Social Enterprise World Forum

Final Day and Reflections

The Social Enterprise World Forum for 2015 finished on a high in many ways: the temperature was literally soaring, Hong Kong was announced as next year’s host for the event, and Nobel Laureate Professor Muhammad Yunus was finally in the house! In addition to this, there were some particularly important takeaways from this year’s event, some uttered from Professor Yunus, and others from the mouths of the young social entrepreneurs who helped close the event on a high.

For-Profit or Not-For-Profit: Searching for a clear definition of Social Enterprise.

Professor Yunus is a very good public speaker who offers profound insights into the problems of conventional capitalism (the type that has defined capitalism for many decades now, and which took us all into the GFC 7 years ago), as well as optimistic guidance as to the role that social enterprise can play in a better future for all. He has obviously played a critical role in where social enterprise is today, and he doesn’t seem to have any ideas of reducing his influence any time soon; this is a very good thing.

Professor Yunus’ first appearance at the conference was for a panel debate with Sophie Tranchell from Divine Chocolate in the UK. The topic of the debate: ‘Should investors profit from Social Enterprise?’ is one that had been lingering in the ether during this whole conference. There was clearly a diversity of opinion amongst the delegates to the conference, with a mixture of businesses represented that were either For-Profit or Non-Profit.

The debate wasn’t much of a debate really; it was more of a civilised conversation between two very accomplished and inspirational thought-leaders. Sophi Tranchell gave the audience some detailed insights and opinions on Divine Chocolate’s company and governance structure: Divine Chocolate Limited is a private company limited by shares, but to simply state that and move on would in no way do this great company justice. What was interesting to learn about Divine Chocolate as a representative of a Non-Profit Social Enterprise was that it was the ‘who’ of ownership that was important in Divine’s case.

When Divine Chocolate was created in 1998, ownership was divided amongst three parties: 52% to the Fairtrade NGO Twin Trading, 33% to Kuapa Kokoo Farmers’ Co-Op, and 14% to Body Shop International. The significant thing that has changed since then is that Body Shop International donated its shares to the Kuapa Kokoo Farmers’ Co-Op. So what is interesting about Divine Chocolate is that it is For-Profit, but it has made sure that the people cultivating and producing the raw cocoa have a very strong stake in the company, and are beneficiaries of the success of the company too. Couple this organisational structure with their mission and you have a For-Profit Social Enterprise. Their mission by the way is this:

“To grow a successful global farmer-owned chocolate company using the amazing power of chocolate to delight and engage, and bring people together to create dignified trading relations, thereby empowering producers and consumers”

When Professor Yunus gave his thoughts on the matter of investors profiting from Social Enterprise he was both at times crystal clear and vague. On the one hand he stated clearly that a Social Enterprise must be a zero-dividend company, but then on the other hand he framed Social Enterprises as existing on a spectrum that consisted as a bit of profit, not much profit, no profit etc. Maybe he doesn’t want to be calling enterprises out, because after all: the vast majority of enterprises that identify as being Social Enterprises are trying to achieve social and environmental outcomes. Why should Professor Yunus assert a definition that might slow them down?

Needless to say that a clear and legally binding definition is not with us as yet, and maybe it needn’t be sought anyway? We welcome your thoughts.

The Young Entrepreneurs Speak!

This plenary, which saw a number of very inspirational Social Entrepreneurs share the stage with Muhammad Yunus, was the perfect way to end the conference for a number of reasons. Firstly, Rustam Sengupta from Boond (India) would be on the stage. From his humorous and insightful contributions earlier in the conference, many in the audience were in anticipation of what he might say next. Joining him were Guy Ryan (New Zealand) from Inspiring Stories, a charitable foundation that develops a range of programs and events that support young New Zealanders to unleash their potential to change the world; Sophia Grinvalds (The Netherlands) CEO of Afripads, a Social Enterprise that takes a sustainable approach in improving menstrual hygiene for girls and women across East Africa; Fabio De Pascale (Italy) founder of Devergy, which has developed, and sells affordable micro-grids in rural off-grid communities in Tanzania; and Fiza Farhan (Pakistan) CEO of the Buksh Foundation, which seeks to empower the underprivileged through microfinance, clean energy financing and support in Pakistan.

Get to know Guy Ryan and Inspiring Stories here:

And a cool little clip explaining Devergy here:

Jim Schorr from the Social Enterprise Alliance was the moderator for this plenary, and he guided the flow of discussion with finesse, offering some powerful insights of his own too. Most of the panel members offered insights on how they see their roles as Social Entrepreneurs in the bigger picture, and why they do it. But the most important thing that was taken away from this discussion was a collective opinion that Social Enterprise support, discussions, learnings (and forums) needed to be delivered to the people who needed it most, and in their languages.

Not a particularly radical idea, but no small feat either. The idea of transferring knowledge and empowering those in need with the skills and tools to develop livelihoods for themselves is what many social enterprises do as their core missions. What could be taken away is that maybe high level forums and events should be located in the places where these people are.

Concluding Remarks

Overall the Social Enterprise World Forum for 2015 was a huge event that offered a great experience to all who attended. The breakaway sessions were always insightful and helpful, and there was a sincerity from all who attended that was infectious. Much was learnt and new contacts were made.

The quality of the speakers could not have been surpassed, and their insights were marked indelibly on the minds of those present. It truly was an event that will not be forgotten, not least because Jack Sim couldn’t help but contribute to panel discussions, even when he wasn’t part of the official panel.

Hong Kong will be the official hosts next year, a place where Social Enterprise is a mainstream talking point. Bring it on!