The Importance of Social Enterprises

If social enterprises are on the rise, should corporations address societal issues?

A year ago, the Business Roundtable, an association of CEOs from major American companies, issued a statement redefining the purpose of a corporation as serving all stakeholders and no longer just delivering value to shareholders. Harvard Business Review argued that one reason for this shift was because a profit-maximizing focus does not incentivize businesses to tackle the many challenges facing the world today like climate change, inequality, resource scarcity, and so forth. Even prior to this statement, a 2018 Deloitte study cited a trend towards enterprises increasing their focus on social impact.

Of course, today, the world is faced with an even more pressing challenge, the coronavirus pandemic. “This crisis has only sharpened the need for the work of social enterprises by laying bare the cracks in our systems, from healthcare to employment disparities, to upended education and gutted livelihoods,” says the SKOLL Foundation. Now, in the wake of the pandemic, is the time to solidify this idea that corporations don’t exist solely to serve their shareholders. The World Economic Forum shares that, “We can now explore an entrepreneurial way of life where enterprise can help communities across the globe solve socio-economic problems while being true to market forces. Maybe it is time for individual enterprise and collective purpose to work in harmony.”

Over the course of the last 5 months, we have seen many examples of established corporations as well as smaller-scale social enterprises taking this purpose to heart and doing their part to combat the pandemic. A couple of specific examples…

  • T-Mobile was ranked by JUST Capital and Forbes as 5th out of the 100 largest U.S. corporations for their response. In addition to more paid time off and a relaxed attendance policy for their employees, the company was part of an effort to provide hospitals across the nation with 40,000 phone chargers.
  • In Colombia, Fundación Capital, a nonprofit social enterprise, updated its virtual assistant to provide reliable information about the pandemic and tips for managing personal finances during a time of crisis.

As the UN Secretary-General Antonio Guterres stated, “Now more than ever, as big decisions are made about our future, companies need to address environmental, social and governance risks holistically and move beyond business-as-usual.”

To read more about the Hunt Institute’s work to develop future-focused solutions to some of the world’s biggest problems, please click here. For the latest news on the Hunt Institute, follow our social media accounts on LinkedIn,FacebookTwitter, and Instagram. We invite you to listen to our Podcast called Sages & Seekers. If you are considering engaging with the institute, you can donate, or sign-up for our newsletter by emailing huntinstitute@smu.edu

Common Challenges Faced by Social Entrepreneurs

Social entrepreneurs are key to directly addressing social needs in under-resourced communities. But early-stage social enterprises face momentous obstacles. The single largest obstacle is, of course, access to funding. As the Rockefeller Philanthropy Advisors points out, “For philanthropists accustomed to more traditional grantees, funding social enterprises can feel like entering uncharted territory. Donors might find themselves intrigued by the potential for change, and yet, at the same time, unsure of what to expect in a field where the unexpected is the norm.” In the 2019 Halcyon Social Enterprise Ecosystems report, almost 20% of the 624 social entrepreneurs interviewed stated that they self-financed their enterprise or relied on the support of family and friends.

Another challenge that social enterprises face is measuring their social impact. According to a 2008 report from the Center for Advancement of Social Entrepreneurship (CASE), “Impact assessment is still a crude and inexact science.” The fact that it is difficult to quantify a social enterprise’s value creation only exacerbates the first challenge of receiving funding because potential investors are looking for evidence that their investment will indeed affect change.

The above obstacles lead to yet another common problem faced by social entrepreneurs: the ability to scale. CASE identified in its research that, “There is a huge gap between early stage, seed funder money and later stage, multi- million funding.” Many investors are interested in funding the next big idea rather than investing in the expansion of an established social enterprise. Moreover, the Miller Center for Social Entrepreneurship identifies that constraints in supply chain, restraining government policies, or lack of partnership opportunities can limit the ability of a social enterprise to expand.

The objective of the Hunt Institute’s (HI) Social Enterprise Program (SEP) is to support social entrepreneurs in overcoming these obstacles in order to accelerate their social value creation. HI’s SEP provides early-stage social enterprises with a program and toolbox designed to empower them to obtain funding as well as access to a multidisciplinary network of experts and business mentors.

To learn more about the Social Enterprise Program, visit smu.edu/socialenterprise. For more case studies and examples, stay tuned to the Hunt Institute Digest.

To read more about the Hunt Institute’s work to develop future-focused solutions to some of the world’s biggest problems, please click here. For the latest news on the Hunt Institute, follow our social media accounts on LinkedIn, Facebook, Twitter, and Instagram. We invite you to listen to our Podcast called Sages & Seekers. If you are considering engaging with the institute, you can donate, or sign-up for our newsletter by emailing huntinstitute@smu.edu.

