Building a successful social venture a guide for social entrepreneurs

Praise for Building a Successful Social Venture From Social Entrepreneurs “Where else can one find out how to go about developing a business plan with both impact and profit in mind? Where else does one find a guide to convert intractable social problems into opportunities for realistic dreamers to tackle through effective social ventures? Jim Koch and Eric Carlson’s book Building a Successful Social Venture provides a powerful guide for social entrepreneurs like me, who must permanently battle the tradeoffs between social impact and sustainability The book is a treasure.” —Martin Burt, PhD, founder, Fundación Paraguaya (2005 Skoll Awardee), Poverty Stoplight, and Teach a Man to Fish “The information found here is detailed and pertinent, with real-life insights into the origins and functioning of social enterprises Step-by-step guidelines, examples, and charts offer a critical but encouraging perspective on building and scaling social impact.” —Neelam Chibber, cofounder and Managing Trustee, Industree Crafts Foundation (2011 Social Entrepreneur of the Year India Awardee), and Schwab Fellow “The term ‘social venture’ has been notoriously ill-defined over the past decade The authors bring much-needed definition to the space This will be helpful for investors, regulators, and entrepreneurs alike going forward At Kiva, we benefitted greatly from the Global Social Benefit Incubator in getting started This work can help us take it to the next level!” —Matt Flannery, cofounder and former CEO, Kiva (2008 Skoll Awardee), and cofounder and CEO, Branch.co “The knowledge captured by the book is amazing I wish we had a book like this for reference in 2002–03 when we went about setting up Ziqitza Back then there was no concept of ‘social venture.’ I believe this is a good foundation for anyone who is looking to start a social venture Attending GSBI was a great experience for me; I learned so much in the short time I was on campus.” —Ravi Krishna, cofounder and Director, Ziqitza Health Care (2013 Times of India Social Impact Awardee) “A comprehensive guide and tool kit for these times Koch and Carlson illuminate the field with research, case studies, and critical specification checklists Their work makes it clear that social entrepreneurship has a vital role to play in the personal and collective transformation required to create a more harmonious and equitable world.” —Ronni Goldfarb, founder and former President and CEO, Equal Access International (2016 Tech Awards Laureate) “Carlson and Koch have written an informative guide that shows readers the unique opportunity that social entrepreneurship offers to address complex societal challenges and offers specific, engaging, and practical guidance for those of us eager to create financially sustainable and beneficial social ventures.” —Sara Goldman, cofounder, Heart of the Heartland “This book is the culmination of James Koch and Eric Carlson’s dedication to mentoring hundreds of social enterprises, from formation through scale There’s never one right way to build a company, so they have aggregated and analyzed the different lessons learned from many organizations This book is well worth the read for any aspiring or practicing social entrepreneur!” —Lesley Marincola, founder and CEO, Angaza (2018 Skoll Awardee and 2016 Tech Awards Laureate) “I have had the honor of learning many of the concepts presented in this book directly from Jim and Eric at Santa Clara I applied many of these concepts at Husk Power Systems and raised funding to scale This book does a phenomenal job of providing a very detailed and easy-to-follow framework for launching and scaling successful businesses focused on solving the world’s biggest problems Concrete case studies are presented in a succinct way to illustrate how these frameworks can be applied effectively I would highly recommend both social entrepreneurs and leaders of successful social enterprises read this book and use it as a reference to continually evolve.” —Manoj Sinha, cofounder and CEO, Husk Power Systems (2009 and 2013 GSBI alumnus) “An inspirational, holistic, and practical resource with real-world lessons