Digital Provide: From Good to Gold

Microfinance 2.0: People + Technology investment

noreply@blogger.com (Neerja Raman) — Mon, 26 Oct 2009 02:13:00 +0000

The fact that microfinance has been a successful business model for poverty alleviation is undisputed (operational quibbles notwithstanding). The reason is that Grameen bank turned conventional wisdom on its head and made the unbankable (people with no collateral) into safe banking bets. Once they proved that the model was financially sustainable - the world followed suit. Now we are even looking at IPO's for microfinance institutions like SKS and others. So what is next? If microfinance 1.0 was about betting on the innate entrepreneurship of people microfinance 2.0 will be about betting on technology (providing scale by lowering cost) for changing the world. A partnership with social entrepreneurs can pave the way because they typically look for sustainability and are technology savvy. Unfortunately, social capital is still hard to come by especially for social entrepreneurs involved in changing the rural economy through innovations in renewable energy (like solar for lighting) or education (e-content for education) or healthcare. Government institutions involved with rural development should especially take note as they can provide the scale and sustainability. The Jaipur foot is a good example of medical technology that got a boost from a government partnership. Right now when India is so visible in the climate change debate, by investing in companies bringing solar to rural - off grid areas - would strategic. Companies like SELCO, D.Light, Duron energy are good investments for microfinance or NABARD (Govt. banks). It has long been held that research is expensive and emerging economies need only be markets. This is no longer the case when technologies of the developed world do not scale to meet the needs of the emerging economies.

Revitalizing the Rural Economy- NREGS?

noreply@blogger.com (Neerja Raman) — Sat, 24 Oct 2009 07:35:00 +0000

I am looking forward to my session ‘Revitalizing the Rural Economy’. The moderator for this session is Biswajit Sen. The session is scheduled for October 28, 2009 from 1600 to 1715 hrs at the Taj Palace Hotel, New Delhi. The session brief is as follows:
“Various initiatives have been made to revitalize the rural economy and mainstream them into the promising economic growth. One of such example is the flagship large scale government program – NREGS. This programme is mandated to strengthen and boost the rural economy through ensuring minimum employability in the rural areas. Besides NREGS, NABARD, the lead bank especially targeting agriculture in India, has been leading various interventions to strengthen the rural economy, primarily the Rural Infrastructure Development Fund that has been instituted to boost the rural infrastructure. These different initiatives have been successful with their own set of challenges. This session envisages deliberating on the challenges of these initiatives and hence drawing on the learnings for future strategies.”
If you have ideas on the subject – its a good time to speak out – I am still formulating my final thoughts and recommendations

NRN VC Fund: Help those doing good work

noreply@blogger.com (Neerja Raman) — Fri, 23 Oct 2009 11:14:00 +0000

A headline in my TOI (Times of India Friday Oct 23- I'm getting addicted to acronyms like all Indians) has made my day - yes its the one about Murthy (of Infosys fame) setting up a $36 million VC fund saying "entrepreneurship is the only cure for poverty and job creation". In India, family businesses still rule. If its not the M&M saga its headlines like "Prez's son leads the baba log charge" (about Pres. Patil's son winning assembly seat- politics is business) or how 5th generation Kapoor is set to be the next bollywood star (entertainment). So a move like this by one of the most respected people in India signals change. But it is the fine print that excites me. Murthy has said he will invest in the fields of basic health care, education and nutrition signalling that long term investment is also a priority. Additionally his reason for setting up the fund is: "there are people doing good work in India." He wants to support them and help them grow rather than start yet another effort himself and reinvent the wheel.
Good move Mr. Murthy - I am a fan of Good Capital.

Dancing in the Rain

noreply@blogger.com (Neerja Raman) — Tue, 06 Oct 2009 16:34:00 +0000

Life is choice. Do I sit out the storm or learn to dance in the rain? Safe or Sorry? Bored or alive? It all depends on how you frame it. What if the storm lasts longer than the span of my life? What choice do I have? None. Life is not a choice. I must learn to dance. This is the technology and social impact conundrum. The digital divide is in your face 24 -7 in full color- on news channels and print and falsely interpreted as a choice of waiting technology to sort itself out. Get over it. There is no choice. Get engaged or get irrelevant. Use technology to lower cost, invent new paradigms, create new teaching models or just fun. Social entrepreneurs who want to use technology are tormented with the spectre of trying to find a solution (you can't eat technology) without understanding the problem - "if we wanted to eradicate poverty we would first have to understand the "reasons" behind poverty. otherwise what would happen is that the factors that had kept the rickshaw puller poor in the first place would operate over time to once again reduce him to poverty". Framed like this, it presents a false choice. We can't predict time- how long the storm will last. We understand poverty as we get engaged and try to dance. We will learn but we may not ride out the storm. Si there a choice? I got the comment in connection to my recent posts about microfinance and education. What do you think?