Sustainable Food Systems

The Hunt Institute’s Social Enterprise Program is a social enterprise incubator focused on developing and improving food systems in Dallas/Ft. Worth Metroplex and across the globe. According to Harvard School of Public Health, food system is defined as “all the elements and activities that relate to production, processing, distribution, preparation, and consumption of food.” So what does it mean to create a sustainable food system? The Agriculture Organization of the United Nations defines a sustainable food system as one that “delivers food security and nutrition for all in such a way that the economic, social, and environmental bases to generate food security and nutrition for future generations are not compromised.”

In the article linked below from the International Monetary Fund, the authors share why now, in the wake of the coronavirus pandemic, it is even more crucial that we work as a society to rebuild our food systems in a sustainable way. More importantly, they argue, that now is the perfect time to do so as we simultaneously work to rebuild our economies. The article outlines four key components that must be in place for a sustainable food system to function: resilient food supply chains, healthy diets, regenerative farming, and conservation. Read the article to discover more about sustainable food systems.

To learn more about the Hunt Institute’s Social Enterprise Program, visit smu.edu/socialenterprise. For more case studies and examples, stay tuned to the Hunt Institute Digest.

To read more about the Hunt Institute’s work to develop future-focused solutions to some of the world’s biggest problems, please click here. For the latest news on the Hunt Institute, follow our social media accounts on LinkedIn, Facebook, Twitter, and Instagram. We invite you to listen to our Podcast called Sages & Seekers. If you are considering engaging with the institute, you can donate, or sign-up for our newsletter by emailing huntinstitute@smu.edu.

Owen Lynch, Ph.D., Co-Founder of Restorative Farms

Dallas has one of the largest food deserts in the country and is also one of the most-at-risk cities for food supply disruption. This makes Dallas the perfect location to launch a coalition like Restorative Farms which was co-founded by Dr. Owen Lynch, a Hunt Institute Senior Fellow and SMU professor. Restorative Farms was started in 2017, but it is based on a cumulation of ten years of research on food deserts, food swamps, and urban Agri-Systems—some of which was done in partnership with the Hunt Institute, which focuses on Sustainable Food Systems as one of its three key areas.

Hatcher Station Training Farm and Community Garden (HSTFCG)

Since its founding in 2017, Restorative Farms has launched a seedling farm at the MLK Community Center in South Dallas and the Hatcher Station Training Farm and Community Garden (HSTFCG) in Spring of 2020. At the heart of both the MLK Seedling Farm and Hatcher Station Training Farm is Master Gardener Tyrone Day, who is from the community and manages the farm.

The objective of Restorative Farms is to be a self- sustaining nonprofit farm that will not only grow local food, but train and grow local urban farming professionals. The MLK Seedling Farm produced 20,000 seedlings per year as of Spring 2019 and that number is projected to reach Produce from Restorative Farms40,000 by 2020. These seedlings, combined with the training that will be offered at Hatcher Farms, will ultimately provide the resources and training needed for people in South Dallas to start community gardens and keep them up and running. Hatcher Farms and the MLK Seedling Farm are just Restorative Farms first steps in bringing Dallas closer to having a sustainable local food system.

To read more about Owen and Restorative Farms, visit the website at restorativefarms.com . To learn more about the Hunt Institute’s Social Enterprise Program, visit smu.edu/socialenterprise. Check the Hunt Institute Digest next week to meet another amazing entrepreneur.

To read more about the Hunt Institute’s work to develop future-focused solutions to some of the world’s biggest problems, please click here. For the latest news on the Hunt Institute, follow our social media accounts on LinkedInFacebookand Instagram. We invite you to listen to our Podcast called Sages & Seekers. If you are considering engaging with the institute, you can donate, or sign-up for our newsletter by emailing huntinstitute@smu.edu.

Hunt Institute’s First Student Social Entrepreneur

Mohammed Nije Trip

Janta EnergyThe Hunt Institute Social Enterprise Program is proud to introduce our first student social entrepreneur, Mohammed Njie. Mohammed is a rising senior at Southern Methodist University studying Electrical Engineering in Lyle School of Engineering. He was born and raised in The Gambia, a country in Western Africa. In the Gambia, 52% of people do not have access to electricity, and the remaining 48% have unreliable access. Mohammed attended high school at one of the few schools with electricity. Seeing students at other institutions that did not have access to electricity, motivated him to help close this gap.

Mohammed Nije Trip
A villager in Tintinto Village teaches Mohammed about life without reliable clean energy

Mohammed founded Janta Energy, a social enterprise, with the goal of bringing clean, reliable energy to The Gambia. His vision is to see all of Africa have access to reliable affordable clean energy in his lifetime. With support from the Hunt Institute, SMU’s Office of Engaged Learning, the Grand Challenge Scholars program, and the Hart Center for Engineering Leadership, Mohammed initiated a pilot project on his last trip to The Gambia during the winter break in 2019. The project installed solar panels on a school rooftop in a rural area in The Gambia to test capacity and determine elements needed to enhance students’ academic experience.

