Social Entrepreneurship Week 5. Spring-2017 Rotterdam Business School Bert Vermeulen

Transcription

1 Social Entrepreneurship Week 5 Spring-2017 Rotterdam Business School Bert Vermeulen

2 Recap HP Implementation & monitoring TRENDS / Facts

3 finance banks do not jump to the occasion to fund/ help social enterprises with a loan Finance is seen by social entrepreneurs as the biggest obstacle for growth of their enterprise So...how to get money?

4 finance Own capital subsidies Private investors/financial capital (shares/ stock) Loans Donations (funds/ family/ friends) microfinance Crowdfunding/ 3rd parties Lotteries (NL: Postcode Loterij/ Stichting DOEN) other creative ways of borrowing/ getting money

5 Funding: sources Own capital Subsidy Private investors/shares Bank loan Donation of funds Third party/crowd funding Family & friends Investment funds (shares) Donations family/friends

6 Finance towards 2017

7 Funding Banks ECB: Less commercial lending in EU from 69 billion => 44 billion Venture capitalists Further in PLC Profit generators (over ) Angel Capitalists Pre-revenue business Is there a problem you solve? And a revenue stream?

8 Funding: Triodos bank => Mission? Mission: to help create a society that promotes people s quality of life and that has human dignity at its core. Socially Responsible Investment Funds: o companies > 50 % sustainable business o Best in class o Business ethics/tax transparency and good governance o Dialogue o Transparency o Country selection (Democracy & No UN boycotts) Lending to o Social housing programs o Fair trade companies o Micro finance investment banks and institutions

9 Qredits Qredits (NL): Microcredit business loan up to 50,000 Only if: no other funding to obtain a business loan Start ups or less then 5 employees Business operations are conducted in the Netherlands 18 years of age or older Business plan For entrepreneurs at heart. Volunteer coaches Supported by banks & consultancy firms

10 crowdfunding The crowd, YOUR crowd is helping!

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12 Crowdfunding: 3 models Donation model: many donations are gathered to achieve a financing goal. Donors only get a good feeling from their donation. Reward model: again donors provide financial means in order to achieve a financial goal of the entrepreneur. This time they get a reward. These rewards are intangible (a thank you (your name) in the back of the photography book that you helped to finance), or tangible, like a t- shirt Equity model: purely financial, donors get a financial reward (interest, return) on the profits of the investment

13 crowdfunding: 10 most active categories

14 Crowd funding artpagina.aspx Motives borrowers and lenders?

15 Microfinance... Remember examples from earlier on? Grameen Bank!...Meets crowdfunding! Kiva again: tkuqivw

16 Favela painting sys6yu

17 (Social) Return on Investment, or (S)ROI The return on investment formula: ROI = (Gain from Investment Cost of Investment) Cost of Investment x 100% e.g. Gains from an Investment = 500; Costs are 400. Then ROI = ( )/ 400 = 100/ 400 = 25%

18 SROI Social Return on Investment There are many things we value that cannot be easily captured in traditional economic terms. Conventional cost-benefit analysis does not consider anything beyond simple costs and price, which is why we have developed alternative tools to measure social and environmental impacts. Social Return on Investment is an analytic tool for measuring and accounting for a much broader concept of value, taking into account social, economic and environmental factors. (

19 SROI In SROI, you look at the ROI, but also at other indicators. Examples: - the number of (extra) jobs created and the money saved (not spent!) on unemployment benefits - The money saved by a government due to the service provided by the (Social) Entrepreneur - Benefits for the environment (less pollution) - Less traffic jams

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21 Social Cost Benefit Analysis Just like a normal Cost- Benefit Analysis, but with social components. Example: Green Roofs in Rotterdam: Rfhskfx8ybM See if you can determine the social benefits?

22 Social Costs & Benefits Costs: construction of the green roof (more expensive!) Benefits: capturing water (rain) less puddles Social benefits: - Cleaner air/ less pollution (oxygen production) - Fight Urban Heat Island Effect - Noise reduction - Climate control - Nicer view/ terrace/ parks

23 Presentations 5 minutes max => 2-3 questions max. NO COMMENTS! Structure Pain: problem/need/motivation Target group and size Product/service: this is what we do/ solution/adding value Promise: vision/team/partners/resources Funding and revenue model Summary canvas business model Call to action Limited amount of key messages/statements What would an investor/ bank like to know/ hear? Do not tell everything! There is also a report to read! WOW & AIDA

24 Next two weeks Evaluations; 50 % in week 7 50 % in week 8 You will evaluate one presentation, and you get 4, 6 or 8. Fit need - Solution Social Enterprise Contents/business model Call to action Professionalism/ Use of English Way/orginality presentation

25 Resource acquisition What are the key resources you need for your project? How to acquire these? What can you offer as internal/external resources? Who can use it? Can you give an indication of your social return on investment? Discuss your ideas with 1-2 others

26 WEEK 7-8 GROUP Finalise group assignment INDIVIDUAL Continue working on your SE and prepare presentation in week 7 or 8

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