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Über dieses Buch

A silent revolution is underway, as entrepreneurs challenge prevalent notions of business motives and methods to invent market-based solutions to eradicate social injustice. Yet many fail to succeed. Based on original research, the authors uncover why impressive solutions fail to scale up, featuring global case studies and practical solutions.

Inhaltsverzeichnis

Frontmatter

Introduction

Introduction

A silent revolution is underway initiated by social entrepreneurs – pragmatist visionaries who are challenging prevalent notions of business motives and methods to invent market- based solutions to eradicate social injustice. Yet, to succeed and reach scale, they need help from within the social and economic systems they intend to change. This book is a call to arms, encouraging each of us to join this mutiny.

Olivier Kayser, Valeria Budinich

Solutions that work

Frontmatter

Chapter 1. Faces of poverty

This book is about children born in a favella in Rio or a rural village of Bihar, women and men who struggle to make a living and sustain their families. Their lives are so different from our lives in rich countries and yet so similar, filled with joy and pain, love and loneliness.

Olivier Kayser, Valeria Budinich

Chapter 2. Social entrepreneurs and “system change” strategies

A particular breed of entrepreneurs understands the systemic nature of the causes of poverty and has designed effective strategies to tackle them. While they may be tackling a particular issue, as we will see in this chapter (rural distribution for Satyan, property rights for André and intellectual property for Ron), they understand the complex, interwoven set of obstacles faced by the poor. The following stories of these three social entrepreneurs will make this argument better than we ever could.

Olivier Kayser, Valeria Budinich

Chapter 3. Why focus on market-based social innovations?

This book has been “in the works” since 2008. At that time, “business” approaches and “ market- based” forces were all the rage. Development aid was deemed “fatal,”29 and “philanthrocapitalists” were welcomed as the new saviors.30 One major financial crisis later, government intervention is back with a vengeance and capitalism has turned from a superhero into a villain to be rehabilitated with a healthy dose of regulation.

Olivier Kayser, Valeria Budinich

Chapter 4. Cooking

However little there is to put in the pot, all families have to cook. In many different places all over the world, to braise, broil and boil food, open fireplaces are fueled with some form of biomass: wood, charcoal or dry cow dung. This traditional practice, which seems to define humanity, is possibly one of its most devastating. Close to three billion people spend a share of their daily schedule or income in obtaining this cooking biomass: in India, for example, biomass represents more than 5 percent of household expenditures – and that is not even including the time spent collecting “free” biomass, with women and girls gathering wood for two to three hours each day.35 Worse still, cooking on an open fire creates toxic fumes, causing asthma and other respiratory diseases. According to the World Health Organization, indoor air pollution kills over four million people each year, mainly women and children – more than malaria does!36

Olivier Kayser, Valeria Budinich

Chapter 5. Lighting

Nearly 20 percent of the world’s population, 1.3 billion people, live without electricity, most of them in rural sub-Saharan Africa, India, Bangladesh and Pakistan.47 In addition, one billion more suffer from very poor service from the local electric utility, with frequent electricity cuts that plague cities in the developing world.

Olivier Kayser, Valeria Budinich

Chapter 6. Housing

Today close to one billion people live in slums, and this figure could grow to three billion by 2050 if nothing is done.57 Indian urban areas alone need over 22 million new homes – and this is only counting households earning $82 to $491 per month who might be able to afford a home.58

Olivier Kayser, Valeria Budinich

Chapter 7. Drinking water

Today, more than one in three people do not have access to safe water.71 This partly explains why diarrhea remains so widespread, and kills over 760,000 children every year.72 Given that an estimated one- half of the world’s hospital beds are filled with people suffering from water- related illnesses, diarrhea could cost over 73 million working days per year to the Indian economy, and 20 percent of Nigeria’s GDP. But lack of safe water also has many other implications: in Africa and Asia, women walk an average of 6 km per day to fetch water for their family. Tens of millions of children skip school to help their mothers with the water chores.

