Ben & Jerry's founder gives us the scoop at Venture4Change Summit

By Jennifer King, Director, Social Ventures initiative, Capacity Waterloo Region

A couple of months ago, I sat down with a young social entrepreneur who is growing a national nonprofit social venture. It was a great conversation that eventually drifted into the social venture definition debate. You know, the one that goes, “what exactly is a social venture and is it nonprofit or for-profit?” This social entrepreneur was firmly in the nonprofit camp. Profiting from a social mission was just plain wrong, he said.

This made me nervous. Our chat was just ahead of the Venture4Change summit that we at Capacity Waterloo Region were producing. The whole point of the day was to bring nonprofit and for-profit social entrepreneurs together under one roof to talk about how people with powerful ideas were changing the way business was done. I started second guessing. Would it end up being a debate about right and wrong? I had brief flashes of heated arguments with the “good” nonprofit folks lined up on one side of the room and the “bad” for-profits on the other.

Luckily, the day worked. People interested in real social change proved that they care less about terminology than they do about action. Nonprofits, for-profits, and funders found common ground. They listened, shared ideas, started conversations, and sometimes agreed to disagree. Of course, silos weren’t torn down, but little pieces of them were chipped away. Jerry Greenfield, co-founder of Ben & Jerry’s and Venture4Change’s keynote speaker, told me that he had never been to an event before with such a mixed cast of characters and passionate attendees. He was joined by two other speakers, Tony Pigott, CEO of JWT Canada and co-founder of Brandaid Project, and Sam Purdy, National Director of Habitat for Humanity’s Restores.

Tony’s message to “be different and be better” was a reminder that while socially-conscious consumers are wielding more market power than ever before, the market is very crowded and only ventures that distinguish themselves will be successful. Sam’s story of Habitat’s Restore business touched on the branding and regulatory challenges of a national venture that’s completely run by 73 affiliates – all separate charities with their own boards. Restore, a “retail business that turns donations into cash,” sells donated used building materials that provide an ongoing source of funds to fulfill Habitat’s mission.

Venture4Change wrapped with Jerry, who founded Ben & Jerry’s with Ben Cohen in 1978 after unsuccessful attempts on the career track. Friends since seventh grade, Jerry says they thought, “why don’t we get together, do something fun, be our own bosses, and since we always liked to eat quite a bit, we thought we would do something with food.”

Ben & Jerry’s didn’t set out to change the world. These hippy kids just wanted to have a good time. They knew absolutely nothing about the ice cream business, but a five dollar correspondence course taught them enough to set up shop. But a funny thing happened on the way to the ice cream parlour. Ben and Jerry woke up one day and realized they were becoming businessmen. “It wasn’t exactly our idea of a good time,” Jerry said. “Business had all these negative connotations and we felt like our business was just becoming another cog in the economic machine and we didn’t want any part of that.”

They were about to abandon ship when they received life changing advice: if you don’t like the way you’re doing business, change the rules. Decades later, Ben & Jerry’s is almost as well known for its social initiatives as it is for its decadent Cherry Garcia and Chunky Monkey.

Today, Jerry believes business is the most powerful force for change that we have. He’s convinced that the double bottom line is what has made Ben & Jerry’s a success – that operating from your values reaps rewards. Their approach has helped blaze a trail for a new, perhaps more intentional generation of social ventures.

We’re recapping the entire day on the Venture4Change website, starting with Tony Piggot’s session, Marketing Meets Mission: The Story of Brandaid Project.