and examples A mustread for early stage ventures as well as ventures moving along the path to scale I admire Jim and Eric’s completeness of vision and their true and unwavering commitment to building social ventures and mentoring the social entrepreneurs who lead them.” —Elizabeth Hausler, founder and CEO, Build Change (2017 Skoll Awardee) From Academic and Industry Experts “Complementing and extending prior Base of the Pyramid work, Carlson and Koch’s book provides something new and important: a business planning paradigm designed specifically for the unique opportunities and challenges facing B P entrepreneurs The outcome is an entrepreneurs’ road map for building better social ventures.” —Ted London, Adjunct Professor, Ross School of Business, and Senior Research Fellow, William Davidson Institute, University of Michigan, and author of The Base of the Pyramid Promise “This excellent workbook takes the reader through the steps in the process of developing and running a social venture The examples are richly described and make the concepts come alive.” —Madhu Viswanathan, PhD, Professor, Diane and Steven N Miller Centennial Chair in Business, and founder of Subsistence Marketplaces Initiative, Gies College of Business, University of Illinois at Urbana-Champaign, and author of Bottom-Up Enterprise “Carlson and Koch have crafted a rare primer that offers inspiration and guidance for every stage of the entrepreneurial journey Building a Successful Social Venture shines as a text for undergraduate and graduate students of social innovation The authors offer deep experiential wisdom and theorydriven frameworks built upon the practice of hundreds of social ventures The stakes for social innovation are high for us all, and the authors place commendable emphasis on execution with a social consciousness—including actionable tools for investors, managers, and entrepreneurs who care about meaningful social change This book is invaluable.” —Geoffrey Desa, PhD, Associate Professor of Management and Social Innovation, San Francisco State University “What a wonderful overview of the field with amazing tools for not only understanding conceptually but also moving the ideas of social innovation and social venture into practice.” —Adrienne Falcon, PhD, Associate Professor, Department of Public and Nonprofit Leadership, and Director, Master of Advocacy and Political Leadership, Metropolitan State University “I feel very privileged to have been part of the first ten years of the Global Social Benefit Incubator at Santa Clara University in Silicon Valley—as a mentor, coach, friend, and teacher In their book, Eric Carlson and James Koch brilliantly capture the lessons learned from the first ten years of their accelerator, informed by a unique combination of the Jesuit commitment to social justice and Silicon Valley’s entrepreneurial and innovation-driven culture This is a must-read for all social entrepreneurs serious about scaling their impact.” —Charly Kleissner, PhD, cofounder, KL Felicitas Foundation, Toniic, 100% Impact Network, and Social-Impact International “The authors have decades of experience on what it takes to build a social enterprise It is no easy feat, and this book provides a detailed manuscript for entrepreneurs, with examples, exercises, and resources touching on each aspect of building a business In the age of ‘fail fast,’ this is a book on ‘build it to last.’ The authors also trace the arc of shared experience and the original thesis behind creating social impact to guide both new enterprises and today’s corporations in creating a better tomorrow.” —John Kohler, Executive Fellow and Senior Director, Impact Capital, Miller Center for Social Entrepreneurship, Santa Clara University “Jim and Eric’s book comes at a great time Solving the world’s toughest social issues—such as poverty, access to energy, health care, and education—has not occurred with top-down philanthropy This ‘Guide for Social Entrepreneurs’ simplifies that process of teaching social entrepreneurship from a bottom-up perspective It is not an academic thought piece but rather draws from the experience of hundreds of social enterprises, both successful and unsuccessful, learning perhaps as