Two Decades of Impact - Schwab Foundation for Social Entrepreneurship - World ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Schwab Foundation
for Social Entrepreneurship
Two Decades
of Impact
Photo: Ami Vitale | Ripple Effect Images
2020 Impact Report
Contents 07 Foreword
08 Executive Summary
13 Introduction
14 About the Schwab Foundation
17 Report Methodology
19 Impact and Insights
50 Our Collective Mission
52 Acknowledgements
55 References
As we enter the Decade of Delivery, how solutions are implemented and who implements them now matter most. Social entrepreneurs put the spotlight on local, sustainable solutions to fill current gaps. This impact report is the evidence and embodiment of stakeholder capitalism in action. It shows how the Schwab Foundation community has not only influenced lives but has reinvented the very systems for change.
7
Two Decades of Impact — Schwab Foundation
Foreword
We founded the Schwab Foundation for Social
Entrepreneurship in 1998 because we sensed that
a distinct, more innovative approach to alleviating
problems associated with poverty and social and
environmental challenges was emerging. We saw “We need to kick-
a new generation of pioneers who channeled their start progress,
passion, resources, creativity and sense of injustice where the
and dedicated themselves to finding ways to achieve prescient models
real change in their contexts and in the world and lessons
around them. of the last few
decades of social
Too often, however, especially in the early years, they
worked in relative obscurity. Often, they had trouble
innovation become
accessing high-level decision-makers who could
a mainstream
help them scale up, support or partner with their
system for
efforts, and they were frequently misunderstood by change.”
authorities, the private sector, funders, the media
and the general public.
journey and the life-changing work of the social
We saw in social entrepreneurship the future of entrepreneurs have built a new model for economic,
how organizations could evolve, and felt the strong societal and political transformation that is reflected
need to bring these approaches – and the social in this impact report.
entrepreneurs – to the attention of world leaders.
Over the years we have continued to convene It takes a unique person to choose the often lonely
through the World Economic Forum and other path of social entrepreneurship. As creative and
networks, to sharpen social entrepreneurship models innovative visionaries and oftentimes disruptors in
and to build a community for positive social change. the service of others, we have been inspired by their
humanity, their intolerance of the status quo, their
The vision for corporations, government and civil deep-rooted values, their commitment to those
society as equal stakeholders in the global commons they represent and serve, and their persistence to
– captured originally in the 1973 Davos Manifesto1 overcome significant challenges over the decades.
and adapted this year in the 2020 Davos
Manifesto2 – is even more relevant today as we see It is our intention that the Schwab Foundation
the responsibilities of business evolve to address a nurtures this community by inviting a wider group of
collective future and a shared vision for an inclusive, social innovators – including those in corporations,
fair economy on a sustainable planet. governments and academia – to join us in making
social innovation and entrepreneurship a lighthouse
As we convene for the 50th Annual Meeting for possibility, and seeing this realized for the next
in Davos-Klosters, the Schwab Foundation’s generation.
Klaus Schwab This is the “Decade of Delivery” for the Sustainable
Founder and Executive Chairman, World Economic Forum
Development Goals. We need to kick-start progress,
Hilde Schwab where the prescient models and lessons of the
Chairperson and Co-Founder, Schwab Foundation for Social Entrepreneurship
last few decades of social innovation become a
mainstream system for change.
9
Two Decades of Impact — Schwab Foundation
Executive Summary 17
Revealing 58%
Adopting systems
Achieving measurable
progress across all
SDGs
the Impact
change strategies in
their work
The Schwab Foundation for Social Report Methodology It captures a significant portion of the
Entrepreneurship was established 20 Foundation’s community, and offers
Schwab Foundation Impact
192m
years ago, founded by Klaus and Hilde For this report, more than 130 late- a window onto the wider network of
Schwab, as a platform to support stage social entrepreneurs provided social innovators and entrepreneurs
an under-recognized movement of around the world, with the findings The findings show how the Schwab Foundation has had
information, insights and impact data
a profound effect on social entrepreneurs to help amplify
people who were developing innovative on their respective organizations reaffirming the undeniably powerful Tonnes of CO2 their impact. They cited three most-valued benefits:
business models delivering social or (representing one-third of the members and important role of social innovation mitigated
environmental good. of the community awarded since globally.