Written by: Jennifer King, Director, Social Ventures initiative, Capacity Waterloo Region
Photos by: Tomasz Adamski

Acumen Fund lands in Toronto

Last Monday night I pushed my way through a large and boisterous group, made up primarily of Generation Yers (or is it Z already?) and, despite my aversion to crowds and a case of jet lag having just returned from Costa Rica the night before, I was glad I did. What brought so many faces out to Czehoski on a Monday night, you ask? It was the ceremonious launch of Acumen Fund'€™s Toronto Chapter


The brainchild of former Wall Street maven Jacqueline Novogratz, Acumen Fund is a nonprofit social venture that puts its unfettered faith and hope in the power of entrepreneurs to fight the longstanding scourge of global poverty. Believing that neither charity nor markets alone can meet that radical challenge, Acumen promotes a hybrid paradigm that combines both. This blended values approach, investing in solutions that have potential for social impact and profit, has been paving the Fund’s path to change since it launched in April 2001.

Also referred to as patient capital -- debt or equity investments of $300,000 to $2,500,000 in an early-stage enterprise with payback or exit in roughly five to seven years (but unlike a typical venture capital firm, if that goal is not met, Acumen won’t walk away) -- financial and social returns are the result. Don’t look for grants here, though; you won’t find them. What’s more, all financial returns are recycled into new investments, with every dollar invested leveraged four times.

Today, Acumen Fund boasts 27 investments and a portfolio worth just under $40 million, not including a recent capital markets fund of $15 million. The focus is on supporting enterprises that provide low-income consumers with access to five specific areas: health, water, housing, energy and agriculture. And by the look of it, they’re getting somewhere. Case in point: D.Light, which uses LED technology to provide a much-appreciated alternative to kerosene lanterns, known to be more expensive, lower in quality and veritable fire hazards. As a side note, it is estimated that more than 1.5 billion people in the world live without access to electricity.

D. Light was created by social innovators and funded by Acumen ($800,000 in 2008, $400,000 in 2009) and a number of other investors. And how is the hybrid model working for them? Well, let’s see. Since 2007, D. Light sold 115,000 lights, impacting an average of 500,000 lives while their main competitor, Tata --dependent solely on grants -- sold 5,460. Not exactly a full-blown analysis or conclusion, not by a long shot, but the numbers make it well worth taking a long, hard look at the patient capital model and its potential for real change.

Interestingly, as I made my way across the crowded room, chatting to whomever I could (tripping the waiter and stepping on about five toes in the process), it occurred to me that while many attendees knew a lot about consulting and business, they knew little about venture philanthropy. When asked what brought them here, the answers were diverse but shared one common theme: the desire to support a different way of doing business toward the eradication of poverty. Considering the response to the event, it seems the new Toronto chapter, with its goals of fueling knowledge, conversation, fundraising, awareness and more, is heading on the right track.

By Elisa Birnbaum

A Sea-Change in Citizen-Led Water Action

I tripped upon an interesting blog the other day, Reversing the Flow by Brita Belli in eMagazine (April 2010). In it she talks about the Global Water Network. She says “Earth Day Network’s lesser-known side project is called the Global Water Network. Unlike the much more visible Earth Day—celebrating its April 22 40th anniversary this year with projects that include ‘A Billion Acts of Green’—the Global Water Network (GWN) is only in its second year.

It’s a means for connecting donors with water projects across the globe—with Earth Day Network (EDN) acting as a conduit, especially in encouraging U.S. schoolchildren to take up collections for children abroad who lack clean drinking water access and proper sanitation. ‘In the U.S.,’ says Beth Larson, EDN’s international education coordinator, ’students don’t feel empowered. But just a small amount of money can go a long way in places like Burkina Faso.’”

Absolutely! Small amounts of money can go along way around the globe, Canada included. We have a project profiled on www.smallchangefund.org right now, for example, that only needs $1250 to upgrade a boat so that the organization, Fundy Baykeeper, can expand the scope of their water monitoring work. A little can go a long way. It’s a great point. It’s also interesting that she’s hit on the issue of connecting donors and empowering students. That’s a big challenge and one we’ve taken to heart at Small Change Fund. How do we engage – truly engage – Canadians in protecting our precious water resources and those of communities around the globe?