Items Installed for the pilot project;

  • Five 330 Watt 24 volt solar panels.
  • Two 250 amp, 12-volt solar batteries.
  • A 50 amp solar charge controller.

After several months of usage, the report from the school administrators revealed that having access to electricity created many opportunities for this school and its students.

A library at a school in Tintinto village that now has electricity thanks to Janta Energy.
A library in the school in Tintinto Village now has electricity

According to their report, the school is currently only utilizing 30% of the installed capacity. With this excess capacity, they are in the process of introducing fans throughout the school. The estimated usage is expected to rise to approximately 70% capacity. The school plans to utilize the last 30% to install computers for student use, which will greatly enhance the possibilities for exploration and learning. Once the pilot project is completed, Janta Energy plans to use this concept to build a microgrid, with the school at the center, to help power the entire village. Looking ahead to the future, Janta Energy seeks to replicate the model used in Tintinto Village across other rural villages, eventually spanning the rest of the country.

Stay tuned for more updates from Mohammed, and his Janta Energy continues working to provide The Gambia with access to sustainable electricity. To learn more about the Hunt Institute’s Social Enterprise Program, visit smu.edu/socialenterprise. Check the Hunt Institute Digest next week to meet another amazing social entrepreneur.

To read more about the Hunt Institute’s work to develop future-focused solutions to some of the world’s biggest problems, please click here. For the latest news on the Hunt Institute, follow our social media accounts on LinkedInFacebookTwitter, and Instagram. We invite you to listen to our Podcast called Sages & Seekers. If you are considering engaging with the institute, you can donate, or sign-up for our newsletter by emailing huntinstitute@smu.edu.

Meet Jin-Ya Huang, Founder of Break Bread Break Borders

Break Bread Break Borders

Break Bread Break BordersThe Hunt Institute Social Enterprise Program is proud to have Jin-Ya Huang of Break Bread Break Borders (BBBB) as one of four social entrepreneurs in our founding cohort. Jin-Ya founded BBBB after she lost her mother, Margaret Huang, to cancer. Margaret was a chef, restaurateur, and community leader. BBBB exists to honor her legacy. Through food, culture, and powerful storytelling, the organization breaks bread with the community and breaks down borders at the same time

Break Bread Break Borders is catering with a cause: empowering refugee women to earn a living through their existing cooking skills while they share their incredible stories with the community. Due to the coronavirus pandemic, BBBB was forced to suspend its catering business. Currently, BBBB is working to find a way to continue bringing their delicious, authentic food to customers. Stay tuned for updates on the future of this amazing organization.

To read more about Jin-Ya and Break Bread, Break Borders, visit the website at breakbreadbreakborders.com.  To learn more about the Hunt Institute’s Social Enterprise Program, visit smu.edu/socialenterprise. Check back on the blog next week to meet another one of the social entrepreneurs in the founding cohort!

To read more about the Hunt Institute’s work to develop future-focused solutions to some of the world’s biggest problems, please click here. For the latest news on the Hunt Institute, follow our social media accounts on LinkedIn, FacebookTwitter, and Instagram. We invite you to listen to our Podcast called Sages & Seekers. If you are considering engaging with the institute, you can donate, or sign-up for our newsletter by emailing huntinstitute@smu.edu.

All About the Hunt Institute’s Social Enterprise Program

The objective of the Hunt Institute’s Social Enterprise Program (SEP) is to support innovative early-stage social enterprises.  Social enterprises are organizations that are pursuing a social or environmental mission using business methods. Social enterprises are often catalytic innovators who produce disruptive innovations. Social enterprises are also key to directly addressing social needs in under-resourced communities using entrepreneurial strategies. But they face momentous obstacles. SEP provides innovative early-stage social enterprises with a program and toolbox designed to empower them to obtain funding as well as access to a multidisciplinary network of experts and business mentors. 

Access to funding for early-stage social enterprises is the single largest obstacle they face.  As the Rockefeller Philanthropy Advisors points out, “For philanthropists accustomed to more traditional grantees, funding social enterprises can feel like entering uncharted territory. Donors might find themselves intrigued by the potential for change, and yet, at the same time, unsure of what to expect in a field where the unexpected is the norm.“

To learn more about the Social Enterprise Program, visit smu.edu/socialenterprise. Check back on this blog to meet our social entrepreneurs and for inspiring stories of high impact social enterprises!

To read more about the Hunt Institute’s work to develop future-focused solutions to some of the world’s biggest problems, please click here. For the latest news on the Hunt Institute, follow our social media accounts on LinkedIn, FacebookTwitter, and Instagram. We invite you to listen to our Podcast called Sages & Seekers. If you are considering engaging with the institute, you can donate, or sign-up for our newsletter by emailing huntinstitute@smu.edu.