1. Global visibility, recognition, legitimacy and inclusion
2000) to an external evaluation partner,
Singling out social entrepreneurship as equals at World Economic Forum events and
Wasafiri.
to put on a global platform was exposure to high-profile stakeholders
considered prescient at the time, Collective Impact of the 2. Peer support through the Foundation’s community
and the Schwab Foundation sought Community of like-minded social entrepreneurs
to support this community of social 3. Facilitation of methods and practical
entrepreneurs by including them as The Schwab Foundation’s contribution opportunities for systems change efforts
equals in the World Economic Forum’s and support for late-stage social through executive education, peer learning and global
Annual and Regional meetings, entrepreneurs has evolved over its networks
$6.7b
Global Agenda Councils and research 20-year history. This report celebrates
projects, by investing in capacity- the collective influence of the Schwab Evolution of the Field
building through executive education, Foundation’s community in achieving
and by creating a community of like- impact at scale, in changing the Social entrepreneurship as a global phenomenon
minded peers. systems in which they operate and has evolved significantly over the last few decades.
622m
in contributing to the Sustainable Extraordinary impact has been achieved where the
Today, social entrepreneurship Development Goals.
Distributed in loans or value of traditional approaches of markets or development have
represents a set of proven models
products and services provided to failed to empower and include communities in the gains
individuals of the last century. The success of the field, as well as
and approaches that are becoming
increasingly relevant as conventional People impacted directly its limitations, have revealed important innovations,
businesses and governments in power Operating in sustainably improving evolutions, approaches, tools and models for a global
are confronted with the urgent need for
more than lives and livelihoods economy that seeks to find more sustainable, inclusive
social and environmental progress.
190
Countries
ways to evolve.
Social entrepreneurship, as an organizational expression
of social innovation, is the demonstration of alternative
working models as we face the current challenges to
Numbers are indicative aggregates our planet, our societies and our economies.
of diverse activities in many contexts.
11
Two Decades of Impact — Schwab Foundation
Mission for the Decade of
Key Insights The Sustainable Development Goals
Delivery
Are a Rallying Cry for Action
The results of this study provide a rare The SDGs provide a unifying
In the 20 years of the Schwab
opportunity to recognize the scale framework for all sectors to align to.
Foundation’s contribution to the field
of the impact of the entrepreneurs With or without the framing of the
Child and Youth Finance International of social innovation, much has been
as a collective, and to understand SDGs, social entrepreneurs are acutely
achieved and learnt – but there is work
the catalytic role that the Schwab Technology Is an Equalizer aware of the issues at the ground
still to be done to integrate the tools,
Foundation has had in supporting Technology can be an equalizer, it level and demonstrate impact in more
models, and approaches of social
and shaping the journeys of many enables learning, sharing and remote granular detail than the SDGs. They
innovation into the mainstream. Moving
people. There are important lessons collaboration. It can also provide understand the interconnectedness
forward, the Schwab Foundation seeks
to be learned from the experiences platforms for tracking data and of the problems and seek to address
to be part of a collective agenda to:
shared. These are crucial insights impact, giving access to those who them through contextually relevant
to push greater awareness, further cannot normally be reached. However, models. Social entrepreneurs align
action, and encourage the adoption of technology can also create or increase quite easily with the SDGs and · Spur more intentional cross-sector
alternative models for all stakeholders divides and inequalities. A range of many existed before the SDGs were collaboration
as we continue to grow as a global stakeholders have a role to play in published.
community. ensuring the true · Shift power dynamics to achieve
potential of technology is realized and transformative change (inclusion in
managed. diversity and gender representation,
capital flows and decision-making)
The Collective Is Powerful Systems Are Changing
· Support the shift from growing
The cumulative effect of the work of The approaches of social
organizational models to systemic action
hundreds of social entrepreneurs who entrepreneurs are not only technical
have achieved global significance, Funding Models Are Lagging solutions to problems, but have PlanetRead · Promote technology as an equalizer
and the intersectoral potential of their Funding and investment need to demonstrated that deep transformative and an enabler of change
approaches to deal with the complexity evolve to support radical and systemic changes for people, lasting restorative
of our time. work. Social entrepreneurs do not solutions for our planet and system- · Pursue enabling policies and regulatory
easily fulfil traditional investment wide changes in policies or market environments
criteria for social, commercial or public rules can lead to more lasting changes
· Improve local and global decision-
investors. They are innovators, while to inequalities and injustice. There is
making around collective progress
most investors tend to be risk-averse; recognition by social entrepreneurs
Partnerships Enable Scale whether their metrics of success are of the need to develop systems
Cross-sector partnerships are key financial, environmental or social, approaches. One of the Foundation’s
for survival and scale: from grassroot social entrepreneurs’ ambitions are most significant areas of influence on
citizen movements and municipalities, expansive, cross-cutting, and systemic, its community has been convening an
to technical intermediaries, large while investors have been known to agenda on systems change, including
corporations and international advise them to focus their efforts more an executive education course with
organizations. Partnerships are narrowly. Of course, this is not true of Harvard Kennedy School. Many in
welcomed to support one another, to all funding models, but many social the community report that systems
enable growth, to co-fund, to innovate, entrepreneurs report misalignments thinking and systems approaches have
to diversify, to expand across markets between their funding needs and what significantly shaped their approach to
and more. mainstream investors are willing to fund. social entrepreneurship.
