Welcome to the 2016-2017Aaron L. Levitt

Social Entrepreneurship Challenge

Department of Public AffairsHenry W. Bloch School of Management

University of Missouri – Kansas City

Ready to Be a Changemaker?

Levitt Social Entrepreneurship Challenge:

Opportunity Development

David Renz and Scott HelmDepartment of Public Affairs

Henry W. Bloch School of Management University of Missouri – Kansas City

Ready to Be a Changemaker?

Social entrepreneurship is a process involving the innovative use and combination of resources to pursue opportunities to catalyze social change and/or address social needs.

Mair and Marti (2005:37)

Social entrepreneurship is the catalytic behavior that engenders value and change in the sector, community, and/or industry through the combination of innovation, risk-taking, and proactiveness.

Adapted from Scott HelmMidwest Center for Nonprofit Leadership

at UMKC

Entrepreneurship◦ Focus is “new entry”◦ Innovative, risk-

taking, and proactive◦ Adaptable to any

market environment

◦ Works with traditional nonprofit capacities

Enterprise◦ Focus is revenue◦ Any behavior that

achieves financial ends◦ Most effective in

commercial environments◦ Additional capacities

are needed for success

Traditional Nonprofit

Nonprofit with Income-Generating Activities

Social Enterprise

Socially Responsible Business

Corporation Practicing Social Responsibility

Traditional For-Profit

Mission MotiveStakeholders AccountabilityIncome Reinvested in Social Programs or Operational Costs

Profit-Making MotiveShareholder AccountabilityProfit Redistributed to Shareholders

Where Does Your Idea Fit On This Continuum?

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

Traditional Nonprofit

Nonprofit with Income-Generating Activities

Social Enterprise

Socially Responsible Business

Corporation Practicing Social Responsibility

Traditional For-Profit

Mission MotiveStakeholders AccountabilityIncome Reinvested in Social Programs or Operational Costs

Profit-Making MotiveShareholder AccountabilityProfit Redistributed to Shareholders

Opportunity Exploration Leads to

Opportunity Identification and ClarificationLeads to

Viability AssessmentLeads to

Business Plan DevelopmentBut not in a single cycle linear process: a strong business plan development process will involve multiple iterations gaining refinement from each cycle.

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

Measuring the Impact of Social Ventures

What Is the Opportunity?◦ Unmet Need?◦ Underutilized Resources?

Who Are You?◦ What Are Your Core Competencies?

What Do You Wish To Offer? To Whom Are You Offering It?◦ Beneficiaries◦ Funders/Donors/Payors

Why Will Each Care?

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

Growing Out of Opportunity Exploration Asset Identification Asset Valuation and Evaluation Opportunity Identification Opportunity Valuation and Evaluation Risk Assessment Opportunity Clarification

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

Sustainability potential Idea and start-up financial resourcesHuman resource capability Organizational capacity Income potential Funder interests

13

Midwest Center for Nonprofit Leadership / UMKC 14

Mis

sion

Impa

ct

High Mission High MissionLow Sustainability High Sustainability

Low Mission Low MissionLow Sustainability High Sustainability

Financial Sustainability

Three Basic Elements: Market Assessment Money Assessment Management Assessment

Leads to Overall Assessment of Venture Feasibility and Viability

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

Demand Competitive Advantage Differentiator(s) Price and Cost Structure

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

Payor Customers:-Donors

& Funders

Beneficiary Customers

(Clients)

The Market (Customer) Question

Revenue Potential Investor Potential Available Capital

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

Mission Compatibility Core Competencies Venture Capacity (including complexity)

Core Constituents or Stakeholders

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

So Let’s Start Exploring Our Ideas

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

What Is the Opportunity?◦ An Unmet or Under-Addressed Need?◦ Underutilized Resources?

Who Are You? What Are Your Core Competencies? What Do You Wish To Offer? To Whom Are You Offering It?◦ Beneficiaries◦ Funders/Donors/Payors

Why Will Each Care?

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

Work through each of the questions on the Super Hunch Sketch Pad.

You will not have all the information you need, so make note of additional information necessary to answer your questions.

Then, time to test your hunch:◦ How much impact will you have on the problem?◦ How feasible is this idea likely to be?

Identify the hunch you’ve been considering What is your assessment of this idea’s impact

and feasibility? What do you need to better understand in

order to further test your hunch?

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC

For next session: Read the readings Work With Your Collaborators to Further

Develop Your Idea on “The Really Big Idea Sketch Pad”

Come to the next session prepared to share your thoughts (from the Idea Sketch Pad) with some fellow Levitt Program colleagues.

Yes, there is homework!! Please take time to do it!! That’s how you develop your ideas!

New Venture Development: Midwest Center for Nonprofit Leadership at

UMKC