Justice for all

Recently, through a particularly enlightening conversation with a friend, I realized that there are, essentially, two pathways or methods of thinking about social change and development approaches. There is the “capitalistic” mode of thinking, and the “social justice” mode of thinking. While this is, essentially, the split that so starkly separates the Democrats from the Republicans, the same two viewpoints shape the actions of humanitarians, altruists, philanthropists, entrepreneurs, and everyone else involved in the aid and social change business.

The first, the “capitalistic” mode, fixates on the idea that by harnessing capitalism and economic growth, we can made progress in the developing world. More importantly, this viewpoint emphasizes the belief that people are motivated by profit – and so, by trying to make “doing good” seem profitable, it becomes possible to “exploit” people’s inherent motivations (to better themselves and maximize profit or utility) for the greater good. Here is where the entire idea of social entrepreneurship comes in. Social enterprise and social business centers around the idea that you can make money and do good at the same time, and that in fact, you don’t have to give up making money or financial sustainability to contribute positively to the world. Corporate social responsibility comes with the same idea; that by being environmentally sustainable and by contributing to development projects, a company can improve its own image (and profits) by presenting itself as more socially responsible. Additionally, there is the ideology propounded by many aid critics such as Dambisa Moyo, the author of “Dead Aid” — the idea that we need capitalism to cause economic growth, and that we need to harness foreign direct investment and international trade to help low-income countries hop onto the train of development. Finally, and most importantly (I think), at the more micro- and individualized level of development and NGO approaches to poverty eradication, there are approaches focusing on income generation; these approaches include micro-finance, helping individuals start and grow their own small businesses, helping farmers increase their yields through low-cost and innovative agricultural technologies. Basically, the idea here is that by increasing their income, people will be able to pull themselves out of poverty. Icons like Muhammad Yunus and Paul Polak have emphasized that the best way for individuals to get out of poverty fast is by increasing their incomes. This is a more “capitalistic” method of thinking because it emphasizes the individual and what they can do to get ahead in life. And for the donors/the well-off classes in society, the emphasis is on proving to them that they don’t have to give up their lifestyle if they want to make a positive difference. There’s usually not as much talk of personal sacrifice, or what we have to give up for social change. For instance, by buying books from Better World Books, we can not only get the books we want, but also contribute to literacy projects! This perspective caters to the benefits that social business provides to both the donors/contributors & the beneficiaries.

The second mode is focused more on “social justice” and equality. The idea here is that we (here I’m talking about us — the well off, the privileged) should not simply have capitalistic, profit maximizing motives. Instead, this mode of thinking strives to change and shape the incentives that motivate people in the first place. Those who share this view believe that we have to actually CHANGE people’s minds to focus less on themselves and to focus more on the community and the world they live in. The idea is to emphasize equality, fairness, and to make people feel they have an obligation to give back. This viewpoint leads to an emphasis on higher taxes, increased social services and programs, more government spending, and international aid. By emphasizing that we, the privileged echelons of society, have an obligation to give back, contribute positively to the world, and help those who are worse off than us, this way of thinking emphasizes providing free services to the poor. Instead of trying to focus on increasing a person’s income as the primary way of getting them out of poverty, people and organizations with this perspective might try to provide free health services, free legal services, free infrastructure like wells, free access to education including building schools and providing scholarships to children, and much more. International donors fund many such projects because of the obligation to give back, but the ultimate goal is to have each country’s government providing such services to its own people. The emphasis here is on improving the quality of living through, primarily, the redistribution of wealth from the rich to the poor — whether this is domestically or internationally. This is very different from the previous “capitalistic” mode, in which each person is encouraged to maximize their own wealth and well-being.

Of course, in reality, many aid programs mix the two — they might provide microfinance and skills training along with health services or educational scholarships. But ultimately, there are definitely two divergent “modes of thinking” or perspectives at play when it comes to social change and international development.

What do you think? Is there one better way of going about social change & development, or are the two approaches best combined? Should we try to cater to people’s “innate” incentive to maximize their own profit & well-being, or should we try to change people’s minds to make them feel an obligation to sacrifice for the greater good?