Mobile Phones for Literacy? Launch of Kontax

noreply@blogger.com (Neerja Raman) — Sun, 04 Oct 2009 16:08:00 +0000

Mobile phones are the revolution in emerging economies. In the past year 128m new mobile subscriptions were signed up in India, 89m in China and 96m across Africa. Mobile Marvels, a special report on telecommunications from The Economist, is compelling in its detail about how handsets are helping even the poorest of the poor - through sustainable and scalable business models. Today. For the future the interesting possibility is mobile broadband Internet decoupled from the computer. What if educational content could be delivered over the phone, or a device held in the palm (like iPhone,) not the ear? Mobile affordability means, in parallel, we need research on how to use mobile phones for education. At Digital Vision program we had several projects exploring education using mobile phones. One of them just went live. Steve Vosloo (DVF 2007) of Shuttleworth Foundation writes:
Just wanted to let you know about the launch of the world's first m-novel written in English and isiXhosa (an indigenous South African language). It's a teen mystery story set in Cape Town about four graffiti writing friends. Read the press release for more info at http://tinyurl.com/kontax-pr2 Or read the first chapter of the story at http://kontax.mobi/ (on your PC or from your WAP-enabled phone). Every day for 21 days there'll be a new chapter. Enjoy. I think m-novels have the potential to be big in Africa and want to explore this space (from a practical and research perspective).
Literacy is directly coupled to creativity, innovation and hope. And education is a big market at the right price point. We already see innovation even in the computer space (there's a $10 computer just announced) and netbooks are overtaking computers in the emerging economies. Projects like Kontax are a beacon of hope.

ISB iDiya Challenge Launched

noreply@blogger.com (Neerja Raman) — Tue, 29 Sep 2009 00:05:00 +0000

ISB iDiya Challenge is a National Social Ideas Competition being organised by the Indian School of Business, Hyderabad open to all working professionals. Closing date for submission is October 25, 2009 ( <http://www.isb.edu/idiya> )
From my perspective it is great to see a management school of high calibre like ISB get involved in social issues. Tomorrow's leaders will transform the bottom line to include social impact and institutional change is required to build this new leadership.
The Situation:
49% of the world’s underweight children; 46% of the world’s wasted children and 34% of the world’s stunted children live… in INDIA. <http://www.nytimes.com/2009/03/13/world/asia/13malnutrition.html?_r=2>
456 million people below the international poverty line ($1.25/ day)… live in INDIA. That is one and a half times the population of the USA and one-third of the world’s population below the poverty line. <http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:21880725~pagePK:141137~piPK:141127~theSitePK:295584,00.html>
70% of the population does not have access to basic banking and financial services… in Rural INDIA. <http://www.urbanindia.nic.in/moud/theministry/subordinateoff/tcpo/REPORTON_BANKINGSERVICES/CHAPTER-1.pdf>
41% of the population does not own any of the basic products/assets – bicycle; radio; telephone… in Rural INDIA. <http://www.urbanindia.nic.in/moud/theministry/subordinateoff/tcpo/REPORTON_BANKINGSERVICES/CHAPTER-1.pdf>

The Response:
Some individuals have taken the untrodden path and have chosen to create companies which do good and also do business.
DesiCrew - http://www.desicrew.in/. Rural BPO delivering 40% cost savings to its clients while changing lives of rural populations. 80% of its team are women.
Dial 1298 for Ambulance - http://www.1298.in/. Rolling out a nationwide network of life support ambulance service.
Inclusive Planet - http://www.inclusiveplanet.com// <http://www.inclusiveplanet.com/> . Building the world’s largest community of differently-abled persons.

Mentoring partners for ISB iDiya: Acumen Fund, Deloitte, DFJ, Google, Intellecap, Seedfund, Unitus, Venture East.
Registration- www.isb.edu/idiya <http://www.isb.edu/idiya> . Email: idiya@isb.edu.
ISB iDiya Networking Platform: http://isbidiya.ning.com/
Facebook: http://www.facebook.com/pages/Hyderabad-India/ISB-iDiya/127648572855

