SE as Game Changer for the SDGs

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1 SE as Game Changer for the SDGs Marie Lisa Dacanay, PhD President, Institute for Social Entrepreneurship in Asia Opening Plenary: Social Enterprises and SDGs Second Social Enterprise Advocacy and Leveraging Conference September 27, 2017 Bali, Indonesia

2 SE as Game Changer for the SDGs CONTEXT SOCIAL ENTERPRISES, SOCIAL ENTREPRENEURSHIP and the SDGs SE SECTOR CHALLENGES as GAME CHANGER for the SDGs TOWARDS an SE SECTOR AGENDA as GAME CHANGER for the SDGs in ASIA: 5 Cs

3 Context DEVELOPMENT PARADOX of high growth with continuing poverty worsening inequality dim prospects for sustainability RESOLUTION rests on GAME CHANGERS CHANGE CHANGERS of VISIONS and MINDSETS, STRATEGIES and MEASURES effectively engage GOVERNMENT and CORPORATE ACTORS in PARTNERSHIPS to bring about development outcomes at SCALE SDGs: broadly shared vision for change SOCIAL ENTERPRISES: GAME CHANGERS in achieving SDGs WHAT can SOCIAL ENTERPRISES do as game changers and WHAT can SOCIAL ENTREPRENEURSHIP offer?

4 Social Enterprises, Social Entrepreneurship and the SDGs KEY SEGMENTS of SOCIAL ENTERPRISES ADDITIONAL EXAMPLES of SOCIAL ENTERPRISES SERVCES PROVIDED by SOCIAL ENTERPRISES to POOR and MARGINALIZED SE and SDGs: SOCIAL ENTERPRISE and SOCIAL ENTRERPENEURSHIP ISEA-INITIATED SOCIAL ENTREPRENEURSHIP PLATFORMS: PRESENT; BENCHMARKS for TRANSFORMATIONAL PARTNERSHIPS and WEE in AVCs ISEA ENGAGEMENTS with MULTILATERALS and CORPORATES

5 Key Segments of Social Enterprises (ISEA, 2015) Fair Trade organizations Trading development organizations New generation social enterprises Social mission-driven microfinance institutions Social cooperatives Social enterprises delivering social services *Environment and biodiversity-friendly social enterprises *Social enterprises pursuing women s economic empowerment

6 Lemon Farm & Association of Thai Fisherfolk Federation s Fisherfolk Enterprise (Thailand) Lemon Farm Cooperative, owned by 28,000 consumer and producer HHs, serves as major market channel for 3,000 organic and natural agricultural products Market channel for Fisherfolk Enterprise s Blue Brand certified fish and seafoods developed in partnership with Oxfam Blue Brand: fresh, responsibly fished and formalin-free

7 Bote Central and Philippine Coffee Alliance Intervention in the Coffee Subsector (Philippines) Coffee for Life : assisted women and men small producers to produce coffee beans to process and market their own coffee brands to get a more substantive share of the wealth created in the coffee value chain 34,000+ farming HH members engaged thru CBCEs nationwide CBCEs: 50+ COMMUNITY-BASED COFFEE ENTERPRISES; 26 OWNED & MANAGED BY FARMERS,WOMEN AND YOUTH

8 Rumah Sehat Terpadu Dompet Dhuafa: hospitals dedicated to the poor (Indonesia) Funded through Islamic blended finance, Dompet Dhuafa (DD) has, since 2012, established 4 hospitals dedicated to providing free quality health services to the poor services 150,000 persons/year DD collects health insurance from government as part of its hospital revenues DD is inaugurating its 5 th hospital today and expects to build 5 more hospitals by 2018.

