MGT 455 - San Diego State University

San Diego State University School of Business Administration Fall, 2013 MGT 455.01 # 21944: Social Entrepreneurship Class Meeting; Location: Instructor:

Tues 4:00 pm-6:40pm EBA 341 Michael L. Sloan Direct : 858-449-9419 e-mail [email protected] Office Hours: Tues. 3:00-3:45 pm Weds. 1:00-1:45 pm or by appointment Room SSE

3409 Course Description: Social entrepreneurship has as its central focus the development of a social venture “ idea “ that requires validation and strategy development to qualify as an opportunity worthy of commercialization resulting in social and financial impact. Student Learning Objectives: Upon completing this course, students should be able to 1. 2. 3. 4. 5. 6. 7. 8.

Articulate the basic concepts of social entrepreneurship Through problem-solving skills, present recommendations to overcome barriers to social enterprise development Recognize and assess free-market opportunities that may be transformed into solving a social need(s). Identify and use non-traditional key human resources to exploit an innovative idea or opportunity to develop a new social enterprise. Analyze the best practices, successes and failures, opportunities and constraints in the field of social entrepreneurship and sustainable business practices. Use creative design and innovative verbal communications as a competitive advantage in developing a social enterprise. Recognize all the stakeholders that require input into a social venture and the student’s ability to develop meaningful relationships to gain their support for the venture. Identify non-traditional and innovative financing mechanisms used within the field of Social Entrepreneurship to allow students to become knowledgeable about alternative funding practices.

Required Texts: (2) Building Social Business: The New Kind of Capitalism that Serves Humanity’s Most Pressing Needs by Muhammad Yunas, The University Press Limited 2010. Understanding Social Entrepreneurship: The Relentless Pursuit of Mission in an Ever Changing World Kickul and Lyons, 2012

FORM PROJECT TEAMS ( 4 students) will be formed by September 10th. Team names will be handed in at this class ( typed only….no Red I.D. required ). Course Methodology Introduction to Social Business: Classroom lecture and discussion using two required texts to teach methodology and concepts. Student progress will be assessed through written exams. Case Studies: Of past and current social business creations using HBR, Youtubes, CD’s. Creative Design Steps: Create as a team your own social business idea in a structured but creative manner. The various ideas will be assessed according to predetermined criteria.

SOCIAL VENTURE COURSE DELIVERABLES (3) = 50% of Grade You will begin in the “CONCEPT/ IDEA stage “ as a team (4) of social entrepreneurs who address the issue of poverty in the U.S by “ conceptualizing through a social business model canvas” TO TURN YOUR IDEA INTO A VIABLE SOCIAL BUSINESS OPPORTUNITY. IDEA PROPOSAL 1. Create a team Video for your social business concept to be approval by Professor before proceeding to the next step. IMPORTANT: THIS IS AT THE “ IDEA” STAGE . YOU WILL NOT KNOW IF THIS IDEA IS A VIABLE SOCIAL BUSINESS OPPORTUNITY UNTIL YOU COMPLETE STEPS 2 & 3 WHERE YOU WILL PREFORM A FEASIBILITY STUDY ALSO KNOWN AS A SOCIAL BUSINESS MODEL CANVAS. Guidelines below. UP TO 13% OF GRADE Market Size Hypothesis ( one page typed ) Up to 1% OF GRADE Competitive Matrix ( chart) Up to 1% OF GRADE

OPPORTUNITY PROPOSAL 2. Create a Written Report answering the questions as per the template of the 9 Building Blocks for a SBM. This template is found on BB under Documents. ( Social Venture Business Model Section Explanation) Guidelines below. UP TO 25% OF GRADE 3. Create a Final Visual/Verbal “ Social Venture PITCH “: Create a Social Business Model Canvas Youtube . Guidelines below. UP TO 10% OF GRADE