Microfinance and Education: A win-win partnership

noreply@blogger.com (Neerja Raman) — Mon, 28 Sep 2009 19:55:00 +0000

There is a Chinese proverb that goes something like this: if you want to plan for a year, plant a rice field, if you want to plan for ten years, plant a tree and if you want to plan for the future, educate your child. Microfinance is addressing the 1-10 year scenario which is pretty great. But last year, at the Tech Awards (http://www.techawards.org/) I heard of a business model innovation - a partnership - that addresses the future. It is a combination microfinance plus education model. In this model, women who receive loans are encouraged to send their children to a partner education NGO for "free" or at a subsidised rate. The partner institutions decide how the finances are shared (the interest payments) for optimal sustainability of both organisations. This is a win-win model where the women are encouraged to make a go of the business, (education is a social benefit - unquantifiable through standard metrics), microfinace institutions have to do less policing about the use of their funds and education NGO gets students who's parents care.
Countries with severe poverty are also plagued with prejudice against women, poor health among children and a growing opportunity gap between the rich and the poor. UNESCO proclaimed September 8 as International Literacy Day in 1965 to highlight the role of education in addressing these issues but while its importance is universally acknowledged, the deployment of quality education in developing economies has proved unsuccessful. This is also true for India where, in spite of a great rise in economic stature of the nation in recent years, the literacy divide is as great as it was prior to the IT boom. The success stories of opportunity inclusion come from the microfinance sector. So wouldn't it be nice if we could leverage the success of the microfinance model to do more? Like maybe provide quality education to those left behind bythe current system?

Education: Ultimate Empowerment

noreply@blogger.com (Neerja Raman) — Tue, 22 Sep 2009 17:02:00 +0000

I came to the USA in 1970. When I landed in New York I knew no one and had just 8 dollars in my pocket- since that was the govt. of India regulation at that time. But I did not see any handicap in this. For I had my education. Education is empowerment.

Mahatma Gandhi: "The spread of literacy is the most effective method to advance freedom."
Yet in India, the literacy divide remains intact or worse than it was in 1970.

“Education in the new India has become a crucial marker of inequality. Among the poorest 20 percent of Indian men, half are illiterate, and barely 2 percent graduate from high school, according to government data. By contrast, among the richest 20 percent of Indian men, nearly half are high school graduates and only 2 percent are illiterate." (Education Push Yields Little for India’s Poor”, New York Times, January 17, 2008). Consider this - About 35 percent of India’s population is illiterate; there are 100 million illiterate children of ages 6-14 years.

In the course of my work we come across many organizations devoted to the cause of literacy and education for the underprivileged and they are all absolutely amazing. The fact is the education- especially at the K-12 level- is a huge challenge as it comes intermingled with issues of hunger, health, and hopelessness.

As the bay area Pratham fundraiser is coming up on Saturday, 26th I am reminded of why I support them. Pratham stands out in three ways.
1) Scale: Existing aid models for education make a huge impact but to change the world you need scale. For education, lacking a viable for-profit business model, a change is needed. Pratham is addressing this issue through partnerships. For example- they are a tripartite partnership between the government, citizens and corporates- plus they partner with other NGOs. People say the government is impossible to work with – and it is true – but they are the ones with infrastructure.
2) Metrics: Its good to have the end goal, mission and vision – but we also have to course correct. For that we need metrics and evaluations. Pratham is a learning organization that continuously monitors itself and the field.
3) Community: No service program can work if it not owned by the community, is for the community and run by the community it serves. Pratham’s many outreach programs, cadre of volunteers as well as paid staff – all have a mission of hope. This is the leadership style as well as the distinguishing strategy.

Microfinance Awards - Application Deadline Sept. 30, 2009

noreply@blogger.com (Neerja Raman) — Thu, 17 Sep 2009 18:27:00 +0000

Awards and recognition are a great way of supporting change makers- providing emotional and (sometimes) financial support - while engendering healthy competition. So I am pleased to hear that HSBC is sponsoring Microfinance India Awards. The winners will be awarded with a cash value of Rs. 100,000 each, a silver plaque and a citation. The deadline for receiving completed nomination forms is September 30, 2009. Nominations are solicited for two categories:
1- Microfinance Institution of the year 2009 - self nominate
2- Lifetime achievement -individual - long-term, significant contribution to Microfinance sector
The awards will be presented at the Microfinance Summit October 26-28, 2009 in Delhi. Even better the awards will become an annual feature - so if not ready this year - stay tuned.

