Kennesaw State University, Coles College of Business Social Entrepreneurship Venture

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Kennesaw State University, Coles College of
BusinessSocial Entrepreneurship Venture

• AACSB
• Montreal, Canada
• April 18, 2004

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Social Enterprise Partnership

• Kennesaw State University, Coles College of
  Business, Kennesaw, Georgia
• Social Venture contributions
• Operational space
• Infrastructure LAN systems, computers, utilities
• Human Resources Mentorship, Service Learning
  Practicum for under graduate and MBA students,
  Volunteer Facility
• Dr. Timothy Mescon, Dean of Coles College of
  Business

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Cobb Microenterprise Center

• A capacity building initiative of Kennesaw State
  University, Coles College of Business
• A non profit 501 (c) 3 with revenues from
  philanthropic entities, government, and earned
  income from program fees and consulting

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The non profit provides

• 12 week training modules of First Step Fast Trac
  Entrepreneurial Curriculum from Kaufmann
  Foundation
• 12 week Life Skills Management Training
• Technology Training in internet marketing and
  e-commerce, E-bay, Quick Books and other Office
  Products
• Access to New Markets
• Access to Capital (Micro Lending and community
  partnership loan funds)
• Technical Assistance for two years post
  graduation

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What is a microenterprise?

• A business with five or fewer employees
• Need less than 35,000 in capital to start the
  business
• Will have revenues under 100,000
• Have limited access to affordable comprehensive
  training and technical assistance
• Have limited access to capital
• A national strategy for welfare-to-work,
  unemployment, disabled, and immigrants and
  refugees

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Social Mission of CMC

• Social Mission To create opportunities for
  long-term economic self-sufficiency and
  successful entrepreneurship through comprehensive
  entrepreneurial training for low-moderate income
  individuals and communities aspiring to create
  microenterprise.

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CMC Key Metrics

• In operation for five years
• Annual budget for FY 2003 673,583
• Graduated 324 low to moderate income people
• Launched 185 micro businesses
• Serves yearly 150 people (70 new clients and
  approximately 80 existing clients)
• Provided micro loans and leveraged access to
  capital - 1.8 million
• 30 of portfolio have graduated from micro
  businesses to small businesses (revenues over
  100,000)

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Social Entrepreneurship

• Social Enterprise is a generic term for a
  business or revenue generating activity that is
  operated by a non-profit.
• Social Enterprise or a social purpose business
  venture is designed to simultaneously achieve a
  level of profitability and serve a social
  purpose pursuing social, financial and
  environmental return on an investment the
  triple bottom line.

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Social Entrepreneurship

• Is a movement that is a developmental approach
  that financially strengthens not-for-profits
  organizations and institutions.
• It furthers the social purpose mission by
  engaging market forces to generate sustainable
  resources that work for the organization.
• The organizations new vigor and growth enable it
  to provide and expand vital services to its
  constituents while moving toward financial
  self-sufficiency.

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A Case for Social Enterprise

• Non profits must prepare to meet the challenges
  of a new century
• Need for services have increased significantly
• Widening economic gap and reduction in government
  spending no safety net for non profits
• Steady decline in the amount of philanthropic
  funding available

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A Case for Social Enterprise (cont.)

• Since September 11 and terrorist attacks,
  philanthropic dollars have been diverted to more
  visible efforts centered around terrorism
• In the economic downturn that followed, corporate
  support and corporate sponsorships also
  diminished
• Asset base of many large and established
  grant-making institutions shrank dramatically
  stock market bubble burst

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A Case for Social Enterprise (cont.)

• Rising unemployment with displaced workers
• Increasing poverty
• Welfare-to-work reform
• 9/11
• As a result of all these factors, non profits now
  have to do more with fewer available resources.

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Emergence of Social Enterprise (cont.)

• Non profits have developed products and services
  that transform lives and communities
• Non profits are beginning to realize that they
  must create more of their own wealth that will
  enable them to reach more individuals in need.
• These ventures hold the promise of generating
  revenues to improve organizational sustainability
• These ventures hold the promise to further
  mission driven objectives.

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Emergence of Social Enterprise (cont.)

• Community-based non profits ranging from
  childcare providers and homeless shelters to
  charter school and youth development
  organizations are increasing supplementing
  charitable donations with earned income revenues.
• Provides a new source of funding
• Unrestricted revenues
• Controlled by the non profit
• Presents a new mission platform

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The Emergence of Social Enterprise

• Innovative non profits are looking to the small
  business sector for solutions
• Universities and Colleges have a prime
  opportunity to embrace non profits in fulfilling
  their social mission
• Universities and Colleges are the link in the
  community to leverage the business sector to
  support Social Entrepreneurship
• Analyzing, learning from, and even co-opting
  business practices and ideas in order to launch
  market-based ventures.

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Businesses that support Social Enterprise

• Ben Jerry non profit PartnerShops, nation wide
• Auntie Annes Pretzel Franchise Units, Denver
• AIM Mail Center Franchise Units, Washington and
  CA
• Maggie Moos Ice Cream Franchise Units, DC
• Rocky Pop Popcorn Franchise Units, Denver
• ServiceMaster, (provided Boston Rescue with
  janitorial franchise, management assistance and
  marketing to support its mission)

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Businesses that support Social Enterprise

• Popeyes Franchise Unit in Kansas City, MO
  minority own the franchise through a non profit
  based on sweat equity
• Chesapeake Bagel Bakery, DC (non profit 25
  equity partner)
• Ponderosa (non profit 19 equity partner)
• Dunkin Donuts, Nathans Pizza Hut, Taco Bell, NJ
  (non profit owns and operates each franchise)

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Leslie Sperry, LL Beads

• Revenues 85,000 FY 2003
• Began part-time 1998, full-time as of March 2002
• Consultant refocused their marketing strategy
• Museum and specialty stores
• Atlanta Gift Mart, January 2004

A Bead-it Lady
Amber Earrings
www.llbeads.com
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Anna and Theresa, Medical Billing

• Revenues 110,000 for FY 2003
• Part-time to full-time, from 1 client to 10
• From basement to office space
• 2 employees and 1 intern
• Clients access their billing files remotely
• Now operate from two different states

www.jesusembs.com
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Debbie McGee, Catering

• Revenues 22,000 FY 2003
• Currently works as a chef
• Graduated culinary school, Chattahoochee
  Technical College
• Completed internship at exclusive hotel resort in
  Captiva Island, Florida

Delightful Dees Catering
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Sources Cited

• Cobb Microenterprise Center www.cobbmicro.org
• KSU Coles College of Business www.ksu.edu
• Blended Value Research www.blendedvalue.org
• Community Wealth Ventures Franchising Research
  www.communitywealthventures.org
• Association for Enterprise Opportunities (AEO)
  www.microenterpriseworks.org

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Thank you!
CMC Staff