much or more from the failures as from the successes I highly recommend it.” —Brad Mattson, Chairman, Siva Power; former Lead Mentor, GSBI; and founder and former CEO, Novellus and Mattson Technology “This is the most practical and useful book for anyone thinking about developing a social venture that combines market-based principles with a social mission Written by two authors who have deep experience working with hundreds of social ventures from around the world, every chapter, case study, and exercise is based on a solid foundation of lessons from more than a decade of experience with the GSBI program This book is essential reading for social entrepreneurs, impact investors, and others interested in this sector.” —Saurabh Lall, PhD, Assistant Professor of Social Enterprise and Nonprofit Management, School of Planning, Public Policy and Management, University of Oregon “Professors Koch and Carlson have captured the essence of what has become the gold standard for social entrepreneur success and growth With over ten years of practical implementation, involving hundreds of social entrepreneurs, they thoroughly detail the development of sustainable, scalable social business models and plans; clearly explain ‘bottom-up innovation through social ventures’ and social change theory; and offer sound practical advice to overcome key challenges that all social entrepreneurs must deal with I’ve been a social entrepreneur mentor for almost fifteen years, and this book is my number-one tool to accelerate the success of social businesses.” —Dennis Reker, Lead Mentor, GSBI, and former senior executive, Intel “From the perspective of someone who, in parallel with an international business career, has devoted more than fifty years to the development of bottom-up approaches to poverty reduction and social innovation, I find Building a Successful Social Venture by Eric Carlson and James Koch to be a magnificent contribution to this field and an invaluable handbook for those who wish to start, grow, fund, or evaluate a social venture—whether nonprofit or for-profit This guide creates a historic and social context within which practitioners can better understand the significance of what they are doing, and it provides them with the tools they need to become effective at doing it I believe it should be required reading for anyone who wants to change things for the better in a sustainable way.” —Robert H Scarlett, Board Chair, Venn Foundation; Trustee, Sundance Family Foundation; and Member, President’s Circle, Accion “The Miller Center at Santa Clara University has continued to be a source of rigorous and serious work with social entrepreneurs worldwide—contributing invaluable insights that have significantly influenced our own development and the field of social entrepreneurship We believe that this new book based on the Santa Clara University experience will help thousands of entrepreneurs.” —Alfred Vernis, Associate Professor of Business Policy and Strategy and cofounder, Institute for Social Innovation, ESADE Business School, ESADE–Ramon Llull University, Barcelona, Spain “This fantastic resource sets a framework for social ventures as essential actors in the global economy The middle part is the recipe: the how-to for social entrepreneurs The beginning and end position social ventures as answers to needs in society and the economy that have not been, and arguably cannot be, addressed any other way Social ventures are simultaneously a ‘new thing’ in terms of their legitimacy in the eyes of academics and conventional businesspeople, and they’re all around us We all probably interact daily with, or may even already be part of, one, often without realizing it This book illuminates the potential to improve the world in what we may already be doing and shows how we can it even more powerfully While newcomers to social entrepreneurship will find this an indispensable resource, it may be even more important for experienced social entrepreneurs because it will remind you of how mighty your work really is.” —Sara Olsen, founder and CEO, SVT Group From Undergraduate Beta Tests of Building a Successful Social Venture “University students hunger for effective theories of positive