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 ■ Entrepreneurship: operate on business ■ principles ■ Sustainability: independent of governments, aim for financial sustainability ■ Shared values: reinvest profits back into business model ■ Innovation: Represent innovation from the status quo Inclusive jobs: employ rural poor, youth, women, disabled ■ Flexibility: nimble and adaptable, close to Bo. P customers ■ 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 Stakeholder participation in governance Some form of asset lock Transparency of activities 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 Employs paid workers and conducts business activities Restriction of 50 percent 75 percent turnover from activity X Absent from the working definition but features in the CIC legal form 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 geographically 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 1 M patients 25% decrease in child mortality, for less than $2/year 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 Services Beneficiaries Outcomes 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 engaging SEs in development Ops Inclusion Jobs for marginalized poor Improved service delivery 7

SEI Operational Engagements SURR: Tunisia (P 4 R); 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 (P 4 R) • 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 (P 4 R) • 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 Operations ■ 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 (F 2 F or e-learning) 11

Systematize learning ■ 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 • 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 (sala. Uno) • Telemedicine (Meradoctor) • m. Health (Dimagi) • Low Cost Chain Schools (Bridge) • Teacher Quality (STIR) • School Ratings and Management (Gray Matters) Improving Educational Outcomes Affordable Health Services • Empowering Community Health Workers (Living Goods) • Mobile Health Clinics (Rides for Lives) ■ Disseminate through existing platforms like the Innovation Policy Platform Last Mile 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 Opportunitie s 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 from Yuva Parivartan: India Vocational training for schools dropouts Learning Centers Skills Outsourcing Financing Upskilling Skills Matching Platforms Avanti Learning Centers: Science/math training to prepare low-income 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 i. Merit (India): provision of Human-Assisted computing services, while also helping raise people above the poverty line through upskilling and the creation of digital jobs Up. Skill: 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. Job-linked 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 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. Bridge’s 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 low-income 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