new capital for the new breed
Tamaso ma jyhotir gamay!
( deliverance from darkness to light)
You are an entrepreneur in the semiconductor business and your Company has just received level 1 funding from a VC who has faith that your Company will the next revolution in the semiconductor circuit development. And aye uddi uddi uddi you are going home a happy man.
You stop your bike at the signal and you see that the kid who sells peanuts is trying to read a comic series on the paper that he uses to wrap the peanuts ? you are overwhelmed and a prayer thanking God for your current state escapes your lips. You also know that the situation can be changed if the kid has enough educational resources. You swear at the country growing at 9%( and you are growing @20% p.a) and investing only 3% in education. You make a note to call your regular NGO ( because your firm makes many donations to it (Sec80G you see!) and make a small contribution. You reach home , India loses and you forget the world…….
Entrepreneurs changed the Indian business landscape with their path breaking ideas that worked wonders in the emerging fields of Internet, semiconductors, bio-medicine, media and others. They on the funding that they received at various stages from angel investors, VCs ,PE and finally the people (IPOs) created value for the investors and also their consumers. What holds back entrepreneurship in the social fields like the known ( relative to the virgin fields of new techs) and forgotten field like education. Can social entrepreneurs create value for the poor children and yet make money for their investors (if they get one) ?
Let us explore some ideas…..
PPP : to work in the field of mass education there is a need for public private partnership because the government to its credit has the highest network of primary schools and the best reach to them which is wasted in poor management. The private player can help to boost the infrastructure in these schools by starting libraries and computer centers whose operations must be privately handled.
What if there is no municipal school or any school as the area is very remote ?
This is where the social entrepreneur ( SE) comes in.. John Wood a Microsoft employee left his highly paying job to start an organization called Room to Read that started libraries, schools and computer labs in the developing nations like Nepal, Vietnam ,India , Cambodia, Sri-Lanka etc. his model is unique.
Co-investment : in this model the SE provides the funds for building materials books, computers and other requirements and the locals chip in with labour and land. Also due to the contribution of local benefactors like NGOs or individuals usually the construction costs are covered locally. So the investment of the SE is limited to the educational infra only.
But the investments can be substantial for ambitious projects of helping millions. The fund raising is done through the Chapter Approach. The SE can use his contacts to get part time volunteers in different cities called city chapter. The volunteers are responsible to raise funds in their respective chapter by hosting dinners, events and personal contacts. The power of network or social marketing like the buzz is more evident when it is actually used for social purposes.
The same idea of co-investment can be used in cites if the schools can lend their rooms (as their investment) to expand the existing libraries or set up new ones. It’s a win win as both the street children and school students also benefit.
VCs in people : for a young boy who has completed primary education and wants to learn more but may not have access to a scholarship ( very few for a few ). He starts working. If a reputed Company invests in his education with a contract that he remains under them for X years then he will study and the Company finds him suitable employment. The Company has a team of hundreds of such young trained men and considering the demand pressure for trained men in manufacturing the Company makes a decent profit on its investment. The risks : what if the people run away without honoring the contract. I am sure there are HR solutions for this problems .
But if companies can invest in Companies then why not in people ?
If you these ideas impractical and absurd then the best test is to try out one ….
“ you may say I am a dreamer, but I am not the only one, I hope some day you join us ..:”
( deliverance from darkness to light)
You are an entrepreneur in the semiconductor business and your Company has just received level 1 funding from a VC who has faith that your Company will the next revolution in the semiconductor circuit development. And aye uddi uddi uddi you are going home a happy man.
You stop your bike at the signal and you see that the kid who sells peanuts is trying to read a comic series on the paper that he uses to wrap the peanuts ? you are overwhelmed and a prayer thanking God for your current state escapes your lips. You also know that the situation can be changed if the kid has enough educational resources. You swear at the country growing at 9%( and you are growing @20% p.a) and investing only 3% in education. You make a note to call your regular NGO ( because your firm makes many donations to it (Sec80G you see!) and make a small contribution. You reach home , India loses and you forget the world…….
Entrepreneurs changed the Indian business landscape with their path breaking ideas that worked wonders in the emerging fields of Internet, semiconductors, bio-medicine, media and others. They on the funding that they received at various stages from angel investors, VCs ,PE and finally the people (IPOs) created value for the investors and also their consumers. What holds back entrepreneurship in the social fields like the known ( relative to the virgin fields of new techs) and forgotten field like education. Can social entrepreneurs create value for the poor children and yet make money for their investors (if they get one) ?
Let us explore some ideas…..
PPP : to work in the field of mass education there is a need for public private partnership because the government to its credit has the highest network of primary schools and the best reach to them which is wasted in poor management. The private player can help to boost the infrastructure in these schools by starting libraries and computer centers whose operations must be privately handled.
What if there is no municipal school or any school as the area is very remote ?
This is where the social entrepreneur ( SE) comes in.. John Wood a Microsoft employee left his highly paying job to start an organization called Room to Read that started libraries, schools and computer labs in the developing nations like Nepal, Vietnam ,India , Cambodia, Sri-Lanka etc. his model is unique.
Co-investment : in this model the SE provides the funds for building materials books, computers and other requirements and the locals chip in with labour and land. Also due to the contribution of local benefactors like NGOs or individuals usually the construction costs are covered locally. So the investment of the SE is limited to the educational infra only.
But the investments can be substantial for ambitious projects of helping millions. The fund raising is done through the Chapter Approach. The SE can use his contacts to get part time volunteers in different cities called city chapter. The volunteers are responsible to raise funds in their respective chapter by hosting dinners, events and personal contacts. The power of network or social marketing like the buzz is more evident when it is actually used for social purposes.
The same idea of co-investment can be used in cites if the schools can lend their rooms (as their investment) to expand the existing libraries or set up new ones. It’s a win win as both the street children and school students also benefit.
VCs in people : for a young boy who has completed primary education and wants to learn more but may not have access to a scholarship ( very few for a few ). He starts working. If a reputed Company invests in his education with a contract that he remains under them for X years then he will study and the Company finds him suitable employment. The Company has a team of hundreds of such young trained men and considering the demand pressure for trained men in manufacturing the Company makes a decent profit on its investment. The risks : what if the people run away without honoring the contract. I am sure there are HR solutions for this problems .
But if companies can invest in Companies then why not in people ?
If you these ideas impractical and absurd then the best test is to try out one ….
“ you may say I am a dreamer, but I am not the only one, I hope some day you join us ..:”
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miss u man ... :*