The future is social entrepreneurship | Kerryn Krige | TEDxJohannesburgSalon

Summary

The speaker from the Gordon Institute of Business Science delves into the concept of social entrepreneurship, using the example of a relationship with Ashley to illustrate the complexities of benevolence and inequality in South Africa. They challenge the traditional divide between for-profit and not-for-profit sectors, advocating for a middle ground where social entrepreneurs can thrive, balancing profit with social value. The talk emphasizes the need to recognize and support this sector to accelerate social and economic change in South Africa.

Takeaways

• 📚 The speaker is from the Gordon Institute of Business Science and aims to demystify social entrepreneurship in South Africa.
• 🤔 The speaker reflects on the personal impact of giving to Ashley, questioning who truly benefits from acts of charity.
• 💰 The speaker discusses the potential negative impacts of benevolence, such as perpetuating the divide between the 'haves' and 'have-nots'.
• 🌐 The divide in South Africa is highlighted through the contrast between the country's strong financial indicators and weak social development.
• 📉 The Global Competitiveness Index and the Human Development Index are used to illustrate the stark differences in South Africa's economic and social standings.
• 🔄 The speaker argues that economic growth alone cannot solve social issues and that social opportunities for all are urgently needed.
• 💡 The concept of profit as a counter to benevolence is introduced, suggesting it could be a key to bridging the social and economic divide.
• 🔄 The speaker challenges the traditional dichotomy between for-profit and not-for-profit sectors, proposing social entrepreneurship as a middle ground.
• 🌟 Three key lessons are shared: social entrepreneurs are catalysts, not world-changers; they value social and economic rewards; and they thrive in constrained markets.
• 🚀 Social entrepreneurship is positioned as a disruptor, not because it's new, but because it's often overlooked in the spectrum of social and economic development.
• 🌱 The speaker calls for recognition and support of social entrepreneurship as a means to accelerate social and economic change in South Africa.

Q & A

What is the main motivation behind the author's decision to write the book on social entrepreneurship?

The author was motivated to write the book to transform the intangible concept of social entrepreneurship into a more concrete understanding, especially in the context of South Africa, and to address the disconnect between the economic and social development sectors.

What is the story of Ashley that the author shares in the script?

Ashley is a person the author regularly interacts with at a traffic light. The author gives Ashley money, initially sporadically but later regularly every Monday, to provide a predictable source of income. This story serves as a reflection on the nature of benevolence and its potential to perpetuate social divides.

How does the author describe the divide in South Africa between the 'haves' and 'have-nots'?

The author describes the divide as a stark reality in South Africa, evident in the disparities between the quality of life in affluent areas like Kaya Sands and the rest of the country. This divide is also reflected in the Global Competitiveness Index, where South Africa ranks high in financial indicators but low in social development metrics.

What is the Global Competitiveness Index and how does it reflect South Africa's situation?

The Global Competitiveness Index is a tool that provides a snapshot of a country's performance and compares it with others. South Africa scores well in financial indicators but poorly in social development, including education quality, labor market cooperation, and health indicators, reflecting the country's economic strength versus its social challenges.

What is the author's view on the relationship between economic growth and social development in South Africa?

The author believes that economic growth alone cannot be solely responsible for uplifting the social development in South Africa. The country's social development is weak and is imploding its economic development, indicating a need for a more balanced approach.

What is the main argument the author makes against relying solely on benevolence in social development?

The author argues that benevolence, while well-intentioned, can perpetuate inequality by creating a dynamic of 'haves' and 'have-nots'. Instead, the author suggests that introducing profit into social development can create a relationship of choice, which may be more equitable.

What is the author's perspective on the role of profit in social entrepreneurship?

The author sees profit as a potential equalizer in social development. By introducing profit, the dynamic shifts from one of charity to one of choice, where services are accessed based on need and value rather than charity.

What are the three lessons the author shares from their journey of understanding social entrepreneurship?

The three lessons are: 1) Social entrepreneurs are catalysts of change, not world-changers. 2) Social entrepreneurs are not driven by financial excess but by value and the desire for social and economic impact. 3) Social entrepreneurs operate in complex environments and can teach us about thriving under constraints and identifying opportunities for social value.

How does the author challenge common misconceptions about social entrepreneurs?

The author challenges the misconception that social entrepreneurs run small, survivalist organizations and that social entrepreneurship is a new concept. They argue that social enterprises can be large, global, and have a long history, with examples like Unilever and the insurance industry.

What is the author's call to action at the end of the script?

