SOCIAL ENTERPRISE INNOVATIONS (SEI) PROGRAM Natalia Agapitova Innovation

SOCIAL ENTERPRISE INNOVATIONS (SEI) PROGRAM Natalia Agapitova Innovation

SOCIAL ENTERPRISE INNOVATIONS (SEI) PROGRAM Natalia Agapitova Innovation and Entrepreneurship Unit, T&C SEI RATIONALE 2 SEs as opportunity for inclusive growth Reduced poverty: pursue social or environmental objectives Innovation: Represent innovation from the status quo Entrepreneurship: operate on business principles Inclusive jobs: employ rural poor, youth, women, disabled Sustainability: independent of governments, aim for financial sustainability Flexibility: nimble and adaptable, close to BoP customers Shared values: reinvest profits back into business model Supports value chains: integrates

grassroots organizations 3 Legal Definition of SEs Country Examples Feature of the definition Any legal form Enterprise is to fulfill a specific purpose Restriction on distribution of profits Economic activity Italy Specifically defines the activities to be covered, unless the social enterprise employs a certain percentage of underprivileged workers Restriction of 0 percent: no distribution possible 70 percent turnover from activity South Korea

Broad pre-defined list of forms United Kingdom Provides vulnerable groups with social services or jobs or contributes to local communities Benefits social and/or environmental aims Restriction of 33 percent Restriction of 50 percent Employs paid workers and conducts business activities 75 percent turnover from activity Stakeholder participation in

X governance Absent from the working Some form of definition but features in the asset lock CIC legal form Transparency of activities Source: WBG (2016), Legal Frameworks for Social Enterprise. Lessons from a Comparative Study of Italy, Malaysia, South Korea, United Kingdom and United States 4 Improving Last Mile Healthcare Example of SE: Living Goods Empowers Community Health Workers Challenge Solution Recruit and train CHWs Inventory loan at below market interest rates Supply drugs at wholesale prices Rural poor lack effective drug treatment

Shortage of healthcare workers Counterfeit drugs Free public healthcare is geographicall y distant and unreliable, so it is NOT free for the poor Incentives Community Health Workers Door-to-door sale of health products and services: Paid on performance + 15-20% of margin from sales Part-time $15-20/month Evidence from Uganda Results Low-cost drug

procurement and distribution systems 1,200 self-employed CHWs serve 1M patients 25% decrease in child mortality, for less than $2/year per person 15-18% decrease in sales of counterfeit medicine Decrease in price of anti-malarial drugs by 1520% 5 SEI PROGRAM Products, Services and Operational Engagements 6 Snapshot of SEI Program Objective: Expand low-income markets and inclusive jobs opportunities by supporting growth of the social enterprise sector to realize its potential to generate economic, social and environmental results for the poor Products and Beneficiaries Outcomes Services Governments Innovative solutions to development challenges Sustainable solutions to poverty reduce costs to governments

Social Entrepreneurs Improved access to funding and capacity development Growth of SE sector, e.g. New social enterprises Improved SE results Women/youth entrepreneurs WBG and Donors Reduced cost of Inclusion Jobs for marginalized poor 7 SEI Operational Engagements SURR: Tunisia (P4R); T&C/SP IDF Ecosystem diagnostic of SE sector Support government on strategy design for SE sector development in poor regions Jobs for youth and women SP: Morocco (IPF) Support regional knowledge exchange among MENA countries on results of SE sector Ecosystem diagnostic to support policy reforms CMU: Guinea Bissau (Strategy), Ghana (Strategy), Gambia (Strategy) Knowledge sharing Conduct ecosystems diagnostics

Support multi-stakeholder dialogue T&C: Colombia (DPL) Ecosystem diagnostics Facilitation of policy design for using SEI to support sustainable growth and income convergence GOV Liberia (IPF) Support design of the SE incubator and share international experience Learning for policy makers HNP: Benin (IPF) Help implement SE innovations to advance project implementation to improve nutrition outcomes Learning for community managers SURR: Azerbaijan (IPF) Policy dialogue and facilitation of knowledge exchange among on uses of social enterprises to improve results of decentralization Ecosystem diagnostic of social enterprises in rural contexts AG: South Sudan (IPF) Capacity development for the

government to surface and support SEs to improve agricultural productivity and food security T&C: Ethiopia (TA) Capacity development for the MSME Development Agency, and the Ethiopian Entrepreneurships Development Centre to identify mechanisms of support to SE sector Governance: Kenya (P4R) Facilitate public-private dialogue between SEs and the government to improve service delivery to the poor Learning for policy makers on use of SEs for service delivery Education: India (P4R) Build capacity on crowdsourcing tools and methodologies Identify SE models for youth skilling at scale E-learning course for SEIs Water GP: India (PA, TA), Indonesia (PA), Philippines (PA) Analyze SEs supported through WASH facilitate multi-stakeholder dialogue Design and implementation of competition to surface