Brita goes on to talk about the collaborative work between our global partner, Global Greengrants Fund, and Aveda. “Hair and skin-care company Aveda has had a partnership with Global Greengrants Fund for more than a decade, in order to direct money to environmental causes and has seen a ‘dramatic spike in fundraising with the issue of clean water,’ says Katie Galloway, Aveda’s Earth Fund manager. The company itself looks for ways to lower its water footprint, she says, and has expanded Earth Day to ‘Earth Month,’ since 1999.

Through sales of a limited edition ‘Light the Way’ candle, as well as via Walks for Water, Aveda raised some $3 million for environmental causes last year, just over $1.1 million of which went to Greengrants. And the company specifically directs grants to areas of the world where they source ingredients. ‘The best example is Madagascar,’ says Galloway. ‘A lot of our essential oils and aromas are sourced there, such as clove and cinnamon…Greengrants did a grant in the Southeast part of Madagascar where they cleared out a well and installed a solar tank and water tank. As a result, 2,000 people in Madagascar now have access to clean water.” But despite this she says, “Lack of funding is the biggest impediment to fresh-water access in the developing world.’”

We need to celebrate the companies that are putting money back into communities. Like Aveda. Like Lush that recently funded 4 Small Change Fund projects. (Thank you Lush!). What’s more, we need to explore, promote, refine, and celebrate the new tools that provide a gateway for everyone to support water work world-wide to help meet grassroots funding challenges. Organizations like Charity:Water, Kiva, Small Change Fund, and Social Actions are pioneering new ways of galvanizing citizen-led action on important social and environmental issues around the globe. But it’s all new. There’s no real road map. We’re all feeling our way along to the most effective, most engaging, most sincere, most transparent means of empowering you, empowering all of us, to get involved. So how do we do it? We need feedback. We need inputs. We need to learn.

Which brings me to one of my favourite authors, the late Donella Meadows of the Sustainability Institute. She was so wise. She said “Working with systems, on the computer, in nature, among people, in organizations, constantly reminds me of how incomplete my mental models are, how complex the world is, and how much I don’t know. The thing to do, when you don’t know is to learn. What’s appropriate when you’re learning is small steps, constant monitoring, and a willingness to change course as you find out more about where it’s leading. That’s hard.”

It’s hard, but it’s necessary and perhaps the only way in this world of social innovation, new media, and change-making. So help us find out more about the engagement question. How do we connect you to global water causes? How do we empower a sea-change in citizen-led action? How do we realize the power of your small change?

By Ruth Richardson, originally published at SmallChangeFund.org

Action is delightful

For those of us closely watching this dynamic space we call social entrepreneurship, it’s always exciting to see movement. Chatter is easy, after all, but action, get-your-hands-and-feet-dirty-type-of-action.....well now, that’s simply delightful.

Those thoughts swirled in my head during a recent SiG@MaRS information event. Designed to provide an overview of the goings-on in the area of social entrepreneurship and social innovation at MaRS, the four-hour session was chock-full of insight and inspiration.

Take the Social Venture Registry, for example. An online database of Ontario social ventures, it has three main goals: the first is to allow the self-identification of social entrepreneurs and the ability to meet others; the second is to connect ventures to potential customers; and the third is to connect to potential investors. Still in its infancy, the registry’s potential is self-evident and we’ll be watching it closely.

There’s also another exciting initiative, in partnership with the Ontario Association of Food Banks, the TSX, and SiG at MaRS called Social Venture Exchange. The pilot is only expected to roll out in the fall so it is still outside our realm of scrutiny, but the mission is impressive - at least in writing. The hope is to provide a platform to assess and attract sustainable financing, connecting investors and ventures for social impact. It’s a mouthful but we’re strong believers in reaching high, so kudos to those making the effort.

