The giving vine, mom-and-pop, and Texas--Elizabeth Linthicum

I picked up the December issue of Entrepreneur Magazine in one of the waiting rooms at Athens Regional, and found several interesting stories that I wanted to share on the blog. First, Robert Spector, author of The Mom and Pop Store, lists several common threads among successful family businesses across America. He said they all have a deep desire to be independent and also changed the business in order to respond to the market. He thinks that the next generation of mom-and-pop stores will be opened by “immigrants who can’t get a job because they don’t speak English and…people who’re disillusioned and dropping out of the corporate world” (22). He predicts that small businesses will continue to thrive, especially as Americans are more conscious of supporting local restaurants, stores, and companies. In Austin, Texas (one of The Wall Street Journal’s top Youth Magnet cities), there is a very successful campaign to support local businesses and preserve the character of one of the most desirable places to live in America. The campaign is appropriately called “Keep Austin Weird.” T-shirts and bumper stickers are everywhere, and Austinites do seem to be more aware of the importance of supporting local businesses than the average citizen. On the topic of Texas, I was quite proud to see the fine state of Texas listed as one of the top ten trends of 2010, according to Entrepreneur. Texas is home to more Fortune 500 companies than any other state and accounted for 59% of ALL new jobs created in the U.S. last year. I’ll get off my soapbox about the rising Lone Star state.

Though I have only lived here a year and a half, people in Athens also seem to pride themselves on the uniqueness of the town by supporting local businesses. It would be great if even more Americans celebrated the things that make their town unique by helping mom-and-pop stores thrive.

Also featured in the magazine is the wine company OneHope, which is a for-profit business that tries to sell as much wine as possible with 50% of its profits going to charity. Eight colleagues from Gallo wine company left their jobs to open OneHope, which is projected to hit $1.5M in sales for 2009 and has donated $250,000 in cash and in-kind contributions to 150 charities. Sales of the merlot go to AIDS research, the sauvignon blanc supports the environment, and the zin goes to causes that support U.S. troops. By supporting a variety of causes, OneHope appeals to many different types of consumers who might tire of this or that for the cure.

One of the founders believes that “creating change starts with big business…If we can educate businesses and get to a point where companies can get a competitive result, but a result that gives to others, we’ll be making a major step toward changing the world.” Clearly, the founders found supporting social causes attractive, and they thought consumers would too. The company is currently trying to leverage its name into a whole cause-oriented lifestyle brand by creating OneHope bottled water, and a OneHope branded flash drive that benefits Dress for Success, among other products. The business seems to do very well because it taps into people’s desire to use technology to change the world and to help others while pursuing a profit.

Elizabeth Linthicum

The S.E.V.E.N Fund - Will Richardson

The following link is something I stumbled upon. I think this is a really cool way to find useful enterprise solutions from classes similar to ours.

http://www.sevenfund.org/new-models-development/index.php

The idea is that students submit innovative models for economic development (such as microfinance programs) and the winner receives $10,000 for college costs.

They also have a good example from Rwanda in an article listed on the page.

Check it out!

Innovation Is Not That Innovative-Erin Porter

Several weeks back we discussed "Mastering the Art of Innovation". This is a topic which really stuck with me. Everybody who works for or with a non-profit is looking for an edge, they want to create the next big thing. The more I think about innovation, the more I am convinced that true innovations is bred out of our expertise.

A couple of weeks ago my husband told me about an organization discussed in one of his law classes. The organization is called The Legal Grind and it "seeks to provide legal assistance to middle class people with ordinary problems. The founder of the organization, Jeff Hughes, recognized that poor people have access to legal aid organizations and rich people are able to afford the best attorney their money could buy.

The Legal Grind boasts a legal resource center, self-help books, document preparation, notary service, lawyer referral service, and a coffee bar. Local lawyer are hand-picked to volunteer their time and expertise. A schedule of attorneys and their expertise are posted daily and clients can sign up for a "coffee and counsel" to receive specific advice.

In 2001 The Legal Grind received an award from the American Bar Association for assisting "people in the resolution of their legal problems in innovative ways". I found this article to be especially inspiring. So often I find myself trying to dream up ways to raise money for Global Samaritans and create a buzz around the organization and what we are doing. However, this article taught me that innovation is not that innovative. I need to take a hard look at what I am good at and find a way to put a new twist on my expertise and combine it with a way to help Global Samaritans.

It is a simple as, "justice served daily".