BRAC & VisionSpring
13
Two Decades of Impact — Schwab Foundation
Introduction
Vision into
Reality
François Bonnici
Through a set of surveys and deep- Data and insights
Capturing global impact The traditional leadership model no longer meets our
“A platform to dive qualitative interviews with social This report goes beyond anecdotal
This report challenges the notion that models of social
innovation can be dismissed as small, isolated islands
challenges. For too long we have relied on a top-down
standard to solve some of the most complex failures in
counter the entrepreneurs and our Partners, we evidence to demonstrate real impact
of success in the rough seas of overwhelming global our current system. Social entrepreneurs have been
limitations of have seen overwhelming response, and systemic changes as lessons
problems. Through a cumulative and detailed review of forging ahead from the bottom up, turning vision into
isolated action” participation and feedback during the
research for this report.
for our global system, in every sector
– and emphasizes process and
third party evaluations and internal impact reporting, and reality and achieving inclusive, just, sustainable futures on participation in the journey to the ends
through community surveys and interviews, we have the ground. In the galvanizing era of our common Ecosystem of support we seek.
captured the combined achievements and insights of social agreed purpose towards the The lessons we see here and my
innovators and the organizations recognized by the Schwab Collective power now and for the future Sustainable Development Goals, we role within the Foundation, which I
Foundation. The power of the collective demonstrates a cumulative effect recognize that this community has began in mid-2019, represent huge
that cannot be ignored, or marginalized as isolated findings. much to offer, given how catalytic these opportunities coupled with great
It reveals important findings about the extent of their direct Consider the combined capability of all social innovators in the approaches are already proving to be. challenges. I am convinced that the
reach, scale and scope of impact, and the increasing world, both those recognized in other networks like ours, and Schwab Foundation can offer its
system-wide changes they are achieving. the hundreds of thousands that exist in local communities. Insights into our contributions platform to counter the limitations of
As part of our own journey of reflection isolated action with an ecosystem of
Paradigm for transformation The clusters of social innovation around distinct sectors on impact, this report also explores support for large-scale but inclusive
The corresponding case studies offer a paradigm for offer proof that real alternatives do exist. Another language the Schwab Foundation’s contribution social innovation. This would integrate
inclusive, sustainable transformation. They not only alter is emerging. Through decades of experience, systems to late-stage social entrepreneurs and business and government, address
lives on the ground, but also shape local and global systems approaches that seek to fill the gaps of global failures, now to the field. It looks at the ways our funding models and financing, and
for change. These are stories of incredible progress and begin to change the very rules, causes and forces that hold community has benefited, valued and create technology-enabling policies
possibility. these problems in place. experienced the Foundation’s support. that protect and serve.