social change: Building a Successful Social Venture provides them a feast Unlike most textbooks about social entrepreneurship, Building a Sucessful Social Venture challenges students to drill down into business models and how these can drive change in society My students have drawn rich insights in enterprise-led social transformation from this book with direct application to action research projects around the world Subsequent to using this book in two classes, four students received Fulbright Awards.” —Keith Douglass Warner, OFM, Senior Director, Education and Action Research, and Director, Global Social Benefit Fellowship, Miller Center for Social Entrepreneurship, Santa Clara University From Santa Clara University MBA Students “I really enjoyed the class and definitely will be applying it to a future social venture I’ve wanted to create since I was much younger Maybe I’ll see you at the GSBI in a few years!” —Bhargav Brahmbhatt “This was by far my favorite class in the MBA curriculum I’ve learned so much from the weekly assignments and roundtable discussions I just developed my first ever business plan for work, which was a huge undertaking, and I would have been so lost without this course.” —Erin Horiuchi “It was a great learning experience for me and I am sure I will be using the concepts in my social venture.” —Sijith Salim “I thoroughly enjoyed the class, and I learned a lot about social entrepreneurship and Moringa Connect It was a great experience working on a business plan for a real company with founders who are trying to make a real impact on the lives of farmers in Ghana I will definitely take the lessons learned with me, and I hope to apply them throughout my career and personal life.” —Brooke Langer Building a Successful Social Venture Building a Successful Social Venture A Guide for Social Entrepreneurs Eric Carlson James Koch Building a Successful Social Venture Copyright © 2018 by Eric Carlson and James Koch All rights reserved No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law For permission requests, write to the publisher, addressed “Attention: Permissions Coordinator,” at the address below Berrett-Koehler Publishers, Inc 1333 Broadway, Suite 1000 Oakland, CA 94612-1921 Tel: (510) 817-2277, Fax: (510) 817-2278 www.bkconnection.com Ordering information for print editions Quantity sales Special discounts are available on quantity purchases by corporations, associations, and others For details, contact the “Special Sales Department” at the Berrett-Koehler address above Individual sales Berrett-Koehler publications are available through most bookstores They can also be ordered directly from Berrett-Koehler: Tel: (800) 929-2929; Fax: (802) 864-7626; www.bkconnection.com Orders for college textbook/course adoption use Please contact Berrett-Koehler: Tel: (800) 9292929; Fax: (802) 864-7626 Distributed to the U.S trade and internationally by Penguin Random House Publisher Services Berrett-Koehler and the BK logo are registered trademarks of Berrett-Koehler Publishers, Inc First Edition Paperback print edition ISBN 978-1-5230-9594-0 PDF e-book ISBN 978-1-5230-9595-7 IDPF e-book ISBN 978-1-5230-9596-4 Digital audio ISBN 978-1-5230-9598-8 2018-1 Book producer: Westchester Publishing Services Text designer: Darlene K Swanson Cover designer: Adam Johnson Paul Locatelli, S J September 16, 1938– July 12, 2010 This book is dedicated to Father Paul J Locatelli, the twenty-seventh president of Santa Clara University and the first secretary of higher education of the Society of Jesus—a network of 170 institutions around the world Paul encouraged questions that open into a search for greater purpose in life and a thirst for justice Throughout his twenty years as president of Santa Clara he sought to bridge the secular and the sacred—the innovation-driven ethos of Silicon Valley with the traditions of Jesuit education, a Catholic religious order founded half a millennium ago He inspired the work of centers of distinction in Jesuit education, applied ethics, and technology and society, and, through these efforts, he sought to integrate competence, conscience, and compassion as the foundations for transformative education As president of