SEIs in solid liquid waste management 8 Ecosystem Diagnostic Methodology for SE ecosystem diagnostic Diagnostic toolkit Understand constraints and opportunities SE Survey tool Ecosystem diagnostics from 19 countries in SAR, AFR, MENA Database of ecosystem diagnostics from partners 9 Design Operation s Catalogue of policy instruments to support the SE sector 10 Capacity Building Policy dialogue, public-private

dialogue Research on rationale for Government support to SE sector Analysis of SE policies in 40 countries (with 14 case studies) Database of Business Model Innovations and social enterprises with proven results Course for public sector officials on how to engage social enterprise sector in SDGs Training for implementation agencies Capacity development of SE enablers Training for social entrepreneurs (F2F or e-learning) 11 Systemati ze learning Decentralized water treatment ATMs (Waterlife) Serviced Toilets (Sanergy) Last mile grid connection (Barrio Electrico) Solar home systems (Mobisol) Access to

WASH Access to Energy Specialized clinics (salaUno) Telemedicine (Meradoctor) mHealth (Dimagi) Low Cost Chain Schools (Bridge) Teacher Quality (STIR) School Ratings and Management (Gray Matters) Affordable Health Services Improving Educational Outcomes Empowering Community Health Workers (Living Goods) Mobile Health Clinics (Rides for Lives)

Last Mile Collect and aggregate evidence and lessons from social enterprise innovations Curate knowledge in a user-friendly format (briefs, how-to notes, case studies) Advance the SE research agenda with partners Disseminate through existing platforms like the Innovation Policy Platform Quality Health Access Agriculture Productivity (Esoko) Media-based farmer education (Digital Green) Agricultural Productivity 12 DISCUSSION What can we do to support the Human-Centered Business Models? 13

Inclusive Economic Opportuni ties Support livelihoods opportunities and job creation for marginalized poor Scale SE innovations for upskilling Improve policies for SE support Increase entrepreneurship opportunities by providing training at scale 14 Private Sector Solutions for Skills Building Examples Yuva Parivartan: from Vocational India training for schools dropouts Learning Centers Skills Outsourcing Financing Upskilling Skills Matching Platforms Avanti Learning Centers: Science/math training to prepare lowincome youth for college entrance

Center for Digital Inclusion: ICT courses and Internet access for marginalized poor TARA Akshar: Interactive Hindi literacy program for women in rural India using laptops iMerit (India): provision of Human-Assisted computing services, while also helping raise people above the poverty line through upskilling and the creation of digital jobs UpSkill: Finances technical/vocational training, job placement. Students repay 22.5% of their salary when they enter paid six-month internships after completing their training. Milaap: Online platform enables lending to low-income Indians. Joblinked training for youth provides rural people in the informal sector with skills. Babajob.com (India): web/mobile platform to connect employers and informal sector workers (e.g. maids, cooks, drivers, etc.). Job seekers have access to better paying, closer job opportunities that are easily and cheaply available on their mobile phones. 15 Refugees and Migrants SE Solutions to address the cycles of poverty that begins in refugee camps Improve employment opportunities (improve skills and employability of refugees, support refugee entrepreneurs, integrate refugees in local labor markets) Address the service delivery challenge at scale (sustainable, clean, low-cost, refugee-powered solutions) Improve security and reduce violence

against women and children Promote access to finance through SEs Crowd-in private sector solutions Build Government capacity to partner with SEs 16 Improving Educational Outcomes Example of SE: Bridge Academy provides quality education to low income students Challenges: Poor quality education in low income areas impedes educational attainment and limits income potential SE: Bridge Students

Results Provides standardized content, ensuring quality of material being delivered in a timely manner Centralized administration and other features lowers costs Employs and trains from the local community Families pay $7/month a cost about the 1/3 of government expenditure per pupil Over 450 primary schools serving over 100,000 students National exams mean score of 264, with 250 being passing. Bridges pioneer students had a 40% higher chance of passing the national primary exit exams than their counterparts 17 Improve resilience to conflict Nurturing SE sector to uproot sources of violence Support community-based solutions to prevent conflict and violence

Mobilize SEs for service delivery (sustainable, clean, low-cost) Cultivate young businesses in fragile markets Support replication and scale of inclusive innovations in lowincome markets Build inclusive value chains through SE support 18 Improving Agricultural Productivity Example of SE: Esoko Extension Service Model Empowers Farmers Challenges: Poor flow of real-time market information within agriculture sector among farmers and traders that affects supply and demand SE: Esoko

Farmers Results Esoko provides SMS messages on weather, market prices, farming tips Call centers to answer questions Connects them to traders Mobilizes local community leaders Subscribers pay a small fee to receive SMS with price information Over 350,000 farmers served in 10 countries Esoko clients experience 11% increase in income, solely based on access to price information Esoko has reduced cost of transacting business and searching for market information Due to greater price transparency, farmer have gained greater negotiating power 19

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