Social Entrepreneurship

The Movement, Arthur Morgan & Antioch College

Social Entrepreneurship Defined

Combining business principles with the passion for a social mission to make a positive contribution and build healthy communities.

Social entrepreneurs are “transformative forces: people with new ideas to address major problems.” – David Bornstein

Social entrepreneurs see opportunities and boldly capitalize on them in new and innovative ways!

The Social Enterprise

Social enterprises combine a community mission with earned income and sustainable operating and financial practices.

Social enterprises are businesses that reinforce the local economy by keeping more income and jobs within the community.

Social enterprises may be developed by nonprofit organizations or by individual entrepreneurs.

Spectrum of Social Enterprise Business Models

Motives, Methods & Goals

Appeal to Goodwill

Mission-Driven

Social Value Creation

Mixed Motives

Balance of Mission and Market

Social and Economic Value

Appeal to Self-Interest

Market-Driven

Economic Value Creation

Key Stakeholders

Beneficiaries Pay Nothing Subsidized rates, and/or mix of full payers and no

payers

Pay Full Market Rates

Capital Providers

Donations and Grants

No Financial ROI

High SROI

Below-market capital and/or mix of donations and market rates capital

Market Rate Capital

Work Force Volunteers Below-market wages and/or mix of volunteers

and fully paid staff

Market Rate Compensation

Suppliers Make in-Kind Donations

Special Discounts and/or Mix of in-Kind and full

price

Charge Full Market prices

Create Jobs /Serve Mission Make Money

Low SROI

Medium to High FROI

Examples of Social Enterprises

• Global Exchange is an international human rights organization dedicated to promoting political, social and environmental justice globally. Since their founding in 1988, they have been working to increase global awareness among the U.S. public while building partnerships around the world. – Global Exchange crafts stores and the online store feature

products from around the world. Their stores are an alternative to sweatshop production and are part of the international Fair Trade movement, generating income for thousands of artisans, farmers and their families in dozens of countries throughout the world.

– Unlike traditional tourism, Global Exchange's Reality Tours give travelers hands-on opportunities to explore the crucial issues facing the world and examine how the US's economic and foreign policies impact other countries.

Examples of Social Enterprises

• The Benetech Initiative is a non-profit venture that provides social benefits by harnessing the power of technology in fields where these applications are not commercially viable. – Bookshare.org is a legal book-sharing community of

people with disabilities, meeting the stringent copyright law exemption for providing accessible books.

– The Martus Project provides critical tools for the reporting and dissemination of human rights information, improving the effectiveness of the human rights sector worldwide.

– The Landmine Detector Project will fill the marketability gap between exciting new technologies developed by U.S. Department of Defense and the needs of humanitarian landmine removal efforts around the world.

Examples of Social Enterprises

• Pioneer Human Services– Pioneer is an entrepreneurial nonprofit organization

providing employment and training, social services, and housing to individuals who were formerly incarcerated and/or former substance abusers.

– The program is a combination of correctional services (work-release facilities), substance abuse services, behavioral health services, drug and alcohol-free housing, and employment in one of Pioneer’s businesses -- food service, food distribution, construction, and manufacturing.

– Pioneer has nearly 1,000 staff and a budget of over $55 million to provide services to about 6,500 clients every year.

Arthur Morgan of Antioch: A Continuing Legacy

First Social Entrepreneur in Academia

Historical Setting

Horace Mann, Antioch's first president, in 1853, envisioned a program stressing the development not only of the intellect but of the whole personality, especially the individual's social conscience and competence.

The Arthur Morgan Era

Arthur Morgan, upon assuming the Presidency of Antioch in 1920, developed a program he called industrial education, based on teaching students to be entrepreneurial. It was a program that combined the vocational with the liberal arts curriculum.

The cooperative work-study program, adopted in 1921, was developed to better achieve Horace Mann’s goals.

But it also recognized the changing American scene from an agrarian to an industrial democracy

Arthur Morgan’s View of Business

"My picture of American business is not of choice between big business and little business, but of normal distribution, just as there is normal distribution between large and small in a primeval hardwood forest. Let that which is most effective if big remain big, that which is most effective if middle-sized remain middle-sized, and that which is most effective if small remain small; each respecting the functions of the other.“

Arthur E. Morgan

Morgan’s Relation of Entrepreneurship and Education

Both to help provide suitable jobs for students and to find support for the College outside of endowment and the gifts of friends-and also perhaps to weld the College… into the vocational-liberal whole which he desired - Mr. Morgan planned to establish a group of small industries on the Antioch campus…in a building to be erected by the College and with accounting and other services furnished…”

The relation of this whole scheme to Mr. Morgan’s larger goal, the speeding up of social evolution is clear. Small proprietors …could create [their] own small world of better business practices and finer living. Each man and woman could…become a center of regeneration in community living…Higher education had often condemned…the world’s practices but had been unable to change them. The point of the Antioch experiment was to produce men and women who could be practical agents of change.”