9 Services Provided by Social Enterprises to the Poor and Marginalized (Dacanay, 2012; ISEA, 2015) TRANSACTIONAL SERVICES SOCIAL INCLUSION SERVICES TRANSFORMATIONAL SERVICES Oriented at assisting the poor to become effective workers, suppliers and clients (marketoriented) fee-based on nonfee based Oriented at providing the poor immediate access to basic needs and social services non-fee based Oriented at enabling the poor to overcome their capability deprivation and become actors in their own development individual or group-directed Examples: training to satisfy quantity, quality and delivery specs of market; product development and marketing; savings, credit and microinsurance Examples: education; supplementary feeding programs; setting up community-based systems for water, health and sanitation; Examples: organizing the poor into self-governing associations; leadership development; capacity building on gender issues

10 SE and SDGs SOCIAL ENTERPRISES as game changers Social Mission Driven Main reason for being improve quality of life of marginalized contribute to poverty reduction or alleviation Wealth Creating Generate positive social, environmental & economic value % or all of revenues are generated through sale of products or services Distributive Enterprise Philosophy Much of value & wealth created accrues to, benefits or distributed to the poor and marginalized as primary stakeholders SOCIAL ENTREPRENEURSHIP as game changing strategy to achieve scale recognizing, growing & mainstreaming social enterprises as key partners in multi-stakeholder innovation platforms to enable the poor/marginalized and women at the grassroots (a) to become stakeholders in developing inclusive, sustainable economies; (b) to partake of the value & wealth created in ways that transform their lives, communities and living environments.

11 Poverty Reduction through Social Entrepreneurship (PRESENT) founded 2012 PRESENT Bill: Stakeholders Version CODIFIES WHAT PRESENT COALITION SEES AS A POLICY ENVIRONMENT CONDUCIVE TO SOCIAL ENTREPRENEURSHIP IN THE PHILIPPINE CONTEXT

12 Major Feature of PRESENT Bill: Developing Social Enterprises as Partners of Poor in Strategic Economic Subsectors Strategic Economic Subsectors as Units of Planning achieve scale and sustainability of impact have potentials for growth large numbers of the poor are players or could become players Examples of strategic economic subsectors where social enterprises are already playing key roles: muscovado sugar, coffee, coco coir, cacao, organic rice, banana, essential oils, livestock, bamboo, educational toys, school chairs

13 PRESENT Coalition Proposals: Incentives for Social Enterprises Special allocation/preferential treatment in government procurement including coverage of performance bonds Tax exemptions and tax breaks/incentives for SEs and social investors Cash incentives (i.e. at least 25% of minimum wage for social enterprises employing PWDs)

14 PRESENT Coalition Proposals: Support Programs for Social Enterprises Provision of accessible non-collateralized loans thru special credit windows with a Guarantee Fund Pool Comprehensive insurance system to reduce vulnerability to climate change/calamities Resources for comprehensive capacity development for SEs and poor as partners Social Enterprise Development Fund R&D on strategic economic subsectors; appropriate technologies; and innovations to democratize access of poor to quality basic social services Market development program promoting the principles of fair trade and ethical markets Recognition and support for LGUs to effectively partner and develop social enterprises Mainstreaming of SE content in formal educational system

15 BENCHMARKS for TRANSFORMATIONAL PARTNERSHIPS and WOMEN S ECONOMIC EMPOWERMENT in AGRICULTURAL VALUE CHAINS: 6 Ps WEE SERVE ASIA CONFERENCE endorsed a multi-stakeholder innovation platform around benchmarks developed by ISEA from a study of SE best practices 1 PROMOTE APPROPRIATE TECHNOLOGY & COMMUNITY-BASED INNOVATIONS that are friendly to women and men small scale producers and CONTRIBUTE TO SUSTAINABLE CONSUMPTION and PRODUCTION. 2 - PROGRESSIVELY POSITION women and men SMALL PRODUCERS to REAP a MORE SUBSTANTIVE SHARE of VALUE CREATED OVER TIME, while BUILDING THEIR RESILIENCE to disasters. 3 - PAVE THE WAY for the EMPOWERMENT of women and men SMALL PRODUCERS to become actors in their own development and that of their community and sector and to BECOME STEWARDS OF THE NATURAL RESOURCE BASE SUSTAINING THEIR LIVELIHOODS. 4 - PROVIDE a COMBINATION of TRANSACTIONAL and TRANSFORMATIONAL SERVICES for women and men small producers to more effectively participate in value chain and community/ sectoral development. 5 PROACTIVELY CHOOSE VALUE CHAINS and INVEST IN VALUE CHAIN DEVELOPMENT PRACTICES that ENHANCE WOMEN S PARTICIPATION and EMPOWERMENT 6- PRODUCE MEASURABLE OUTCOMES of TRANSFORMATION at the level of women and small producers, households and communities, and value chains and subsectors.