The author calls for recognition and support of social entrepreneurship as a norm, rather than an exception, to bridge the gap between economic and social development in South Africa and accelerate change.

What is the significance of the story about the Scottish clergymen and the start of the insurance industry?

The story illustrates that social entrepreneurship is not a new concept and that it has been a part of society for centuries. It shows how social needs can inspire innovative solutions that have lasting impacts on society and the economy.

Outlines

00:00

🤔 The Intangible Concept of Social Entrepreneurship

The speaker begins by addressing the common question of what social entrepreneurship is, a topic they specialize in at the Gordon Institute of Business Science. They express the difficulty of defining it succinctly, as their explanations often lead to people losing interest. The speaker's motivation for writing a book on the subject stems from a desire to make social entrepreneurship tangible and understandable in the South African context. They share a personal anecdote about giving money to Ashley, a man at a traffic light, to illustrate the complexities of benevolence and its potential to perpetuate social divides. The speaker grapples with the ethical implications of their actions, questioning who truly benefits from such relationships and whether their acts of kindness might inadvertently sustain societal inequalities.

05:00

💼 The Role of Profit in Social Development

The speaker discusses the limitations of relying solely on economic growth to drive social development, using South Africa as a case study. They highlight the stark contrast between the country's strong financial indicators and its poor performance in social development metrics, such as education and health. The speaker argues that profit, often associated with exploitation, could be a counterbalance to benevolence and a means to create social opportunities for all. They explore the dichotomy between for-profit businesses and not-for-profit charities, questioning why society relies on these extremes to address complex social and economic issues. The speaker challenges the audience to consider the potential of social entrepreneurship, which exists between these two poles, to bridge the gap and create sustainable social change.

10:02

🌟 Three Lessons from Social Entrepreneurship

The speaker reflects on their journey to understand social entrepreneurship and shares three key lessons. Firstly, social entrepreneurs are not driven by the desire to change the world but to catalyze change, empowering others to take the lead. Secondly, the question of how much a social entrepreneur should earn is reframed; they are not motivated by excess but by the value of social and economic impact. Lastly, the speaker observes that social entrepreneurs are adept at thriving in constrained environments, seeing opportunities where others see challenges. They highlight the importance of recognizing and supporting social entrepreneurship as a means to accelerate social and economic development in South Africa.

15:05

🌱 Encouraging Social Entrepreneurship for Accelerated Change

In the final paragraph, the speaker calls for a collective effort to encourage and support social entrepreneurship in South Africa. They dispel common misconceptions about social entrepreneurs, emphasizing that they are not just small, survivalist organizations and that the concept is not new but has been overlooked. The speaker urges the audience to explore the middle ground between for-profit and not-for-profit models, recognizing social enterprises as legitimate organizations. They conclude by posing a question to the audience about what can be done to foster an environment where social entrepreneurship can thrive, thereby accelerating social and economic change in the country.

Keywords

💡Social Entrepreneurship

Social entrepreneurship refers to the application of entrepreneurial principles to organize, create, and manage a venture to produce sustainable social change. In the video, it is discussed as a transformative concept in South Africa, aiming to bridge the gap between economic growth and social development. The speaker's journey to understand this term better led to the writing of a book, highlighting its intangible nature and the need to make it tangible and actionable.

💡Benevolence

Benevolence is the quality of wishing well to others and is often associated with acts of kindness. In the script, benevolence is contrasted with malevolence and is identified as the foundation of charity. The speaker reflects on the act of giving money to Ashley, questioning whether benevolence is truly beneficial or if it perpetuates social divides, such as the 'haves' and 'have-nots'.

💡Inequality

Inequality refers to the unequal distribution of resources, opportunities, or privileges among individuals or groups within a society. The video discusses inequality in South Africa, using the Global Competitiveness Index and the stark imagery of Kaya Sands to illustrate the divide between the wealthy and the poor. The speaker challenges the audience to consider whether traditional charity and social development efforts are inadvertently perpetuating this inequality.

💡Profit

Profit, in the context of the video, is presented as a counter to benevolence and a potential solution to social inequality. It is suggested that introducing profit into social development can shift relationships from one of charity to one of choice, empowering individuals and reducing dependency. The speaker argues that profit can be a great equalizer when used in the context of social entrepreneurship.

💡Social Development

Social development encompasses efforts to improve the quality of life and well-being of individuals within a society. The script highlights the weaknesses in South Africa's social development, such as poor education and health indicators, and contrasts this with the country's strong financial indicators. The speaker argues that social development is not just the responsibility of the economic sector but requires a more holistic approach.