Financial Inclusion: Microfinance to Mainstream

noreply@blogger.com (Neerja Raman) — Mon, 14 Sep 2009 17:28:00 +0000

Every year I try to do one hike in the Himalayas. It takes me back to my roots in Dehra Dun, inspires, energises and engenders hope. So in September 2008, when we did the gruelling 14km uphill trek to an elevation of 3584m (Gaurikund to Kedarnath), as usual, the mountains were unimaginably majestic but this year I saw something unexpected- man-made but equally mesmerising for me. Beyond the hike trail, on the dirt path to the last village on the India border, there flew a banner that read something like "Proud to reach 100% financial inclusion - State Bank of India". I wish I had had the presence of mind to take a picture (too tired is my excuse). Sure it is an ad. But look at the lofty goal. In a country largely supported by a rural population, where less than 50% bank and even fewer have access to credit, to reach the remotest corner of India with a goal of 100% financial inclusion is nothing short of ambitious. And indeed, all the huts I saw looked clean, had roofs and there were tiny, immaculate gardens with cabbage, cauliflower growing; chickens running around and nobody looked cold or hungry. For developing economies, microfinance (and micro-franchising) must become mainstream. So I am pleased to be invited to the Microfinance India Summit to be held October 26-28, 2009 at Taj Palace Hotel, New Delhi. The theme this year is "Doing Good and Doing Well: The need for balance". The summit will look at both the trade-offs and points of convergence as the sector grapples to balance between building the social as well as the financial capital; scale and soul; social performance measurement; client protection; products and services that the poor need; and issues linked to last-mile connectivity, among others. I also look forward to interviewing ordinary and extraordinary folks I meet at the conference - so send me your questions and I'll report back on what I hear - right here.

An Open Mind: Key to Successful Cross Cultural Communications

noreply@blogger.com (Neerja Raman) — Sun, 13 Sep 2009 21:18:00 +0000

Without a map Columbus probably would not have "discovered" America. But a map mislead him into thinking he had discovered India. So I love maps; but I realize that they can mislead. Phantoms in the Brain, page 39- "When asked what his biological studies had taught him about God, Haldane replied- the creator if he exists must have an inordinate fondness for beetles for there are more species of beetles than any other group of living creatures. By the same token, a neurologist must conclude that God is a cartographer. He must have an inordinate fondness for maps for everywhere you look in the brain, maps abound." by V.S. Ramachandran, Professor at UC San Diego. The good thing about a brain map (unlike a physical map) is that every interaction updates our brain map. I talked about this at the recent "Successful Cross Cultural Communications" event hosted by FountainBleu in the context of understanding and overcoming stereotype biases. The human brain creates maps to classify and simplify the life around us so we can function 9-5. Stereotypes in our heads are just like maps- useful but possibly misleading. If we can accept this, we can actually enlist what we already think we know about another culture (when one thinks about ‘cross-cultural’ there’s an assumption that it’s about people from different backgrounds, but it’s much broader than that. It encompasses differences in geography, languages, generations, companies, functional areas, regions and industries) simply be prepared to update your knowledge - add to or create a new map.
And the old cliches about keeping an "open mind" or "active listening" or "suspend judgement" that leave you wondering what action to take, start making sense.

More than Money: its about Mindshare

noreply@blogger.com (Neerja Raman) — Thu, 10 Sep 2009 17:55:00 +0000

Socially motivated organisations often get so tired of the incessant need for fundraising, that they quit or they lower their ambition and start thinking small. How then to keep your spirits up? Keep going?
Create Mindshare- A few weeks back, I attended the Pratham sponsored entertainment program put together by 8 amateur singers and one dance company. The financial goal ($10,000) was modest but the ambitious goal was creating awareness about education (and the lack of access to it) in India. The first thing I noticed was how different the event was. There were no "stars", no "egos", no agendas. Amateur talent was provided a platform, the tickets were affordable and it was a concrete forum for bringing together friends, family around a worthy cause. With a cast of over 45 people it was easy to fill the West Valley auditorium to meet the financial goal. It was particularly heartening for me to see teenagers born in the US eager to understand and give back to children less fortunate than themselves and racking their brains to figure out how.
While asking for funding is like harvesting the fruit off a tree, a program like this is like sowing a seed. Kudos to the Pratham volunteers that came up with the idea and executed it to perfection. Other organisations see the value of creating mind share. Niroga http://www.niroga.org/ teaches yoga and mindfulness skills to at-risk youth and other under-served populations. Their model holds great promise as a low cost strategy for reducing juvenile crime and violence, truancy and dropout rates, chronic health problems and many other problems affecting children and the communities they live in. Niroga is hosting a brunch on October 3, 2009 in Oakland, CA. This benefit event promises to be a great time, with delicious food, musical entertainment by members of the Oakland Youth Chorus, and inspiring remarks by students and teachers involved in Niroga programs. There is no charge to attend the event, but most attendees do pledge to make a donation at the event.
Business is Business. Whether a for-profit or not-for-profit, sustainability and even more so, scaling the venture, requires a business model with a recurring revenue stream. But till you get to that point don't forget the power of people- everyday people who want to give but don't have a forum for it. Create mindshare and reap the benefits.