15
Two Decades of Impact — Schwab Foundation
The Schwab
Foundation
The Schwab Foundation for Social The Schwab Foundation supports its
Entrepreneurship, in collaboration with awardees in the development of social “We empower
the World Economic Forum, is a global innovation by: leaders to change
platform that advances the world’s
the world”
leading models of sustainable social · Raising awareness of the social
innovation. innovators and their work on global
While the first two decades of the In 2019, the Schwab Foundation repositioned its award categories to align itself with some of
platforms, legitimizing them as peers
Foundation were focused on building the contemporary challenges we collectively face. As such, it has expanded its annual awards
The Foundation established over 20 of world leaders, and facilitating tailored to include four categories:
awareness, enthusiasm and interest
years ago, was founded by Klaus and media exposure
for social entrepreneurship, the new Social Entrepreneurs
Hilde Schwab, represents almost
era seeks to embed and scale up Founders who innovatively address a social or environmental problem, with a focus on low-
400 late-stage social innovators and · Giving them access to global
the potential of social innovation in income, marginalized or vulnerable populations
social entrepreneurs operating in more knowledge, networks, world leaders
existing systems globally. Many of
than 190 countries worldwide. They and partners through the World Corporate Social Intrapreneurs
the Foundation’s past awardees have Leaders within multinational or regional companies who drive the development of new
have recognized that problems require Economic Forum convenings
gone on to drive important systemic products, initiatives, services or business models that address societal or environmental
multistakeholder collaboration and
changes, and it is the Foundation’s challenges
that addressing complex challenges · Advancing system leadership through
intention to accelerate such change
requires a collective response. executive education at the Harvard Public Social Intrapreneurs
in the decade ahead. Leaders within governments/international organizations who harness the power of social
Kennedy School
innovation to create public good through appropriate policy, regulatory tools and programmes
Its mission is to scale up the impact of
solutions and innovative approaches to · Fostering a community spirit through Social Innovation Thought Leaders
support millions of vulnerable and low- leadership coaching, peer-to-peer Recognized experts and champions who shape and contribute to the evolution of the social
income communities in need. It aims mentoring and the provision of tools, innovation field
to provide exposure, capacity building support systems and connection to a
and a trusting community to support diverse range of events
leaders to change the world.
17
Two Decades of Impact — Schwab Foundation
Report
Methodology
This study was undertaken by an external evaluation partner,
Wasafiri, with two major aims:
1 To estimate the cumulative impact of the Schwab
Foundation’s community of social entrepreneurs and
understand their insights from decades of practice
2 To better understand the contribution of the Schwab
Foundation to their community’s work and impact
Quantitative and qualitative impact data and narratives were
collated from three sources:
1
Online survey with social entrepreneurs
A 20-question online survey of Schwab Foundation
Members, which was completed by 133 organizations
(approximately one-third of the total community)
2 Organization impact reports
Survey respondents shared their organizations’ impact
reports (internal and external evaluations), which were
gathered as evidence and in some cases, analysed to inform
this report
3
In-depth interviews
Semi-structured, in-depth phone interviews were conducted
with 14 social entrepreneurs, active in diverse regions and
issues, to gain a deeper understanding of their approaches
including systems change and their reflections on their
association with the Schwab Foundation
19
Two Decades of Impact — Schwab Foundation
Impacts
and Insights
The diverse leaders in the Schwab Collective impact is powerful
Foundation’s social innovators’
community operate in 190 countries.
The cumulative impact of this
group is compelling and provides a Partnerships enable scale
sense of the extent of the reach of
influence into other global networks
and communities. This community
is achieving impact at scale that
Technology as an equalizer
is of global significance, with their
work equal to that of governments,
multinational corporations and
international organizations.
Funding models are lagging
The insights gathered from the
collective experiences highlighted
here show how to strengthen and
SDGs are a rallying cry for action
foster successful social innovation
ecosystems. The information also
warrants closer scrutiny if we are
to adapt and adopt what they have
tested and proven, to enable the
Systems are changing
models, tools, and innovations to
be integrated into all facets of our
collective systems and sectors.21
Snapshots: Impact
More than $6.7 billion has been distributed
Two Decades of Impact — Schwab Foundation
to individuals through loans, or from the sale Room to Read has changed the educational
of products which have created value and trajectories of 16 million children across 16
enhanced livelihoods by improving healthcare or countries through its Literacy Programme and its
providing time saving solutions, education and Girls’ Education Programme.
The Collective
clean home lighting, among others.3
Mothers2Mothers has reached over 11 million
More than 192 million tonnes of CO2 have women and children with life-changing HIV
been mitigated through the respondents’ treatment services, achieving virtual elimination
Is Powerful
enterprises. This is equivalent to taking more of mother-to child transmission of HIV among
than 40.7 million passenger vehicles off the enrolled clients for the last five years. It has also
road for a year.4 created over 10,000 jobs for women living with
HIV.