Olivier Kayser, Valeria Budinich

Chapter 8. Financial services

There are 2.5 billion adults in the world who are unbanked.75 Two out of three adults worldwide cannot access credit in order to grow their business, finance the acquisition of a home or any appliance that would make their life easier.

Olivier Kayser, Valeria Budinich

Chapter 9. Boosting profitability of small farmers and micro- entrepreneurs

As we have seen, there are ample opportunities to improve the lives of poor families by providing them with valuable, affordable products and services. While the boundaries between domestic and economic uses are often blurred (such as the photovoltaic lamp that helps children to study and parents to work at night), the products and services we have described so far were not primarily aimed at improving income generation. This chapter turns to some of the solutions that focus on enhancing income generation by boosting the profitability of small farmers and, more generally, micro- entrepreneurs.

Olivier Kayser, Valeria Budinich

Chapter 10. When markets fail

The reader will undoubtedly have noted the conspicuous absence from the preceding chapters of some of the issues included in the Millennium Development Goals: hunger, universal education, child health, maternal health or gender equity.

Olivier Kayser, Valeria Budinich

Obstacles to scale

Frontmatter

Chapter 11. Social entrepreneurs – size or influence?

The social entrepreneurs at the origin of the innovations we have seen in the previous chapters understand better than anyone their market and the possibilities of their solutions. They have immense creativity, leadership and determination. Yet so many fail to achieve the scale of impact they were envisioning that helping to “scale up” innovations has become a new buzzword in the philanthropic community.

Olivier Kayser, Valeria Budinich

Chapter 12. Corporations – the incumbent dilemma

Multinational corporations (MNCs) have a key role to play in accelerating the scaling up of social innovations, by leveraging their networks, brands and capabilities. They can also benefit from this involvement, tap into growth opportunities, stimulate their innovation and provide meaning to their employees and customers.

Olivier Kayser, Valeria Budinich

Chapter 13. Bridging the business– citizen sector divide through hybrid value chains

As we have seen in Part 1, there are vast opportunities for social businesses, both corporation- led and social enterprise- led. The “for profit” and “not for profit” sectors differ in their aims: maximizing profit or maximizing impact. However, what should be a fine borderline has become a wide “no man’s land” often plagued by mistrust and misunderstanding.

Olivier Kayser, Valeria Budinich

Chapter 14. Marketing – from needs to wants

The chapters of the first part of this book have shown that a number of affordable products exist that can improve the lives of the families living at the BoP. While existing products can and need to be improved, they are already “good and affordable enough”: improved cookstoves could limit the toxic fumes that still kill four million people per year.143 Similarly, costing between $20 and $40, water purifiers could prevent the deaths of 3.4 million people per year as a result of waterborne diseases.144 Yet too many BoP families still do not buy these products.

Olivier Kayser, Valeria Budinich

Chapter 15. Sales and distribution – the longest mile (or, fortune at the end of the road?)

The previous chapter has described lessons drawn from successful marketers of innovative products for the BoP. Here we turn to the less glamorous but vital task of actually getting the products into the hands of their intended beneficiaries.

Olivier Kayser, Valeria Budinich

Chapter 16. Financing social Businesses

The social sector has been thrilled at the sight of the global financial community bringing its formidable resources and capabilities to its rescue. Financiers were also thrilled to redeem themselves by using their skills to solve our world’s problems.

Olivier Kayser, Valeria Budinich

Chapter 17. The role of philanthropy

As we have mentioned several times in this book, our focus on market- based approaches to social problems does not in any way suggest that straight “giveaway” programs should be disregarded. In the conclusion of Part 1 (when markets fail), in particular, we discussed how they are indispensable to help the “ ultra- poor,” in emergency situations and to fund programs for which the outcomes are too distant and uncertain.

Olivier Kayser, Valeria Budinich

Conclusion – are we reinventing capitalism?

For two thousand years people believed that the sun and all the stars of heaven were circling around them… It has always been taught that the stars are pinned to a crystal vault… Today we have found the courage to let them soar through space without support… Overnight the universe has lost its center, and by morning it has countless ones… Suddenly, there is plenty of room.

Olivier Kayser, Valeria Budinich

Backmatter

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