Which brings me to another prospective project that got my heart beating a bit quicker - a school for social entrepreneurs in Ontario. Nothing is happening just yet, but what’s exciting is the action-oriented discourse the idea fueled in the form of a feasibility study conducted by MASS LBP, commissioned by SiG@MaRS, and funded by the Ontario Trillium Foundation.

The story in a nutshell: ten years ago a visionary named Michael Young founded the School for Social Entrepreneurs (SSE) in the UK. Today there are ten locations, including one in Australia and one in Ireland. Each location has eight to twenty students and roughly 600 graduates now make up a strong alumni network. The school runs for 35 weeks and costs approximately $20,000 CDN. Um...no, really. Students come from diverse backgrounds and age groups - some as young as 19, others as “less young” as 75. But what they have in common is a passion for social entrepreneurship, a viable idea, and readiness to undertake the program and pursue their business.

The school is hailed as a true success story - 85% of all social enterprises established while at SSE are still in existence (how many would be around without the school, no one knows), however the question is would a franchise in Ontario be equally successful. The answer? Maybe. Bottom line, it seems the general support and desire is there but some obstacles still need to be addressed. For one thing, the project wouldn’t be sustainable without the support of government. For another, $20,000 a head may be a bit steep; in the UK, private donors cover the cost but it's doubtful that model would work here. And just because something works in the UK doesn't compel its viability somewhere else.

Granted, there is still much to ponder, but the general appetite is there for a school in Ontario focused on preparing emerging social entrepreneurs. What's more, the desire is fueling action. And action is delightful.

By Elisa Birnbaum

What is social enterprise? Take 2

A few months ago, I wrote a piece about the definition of social enterprise. Basically, I was concerned that people were getting too wrapped up in defining the term, and forgetting that they were all in it for the same reason - to achieve a social mission through their respective businesses. Whether that business was for-profit or nonprofit, had a double or triple bottom line, didn't seem as important as the fact that they were doing some good in the world. Perhaps I was just a bit too optimistic.

Since writing that piece, I have seen the situation deteriorate from quibbling over semantics to all-out misrepresentation. In case anyone is wondering, social enterprise is not "a term describing for-profit companies that pair with charities to create innovative ways of changing the world," as the Globe and Mail recently stated. That's corporate social responsibility (CSR), and yes, there is a difference. For-profit companies who partner with or support charitable initiatives are to be commended, but it's misleading and even irresponsible to describe them as social enterprises. If someone doesn't stand up and make the distinction, soon any company that gives money to charity is going to be calling itself a social enterprise. Oh wait, that's already happening...

At a recent conference, a colleague was lamenting the fact that some companies who donate as little as 1% of their profits to good causes are now calling themselves social enterprises. So where does that leave all those other organizations, the "real" social enterprises that are working day in and day out to advance their social mission? Will they simply become really social enterprises compared to their profit-donating counterparts? Or will they have to adopt a completely new term to differentiate themselves from companies who call their CSR or corporate philanthropy practices social enterprise?

Perhaps the answer lies in legislation and regulation. Governments around the world are taking notice of the social enterprise business model, which, from a purely fiscal perspective, lies somewhere between a charity and a for-profit business. If they decide to recognize it as a separate type of organization and regulate accordingly, then this whole business of what constitutes a social enterprise will be cleared up through paperwork and procedure.

Whether this would be a good thing for social enterprise is still up for debate, but one thing is certain: if there is no general consensus on what a social enterprise is (and is not) we run the risk of the term being diluted, or worse, misappropriated completely. The scariest example I've seen so far was in a recent blog post by the CEO of salesforce.com. Titled "The Facebook Imperative Cannot Be Stopped," the piece argued that the use of social networking tools "will be the catalyst of this new productivity revolution - delivered through these new social enterprise platforms." The very next day, I came across a different blog post on another site. This one entitled, "How Twitter makes us more productive - The Social Enterprise."

Seems we have our work cut out for us.

By Nicole Zummach

SEE Change Magazine Launches!