IDEA VIDEO “PITCH” PROPOSAL Step 1: You will prepare a “ Great Video Pitch “ and email it to the Professor on September 23rd for approval. You will receive email approval by September 24th. Once approved, your team will submit a Market Size Hypothesis ( typed ) and a Competitive Matrix chart. This is due on October 1 in class. Your video pitch is an important component of your project, and a requirement for all projects. Here are some guidelines to think about before you create your video pitch. Your video pitch should be no longer than three minutes. I welcome your creativity! If you want to use animation or behind-the-scenes footage to demonstrate your points, that's great. But always remember that your message is the most important part of your video. In your video, you should quickly make sure the audience knows: 1. Who you are ( Team members introduction) 2. What problem you want to solve ( Poverty in the U.S required.) Which level of poverty…working poor, homeless vets, homeless youth, etc. 3. Who you will help by solving it ( Precise population …put a name/face to them) 4. Where the problem is happening ( Precise geographic area…..urban, rural, etc.) 5. Why the audience should care 6. Why the problem has been happening ( Root cause ) 7. How you propose solving the problem ( Your social venture idea: example: “ we will produce a portable water filtration straw that can be easily used in any adverse water environments like dirty streams, water fountains, etc.)

You can then fill in your story with more details about your team's plans to solve each aspect of the problem. As you do this, keep these tips in mind: Use simple language and avoid words that might be unfamiliar to people who don't know much about your issue Avoid abstract data – use facts people can relate to Include short stories and examples of the people you'll help Speak clearly and avoid making distracting hand gestures Wear solid-colored clothing and simple jewelry

Once you have these things down, it's time for the most important tip of all, and that's to practice. Practice in front of a mirror, in front of your team members and in front of people who know nothing about your project. Then record your pitch and watch it before creating your final video. A Market Size Hypothesis ( typed ) will be do on Oct. 1st if your project is approved. Good luck! And remember, you have the power to change the world. Now show us you can do it.

OPPORTUNITY INVESTOR FUNDING PROPOSAL WRITTEN/VISUAL Step # 1: You will select one of the following” structure” types of social businesses. Type I: Conceptualize a product innovation as a basis for a new venture that will help solve a social problem for a specific underserved population while simultaneously solving the economic problem of poverty by employing the poor to work/own this business in which the product innovation is being made/sold. Example: If the “Lifestraw” was being manufacture/sold by the people who also use it. http://www.youtube.com/watch?v=e6B65Z10BKE ( Helpful Hint) It may be necessary to form a joint venture or a strategic partnership with a major company, nonprofit organization or university department to help this underserved population launch and sustain such a business for a definite period of time. This form of social venture will be discussed further in class as per the Yunus/Danon Model. If any part of the business is owned by others who are not poor, this partnering company is entitled to receive its original investment back from the profits and any other surplus must be either reinvested to finance the growth of the business and to expand the benefits to the poor through dividends and ownership of equity. This is called “ scaling” a venture which will be covered in class. Type II: Type II: Any profitable business so long as it is owned by the poor or employing the poor and the disadvantaged. It may be a product that is produced by the poor and sold as a commercial product to either local or international consumers. The product itself may not solve any social problem and it may not require any product innovation. Providing income in the form of employment for the poor is the main goal of this type of venture. There may be some side benefits to society as per the following: http://search.yahoo.com/search?p=homeboy+chips+on+youtube&fr=sfpyff20&fr2=ond_moz_off&iscqry=

You may focus your venture on any sector which has the greatest direct impact on solving the

Poverty of a particular and well-defined population is the main social issue that is to be solved with your paper. “poverty crisis”.