Santa Clara University he created an environment in which the work described in this book could flourish timeline in, 195, 195f, 208, 210 of Video Volunteers, 204–205, 207–209 of Vision Spring, 189 of ZHL, 234 operational business plan, 38–40 operations: ability to execute and, 256 of Build Change, 85 of DDD, 104 of Equal Access, 124 of Grameen Shakti, 47, 115 human resources and, 127 of Industree Crafts, 151 of Kiva, 173 leadership and, 256 Minimum Critical Specifications Checklist for, 128 primary, 109–112, 128 of Sankara, 50, 111–112, 119, 119–121, 121f, 122 of SSAS, 66 support, 110, 112, 128 value chain and, 109–110, 256, 258 variances and, 112–113 of Video Volunteers, 206 of Vision Spring, 187 of ZHL, 233 opportunity: of Build Change, 84 of DDD, 103 of Equal Access, 124 of Grameen Shakti, 49, 60–61 of Industree Crafts, 150 of Kiva, 171 market size estimation and, 89 Minimum Critical Specifications Checklist for, 67 of Sankara, 49, 60, 62 of SSAS, 60, 65 statement of, 55, 57, 67 of Video Volunteers, 205 vision and, 253–254 of Vision Spring, 187 of ZHL, 232 organization: ability to execute and, 257 board and governance in, 131, 136, 137f, 154 of Build Change, 85 cooperative, 135 of DDD, 104 of Equal Access, 125–126, 125f forms of, 112, 131–133, 154 for-profit, 133–134 of Grameen Shakti, 47, 142–143, 143f–144f hierarchical form of, 112 human resources and, 130–131, 153 hybrid, 134–135 of Industree Crafts, 151, 152f integrated form of, 112 of Kiva, 172–173 management in, 131–132, 132f, 136–138, 137f–138f metrics and, 177–179, 178f, 182, 184, 189–190, 263–264 Minimum Critical Specifications Checklist of, 154 networked form of, 112, 114f nonprofit, 134 plan of, 109 of Sankara, 50, 144–146, 147f, 148–150, 149f of SSAS, 66 staffing in, 131–132, 132f, 138–139, 154 SWOT analysis of, 139, 141f, 154 value chain and, 127f, 154 values-based view of, 131–132, 132f of Video Volunteers, 206 of Vision Spring, 188 of ZHL, 234 organizational resource metrics, 263–264 of Grameen Shakti, 182 in metrics dashboard, 177–179, 178f, 189–190 of Sankara, 184 Osberg, Sally R., 32, 254, 266–267 Osterwalder, Alexander, 40, 47 outcomes: metrics of, 177–178, 178f, 185, 189–190, 263–264 in operating plan, 194–195, 194f, 197f, 207–208 Paraguay See Fundacion Paraguaya Self-Sustaining Schools partnerships, 112, 128 of Equal Access, 125f of Grameen Shakti, 113, 114f interdependencies in, 113 of Sankara, 63, 120–121, 121f types of, 114f value chain and, 114–115 of Vision Spring, 186–187 Peru, 11 philanthropic investment per pair (PIPP), 188 philanthropy, poverty reduction by, 7, 8f, 9–10 Pigneur, Yves, 40 Piketty, Thomas, PIPP See philanthropic investment per pair poverty, 4–6, 9, 21f distribution of, 24f migration and, 23–24 rural, 61–62 subsistence level and, 10 poverty reduction, in China, global, 9–10 by government programs, 7, 8f, 9, 16–17 by informal economy, 7, 8f, 10–11 macropolicy for, 7, market imperfections and, 11–13 MDGs and, 25–26 by multinational corporations, 7, 8f, 9–10, 17 by philanthropy, 7, 8f, 9–10 SDGs and, 25–27 by social ventures, 7, 8f PowerPoint, 245–247 Prabakar, Visswapriya, 163 Prahalad, C K.: on BOP, 10–11, 13, 32, 70, 265 The Fortune at the Base of the Pyramid by, 19, 71 thesis of, 9–11, 15, 71, 265 on transaction governance capacity, 11, 73 value equation of, 33 presbyopia, 187 PRI See program-related investment price, for target market, 93–94 process/activity metrics, 182 program-related investment (PRI), 214, 216f, 220, 228 promotion: of Sankara, 101–102, 116–117 for target market, 93–95, 101–102, 107 Radha, 49 Ramani, R V., 49 ratio analysis, 169–170 resource requirements, 195, 196f–197f, 208–209, 210 revenue drivers See income drivers risk, 38–39 Safaricom, 158 Sahlman, William, 38–39, 130 San Jose Tech Museum Awards, 37, 43 Sankara Eye Care Institutions (SECI): academy of, 50, 64, 78f, 83f, 97, 121, 121f, 146, 184 beneficiaries of, 96–98 board of, 144, 145, 147f, 149–150 business model of, 50–51, 163–171, 183 cash flow of, 167–170, 168f community/cultural environment of, 82f competition and influencers of, 100f CSFs of, 167 economic environment of, 78f expense drivers of, 166, 166f external environment of, 49, 75–76, 78f, 79f–80f eye camps of, 120, 121f, 