It’s true what they say; new projects are daunting, anxiety-provoking and pull-your-hair-out-exhausting. But here’s another truism: they’re as thrilling as it comes. Each new initiative involves the setting of fresh expectations, self-prescribed milestones and goals. And let’s not forget those dreams. Launching an enterprise is any dreamcatcher’s inspirational fodder.

As founders of Canada’s first publication for and about social enterprise and entrepreneurship, we’re not unlike any other social entrepreneur in that we’re dreaming big. And we hope you are too. Our goal with SEE Change is to inform, educate and inspire. We hope it provides you with a much-needed forum for discourse and a platform from which this emergent movement can soar, achieving the potential we all know it holds. Social entrepreneurship, after all, can effect change in ways we’re only beginning to understand. It can help solve society’s inimitable challenges, while providing alternative ways of conducting business and living our lives.

Please help us ensure this publication meets your goals as well as our own. Write to us with your comments, lend your support, and join us in the pursuit of a dream, one, we believe, is well worth the effort.

Thank you,

Elisa Birnbaum and Nicole Zummach

Co-founders
http://seechangemagazine.ca
info@seechangemagazine.ca

Aboriginal Social Enterprise: Hopeful Alternatives

Reprinted from CharityVillage.com
www.charityvillage.com/cv/archive/acov/acov10/acov1001.asp

January 11, 2010

Manon Barbeau has a simple dream: giving young people from First Nations communities an opportunity to express themselves using video and music, promoting a sense of healing, empowerment, and community engagement. A filmmaker, Barbeau has always been passionate about creating movies that give voice to those who need it most. A powerful means of communication, films are an outlet like no other. And, so, since 2004, thanks to Barbeau's social enterprise, Wapikoni Mobile, small teams of impassioned cohorts - made up of filmmakers and community organizers - have been traveling to remote indigenous communities pursuing that one goal.

Each crew, with a mobile film studio and sense of purpose in tow, spend a month teaching young people aged 15 to 30 skills in audiovisual technology and music production. At the end of the four weeks, the young participants create their own film or musical compilation, on topics of concern to them, and showcase it to their community. But that's not all. Barbeau also helps distribute the finished products to festivals and conferences worldwide. In fact, since the initiative began, an impressive 29 of the films have won prizes.

Establishing a rapport

Of course, in order to make the most of their month-long trip, the crew needs to approach each First Nations community effectively. "Sometimes things happened in a community that we're not aware of," explains field coordinator, Sandrine Berger. "So you have to know who to speak with." That requires contacting elders and the band council as well as people in the field to ensure the time is ripe for their arrival.

Though primarily focused in Quebec, Wapikoni Mobile has already expanded to Alberta and Manitoba as well as to indigenous groups in Brazil, Bolivia, Peru, and French Polynesia. Barbeau's reach is impressive and growing. Since its inception, 1,200 youth have taken part and, in this year alone, they've produced 64 films and 94 songs.

Time for change

As Barbeau's story attests, when it comes to Canada's Aboriginal people, social enterprises can be a strong force of change. And for many, it's a long time coming. Just ask former Prime Minister, the Rt. Honourable Paul Martin, who recently announced the launch of a $50 million fund to promote Aboriginal business and entrepreneurship. At a number of recent events, including one hosted by SVP Toronto and another co-sponsored by SiG and MaRS, Martin reminisced about his commitment to right the wrongs of the Aboriginal people - a passion that began at 18 and has grown stronger over the years.

It's common knowledge today that, due to restrictive laws and questionable government policies, Canada's Aboriginal people have been unequal participants in and benefactors of the economic growth of this country. They also face a slew of social, demographic, and health challenges. Martin's CAPE Fund is meant to help fight that inequality by infusing much-needed equity into Aboriginal enterprises. What's more, Martin hopes it will eventually lead to the creation an Aboriginal middle class, which he considers, "the only way they can rise above."