💡Human Development Index (HDI)

The Human Development Index is a summary measure of key dimensions of human development, including life expectancy, education, and per capita income. In the video, the 2014 HDI is used to illustrate the poor quality of life in South Africa, comparing it unfavorably to countries like Syria and Iraq, and emphasizing the urgent need for improved social development.

💡Disruptors

Disruptors are individuals or entities that challenge the status quo and introduce new methods or ideas that change an existing paradigm. The speaker refers to social entrepreneurs as disruptors because they operate in the middle ground between traditional for-profit businesses and not-for-profit organizations, challenging the way society thinks about and addresses social and economic issues.

💡For-Profit vs. Not-for-Profit

The video script contrasts for-profit organizations, which generate economic value and are driven by consumer choice, with not-for-profit organizations, which generate social value and operate on benevolence. The speaker questions why society relies on these two extremes to address complex social and economic issues and calls for more focus on the middle ground, where social entrepreneurship thrives.

💡Catalysts of Change

Catalysts of change are agents that initiate or accelerate a process of transformation. The speaker describes social entrepreneurs as catalysts rather than world-changers, emphasizing their role in creating opportunities and conditions that enable others to take the lead and drive social and economic change.

💡Accountability

Accountability is the obligation to report on, explain, and be responsible for one's actions. In the context of the video, social entrepreneurs are highlighted for their focus on accountability, balancing the need for profit with the goal of creating social value, and operating in complex environments where traditional businesses might not venture.

💡Opportunity

Opportunity, in the script, is presented as a chance for social entrepreneurs to make a difference. The speaker notes that social entrepreneurs see potential for positive impact where others might see only problems or challenges, such as in the areas of health and education. They look for opportunities to deliver social value, not just financial gain.

Highlights

Social entrepreneurship is an intangible concept that needs to be transformed into a tangible noun in South Africa.

The speaker's motivation for writing the book was to understand and define social entrepreneurship.

Ashley's story illustrates the complexities of benevolence and the potential perpetuation of social divides.

Benevolence can inadvertently perpetuate the divide between the haves and have-nots in South Africa.

The Global Competitiveness Index reveals South Africa's strengths in financial indicators and weaknesses in social development.

South Africa's economic growth is not translating into social upliftment due to weak social development.

The Human Development Index of 2014 places South Africa's quality of life on par with war-torn countries like Syria.

The need for social opportunities for all as an alternative to relying solely on economic sector growth.

Profit as a counter to benevolence, shifting relationships from charity to choice in social development.

Social entrepreneurship sits in the middle of the for-profit and not-for-profit spectrum, blurring traditional boundaries.

Social entrepreneurs are catalysts for change, encouraging others to take the lead rather than imposing their views.

Social entrepreneurs are not driven by financial excess but by a deep sense of value and social impact.

Social entrepreneurs operate in complex environments, often seeing opportunities where traditional business does not.

Social entrepreneurship is not a new concept, with roots in historical examples like Unilever and insurance.

The speaker challenges the audience to explore the middle ground between economic and social development.

Recognizing and supporting social enterprises as organizations is crucial for accelerating change in South Africa.

The call to action is to encourage and make social entrepreneurship thrive in South Africa for social and economic acceleration.