148, 166, 166f, 185, 201f eye foundations of, 120, 121f, 168, 183 financial strategy of, 63 financing of, 51, 200f, 229–230, 230f–231f ICT environment of, 80f–81f income drivers of, 164–165, 165f India and, 49–50, 56–57, 62–63, 76, 78f, 79f–83f, 98–102, 100f, 121f, 145, 157, 165, 184–185, 230f–231f Indian government, NGOs and, 121f, 122, 165, 165f investment profile of, 229–230, 230f–231f key differentiators of, 164 knowledge and talent requirements of, 146, 148 legal form and structure of, 145, 168 legal/regulatory environment of, 79f–80f logic model of, 58f lower-cost labor of, 33 management of, 144–146, 147f, 149f, 168, 200f–204f marketing of, 63, 116–117, 118f, 148, 203f–204f market segmentation of, 98–99 metrics and accountability of, 45, 51, 60, 62–63, 183–186 Mission for Vision Trust of, 120, 168 mission of, 49, 60, 62 operating plan and budget of, 51, 200f– 204f operations and value chain of, 50, 111–112, 116–117, 118f, 119–120, 121f opportunity of, 49, 60, 62 organization and human resources of, 50, 144–146, 147f, 148–150, 149f outreach of, 63–64, 116–117, 118f, 148, 201f–202f partnerships of, 63, 120–121, 121f promotion of, 101–102, 116–117 ratio analysis of, 169–170 screening programs of, 121, 121f, 148, 201f staffing of, 146, 148, 149f, 167, 184 strategies of, 49, 60, 63–64, 111 SWOT analysis of, 149f target markets of, 49–50, 63, 96–102, 100f, 230f training of, 64, 116, 122 transformation and, 185 unit economics of, 170–171 value proposition of, 164, 230, 230f variances of, 119–120 women and, 82f, 149f, 186, 231f See also India Vision Spring Santa Clara University, 43, 163, 266 mentoring and, 139, 140f–141f Miller Center for Social Entrepreneurship at, 139, 252, 267–268 Networked World conference at, 10 Scojo See Vision Spring SDGs See Sustainable Development Goals, UN SECI See Sankara Eye Care Institutions Sen, Amartya, 5–6, 24 Silicon Valley, 38 GSBI and, 43 mentors of, 139, 140f–141f, 257, 266–267 volunteers of, 139 Skoll Award, 102 Skoll World Forum, 3, 16 The Social Entrepreneur’s Playbook (MacMillan and Thompson), 42 Social Progress Index (SPI), 4–6, 6f, 267 social return on investment (SROI): of Grameen Shakti, 183 metrics and, 181 social value proposition (SVP) See value proposition soft loans, 213, 216f SPI See Social Progress Index Sri Kanchi Kamakoti Medical Trust, 50, 79f–80f, 145, 147f Sri Ratan Tata Trust, 78f, 122 SROI See social return on investment SSAS See Fundacion Paraguaya Self Sustaining Schools staffing: in organization, 131–132, 132f, 138–139, 154 of Sankara, 146, 148, 149f, 167, 184 stakeholder, 254 strategic initiatives: in operating plan, 194, 194f, 197f, 207–209, 210 of Video Volunteers, 207–209 strategies: of Build Change, 84 business plan and, 38, 42–43, 55–67 of Equal Access, 123 of Grameen Shakti, 46, 60–61 of Industree Crafts, 150 key, of GSBI, 57–60, 58f of Kiva, 171 logic models of, 57–58, 58f, 60, 67 Minimum Critical Specifications Checklist for, 67 of Sankara, 49, 60, 63–64, 111 of SSAS, 60, 65 of Video Volunteers, 205, 207 vision and, 253–254 of Vision Spring, 187 of ZHL, 232 strengths, weaknesses, opportunities, and threats (SWOT), 139, 154 of Grameen Shakti, 144f human resources and, 141f of Industree Crafts, 152f of Sankara, 149f subsistence: economies of, 11 markets of, 94 poverty level and, 10 supply chain, 160f global, value creation and, 32–33 of Grameen Shakti, 75 ICT environment and, 73–74, 80f–81f natural environment and, 75 unit economics and, 161–162, 174 value chain and, 66, 114–115 Sustainable Development Goals, UN (SDGs), 24, 267 of climate change, 29 of economic growth, 27 of education, 26, 31 of energy access, 26 environmental, 28–31 of gender inequality, 26, 31 of global partnership, 30–32 of health, 26, 31 of hunger, 25 of inequality, 27, 31 of infrastructure, 27, 31 of just societies, 29–31 of poverty, 25 of sustainable consumption and production, 28 systems thinking of, 30–31 of urban migration, 27–28, 31 of water and sanitation, 26 SVP (social value proposition) See value proposition Sweden, SWOT See strengths, weaknesses, opportunities, and threats tactics, 194f, 195, 208 Tanzania, 262 target market: addressable market of, 89, 91, 91f, 106–107 of Build Change, 80, 84 in business