The unprecedented initiative is receiving a lot of positive response. "I think what Martin is doing is key, it's cutting edge," says Clint Davis of the Canadian Council for Aboriginal Business. While there may some loan and grant programs available to Aboriginal people, access to equity is seldom proposed and CAPE may actually prove beneficial all-around. The financing will help get businesses off and running, generate a return for fund partners and support entrepreneurship in the community. "Frankly I think it's only a matter of time before other equity partners see value and start to participate." Martin would probably agree. "CAPE is needed to break the mold; it has to be broken first and then others will follow," said Martin during the SVP Toronto event.

Strength through education

Social entrepreneurs are also cautiously optimistic about the fund, with many vying for a piece of the CAPE pie. Take Jo-Anne Gross. Her social enterprise, Remediation Plus, trains teachers - from Senior Kindergarten to grade three - to teach children with a language learning disability how to read, spell and write. Thanks to some partnerships, her efforts are heavily focus on First Nations communities. Considering the high dropout rate among young Aboriginal people, the initiative has proven to be life-changing for many, earning top marks from teachers and parents alike. "Kids are not completing high school at a rate comparable to the regular population and that's critical," says Davis. Gross echoes his concern but adds, "If you start early, you can achieve tremendous results."

Among the usual challenges faced by all entrepreneurs ("We are not a country that is very supportive of entrepreneurs," she says), one of the specific difficulties Gross has to contend with is lack of funding. First Nations schools receive approximately half of the funding of a typical school board due to the support they get from Indian and Northern Affairs Canada (INAC), she explains. It's simply not enough. "We don't have the money to do what needs to be done," says Gross.

Though the CAPE Fund is technically reserved for Aboriginal-run enterprises, in response to a question posed by Gross at the SiG@MaRS event, Martin made it clear that their synergistic missions may call for an exception. "He actually asked me for my business card and I thought, 'how nice is that,' that's a twist," says Gross with a grin. "I'm so grateful I asked a question."

Toward impact

Joseph MacLean may have a few questions of his own. Project leader at Vancouver Aboriginal Social Enterprise (VASE), MacLean is overseeing a growing number of entrepreneurial ventures. VASE began with a capacity-building project, Shine a Light on Literacy. Today, the fundraising tool is used primarily by schools and charities whereby flashlights are sold and funds go toward employment, training opportunities, and aboriginal-specific literary tools. "Only about 20% of Aboriginal kids graduate from high school," says MacLean, underlining the project's importance.

The learning curve has been steep, says MacLean but the project - VASE's mainstay - is still moving along. They also started a digital trade school in partnership with Vancouver Native Health and Vancouver Native Housing. Under the banner of its new home, the Inspiration Café, the Digital Technology & Education Society will teach web-based technologies to people in the downtown eastside. And then there's the Vancouver Healing Lodge, a culturally appropriate healing centre for First Nations people. Expected to open in 2011, the Lodge will cater to those coming from the north and remote regions in need of medical treatment.

On the main floor of the same building there will be an Aboriginal art gallery, an extension of a current project entitled, Looking Forward Looking Back: online videos that look at the downtown eastside through the eyes of Aboriginal artists who live there. "It's a precursor to our online presence for marketing urban Aboriginal artists," he explains. And let's not forget the training school for hospitality services as well as a sales agency for various other products. VASE certainly has their work cut out for them. And, with the right partners, funding and support, they're confident they'll fulfill their primary goal of becoming a publishing force and a partner in technology and content development.

In search of human capital

As for challenges, they come down to finances and human resources. "Many of the Aboriginal people with higher education are snapped up," says MacLean. Yet, despite obstacles, he's determined to carry on, confident that a social enterprise is the only answer. "Government funding in every area is shrinking, the competition for dollars is increasing and the current model - a handout model - doesn't really serve the interests of individual development and community self-reliance," he explains. "So you have to keep going, you can't quit."

by: Elisa Birnbaum