Antioch College: Its Design for Liberal Education Algo D. Henderson (1946)

Industrial Education and Its Impact On Antioch and Yellow Springs

– Co-op Job Program– Business Administration Program– Science Building & Technology Classes– Community Governance– Community Development– New Faculty Housing– Small Business Start-ups: Vernay Labs, YS

Instruments, Bean Foundry, Nosker Engineering, Velsey Co, Antioch Bookplate, Antioch Press, Mazzolini Art Foundry, Metcalf Stained Glass, Vie Design, Axel Bahnsen Photography, et al

Why New Industries Came to YSO

“By and large what has attracted outsiders to start their little industries in the village is its general atmosphere. They like its variety of outlooks and interests…the old time neighborly friendliness…The securing and developing of community industries is not just a matter of getting factories located…It means building a total life and environment in which interesting and competent people will like to participate in [and] feel that they are not just cogs in a machine but…associates in an undertaking they can hold in high regard.”

“In Yellow Springs this has expressed itself in employee ownership, representation on boards of directors, profit sharing, absence of discrimination, and [etc.]”

“Antioch has sponsored or incubated …activities…which add variety to the community…and its attractiveness as a place to live and work”

Arthur Morgan, Industries for Small Communities, 1953

Social Entrepreneurship: An Emerging Movement

Organizations, Resources and Academic Programs Emerge

A Basis for Social Entrepreneurship in Education

Social Justice and Environmental Movements

The Local Economy Movement Social Enterprises “Mutant Managers” The Venture Philanthropy Movement Social Entrepreneurship in Academia

and a Social Entrepreneurship Center

Right to a Decent Quality of Life

“We believe that all persons should have their ‘basic human needs’ fulfilled, regardless of class, gender, race, ethnicity, citizenship, religion, age, sexual orientation, disability, or health.

This includes the eradication of poverty, the establishment of sound environmental policy, and equality of opportunity for healthy personal and social development. “

Green Party Statement of Purpose

Martin Luther King, RFK, and Economic Opportunity

“We must create full employment or we must create incomes. People must be made consumers by one method or the other. Once they are placed in this position, we need to be concerned that the potential of the individual is not wasted. New forms of work that enhance the social good will have to be devised for those for whom traditional jobs are not available.”

Martin Luther King, 1967

"You could pass a law to permit a Negro to eat at Howard Johnson's restaurant or stay at the Hilton Hotel. But you can't pass a law that gives him enough money [to do so]."

Robert F. Kennedy, 1964

“The world cannot exist half prosperous and half in starvation.”

Arthur Morgan, c. 1920

The Local Economy Movement

Arthur Morgan believed that creating entrepreneurial, community minded small businesses would help revitalize the small communities of America.

The present day local economy movement, spearheaded by organizations like BALLE http://www.livingeconomies.org, and AMIBA http://amiba.net, is dedicated to:

* Establishing and revitalizing small local businesses.

* Structuring business ownership for community accountability.

“Mutant Managers”

• A new generation of community leaders is needed to run social enterprises, "mutant managers” who can blend the skills needed to successfully run a business with the empathy and general knowledge to successfully pursue a community mission. The college and university have a role to play in their training.

The Venture Philanthropy Movement

The venture philanthropy movement, spearheaded by organizations like Social Venture Partners http://

www.svpseattle.org/, http://www.svpintl.org/, Social Venture Network, http://www.svn.org/

, Roberts Foundation, www.redf.org/, is about investing in activities that support and meaningfully change the community.

The Venture Philanthropy Movement

Is not about conventional notions of charity.

Is about “teaching people to fish and learning to run the best fishing business” rather than “giving them a fish.”

Is a movement based on creating successful outcomes and changing people’s lives for the better.

Will be a likely source of support for social enterprises and training social entrepreneurs.

Social Entrepreneurship and Academia

• Individual Courses in an increasing number of Colleges and Universities

• Social Entrepreneurship Business Plan Competitions: Yale, Columbia/Berkeley, et al

• USASBE Social Entrepreneurship Interest Group-(Faculty members from IL,ID,NJ, KY, TX, WA, CA, NY et al)

• Minor in Social Entrepreneurship at Sterling College, KS

The Social Entrepreneurship Center:Institute for Social Entrepreneurship

Roberts Wesleyan College

An Integrative Strategy for Entrepreneurial Community Development

Strengthen community nonprofit charitable agencies.