In the past decade, as we all know, social enterprise and business has become incredibly popular. The idea is incredibly compelling: utilize business practices while also bettering the world. Unleash the power of the market to solve social problems. We can make money and do good.

Along with its increasing popularity, the demand for learning about social enterprise has shot up. Many top universities are beginning to teach social enterprise, either through individual classes or even through majors and concentrations. Here are some examples:

• Duke’s Fuqua School of Business actually has an MBA Concentration in Social Entrepreneurship!
• Northwestern’s Kellogg School of Management has an MBA Social Enterprise (SEEK) Major, a very comprehensive program
• NYU’s Wagner School has a Social Entrepreneurship undergraduate minor
• Stanford’s School of Business has an Executive Program in Social Entrepreneurship
• Yale’s School of Management also has a Program on Social Enterprise

And there are many, many more examples of cutting edge social enterprise programs.

But here’s where I question this approach: can we actually teach social enterprise? A while ago, I read the excellent book “How to Change the World” by David Bornstein, and the book discusses Ashoka’s original methodology of discovering social entrepreneurs. The social entrepreneurs they found were people who understood a gap in their society or community, and then found some way - often an innovative way - of addressing that gap and ultimately benefiting society and individuals. These social entrepeneurs are incredibly hard working, often laboring in obscurity and with low pay to solve social issues. They are driven by their unwavering passion and grand vision of how the world should be. From the website:

Perhaps our most important criterion, entrepreneurial quality is the defining characteristic of first class entrepreneurs. It defines leaders who see opportunities for change and innovation and devote themselves entirely to making that change happen. These leaders often have little interest in anything beyond their mission, and they are willing to spend the next ten to fifteen years making a historical development take place.

It seems to me that social entrepreneurs are people who are incredibly passionate about a new or better way of solving a social problem.

It also seems to me that many of the highly successful Ashoka fellows don’t have MBA’s or advanced degrees that teach them about social enterprise. Instead, they succeed because of their deep understanding of a social issue and of the needs of their beneficiaries, or those they ultimately hope to help. This strong understanding does not come about through an MBA, but is the result of being part of the society or communities you are aiming to help or reach. It comes from going into the field and speaking extensively with rural farmers, women lacking access to credit, or refugees trying to make a living in IDP camps. It comes from immersing yourself into these communities and learning so much about the needs of those you want to help that the solution crystallizes before your very eyes. Read Paul Polak’s book, “Out of Poverty” to understand how simple and powerful solutions can be found by simply going into the field and understanding local needs.

The most important thing for a social entrepreneur’s success is a vision of how precisely to solve a problem. If you have a strong vision and a good method of achieving that vision, success is possible. Second is resilience, determination, passion. Social entrepreneurs have to be highly driven to follow their vision above all else, despite innumerable obstacles in their way.

Surely an MBA in social enterprise can teach you about the workings of the market, or how to write a business plan, but aren’t these things you can pick up eventually? On the contrary, you can’t teach someone through school how to gain a vision, or how to be relentless and passionate.

Wouldn’t it be more worth it for aspiring social entrepreneurs to pursue graduate studies in the specific field they want to affect change in, to understand the needs of their clients or beneficiaries better?

Do those who study social entrepreneurship in the classroom eventually become social entrepreneurs? Or are social entrepreneurs those who have a vision and the passion to see it through, regardless of educational background?

Ultimately, there are certain business principles that can be taught to make the lives of social entrepreneurs easier and more efficient. However, social entrepreneurship itself cannot be taught; such success ultimately depends on qualities gained outside the classroom - vision, issue understanding, and passion.

I’ve been attempting to find time and contribute to this awesome blog series “Be the change” thanks to Akhila, and of course, I am writing this instead of working on a paper that’s due in a few days .

Prior to attending school at UC Berkeley, all I knew was that I was interested in “business” and “changing the world” (or more specifically, I used to say “starting a revolution”). Little did I know that individuals such as Muhammad Yunus were already doing so! My friend introduced me to the concept of “social business” and “social entrepreneurship” around second semester of my freshman year, and that was when it all began.

