The William Davidson
Institute
WDI’s Mission
To create, aggregate, and disseminate
intellectual capital on business and policy
issues in emerging market economies
WDI’s Major Activities
• Research
– Base of the Pyramid
– Social Enterprise
– Globalization of Services
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Executive Education
Development Consulting Services
Educators’ Outreach
Promoting International Activities at U-M
– Business School
– Supporting key international activities at other schools
• School of Public Health
• Medical School
• School of Natural Resources
Knowledge Creation
Research Initiatives
Research
Support
Conferences
Development
Consulting
Support for Int’l Activities
- Students
- Faculty
- Exec Education
- Educators Outreach
Convergence of the Sectors:
Social Innovation
Traditional Value Creation
Government
Non-Profit
For Profit
Blended Value Creation=
Innovation
Government
Non-Profit
For Profit
Causes of Convergence
Supply Side
Demand Side:
• New Wealth/Philanthropists
• Increased Visibility (popular
press coverage, celebrities
• Technology
• Attempt to reach new
markets
• Improved transportation and
communication
• Traditional Development
Failures
• Increasingly Complex Social
Problems
• Inability of government to
provide public goods
• Foundations Requiring more
Accountability/Innovation
• Scarcity of traditional
resources (grants)
The Social Entrepreneurship
Landscape Has Become More Complex
Activists
Socially Responsible
Business Leaders
Social Entrepreneurs
Nonprofits
(NGOs,CSOs)
Foundations/Multilats
Governments
Thought Leaders
The Landscape
Social
Entrepreneurship
The Micros
Social Enterprise
Venture
Philanthropy
Social
Investing
Bottom of the
Pyramid
Business/Social Hybrids
Social Stock
Markets
Community Development
Corporations
Corporate Social
Responsibility
Community
Foundations
Fair Trade
Public Private
Partnerships
Results of Convergence:
Hybrid Spectrum
NGO
w/IncomeGenerating
Activities
Nonprofit
Enterprise
BoP
Enterprise
Social
Venture
Mission Motive
Stakeholder Accountability
Income reinvested in social programs or overhead
Socially
Responsible
Business
Corporate
Corporate
Social
Strategy
Responsibility
Profit-making Motive
Shareholder Accountability
Profit redistributed to shareholders
Results of Convergence:
New Sector Motivations
Characteristics and/or Perceptions
For Profit
HYBRID
Not for Profit
Competitive
Collaborative
Private Good
Social Good
Market Based
Outside Market
Financial Motivation
Social Motivation
Advantaged
Disadvantaged
Independent
Dependent
Individual
Collective
Risk-taking
Risk-averse
Create Wealth
Distribute Wealth
Results of Convergence:
Social Entrepreneurship/Innovation
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New Structures
New and Adapted Business Models
New Methods to Mobilize Capital
New Sector Stakeholders
New Fields and Terminology
Social Innovation: Why?
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Exciting
Inspiring
Opportunities Abound
High Impact Possibilities
Fast Moving
Constantly Evolving
QUESTIONS?
Social Innovation: New
Structures
• Partnerships/Strategic Alliances
• For-profits with Embedded Social
Mission
• Non-profits Generating Revenue
• Non-profit Consulting
Social Innovation: Adapted Business
Models for Enhanced Social Value
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Micros: finance, enterprise, franchise
Social Franchising
Non-profit Incubators
Base of the Pyramid
Fair Trade
Social Innovation: New Methods of
Mobilizing Social and Financial Capital
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Foundations Supporting For-profits
Market Driven Philanthropy
Social Venture Capital/Investing
Venture Philanthropy
Adapted Private Sector Tools
Community Foundations
Corporate Volunteerism
Community Development Corporations
Social Innovation: New
Stakeholders
• For-profitsEmployees, Customers,
Suppliers, Distributors, Communities,
Non-profits
• Governments (Outsourced Services)
Non-profits, For-profits, Communities
• Non-profits Donors (with expectations
of higher, more accountable returns),
Individual Investors, For-profits,
Government
Social Innovation: New
Fields/Terminology
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Social Entrepreneurship
Social Enterprise
Base of the Pyramid
Micros
Social Investing
Venture Philanthropy
Fair Trade