Erin Porter

The business plan as a marketing tool - Katy Sides

I think that the concept of a business plan in a social enterprise is very interesting. So often, when we describe a social entrepreneur we talk about their innovation and ability to use resources without being concerned about their limited access to those resources. It is not often seen in the literature that a social entrepreneur focuses on strategic planning for the future. I know that I tend to think about social entrepreneurs as focused on getting their organization started and meeting their original needs. I have always imagined that if social enterprises participate in strategic planning and the creation of long-term planning it is once the organization is fully developed and thriving. I think that there is a lot for social entrepreneurs to learn about successfully using business plans from the beginning. The creation of business plans and implementation of them forces social entrepreneurs to consider possible future scenarios for the organization and the environment, as well as pay attention to some of the details of the organization. Not only does it provide an outline for the future, make predictions of how to deal with the possible directions of the organization, possible exit strategies if needed, but it also can be a tool to garner more support for the organization. It can be a way for social entrepreneurs to show that they have a big plan that is strategic and business-minded. It can be used to attract some of the necessary resources that they may not have access to, by becoming a tool to attract potential stakeholders. The idea of a social enterprise is a new business form that blends together a nonprofit business model with a traditional private sector business model. While it is exciting to have an organization that has both a social and a financial bottom line, many investors are likely to question how successful this model can be. By showing that they have invested in the time and resources to consider the future of the organization through a business model, a social entrepreneur can show that they have more than just a great idea, and can attest to their potential in the market. The social entrepreneur can show that they understand the tension between their social mission and need for financial empowerment in their business plan. They can also show that while they are trying to improve social conditions of a certain area, they are also capable of creating financial benefits. Additionally, a business model can act as a way to test the social enterprise against its possible future tests. By preparing for what lies ahead, the social enterprise makes itself stronger for today and the future.

The Good 100: Elizabeth Linthicum

This is my "early November" (aka October) post:

I purchased the fall 2009 issue of Good Magazine includes opportunities to learn more about current world issues this year, avenues for discussing them, and how to contribute to solutions. The magazine lists the Good 100: "a collection of the most important, exciting, and innovative people, ideas, and projects making our world better" (Good Magazine). The magazine states that the members of the Good 100 are changing the way we live. The list reinforces the fact that the public (not necessarily the American majority) is interested in social change and supports businesses that advocate for social change.

Interesting enough, Wal-Mart is is the first entry of the Good 100 and Good states that "it has become arguably the greatest force for green in corporate America...when Wal-Mart talks, 60,000 suppliers listen." Wal-Mart accounts for more than 11% of all U.S. retail sales. As we learned in class, Wal-Mart gave itself three energy-efficiency mandates and has been making progress in all areas. Though I am not a personal fan of Wal-Mart, it is impressive that it is the largest private producer of solar power in the United States. While doing good for the environment, the store is also saving millions of dollars. Since it is so big, how energy efficient can Wal-Mart truly become? I applaud their efforts but I am still weary because changing a few lightbulbs is not nearly as impactful as looking down the entire supply chain and choosing to support ethical companies and workers who have been paid fair wages.

The magazine gives another great example of government innovation in the Interagency Partnership for Sustainable Communities. Ray LaHood, the new transportation secretary, has been working on remaking America's transportation infrastructure (no big deal). He has joined the Department of Housing and Urban Development, Department of Transportation, and the Environmental Protection Agency to work together, and it is an innovative approach to forcing collaboration between huge entities.

The Good 100 is so cool; I could go on and on about the different people, organizations (both for-profit and non-profit) and projects the magazine recognizes. Good magazine represents the public's interest in innovative problem solving and social entrepreneurship. Each recognized entity took on significant financial, social return, and PR risks in order to bring the innovative idea to fruition. For more information, check out the website at www.good.is

Just FYI, here is the Good 100 Hall of Fame: The Bill and Melinda Gates Foundation, Robin Chase at GoLoco, Sustainable South Bronx, Patagonia, Ashoka, Stephen Colbert, Tom's Shoes, President Barack Obama, Pixar, Jon Stewart, Jeffrey Sachs (economist), Twitter, AcumenFund, Etsy, the former Mayor of Bogota, Colombia, Enrique Penalosa, Alice Waters (chef), Creative Commons, and Architecture for Humanity. I'm sure you are familiar with many of these brands, organizations, and people.

Elizabeth Linthicum

Don't Forget to Implement the Business Plan - Audris Campbell

“Say what you like about the business planning process, but the simple fact is that organizations that make plans for their future—and then follow through with them—are much better able to meet challenges than those organizations that do not make plans for their future.” -- Gregory J. Dees

Business planning is essential to establishing a social enterprise. However, the most crucial step of the business planning process is not the construction of the business plan, but the follow through, or implementation, of the business plan. In the aforementioned quote, Dees makes sure to clause his statement about business planning helping organizations meet challenges, by highlighting the fact that those organizations must also follow through with their business plans in order to be prepared to meet those challenges.