I embarked on a Google-ing, internet-searching quest to learn more about this concept, and ended up first reading Yunus’ book, Creating a World Without Poverty: Social Business and the Future of Capitalism. From then on, I’d continue to read articles, books, and scour the Internet for more about social entrepreneurship and social business.

I often stop and reflect on why it is I seem to have this insatiable need and want to help others and improve the lives of the less fortunate. For the most part, I think it’s because I have grown up with so much opportunity laid in front of me, the privilege of living in a nice community and have the comfort and support of my parents. Maybe I was too comfortable that I became uncomfortable with my comfort. Does that make sense?

Perhaps it’s why I want to pursue a career in poverty alleviation through the power of social business and entrepreneurship. I happened to be born into a family that gave me the opportunity to obtain a good education. It was chance that I was born in Taiwan to parents who wanted to pursue a better life in the United States and brought my sister and I here. What about others who live in poverty and are not presented with the opportunity of obtaining an education, of living a privileged life? How is it their fault?

It’s not, and it’s a thought that resounds in me and propels me forward. I joined a student grassroots organization CalPIRG my freshman year, and by the second semester my friend and I started the Hunger and Homelessness Campaign, where we tried to tackle food insecurity in West Oakland. I then proceeded to help plan, in collaboration with two other student groups on campus, a conference on hunger and homelessness in the Bay Area. On the side, I worked with a local homeless shelter to establish and implement recycling and composting programs through another student organization BEACN. These experiences have helped me improve my skills and have provided me more insight in ways of addressing poverty. However, the models and methods of social business and social entrepreneurship are what really motivate me.

I’ve found it difficult to advance much in attempting to be more “in” the field (I am so inspired by social businesses such as the one I interned with this past summer World of Good, and projects such as the Allyu Initiative), because I often find myself constrained in my schoolwork and the fact that I am still in school. I’m often impatient in my demands, and too much of the time I’d rather be out there and immerse myself in a community and area to learn about the issues and critically evaluate ways to tackle them. I have to stop and remind myself that my getting an education is an important aspect: I need to focus on learning as much as I can in school so that I can apply it later on.

In the meantime, I have found the Twitterverse and the blogosphere to be of great company. It’s been absolutely inspiring and just plain awesome to be connected to other Gen Y-ers such as Akhila, Dwight, and Leslie and know that there are so many who are interested in similar topics and care about issues other than the best way to maximize profits and how to make the most money. So, I’d like to conclude by thanking Akhila once again for encouraging others to engage in social change and bringing together awesome individuals in this blog series!

The Changemaker

Rosalind Chu is a 20-year-old student attending school at University of California, Berkeley. She is majoring in Business Administration and Chinese (so as not to forget her Taiwanese roots and remain connected to Chinese culture). When she’s not worrying about everything there is to be worried about, she reads books (currently she’s reading Atlas Shrugged), blogs, goes home to visit her family and four amazing dogs, enjoys traveling, and has a fabulous time doing ridiculous things with her friends!

Check out her blog, Pointlessly.org, and say hi to her on Twitter @rosalindchu.

I haven’t done Feature Friday in quite a while, unfortunately, since I have been so busy this summer. So today I decided to double the effort and feature two great initiatives. Here’s the first one….and check my next blog post for #2!

Better World Books

Better World Books (BWB) is in my eyes - the future of business. Better World Books is one of the best social businesses out there due to it’s triple bottom line - economic, social and environmental. The model is amazing and absolutely self sustainable. BWB calls itself “the online bookstore with soul.” The company collects and saves used books from landfills, which it then sells online through betterworldbooks.com. The company employs a social business model by funneling any profits it makes back into the organization, rather than paying dividends to investors. And the best part? They donate a certain percentage of all profits to literacy initiatives worldwide - charities and organizations working to foster literacy and education across the globe.