Transcripts

so what is social entrepreneurship it's

a question I'm asked often and when I'm

expected to have an answer for as I work

here at the Gordon institute of business

science in social entrepreneurship but

my answer is long and rambling and I

noticed people looking at their watches

and hightailing it to the exit science

halfway through and this was the

motivation behind writing the book is to

really get an understanding as to what

social entrepreneurship is in South

Africa to transform it from this

intangible concept into a noun something

you can see feel and touch I'd like to

share a story with you and it's a story

of Ashley Ashley's my guy at the traffic

light of the robot ash and I chat on my

commute home from work and I give Ashley

money when I have it but then

understanding some of the theories of

development I know that a predictable

source of income is one of the best ways

you can enable someone to take that

first step up to take that first step up

out of their circumstances and so I

started to give ash a regular amount of

money every Monday but it was in writing

a book that I realized I was answering a

lot of the questions I had but I wasn't

actually leaving completely fulfilled

because I was being left with more

questions and the big question that was

sitting with me will was who is

benefiting from this relationship

between Ashley and I because sure ash

gets money and I'm sure he can go and

afford a box of cigarettes if that's

what he wants to buy but I would drive

away every time with a deep sense of

goodwill a deep confidence in my

humanity a quiet knowledge that I am a

good person

am i a good person am i a good person

the act of giving is very anchored in

benevolence and benevolence means

deliberate goodwill its opposite is

malevolence deliberate ill-will the

thing about when I was being benevolent

this act of kindness I realized that I

was perpetuating a divides that we are

urgently trying to eradicate in South

Africa and that is the divide of heaven

have nots in giving - Ashleigh i'ma

haves

he is a have nots I'm fortunate he's

less fortunate privileged less

privileged but the thing about this flow

of events is that benevolence underpins

our charity and charity and the pins are

Social Development and I asked myself

are we deliberately inadvertently but

still perpetuating the divide of

inequality rather than bridging it

through our social development

this is South Africa this is a picture

taken in kaya sands that very starkly

shows us what our inequality is what the

difference is between the haves and the

have-nots but we can look at the

statistics to back this up there's a

lovely tool called the Global

Competitiveness Index which takes gives

you a snapshot of your country and

allows you to compare it to a whole lot

of others the latest one 140 other

countries and South Africa does so well

in our financial indicators we lead in

things like the working of our corporate

boards the regulation of our securities

exchanges our ability to access equity

financing we lead the index but what

happens at the bottom Social Development

bottom of the index for the quality of

our maths and science education bottom

of the index for the cooperation that

exists in our labor markets and leading

in the bottom ranks in terms of our

health indicators the impact of HIV and

TB

what the index tells us is that we are

in theory doing things great great

financial institutions underpin a great

economy economic growth broadens our

middle class the middle class naturally

uplifts people out of poverty it's a

narrative we hear but the thing that's

happening in South Africa is that our

social development is so weak it's

imploding our economic development we

can't rely on the one to lead the other

the economy cannot be solely responsible

for uplifting the complexity of social

development that is required in South

Africa if you have any doubts as to how

or for our social development is look to

the Human Development Index of 2014 the

Human Development Index is a lovely

index it kind of tracks the environment

that your country creates that allows

you to thrive so how are you able to

gain knowledge because you have access

to great education what is your ability

to lead a long life because you have

access to great health care and the one

that I particularly love is what is your

ability to act on opportunity because

you have access to disposable income in

2014 South Africa shared a rank with

Syria and was one above Iraq this is a

picture of Syria taken in January of

2014 the citizens of this country share

the same quality of life as a citizens

of ours we cannot continue to expect the

economic sector to uplift our social

development we urgently need to look at

how we create social opportunities for

all I would argue that benevolence in

perpetuating the inequality is not where

we should be looking to for answers but

that the answer the counter to

benevolence is actually a word that is

deeply tainted with abuse it's deeply

tainted with exploitation and that word

is profit

profit is a quote a great equalizer when

you start introducing profit into social

development you shift the benevolence to

a relationship of choice I choose to

access the service you're offering me

not I have to access the service you're

offering me because it's free you're

giving it to me

when we look at the for-profit and

not-for-profit landscape the profit

landscape in South Africa there are

these two polar sites these polar

opposite sides of the spectrum the

for-profit organizations is business we

know it well they earn an income they

earn a profit the relationship between

custom and corporates is decided largely

by us I choose to consume on the other

side is the not-for-profit the

not-for-profit organizations are charity

organizations the relationship there is

one of donor and beneficiary the

for-profit side of the spectrum

generates economic value the

not-for-profit side of the spectrum

generates social value the social value

is is underpinned by benevolence and I

ask you but what's happening in the

middle why are we relying on two

opposite ends of the spectrum to deliver

such complexity of social and economic

development what happens in between

those two pillars and this is the answer

that I always struggle to provide

because this is the world of social

entrepreneurship this is why there's no

definition for social entrepreneurship

because it doesn't sit neatly in a box

it sits across a spectrum you will meet

lots of social entrepreneurs online you

will meet them through your TED Talks

the one thing you will notice is that

they are all different and they all

identify differently some more with

for-profit organizations others with

not-for-profit organizations so if I