Metrics and Management for Heart-Head Impact

noreply@blogger.com (Neerja Raman) — Thu, 13 Aug 2009 16:32:00 +0000

My workshop last week at Stanford about technology fuelled social innovation as applied to the for-profit as well as non-profit world drew an exceptional group of change agents from industry, NGOs and universities. The theme- every transaction is a business - whether registered as a for-profit or non-profit and how technology can help. Some highlights:
1- A business "Metrics Intelligence Management" solution (MetrixLine) applied to Give2Asia as an example of how real time metrics generation is relevant for non-profits and can reduce the cost of data-gathering - with a live demo showing "customer" (in this case - donor) profile, balanced scorecard (management metric) and more. (by CEO Aman Walia)
2- A live interactive session showing the use avatars and game technology for education (kidscom.com) about social responsibility in teens. Our session had about 12 teens (under 14) who were asked what social issues they cared about among other things - Number 1: health care; number 2: providing a "family" for kids who didn't have one. (by Founder Jori Clarke)
3- An example of how to make a mainstream lending institution engage in micro finance through loan (social) guarantees (UnitedProsperity.org) while also providing the individual story just as an MFI would do. Another feature of this session was an illustration of partnerships (UnitedProsperity, MFI's and Banks) so each does what they are best at without re-inventing the wheel - a theme in the workshop (by Founder Bhalchander).
4. More to come...

Top 5 Myths in Social Entrepreneurship

noreply@blogger.com (Neerja Raman) — Wed, 12 Aug 2009 18:13:00 +0000

The change-leader is a myth-buster. As technology fuelled business models change, nowhere is this more applicable than in the field of social entrepreneurship. The top 5 myths are:
1. If you want to do good, you have to create a not-for-profit company.
2. If you want to create a social enterprise with a mission, you cannot do this in a for-profit company.
3. For-profit companies are incompatible with a social mission.
4. Shareholders demand quick returns
5. Triple bottom lines (profit, people, planet) are incompatible
The fact is that the current legal and financial instruments are limited in how social impact is measured and hence the tools need to evolve. But tools can't evolve unless social entrepreneurs see them as tools to be changed. "Be the change" said Mahatma Gandhi. Nobody said myth-busting is easy - but its a lot easier if you firmly believe in the change.

Philanthropy Needs Technology

noreply@blogger.com (Neerja Raman) — Fri, 07 Aug 2009 00:50:00 +0000

The NonProfit Times released its Power & Influence Top 50 list on Aug 1 saying-"Service is the new black. It’s so fashionable that those leading the national service movement have packed the catwalk of The 2009 NPT Power & Influence Top 50". I have no quibbles with the idea of service and "Volunteering as a Fashion Statement". However, I would like to see philanthropy shift from a "service" model to an "empowerment" model. I agree with Change.org, Nathaniel Whittemore who says social media is shifting the power dynamics of philanthropy when he writes-"Some are honored for their attempts to better train the nonprofit industry, others are noted for the innovation which they've instilled in their foundations. The one major homage to technology comes in the recognition of Holly Ross, director of the awesome NTEN nonprofit technology conference." He goes on to say that bloggers are missing from the list. The power of the Internet and social media is the ability to reduce emotional distance between people of different types. Non-profits and foundations have an opportunity to get more technology into their operations both to reduce costs as well as to engage both donors and recipients in a more "democratic" way - where both parties are seen as benefiting.

Muhammad Yunus Honored by Obama

noreply@blogger.com (Neerja Raman) — Mon, 03 Aug 2009 16:37:00 +0000

Last week, the White House announced that Professor Muhammad Yunus will be one of the recipients of this year's Presidential Medal of Freedom. The Medal of Freedom is bestowed by the President and is the highest civilian award in the United States. President Obama said: "These outstanding men and women represent an incredible diversity of backgrounds. Their tremendous accomplishments span fields from science to sports, from fine arts to foreign affairs. Yet they share one overarching trait: Each has been an agent of change. Each saw an imperfect world and set about improving it, often overcoming great obstacles along the way. Their relentless devotion to breaking down barriers and lifting up their fellow citizens sets a standard to which we all should strive. It is my great honor to award them the Medal of Freedom."
When Dr. Yunus receives his award, he will be joining a distinguished group of individuals that includes Nelson Mandela, Mother Theresa and Martin Luther King, Jr. Adds Warner P. Woodworth, Social Entrepreneur & Professor, Organizational Leadership & Strategy, Marriott School, BYU: "I have had the privilege of working with Professor Yunus for over a decade as he has advised a number of the NGOs my partners and I have established around the globe. From those little efforts, mostly launched with BYU students using my courses as incubators for global change, over 50 projects have been launched, and 22 have become NGOs. Last year alone, we collectively raised more than $46 million, trained approximately 340,000 microentrepreneurs, and grew our client base to about 6.1 million impoverished individuals who received a loan during 2008."..."While critics say the poor are lazy and that they are irresponsible, our microcredit experience, not only in the Third World, but also now in America, is that they simply need an opportunity. Our NYC outstanding loan portfolio has grown to over $950,000, and these borrowers have also cumulatively saved over $150,000, which demonstrates the impact of our savings program (http://www.blogger.com/www.grameenamerica.com/ <http://www.grameenamerica.com/>)."