plan, 88–95 of DDD, 103–104 of Equal Access, 124 of Grameen Shakti, 47, 88, 95–97 of Industree Crafts, 151 of Kiva, 172 marketing plan for, 91f, 93–95, 107, 109 market segments of, 89, 91–92, 91f, 93f, 95, 98–99, 103–104, 104f, 107 Minimum Critical Specifications Checklist of, 106 price for, 93–94 promotion for, 93–95, 101–102, 107 of Sankara, 49–50, 63, 96–102, 100f, 230f of SSAS, 65 statement of, 88–95, 106–107 total available market estimation of, 89–91, 91f, 106 of Video Volunteers, 205–206 vision and, 253, 255 of Vision Spring, 187 of ZHL, 233 TGC See transaction governance capacity theory of change, 253–254 Thompson, James, 42 timeline, 195, 195f, 208, 210 transaction governance capacity (TGC), 11, 73 transformation: metrics of, 177–180, 178f, 185, 190 Sankara and, 185 social, 178 trickledown economics, 7, unit economics, 161–162 ability to execute and, 256, 258 of Build Change, 85 business model and, 156, 174 calculation of, 162 of DDD, 105 of Equal Access, 126 of Grameen Shakti, 163 of Industree Crafts, 153 of Kiva, 173 of Sankara, 170 of SSAS, 66 supply chain and, 161–162, 174 of Video Volunteers, 207 of Vision Spring, 188 of ZHL, 234 United States (U.S.): B-Corp in, 133–134 inequality in, poverty in, 5, Social Progress Index on, 4–5 United States Agency for International Development (USAID), 48f, 95, 228f, 229 unity (kiva), 171 urbanization, 27–28, 31 U.S See United States USAID See United States Agency for International Development valuation, 217f, 218–219, 237f, 264–265 value chain, 127 ability to execute and, 256, 258 of Angaza, 260–261 for BOP, innovation of, 28, 34 of Build Change, 85 of DDD, 104 of Equal Access, 124, 125f of Grameen Shakti, 47, 115, 116f of Industree Crafts, 151 of Kiva, 172 market creation and, 259f Minimum Critical Specifications Checklist for, 128 operations and, 109–110, 256, 258 organization, human resources and, 127f, 154 partnerships and, 114–115 of Sankara, 50, 115–117, 118f of SSAS, 66 supply chain and, 66, 114–115 of Video Volunteers, 206 of Vision Spring, 187 of ZHL, 233 See also supply chain value creation: cost-lowering mechanisms for, 32–33 social entrepreneurs for, 45 value-increasing mechanisms for, 32 venture development and, 259f value equation, 33–34, 267 value proposition, 157, 174, 267 CSFs in, 161 expense drivers in, 159, 161 of Grameen Shakti, 162–163 income drivers in, 158–159, 160f of Sankara, 164, 230, 230f social, in business model, 258 social, mission as, 253, 258 variances: of Sankara, 119–120 system, 112–113 venture capital funding, 38–39 venture development, 259f Video Volunteers (VV): business model of, 206–207 external environment of, 205 financing of, 210 GSBI and, 204–205, 207 in India, 204–206 metrics of, 207 mission, opportunity, and strategies of, 205, 207 operating plan of, 204–205, 207–209 operations and value chain of, 206 organization and human resources of, 206 strategic initiatives of, 207–209 target market of, 205–206 unit economics of, 207 vision: abhorrence and appreciation paradox in, 254 beneficiary analysis in, 255 external environment and, 253–254 mission, opportunity, and strategy in, 253–254 target market in, 253, 255 theory of change in, 253–254 Vision Spring (formerly Scojo): business model and unit economics of, 186, 188 external environment of, 187 financing of, 189 GSBI and, 186, 189 in India, 186–187 metrics of, 186, 188–189 mission, opportunity, and strategies of, 186–187 operating plan of, 189 operations and value chain of, 187 organization and human resources of, 188 partners of, 186–187 PIPP metric of, 188 target market of, 187 Viswanathan, Madhu, 94 volunteers, 138–139, 140f, 153 VV See Video Volunteers Wimmer, Nancy, 12 women, 58f, 59, 74–75 Build Change and, 85 Equal Access and, 122– 123 Grameen Shakti and, 48f, 61, 76, 77f, 144f Industree Crafts and, 150, 152f Sankara and, 82f, 149f, 186, 231f See also gender word of mouth, 94–95 World Resources Institute (WRI): on BOP spending, 19–23, 20f–21f on ICT spending, 21f–22f, 22 Writing a Convincing Business Plan (DeThomas and Grensing-Pophal), 39 Yunus, Muhammad, 142 Ziqitza Health Care Limited (ZHL): Acumen funding, 231–232, 234–235, 236f–243f, 244 board of, 239f business model and unit economics of, 234 