16 ISEA ENGAGEMENTS with MULTILATERALS and CORPORATES MULTILATERAL AGENCIES UNESCAP and Asia-Pacific Forum on Sustainable Development AP-RCEM Social and Community Enterprise Constituency; Bilateral engagement with UNESCAP Units Other UN Agencies: UNCTAD (Business Schools for Impact Asia Initiative); UN Women (Benchmarks for Transformational Partnerships and Women s Economic Empowerment in AVCs) Asian Development Bank Inputs for Strategy 2030, Chronic Poverty Advisory Network (CPAN) ASEAN SE and Benchmarks for TP and WEE in AVCs; GROW-Asia CORPORATE SECTOR Partnership with Jollibee Foundation Training on Transformational Models in AVCs: Perspectives & Tools for SE & Inclusive Business (IB) Practitioners MOA for Documentation of SE-IB Models (PBSP) APEC Business Advisory Council ASEAN Inclusive Business Summit ASEAN Responsible Business Forum Asian Forum on CSR Transformational Business Network Asia ASEAN CSR Network/CSR Asia (GRAISEA)

17 SE SECTOR CHALLENGES as GAME CHANGER for the SDGs Many models and successful SE initiatives exist but not effectively communicated SE sector fragmented but has started to come together in a learning community around models and best practices Some icons from SE sector recognized but capability of the sector to engage other sectors and to scale up impact as national/regional partners in SDGs not adequately developed SE supporters exist but there is still a general lack of knowledge and understanding by civil society, state, multilateral, corporate actors, social investors on role/value added of SE sector to SDGs at the national and regional level Some initiatives to engage national governments, multilateral agencies and the corporate sector exist but need to be more concerted and sustained Some initiatives to build multistakeholder innovation platforms have been started but need to be operationalized

18 Towards an SE Sector Agenda as Game Changer for the SDGs in Asia: 5 Cs COMMUNICATION of SE SECTOR CONTRIBUTION: making the social enterprise sector visible as significant contributor to SDGs at the national and regional levels web-based regional platform serving learning community and advocacy CAPACITY BUILDING for ENGAGEMENT and SCALING UP: building the capability of the social enterprise sector to scale up and engage governments, multilateral agencies, the corporate sector, social investors at the national and regional level CULTIVATION of SE CHAMPIONS in VARIOUS SECTORS: developing influential allies in governments, multilateral agencies, the corporate sector, social investors should translate into concrete forms of support (e.g. joint programs or projects, resources, technical assistance) at the national and regional level

19 Towards an SE Sector Agenda as Game Changer for the SDGs in Asia: 5 Cs CONCERTED ADVOCACY for an ENABLING ENVIRONMENT and ECOSYTEM: sustained initiatives to engage national governments and multilateral agencies to recognize and create an enabling environment and ecosystem for social enterprises as key partners in SDGs at the national and regional level should translate into legislation and policy; programs and resource allocations from national budgets and ODA CO-CREATION of MULTISTAKEHOLDER INNOVATION PLATFORMS: developing successful multi-sectoral platforms to demonstrate how social entrepreneurship can be a game changing strategy for the SDGs at the national and regional level Benchmarks for Transformational Partnerships and WEE in AVCs as pilot initiative

20 Towards an SE Sector Agenda as Game Changer for the SDGs in Asia: 5 Cs COMMUNICATION of SE SECTOR CONTRIBUTION CAPACITY BUILDING for ENGAGEMENT & SCALING UP CULTIVATION of SE CHAMPIONS IN VARIOUS SECTORS CONCERTED ADVOCACY for an ENABLING ENVIRONMENT and ECOSYTEM CO-CREATION of MULTISTAKEHOLDER INNOVATION PLATFORMS

21 Thank you! For more information, contact ISEA at