Sustainability workshop- Aug 7 at Stanford

noreply@blogger.com (Neerja Raman) — Fri, 31 Jul 2009 22:52:00 +0000

My workshop, Media and Management Bridges for Heart-Head Impact is on August 7th 9-4. Check out the video link for details. Presentations include Hybrid business lifecycle, The Millennium Project and MetrixLine platform and practical tips on using online media tools for brand creation and management. Discussion items:
° Managing tradeoffs between business (profit) and social (people, planet) goals
° Public-Private Partnership strategies for harnessing markets to solve social/environmental problems
° Pragmatic changes non-profits should take to be effective and to scale

How to increase your personal wheel of influence

noreply@blogger.com (Neerja Raman) — Sun, 19 Jul 2009 16:39:00 +0000

At the annual WITI keynote last month, I heard about the "personal wheel of influence" - about how you treat every business interaction as a "relationship". The idea is simple- people intuitively understand that relationships are a lifelong thing, not one-time transaction and it alters behavior from short term wins to long-term mutual benefit behaviors; inspires give-take and inspires us to think in terms of increasing "social currency" defined as our value to others. Think of a wheel with YOU at the center. Around this draw all other interested parties into circles (sales, marketing,customer etc) and then pretend that you are not in one meeting but in a long term relationship at every meeting you have. What would you do to grow the inner circle? Add value to others. Key to growing the YOU circle is understanding what your value is and to grow that vale. If you engage from the perspective adding value, the personal wheel of influence grows automatically - an outcome, willingly supported by others of what you do. To know your key value and grow it - complete the following sentences:
1. - I am known for... (write 2-4 things)
2. - I want to become known for ...(write 2-4 things)
and then have fun!

Microfinance to Mainstream?

noreply@blogger.com (Neerja Raman) — Wed, 08 Jul 2009 21:04:00 +0000

Micro finance methods have captured our imagination, hearts, social conscience and even our technology innovation dollar, but, sadly, never the institutional support that ideas need to go from boutique to mainstream. Till now. Eric Bellman, Wall Street Journal July 6, 2009 headlines "Rural Demand Helps Indian Banks". Bless his WSJ heart, the byline says "once considered a burden, remote branches prosper on aid for farmers". Note: aid, not loans. Other than that quibble (though technically aid is correct, because there are some subsidies involved but given all the baggage associated with the word "aid" I would rather use "stimulus" or something else), the rest of the article is worth every bit of ink. India has been resilient to the global meltdown because of growth in rural India; technology to reach remote areas and as market is growing, traditional for-profit banks are moving in too- completing a virtuous cycle. Key points:

- rural banking growth - from 12% to 20% has offset decline in urban - from 28% to 19% which is more tied to the global economy

- technology helps - remote branches have a finger-print scanner and mobile phone for identification and processing (State Bank of India) - loans and deposits are small amounts

- the benefit is felt by the state owned banks, which were forced to maintain rural branches (at a loss), but as the "market" is growing, multinationals (e.g. HSBC) are entering the market -thus taking it mainstream

-because of low default rates etc. - interest rates are competitive (10%)

- customer profile- "No one in my family has ever had an account"

I generally highlight media coverage of business+technology+social impact - and coming from WSJ - I thought it was especially noteworthy. In fact it made me track down other noteworthy articles (one especially on cell phone growth in India) by the same author.

For emerging markets -if there is a killer app - it is banking - whether it is delivered through cell phones, kiosks or moving vans; think of the potential customer base! I hope this story is an indication that "microfinace" is moving to "finance" - its the kind of change the world needs.

