
Financing ServicesLoansDevelopmental DepositsGuaranteesEquity participation
- - - - - - - - - - - - - - - - - - - - -
GrantsStart-up for SE
Capacity building for SEAdvocacy leading to SE
Partnership Building Perspectives Towards 3BL-LED
Sector / Location Economic Social Ecosystems
Local economy dev’t potentials
•Organic Fertilizer Production in Isabela (Kapatagan MPC)
•Growth of cooperative;•Supplemental income & employment to farmers•Local value adding
•Farmers (rice and corn)-beneficiaries & participants-As part owners-Women
• Soil regeneration
• Organic,• Recycling
• Support to sustainable agriculture practice in Mallig; Isabela Province & nearby CL
• Like-minded farmer’s PO/enterprise
•Coco coir (Bicol, Quezon, Samar-Leyte)
•Soriano Eco Fiber• COCOBIND Irosin•AFFIRE•GAICO•PHILCOIR
Help: Road & slope infrastructure devt
Local chain & community value adding
Employment
Tax Revenues
Coco farmersRural workersTwinersFarmers in organic fertilizer useHelp: Save lives & money
• Bio-engineering
• Organic fertilizer
• Waste mgmt• Erosion, geo-
hazards control
Coco areas in these localities integrated to the coco ARC Ses
MFIs supporting community twiners
Diversification into related SEs
Sector / Location Economic Social Ecosystems
Local economy dev’t potentials
Special Project : Foreign-assisted grant project of FSSI with 3 other NGOs – PLANT TREES Project
• Address poverty & economic needs of forest-dependent households
• Income for subsistence
• Enterprise for sustainable livelihood
Farmers
Upland dwellers
Bugadores
• Forest protection
• Conservation
• Northern Sierra Madre municipalities
Other Potential SE-sectors
• Public Utilities• Power – Renewable Energy SEs owned &
operated by non-traditional/non-elite players• Water & Irrigation systems
• Commodity / Niche Markets• Muscovado sugar• Livestock and poultry• Banana• Coconut & by products
• Others
Concluding Remarks
“In social entrepreneurship, the mission of social improvement is fundamental.
It cannot be reduced to simply creating private benefits for individuals.
Gregg Dees: The Meaning of Social Entrepreneurship
Concluding Remarks
Making a profit, creating wealth, or serving the desires of
customers may be part of the model,
but these are means to a social end, not the end in itself.
Gregg Dees: The Meaning of Social Entrepreneurship
Concluding Remarks
Profit is not just the gauge of value creation; nor is customer
satisfaction.
SOCIAL IMPACT IS THE GAUGE
Gregg Dees: The Meaning of Social Entrepreneurship
Thank You
# 46 E., Samar Avenue corner Eugenio Lopez St, South Triangle Quezon City 1103
Tel No: [632] 928-8671 [632] 9288422 [632]
4114702-03 [email protected]