can't give you a definition of social

entrepreneurship and that really was one

of the objectives I was hoping to get in

writing the book the disruptors if I

can't give you a definition what can I

give you so I have three lessons three

lessons not four three that really

I found the enlightening side of this

journey into understanding this

complexity of social enterprise

the first is is that our social

entrepreneurs do not like to repeat that

they do not exist to change the world

in fact develop a deep allergy for

people who profess to change the world

because that is an approach that is

anchored in benevolence because whose

world are you changing and to what are

you imposing your view of how the world

should be versus what that person's view

should be our social entrepreneurs

instead recognize that they are in a

blurs the catalysts of change they make

things happen that encourage others to

take the lead the second it's really an

answer to a question that I'm often

asked in the classroom which is well how

much should a social entrepreneur earn

if you're going to introduce profits

into the equation then it's endless

should a social entrepreneur be able to

afford a Ferrari drive a Ferrari a

helicopter a yacht and again if we're

going to start looking at what happens

in the middle of the spectrum we need to

reframe our questions because they don't

stay the same

our social entrepreneurs are not driven

by the financial rewards of consumerism

yes of course they want to send their

kids to good schools they want to be

able to travel in afford a decent life

but they are not motivated by excess and

they have a deep sense of value and they

see success in both social and economic

rewards in social and economic change

the last point is really an observation

that I've picked up over a fair amount

of time are trying to understand this

crazy world of social entrepreneurship

and that is I really believe our social

entrepreneurs are our soup entrepreneurs

as the global economy continues to be

constrained and looks like it will be

constrained for a very long time it's

our social entrepreneurs that we can

learn from because let's be honest these

are folk who deliver goods and services

in highly constrained markets they are

after all the people who are taking the

best that business has to offer it's

focusing on accountability it's focus on

profit and balancing that the best that

civil society has to offer its focus on

social value and being able to operate

in complex environments

social entrepreneurs operates in places

where business just does not even see

because they don't see opportunity there

is so much that we can learn from them

about thriving in constraint and also

about where do we see opportunity

because when many people see negativity

those indicators on health are

indicators and educational social

entrepreneurs actually see opportunity

they see opportunity not purely and how

do how much money can I make but in what

is the social value that I can deliver

if I enact or act on this opportunity so

they are the folks who see those health

indicators on the global competitiveness

index and say you know what I'm going to

set up a low-cost high quality highly

accessible clinic in communities where

people struggle to access health care

there the folk who's shifting that

serious statistic to myths about social

entrepreneurship the first is is that

social entrepreneurs run very small

survivalist organizations that are very

driven by them this is not the case our

social enterprises are often large they

often global and you will meet different

people who run organizations with a

global footprint and multi-million R and

multi-million dollar budgets the second

is that social entrepreneurship is not

new this is something that we seem to

stumbled across we seem to think it's

this new amazing thing it's not new we

kind of forgot about it in the 70s when

we started to focus on big business and

big society we look no further than an

organization like you need Eva which

started off as lever brothers but the

founder was sitting watching women

washing clothes in a stream it was cold

as miserable it's in the UK

and he was what can I do to improve the

lives of these women and being a chemist

he came up with a concept of lathering

soap and that is sunlight soap

sunlight soap being the cornerstone of

the Unilever Empire today the

opportunity is spotted in the society by

looking at how we interact with each

other differently

the second example is just a lovely

story that I enjoy but this is from the

1790s where two Scottish clergymen were

appalled by the destitution that their

colleagues found themselves in so in

clergy died their families were left

destitute because women weren't allowed

to work they couldn't earn and so

families would end up on the streets

so Webster and Wallis who apparently

loved a good glass of wine and I imagine

a lot of this happened in the pub sat

down and they worked out a fund that the

clergy could contribute to during their

lifetimes that would pay out on their

death there's a sound familiar this is

insurance the start of the massive

insurance industry sits in how people

are viewing their world it's also not a

Western or European concept we look no

further than our stock fells and our

cooperatives to see how communities band

together to generate social and economic

profit for themselves these are the

principles of social entrepreneurship

cooperatives and stock fells are age-old

principles in South Africa this is not a

new concept so what am I asking of you

am I asking you to stop giving I'm not

asking you just to stop giving to

charity any more than I'm asking you to

stop shopping at your local for profit

you need the opposite ends of the

spectrum to anchor the work in social

and economic change but what I am asking

is that we start exploring this middle

because this is the disruption we

currently regard our social

entrepreneurs as disruptors but the only

reason is that is the only reason that

they're disruptive is because we don't

see this middle as existing let's turn

them into a norm one of the first things

that we can do is to recognize social

enterprises as organizations as they've

done in the UK and the u.s. because if

we want to fast track change in South

Africa if we really want to accelerate

our social development if we want to

sell rate our economic development stop

their quiet implosion of the two as they

continue to pull each other apart we

need to focus on the middle so the

question I'm leaving you with is not

what is social entrepreneurship it's

rather what is it that we can do to

encourage social entrepreneurship in

South Africa to make it thrive so that

we can fast track and accelerate our

social and our economic change thank you