If that didn’t catch your eye, what if I told you that their books are actually insanely cheap? Last week I bought six books on their website, and it cost only a total of $19! I bought five of these books through their “Bargain Bin,” which allows you to buy 5 books for $15. And contrary to the usual “sale” sections of stores, their Bargain Bin includes many interesting books and previous bestsellers. And, shipping is free throughout the U.S. Knowing that they would donate some of their profits enticed me, but finding so many cheap books on their site absolutely hooked me.

As if that wasn’t enough, their service is great, and very unique. After I purchased my book, I got this adorable email:

(Your book(s) asked to write you a personal note - it seemed unusual, but who are we to say no?)

Holy canasta! It’s me… it’s me! I can’t believe it is actually me! You could have picked any of over 2 million books but you picked me! I’ve got to get packed! How is the weather where you live? Will I need a dust jacket? I can’t believe I’m leaving Mishawaka, Indiana already - the friendly people, the Hummer plant, the Linebacker Lounge - so many memories. I don’t have much time to say goodbye to everyone, but it’s time to see the world!

I can’t wait to meet you! You sound like such a well read person. Although, I have to say, it sure has taken you a while! I don’t mean to sound ungrateful, but how would you like to spend five months sandwiched between Jane Eyre (drama queen)and Fundamentals of Thermodynamics (pyromaniac)? At least Jane was an upgrade from that stupid book on brewing beer. How many times did the ol’ brewmaster have one too many and topple off our shelf at 2am?

I know the trip to meet you will be long and fraught with peril, but after the close calls I’ve had, I’m ready for anything (besides, some of my best friends are suspense novels). Just five months ago, I thought I was a goner. My owner was moving and couldn’t take me with her. I was sure I was landfill bait until I ended up in a Better World Books book drive bin. Thanks to your socially conscious book shopping, I’ve found a new home. Even better, your book buying dollars are helping kids read from Brazil to Botswana.

What self-respectable book lover wouldn’t appreciate such a sweet letter from her future books? In conclusion, check out BWB the next time you start to crave a nice night in with a riveting fiction novel. Besides getting your reading fix, you’ll assist in recycling and contribute to some well-deserving literacy initiatives across the globe. BWB has a very sustainable and solid model, and I look forward to watching them grow!

Today I want to feature United Prosperity, a truly innovative organization that takes the concept of microfinance to the next level. Most microfinance institutions (MFIs) simply provide small loans to poor entrepreneurs who want to pull themselves out of poverty through their small businesses. However, this approach does not strengthen the local banking system or create domestic linkages that allow the entrepreneur to eventually borrow from local banks. Instead, the entrepreneur is often constantly borrowing from MFIs and can never move on to the next stage.

United Prosperity tackles this problem in a very unique way. Instead of directly providing loans to people, United Prosperity invites you to donate part of a “loan guarantee” which a small business owner will receive. The entrepreneur can then take the loan guarantee to a local bank, use it as collateral, and then obtain a larger loan from the bank. This empowers entrepreneurs to be able to borrow from local banks, and thus strengthens local institutional linkages. I think it’s a very powerful and innovative idea, and I can’t wait to see how far it goes.

United Prosperity is also great at social media. I first stumbled upon the organization after following it’s founder - Bhalchander Vishwanath - on Twitter. Bhalchander consistently posts the latest news and resources related to microfinance, social business, and development. He interacts with his followers, getting to know people on a one-on-one basis. As a result, he’s created a powerful community around his passion for microfinance, and has been able to successfully leverage this community to bring attention to his organization - United Prosperity. After I ran across the organization, I was taken by the innovative idea and I suggested that we work together. Now, students from a group I am part of - the Student Microfinance Development Initiative - are working with United Prosperity on research, marketing, and publicity. This is a prime example of how social media can be utilized to empower nonprofits and how connections can be leveraged to bring attention to your cause. Ultimately, a personal brand can do much to raise awareness of an associated nonprofit - building and maintaining a community isn’t easy, but it’s vital. The bottom line is that social media works - and United Prosperity has been doing a great job of carving out a clear online space for itself!

As you can see, United Prosperity has a unique idea and a fresh approach. The organization is in need of more loan guarantors. So head over to their website today and provide a loan!