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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

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Structure of Philippine Society

Pulse Asia: July 2005

33 out of 100 Filipinos are poor

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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 www.fssi.com.phfssi@fssi.com.ph