CREATIVITY AND SOCIAL

ENTREPRENEURSHIPProblem solving and opportunity creation

Wes Regan and Paola Qualizza

March 5th 2015

CMNS 458

Simon Fraser University

SOCIAL INNOVATION

A RESPONSE TO WICKED PROBLEMS?

Wicked Problems (Planning/Sociology Term)

Problems that are extremely complex, sometimes hard to

understand the causes of, most often extremely difficult to solve

Karl Marx (socialist revolution) aside…

Can be created by or made worse through

Lack of political will or ideologically based policy creation

Competing interests

Market Failures (Vancouver housing…)

Loss of an industry or economic shock/restructuring

Public health crisis (disease, aging etc.)

Natural disaster, war, famine

Time

INNOVATION VS SOCIAL INNOVATION

INNOVATION VS SOCIAL INNOVATION

SOCIAL INNOVATION

What can be done NOW?

Finding unique solutions to social problems or social needs where government (public sector) or the market (private sector) has failed to

Often requires a non-profit or for-profit venture of some kind that can bring together elements of public and/or private sector, formal/informal/social economy to take a different approach

BUT can also take place within government or a single NGO or business

Examples…

INSITE – A SOCIAL INNOVATION RESPONSE TO

A PUBLIC HEALTH CRISIS

1998 A Public Health Emergency is declared in Vancouver’s

DTES as growth in intravenous drug use (Heroin) contributes

to a steady increase in HIV/AIDS, HepC and overdoses

INSITE: IMPACT AND CONTROVERSY

LOHA- A SOCIAL INNOVATION RESPONSE TO

VANCOUVER’S AFFORDABLE HOUSING CRISIS

LOHA- A SOCIAL INNOVATION RESPONSE TO

VANCOUVER’S AFFORDABLE HOUSING CRISIS

THE SHARING ECONOMY – NEW WAYS OF

BUYING AND OWNING

CROWDFUNDING - NEW WAYS OF FINANCING

FUNDRISE (U.S.) - REAL ESTATE DEVELOPMENT

DEMOCRATIZATION OF FINANCE & DEVELOPMENT?

FINANCIAL CONSIDERATIONS

Blended ROI

Social ROI

Patient Capital (longer timeframe for profitability, Liz

Lougheed Greene, Vancity)

Absorption of additional costs (33% Est. Shahmash,

2010)

Tax credits (ENP, Buy Social)

Social Impact Bonds

Community Bonds

Emerging Procurement Policies?

EMPLOYMENT BASED SOCIAL ENTERPRISE

MISSION POSSIBLE, POTLUCK CAFÉ AND CATERING

SKILL DEV/WOMEN’S HEALTH/ECONOMIC JUSTICE

BASED SOCIAL ENTERPRISE

East Van Roasters

Common Thread Sewing

Cooperative

MICRO-ENTERPRISE FOCUSED SOCIAL

ENTERPRISES

SOCIAL ENTERPRISE REVENUE GENERATOR TO SUPPORT

NON-PROFIT OR CHARITY

TYPOLOGIES AND AMBIGUITY

Social Venture

Social Purpose Business

Social Impact Business

Social Enterprise

Enterprising Non-profit

Community Interest Company (Nova Scotia)

Community Interest Corporation (UK)

Community Contribution Company (BC – 3C)

Benefit Corporation (B-Corp)

Etc. etc.

FUNDING AND RESOURCES FOR STARTUPS

For-profit

3F (Friends, Family and Fools) Debt financing (loans, line of credit), equity raise (Eligible Business Corporation, issue shares to investors – tax creditable for EBC) Crowdfunding (Indiegogo, Kickstarter) Futurpreneur, Small Business BC, Angel Investor (the Unicorns of the investment world) LUSH FUNd

Non-profit

Foundations - Vancity Community Foundation, Vancouver Foundation, the Real Estate Foundation, Mconnell Foundation, Central City Foundation, Tides Foundation, Ashoka, Lush

Government Granting Agencies – Provincial (Proceeds of Crime, BC Gaming) City of Vancouver (Direct Social Services Grants, DTES Capital Grants, Social Innovation Fund,

Greenest City) Federal Government – Arts Council, IRAP (technology)

THE PIPELINE/ECOSYSTEM

Groundswell

RADIUS, ISIS (UBC), THNK

Futurepreneur

Ashoka (BC Ideas)

DTES Community Investment Fund (BOB)

Community Futures (Regional ED in BC)

Small Business BC

WESBC

IRAP

Tides

Vancity

DevCo (BC Co-op Association)

Foundations/Government Grants

BDC/investors (scaling up)

SOME FOOD FOR THOUGHT FOR STARTUPS

RISK, FAILURE AND LEARNING

Part of entrepreneurship is assuming risk

It’s ok to be a little bit scared or intimidated, this is

totally natural, but the more you validate your

assumptions (or prove them wrong and pivot) the

more confidence you will gain

Don’t be afraid to fail...

But if you do, embrace it fully as a learning

opportunity

For social entrepreneurs you are taking on

additional challenges as running a “regular”

business is hard enough as it is!

RADIUS – FAILURE WAKE 2013

BUT DON’T BE AFRAID OF SUCCESS EITHER!

CONCLUSION

BE PRESENT AND EMBRACE THE PROCESS,

BE CURIOUS, BE HONEST, BE HUNGRY

Thank you, happy to be here with you.

https://www.linkedin.com/in/wesleyregan

wes@shapecontent.com