Enable small businesses to find more secure market niches in face of increased outside competition.

Lay the foundation for future strong local small businesses through youth entrepreneurship training.

Strengthen the local economy through all the above.

The Social Entrepreneurship Center:Institute for Social Entrepreneurship

Roberts Wesleyan College

A Sustainable Program Teaching Sustainability

Social Justice Principles Raising people out of poverty Giving young people more marketable skills

Principles of Socially Responsible Business Development Reconciling community mission with making

money Environmental and Organizational

Stewardship

Next Steps in Social Entrepreneurship

How can the groundbreaking ideas of Arthur Morgan be “refreshed” to aid in the

transformation of Antioch?

Finding Partners

• Partners for Co-op Job placements might include community centered social enterprises such as:

– Dragonfly Media, Seattle, WA/ Pioneer Human Services, Seattle, WA/ The Lighthouse for the Blind, Seattle, WA/ Real Change, Seattle, WA

– Housing Works, New York City/ The Fifth Avenue Committee, New York City

– Rubicon Industries, Richmond, CA/ Golden Gate Community, Inc., San Francisco, CA

– Furniture Resource Centre, Liverpool, England UK – Faithworks, Lewiston, ME/ East End Kids Katering,

Portland, ME– Benetech, Palo Alto, CA

Finding Partners

• Partners in the Antioch Transformation might include:– Community Development Corporations– Junior Achievement– School to Work programs– Foundations– Social Enterprises– Small Business Associations– Small Business Incubators– Micro-lenders– Young Entrepreneur Groups

Marketing Antioch

• Using Arthur Morgan as a marketing icon as corporations have used their CEO’s as icons (“from TVA to intentional communities”)

• Linking Morgan’s ideas to other famous entrepreneurs who help their community and the world, e.g. Bill Gates and relationship of Microsoft to work of the Gates Foundation

• Marketing Antioch to students through Net Impact (formerly Students for Social Responsibility)

• Marketing Antioch to students and funders through the Social Enterprise Alliance, the trade association of Social Enterprises

• Market to students and foundations through USASBE-U.S. Assoc. for Small Business and Entrepreneurship (academic organization)

• Market Antioch to supporters through the Social Venture Partners, the Social Venture Network, Business for Social Responsibility, and the Young Entrepreneurs Organizations

Marketing Antioch (con’t.)

• Marketing Antioch as a Conference Venue• Establishing an annual Academic Social

Entrepreneurship Conference• Establishing an Arthur Morgan Social

Entrepreneurship Institute• Establishing an Arthur Morgan Academic

Symposia Series – Social Entrepreneurship– Rural Economic Development– The Small Community and the Local Economy– Alternative Currency and Barter Programs– TVA and the Roosevelt Era

A Social Entrepreneurship Curriculum

Introduction to Qualitative and Quantitative Research Methods

Conflict and Conflict Resolution International Law and Justice Media and Social Change Environmental Movements and Social Change Urban Environments Introduction to Communications Social Change and Justice in the History of Economic Thought Social Action and Environmental Justice: Mechanisms of

Change from Individuals to Communities Environmental Journalism Co-op Education Internships

Note: All above are existing Antioch College Courses

A Social Entrepreneurship Curriculum

Basic Principles of Entrepreneurship The Entrepreneur as Change Agent Community Organizing and Social Enterprises Entrepreneurs and the Future: Integrating Global and Local

Culture Ethics and Philosophy of Social Enterprises Cause-Related Marketing and Purchasing Designing a Social Enterprise: Balancing Mission, the

Community Good, and Making Money Managing the Social Enterprise: Reconciling the Social Worker,

the Artisan, and the Entrepreneur Measuring Outcomes and Determining Return on Investment Writing a Mission/Money Business Plan for a Social Enterprise Entrepreneurship for the Artist Multi-Media Literacy and Social Entrepreneurship Teaching Entrepreneurship to Disadvantaged Youth

Next Steps

• Locate a lead donor(s) for Phase 1 of the Morgan Social Entrepreneurship Program.

• Phase 1 = 1 endowed chair, 2 scholarships, 1 introductory College Community Entrepreneurship course.

• Develop an Advisory Board of entrepreneurship faculty, Antioch faculty/staff, and community entrepreneurs.

• Enlist the interest of the Morgan family in lending their name and prestige to this project.

About This Presentation

• This presentation was authored by Mark Pomerantz, Antioch College ’71 in response to the College Transformation Plan. “The roots of the Transformation of Antioch are in the work of Arthur Morgan and his followers, true social entrepreneurs”.

• Mark Pomerantz is a social entrepreneur and the founder of Social Profits. (www.socialprofits.com)