Purpose vs. Profit Driven Venture Creation

noreply@blogger.com (Neerja Raman) — Wed, 17 Jun 2009 23:54:00 +0000

I like it. And it is not just the alliteration. I like it because "Purpose" and "Profit" don't sound mutually exclusive whereas "Social" and "Profit" do. When it comes to championing a business approach (vs. philanthropy) to address social issues like job creation, access to education, health care and even climate change, there is no elevator pitch. Most of us in this field talk about "sustainable business" or just stick with social entrepreneurship or social business (substitute venture, capital, purpose, impact...as fits) because that is what works in search engines. Historically we are conditioned to think of a business as for profit and philanthropy (or government action) as being for social impact. But we know that the strictly for-profit venture is just as unsustainable long term as is pure charity for social impact - hence the need for a mixed model - where we need profit AND we need social impact. I was reminded of this with a recent email from Jerri Chou, who I met at the "Outstanding 50 Asian Americans in Business" awards.
Jerri writes "I run a company called All Day Buffet which launches purpose driven ventures, one of which being The Feast Social Innovation Conference. I was really quite excited for your award last night -- for you personally and the social innovation world in general. Much of our work is galvanizing the community and movement on this (east) coast (despite old school philanthropy and investment) so seeing recognition for your work was a pleasant surprise.
Our next venture is also based in education and democratizing creativity and innovation skills through distance learning, (which I noticed you've done some work in) so would love to get your thoughts in case you're interested. Regardless, congratulations again and hope to stay in contact"
What I found intriguing about Jerri's work is that her company is trying to change the whole thinking around sustainable business creation not just through launching ventures but also holding events to create mind share and leadership in this area. Coming up is- The Feast: Social Innovation Conference, New York // October 1-2, 2009
http://www.thefeastconference.com

Entrepreneurship and Kal Penn

noreply@blogger.com (Neerja Raman) — Mon, 01 Jun 2009 22:41:00 +0000

Pop culture and Politics - that's what I thought "An Evening with Kal Penn" event was about. Hosted by Sanskriti at Stanford University the blurb said: "Kal Penn looks at the intrinsically political nature of pop culture. He also gives us a glimpse into the darker side of the entertainment industry, full of prejudices and comically misguided casting agents ("Where's your turban?"). One of the few Indian-American actors -- so far -- to break into Hollywood, he looks at how pop culture can reinforce, but also challenge and overturn, racial stereotypes." In actuality there was less about politics than there was about entrepreneurship. In person he turned out to be charming and while there was humor, there was no negative energy. And I think that is a key to his ability to break barriers. For example when asked repeatedly about his opinions on Slumdog Millionaire he laughed and said "why? like I can't have an opinion on Milk?" All in all, he was candid and open with the audience and his top three entrepreneurial skills, that came through in several of his stories were:
Passion - It was clear that Penn was passionate about his acting career but at the same time understood the barriers he faced and was willing to tackle them.
Flexibility - Penn took on some roles because "he needed the job". They allowed him to continue working even if not perfect roles
Communication (Ability to Dialog) - when he got some unfavorable comments (a letter about his role in Harold and Kumar) he wrote back positioning the film from the characters' perspective explaining how that forces us to see beyond the ethnicity of the two characters.

Entrepreneurship and Improv: Two Peas in a Pod

noreply@blogger.com (Neerja Raman) — Fri, 22 May 2009 17:22:00 +0000

Entrepreneurship is a contact sport and social entrepreneurship is extreme contact sport. The keyword here is contact - its as much about the other as it is about you. Different, for example, from heli-skiing where it is all about you. So last week, when I saw two amazing Improv plays (not stand-up comedy), I remembered that Improv training is great entrepreneurial skills training. Its the way to maneuver the "contact" aspect of the sport. You learn to "act" on your feet while gauging the audience; you learn to create laughter out of adversity to build camaraderie and most important you learn not to take yourself too seriously -for entrepreneurs are sustained by passion and social entrepreneurs by extreme passion (that burdens them with an un-endearing righteousness). Two snippets from the Improvised Shakespeare Company production I saw provide illustrations. At the start of the production the group leader asked for a play title - the answer from the audience was "King Lear Goes to Jail". In laying the foundation for the story, there was wordplay around "retire" - as in retire from job or retire for the night. The audience laughed so the players built on the theme to the point of introducing a new character called Webster (as in dictionary) and Webster was a huge hit. Another obvious aspect of Improv is that players switch roles frequently - in this case each player had multiple roles which were conveyed by getting into character with diction, body language, gestures- convincingly enough that the audience couldn't caricature the player into any one human trait (clever, conniving, fool etc).

Just for fun or just for work, this summer, do something for yourself: sign up for an Improv class and watch your entrepreneurial skills improve. That's because we learn by doing and Improv theatre provides a "safe" place to do.