due diligence of, 234–235 equity and, 235–236, 236f–243f external environment of, 232–233 financing of, 234–236, 236f–243f GSBI and, 231–232 in India, 231–236, 240f–241f, 243f metrics of, 234 mission, opportunity, and strategies of, 232 operating plan of, 234 operations and value chain of, 233 organization and human resources of, 234 target market of, 233 About the Authors Eric Carlson recently retired as Dean’s Executive Professor of Entrepreneurship in the Santa Clara University (SCU), Leavey School of Business, and as the director of the Global Social Benefit Incubator (GSBI®) Prior to his fifteen-year association with SCU, he spent twenty-nine years in research, product development, and executive management in Silicon Valley During that time he served as CEO of two software companies He served on several corporate and nonprofit boards of directors He also served ten years on the Los Gatos Town Council, including two terms as mayor Carlson has a BA (economics) from Carleton College in Minnesota, and an MS (city and regional planning) and PhD (computer science) from the University of North Carolina at Chapel Hill Eric married the former Marilyn Garbisch in 1967 After six years in Chapel Hill, they moved to Los Gatos, California, where they still live, and they spend summers on Ten Mile Lake in Minnesota They have two children and four grandchildren James Koch is Professor of Organizational Analysis and Management, Emeritus, and former dean of the Leavey School of Business at Santa Clara University, where he also served as acting dean of the School of Engineering He is the founder of Miller Center for Social Entrepreneurship (previously the Center for Science, Technology, and Society), cofounder of the Tech Awards—Technology Benefiting Humanity, and cofounder of the Global Social Benefit Incubator In addition to entrepreneurship and social innovation, his research and consulting focus on organizational change and the design of high-performance work systems Prior to coming to Santa Clara, he was director of Organization Planning and Development at PG&E He began his academic career at the University of Oregon where he was associate dean of the MBA and PhD programs Jim has served on a number of for-profit and nonprofit boards, including Commonwealth Club of California and the Board of Trustees of Bay Area Council Economic Institute He received his MBA and PhD in Industrial Relations from UCLA Jim and his wife, Anne, were married in 1969 They have two children and five grandchildren Berrett-Koehler is an independent publisher dedicated to an ambitious mission: Connecting people and ideas to create a world that works for all We believe that the solutions to the world’s problems will come from all of us, working at all levels: in our organizations, in our society, and in our own lives Our BK Business books help people make their organizations more humane, democratic, diverse, and effective (we don’t think there’s any contradiction there) Our BK Currents books offer pathways to creating a more just, equitable, and sustainable society Our BK Life books help people create positive change in their lives and align their personal practices with their aspirations for a better world All of our books are designed to bring people seeking positive change together around the ideas that empower them to see and shape the world in a new way And we strive to practice what we preach At the core of our approach is 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Sincerely, Charlotte Ashlock Steward of the BK Website Questions? Comments? Contact me at bkcommunity@bkpub.com ... Operations and Value Chain Process Partnerships Value Chain Social Venture Snapshots Operations and Value Chain for Grameen Shakti Operations and Value Chain for Sankara GSBI Innovator Equal Access... my career and personal life.” —Brooke Langer Building a Successful Social Venture Building a Successful Social Venture A Guide for Social Entrepreneurs Eric Carlson James Koch Building a Successful. .. Develop a Marketing Plan Social Venture Snapshots Marketing Plan for Grameen Shakti Target Market for Sankara GSBI Innovator Digital Divide Data To Recap Exercises Background Resources Chapter Operations