The reality is a business plan means very little, unless it is implemented. This is because the implementation of the plan actually puts action to the words on the paper. Nevertheless, it is notable that many organizations continue to focus less on implementation and more on the construction of the plan. This may be contributed to the fact that the implementation of the plan actually requires more time, energy, and management than the actual planning process.

Oftentimes, organizations simply hire a consultant who is charged with the task of constructing a business plan, but what happens once the consultant leaves and the plan is placed on a shelf somewhere in the organization’s office collecting dust? How does this effect the way administrators view the necessity of business planning? Truthfully, many people are leery of business planning today, because they have experienced being involved in an organization that spent time creating a business plan, but never implemented it.

In “Keys to Successfully Implementing a Business Plan,” Jacquel K. Clark, a writer for AllBusiness.com, listed the following five steps that can help an organization successfully implement a business plan:

1. Prioritize objectives – Review and prioritize objectives according to needs and wants. Needs are the "must dos", while wants are required to be more effective and efficient, but are not mandatory in the short run.
2. Hold staff accountable – Make sure those involved in the implementation process understand what they are to do and when it must be done.
3. Work the plan – Train your staff to effect change in a positive manner, encourage teamwork, and establish an environment where mistakes can be used as a learning tool.
4. Review progress - Periodically review the business plan to ensure progress is timely and the focus is not changed. This will also allow adequate time to react and alter the business plan when necessary.
5. Reward results - In order to motivate staff, make sure a good reward system is designed and executed.

Next time you finishing writing a business plan for your social enterprise, I hope you give these implementation steps a try!

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Link to “Keys to Successfully Implementing a Business Plan”: http://www.allbusiness.com/business-planning/813472-1.html

What makes Social Entrepreneurs Successful: Katy Bernhardt

While researching the web for articles on Social Entrepreneurship to search for ideas and topics for the November blog, I came across Social Edge a site a part of the Skoll Foundation for social entrepreneurs. “What Works in Social Change?” an article by Scott Sherman addresses the things that work for social entrepreneurs. The one that stood out to me most was the ‘social aikido’, mostly because of working with UJ at Blue Earth. This one part of three that makes social entrepreneurs more successful than traditional nonprofits is their ability to work with billion dollar corporations to succeed in fulfilling their mission to change a social problem. Some would argue that many traditional older nonprofit often protest larger corporations and multi-billion dollar business because of their practices, whether the problem is manufacturing conditions overseas or low wages in the working poor. But sometimes a collaborative business approach being constructive ‘to put forth a better vision to the future’ can be more successful than protests. I felt this can be demonstrated in UJ’s visionary idea of working with Athens-Clarke county and UGA to help those working poor in the Athens community have a living wage and work towards becoming potential business owners.

Sherman also asks the bold and important question ‘is social entrepreneurship sufficient in itself to change the world?’ On a small scale in Athens, GA UJ’s idea that may or may not become a reality to a certain extent I say yes. However, I think more business need to develop a plan similar to UJ’s to create a permanent change. One business can change the lives for few but this one business cannot change the lives of every single person living below poverty level in Athens, GA. This may be pessimistic, but more business in the area would need to develop plans similar to UJ in order to create a more permanent to change and affect larger numbers of people. Businesses may like the idea and become inspired but until others step up to the plate to continue to change it is going to be difficult to make this a large-scale change.

Business Plan - "Planning to Plan": Olivia C. Long

In my experience, there is nothing that people in the non-profit world hate more than strategic planning. By and large we tend to be a group of "doers" driven to right wrongs and fight against suffering that we encounter every day. As such, almost any time away from our jobs, which in many instances quite literally involves matters of life and death, is seen as a waste. Accordingly, from that perspective, taking time to "plan to plan" may seem like an unconscionable waste of time; however, I would argue that nothing could be further than the truth.

I believe this feeling can be avoided by taking time to plan for the planning process. Instead of putting off the planning process, non-profits should carefully consider all elements of the process beforehand. In this way, you can determine how long the process will last, how intense the focus will be and the participants involved. Making these preparations beforehand will lead to a more efficient and productive planning process.

I also believe that a part of this "planning to plan" should encompass time to celebrate when all of the strategic objectives have been met. In this way, the organization will not only operate more effectively, the commitment of its participants will be frequently renewed when they see the path they have traveled and what lies before them.