Step 2: Testing 4 of the 9 Building Blocks with Proof of test as per the guidelines on Blackboard. This will be inserted in the Appendix of your final report. Step 3: Final Written Report: You will answer the questions on the Social Business Model Canvas ( 1.5 space 11 Ariel Font) Limit each building block answer to a maximum of 2,400 characters including spaces Selling your business concept to investors is not simply a matter of solid revenues figures and hockey stick projections. Language and description matter. Your ability to thoughtfully describe the basics of your social business will reflect upon your skills and sophistication as an entrepreneur to investors who read this funding proposal. When all is said and done, it may feel impossible to describe the essentials of your social business in a limited framework. Indeed, it’s a challenge, but trust that thousands of social entrepreneurs have accomplished the task before you. Think about what is, indeed essential and what’s merely a colorful detail. Remove language that is vague and replace it with concrete information. Be careful to avoid repetition. Cut out summary statements like “We are committed to scaling a sustainable business by marketing a diverse product line to our loyal customer base” that don’t really add value to your profile Please note the tutorial attached to the Canvas on BB to help frame your answers. On a separate paper, list and answer the questions under each Building Block heading. Each report is to be spiral bond, clear front, black back. Front cover page will include the names of the team members, course number, section number, professor, date and venture title. Each Building Block needs to be underlined. You may have building block answers run into each other. Step # 3 FINAL “ PITCH “ Video Your visual presentation will comprise of the“ visual essence “ of each of your building blocks with a 5 minute narrative to accompany the video. Each member of the team will present. This is your final pitch to potential social venture investors to convince them to invest in your venture.

Class Participation: Students will be expected to be prepared for class discussion of the assigned readings and case studies. Unprepared students will have points deducted from their total points The following case studies may be discussed in class as per the class schedule of assignments that is a separate document on BB. Homeless World Challenge Cup Vision for the Poor Cinepop Case Study Text Chapter 7.2 Case Study Grading: Venture Idea Video “ Pitch” Market Size Hypothesis Competitive Matrix

3 minutes

Up to 13 pts. = 13% of grade

Team assignment

1 page typed

Up to 1 pt.= 1% of grade

Team Assignment

Chart

Up to 1 pt.= 1% of grade

Team Assignment

Midterm Exam Final Exam Venture Video “ Pitch” Final Presentation Final SBMC

Multiple Choice Multiple Choice Video Presentation of the essence of the SBMC

Up to 25 pts. = 25% of grade Up to 25 pts. = 25% of grade Up to 10 pts. = 10% of grade

Individual Individual Team assignment

Written SBMC

Up to 25pts. = 25% of grade

Team assignment

TOTAL

100%

Grades Conversion (Percentiles vs. Letter Grade) 94-100%=A 90-93%= A87-89%=B+ 83-86%=B

80-82%=B77-79%=C+ 73-76%=C 70-72%=C-

67-69%=D+ 63-66%=D 60-62%=DBelow 60%=F

CLASS PARTICIPATION: Class participation is the key to learning. Students are expected to attend and contribute to the class discussions. Please note that the quality of what you contribute (it can be a thoughtful question, some astute analysis, and/or some other meaningful contribution) will count far more than the quantity of your remarks. More “noise” does not equal higher score. Lack of class participation will result in a lower grade.

PEER EVALUATION:

Each individual is expected to pull his/her weight and carry the appropriate share of responsibility. At the term end, you will be asked to submit a confidential peer evaluation of group members. Honesty and objectivity in the assessment is expected. Based upon the group’s perceived level of the individual’s contributions to the overall effort, individual member’s grade on the group reports may be adjusted upwards or downwards.

CLASS POLICIES Attendance: Mandatory for all Presentations 3 points will be deducted from your total point score for each missed class CLASS PREPARATION Reading assignments and cases for class discussions should be prepared in advance of class meetings. NAME CARD Every student is expected to bring a name card with him/her to every class. CONDUCT Attentiveness in class pays off in grades. Reading irrelevant materials during class (e.g., newspapers), sleeping in class, or distracting behavior during class will not be permitted. Lateness to class disrupts the activities and is never appreciated by either your fellow students or me. Laptops are not permitted in class except during the lab days. Academic Honesty: University Policies prohibit inappropriate conduct by students, and the student committing the inappropriate behavior is subject to discipline. Cheating, plagiarism, or other forms of academic dishonesty that are intended to gain unfair academic advantage are considered to be unacceptable student behavior and must be reported for review. Scantron required for Midterm and Final Exams: Use an 882-E Scan-Tron form and # 2 pencil.