Top 3 Entrepreneur Strengths that Become Weaknesses for Scaling

noreply@blogger.com (Neerja Raman) — Wed, 20 May 2009 16:07:00 +0000

From Idea to IPO- that was the entrepreneurship mantra of the last decade. Get in quick and get out even quicker - with a pile of money - to invest in your next big idea. Scaling comes after IPO, sometimes with new leadership. This business path isn't applicable to social entrepreneurship where the mission is sustainable growth with no clear exit strategy (at least at the start). So one would think that current Wall Street woes would help the cause of the social entrepreneur - maybe divert some capital into long term investments like infrastructure, education, health-care, poverty alleviation - the things that worry the social entrepreneur. While capital is certainly an issue, it is not just about capital. The impact metric of social entrepreneurship is scale. You educate 100 kids, you educate a 100 kids. You educate 1,000,000 kids you change the world. That is the "impact metric". Scale is the equivalent of the IPO for social businesses. But entrepreneurial characteristics, the very ones that allow a company to form (for profit or not-for-profit) may become barriers to scaling or taking the company to the next level. With the fall in the number of recent IPOs there is a timely bit of advice in HBR from Anthony Tjan "Why Do Most Entrepreneurs Fail to Scale?" that I think is especially relevant for social entrepreneurs. The top three double-edged traits to watch for are:
1. Persistence. Willingness to persevere despite obstacles has created many great innovations and is often the foundation for successful start-ups. However, persistence can easily turn to stubbornness. Stick with your ideas when you know you are right and have supporting evidence. Be willing to abandon your position when signs show you need help or redirection.
2. Control. Early phases of company growth require the founder be involved in all operations. But as the company scales, that maniacal attention to detail can be counterproductive. Recognize the importance of delegation and let go when it's time.
3. Loyalty. Close ties inevitably form when people work together day in and out, and loyal relationships can yield great results. However, you need to know when loyalty is clouding your judgment in assessing capabilities and skill gaps.

To this list I would add collaboration - the equivalent of "mergers and acquisitions"- a common growth strategy to take a company to the next level. What do you think? Will the economic downturn be a blessing in the long run? Will social entrepreneurship no longer need the social and just become entrepreneurship?

Technology Solution for Hunger: Akshaya Patra

noreply@blogger.com (Neerja Raman) — Tue, 12 May 2009 20:45:00 +0000

Studies report more undernourished children in India than in Sub-Saharan Africa. "Give me fish and you feed me for a day; teach me how to fish and you feed me for life" is the mantra for education providers and in recent years, Internet and computer technologies have done much to improve education across the world. But how well do I learn if my stomach is empty? As in the US, the Indian government provides funds for school lunches but unlike the US, those funds are inadequate as well as ineffective. Technology has no immediate answer for hunger; or so I thought till I heard about Akshay Patra and their school lunch program. The Akshaya Patra Foundation has applied technology for efficient meal production by automating large scale kitchens and their meal delivery system involves innovative logistics using custom designed vehicles to transport food from the kitchens to schools according to a strict schedule with optimal storage and minimal spillage. Hence, they have quickly scaled to feeding over one million children every day from a start of 1500 in just a few years. This technology (kitchen video at http://www.youtube.com/watch?v=CQYc8WH9Srs) has resulted in improved attendance and education according to an AC Nielsen survey. What distinguishes Akshaya Patra from other midday meal programs is that the entire food production and delivery system is intelligently designed and engineered to maximize operational and cost efficiency, while adhering to international standards of hygiene and quality. This makes the government funds they get for raw food-grains go much further and cuts out the middle man. Obama has recognised their unique approach: "Your example of using advanced technologies in central kitchens to reach children in 5,700 schools is an imaginative approach that has the potential to serve as a model for other countries." Additionally, they have been able to extend their approach to rural areas where transportation is more expensive and infrastructure minimal, by using smaller kitchens thus providing employment to women who cook meals. Catch the people of Akshaya Patra at Tiecon 2009 in San Jose and be part of the solution.

How to Market a Movement - 7 lessons

noreply@blogger.com (Neerja Raman) — Tue, 05 May 2009 21:37:00 +0000

Let's face it. Social entrepreneurship requires marketing just like any other new idea. And suffering as it does from being neither charity nor business, its business model ires investors and philanthropists alike. But when the Internet started, there was no clear business model either, so I remain undaunted. What makes people flock to new ideas? I think its all in the buzz, the art of creating a movement that people want to be a part of. So I went to hear the buzz-meister Geno Church (of WOMMIE, EFFIE and ADDY awards fame) of Brains on Fire (brainsonfire.com) at the NewComm Forum 2009. His specialty is creating a Word of Mouth (WOM) movement using "brand ambassadors". His brand ambassadors are not highly paid celebrities, but unknown people who are not paid. They build a movement because they want to, and so it grows. His 7 key factors are:
1. WOM marketing is built on passion - find people to be brand ambassadors who are passionate about the cause
2. Have inspirational leadership
3. Empower people with knowledge - provide hard data to ambassadors for their use
4. Encourage ownership
5. Make advocates/members feel like rock-stars
6. Create supportive communities that live on-line and off-line - bring people together 5x a yr
7. Move the Media - practice random acts of advocacy
Rage Against the Haze (South Carolina's youth led anti-tobacco movement) started with just $800K in funding which was used to train the ambassadors - called viralmentalists. The movement consisted of kids talking to other kids about smoking as a choice. In the end he says, the power lies in supporting a cause, enabling an experience and telling a story. Now if we can translate the lessons to creating a buzz around the field of social entrepreneurship!