Indirect benefits extend to additional tens and
hundreds of millions of people through increased d.light has reached 100 million people with
economic opportunities, better social protection, solar products that have offset over 22 million
An indication of reach and Impact in numbers improved incomes of primary household earners, tons of CO2 emissions, created employment for
scale and better government policies. over 5000 people and enabled 1.1 billion people
The impact statistics are an indication without access to electricity to leapfrog the grid
The impact of the collective of social of cumulative scale. Given the variety with affordable renewable energy solutions.
entrepreneurs includes both the of activities, the depth and breadth of
“It’s not about the
cumulative effect of hundreds of the impacts, time variations and myriad VisionSpring has provided sight-restoring
effective social entrepreneurs, but also contexts of the activities, they provide
numbers. It’s not about eyeglasses to nearly 7 million people and has
the cross-sector potential of these a sense of scale, rather than accurate
what a funder wants. generated $1.2 billion in economic impact.
approaches to deal with the complexity aggregated impact numbers. It’s when changes
of our time. Addressing diverse issues happen sustainably… Homeless World Cup, which is a social sports
and with such global reach, the The network of Schwab Foundation in action, in character, organization established specifically to tackle
power of this collective community social entreprenuers operate in 190 in behaviour, then the homelessness and poverty through football and
of social entrepreneurs is compelling, countries. community change street soccer worldwide, has lifted 1.2 million
proving that the models are legitimate, happens.” people out of homelessness and has established
rewarding and effective. More than 622 million people have 74 partner organizations across the globe.
Runa Khan —Friendship
been directly affected by the operations
ECO SOLUTIONS and activities of the survey respondents
Water, sanitation
and hygiene since founding their organizations.
services, and TECHNOLOGY
environmentally Technology education
sustainable and solutions directly
housing improving lives
ALL SECTORS
7,603,800 539,353
226,600,142 2,180,392 100,479,000 17,119,570 59,831,772 1,930,000 180,000,000 25,387,549 526,394
622,197,972
EDUCATION HEALTHCARE LAND RIGHTS
ENERGY ACCESS Health service Direct access to land
Youth and adult EMPLOYMENT FINANCIAL
education, teacher Distribution of solar treatment, rights, improvement of
Technical vocational and renewable INCLUSION testing, laws and policies SOCIAL INCLUSION
training, reading
ECONOMIC programmes education, skilling, energy products Savings, diagnostics Drug rehabilitation, programmes
ACTIVITY training and loans, and tracking for youth sports, physical
employment through HOUSING disabilities, homelessness and
Improved livelihoods financial
placement or training Home improvements, refugee registrations
through increased entrepreneurship housing and safer
economic activity buildings Sector breakdown
of reach23
Countries where the social
entrepreneurs operate
Two Decades of Impact — Schwab Foundation
1
Andorra
Antigua and Barbuda 3
Brunei Darussalam Algeria
Cyprus Azerbaijan
Eritrea Belarus
Guyana Bhutan
Kazakhstan Comoros
Libyan Arab Republic of the Congo
Jamahiriya Djibouti
Liechtenstein Estonia
Finland
5
North Korea Bosnia and Herzegovina
Malta Iceland Central African Republic
Monaco Islamic Republic of Iran Croatia
Palestine Latvia Czech Republic
Seychelles North Macedonia Maldives Dominican Republic
South Sudan Mauritania Montenegro
Trinidad and Tobago Palau New Zealand
Uzbekistan Sao Tome and Principe Niger
Slovakia Poland
Slovenia
2 Yemen
Romania
Bahamas Saudi Arabia
Bahrain 4 Serbia
Cuba Albania Somalia
Dominica Belize Sudan
Equatorial Guinea Bulgaria Suriname
Fiji Cape Verde Swaziland 9
Gabon Chad Syrian Arab Republic Benin
Georgia Guinea-Bissau Tunisia Bolivia
Grenada Iraq Ukraine El Salvador
Kiribati Jamaica Uruguay 7 Ireland
Kuwait Lithuania Italy
Angola Malaysia
Kyrgyzstan Mauritius Armenia
Luxembourg Micronesia Nicaragua
Guinea Portugal
Marshall Islands Mongolia Lesotho
Nauru Norway Madagascar
Sri Lanka 13
Republic of Korea Qatar Netherlands Argentina
Republic of Moldova Samoa
Solomon Islands
Sweden 11 Congo
Saint Lucia Australia Pakistan
Tajikistan Timor-Leste Viet Nam
Honduras
Tonga United Arab Emirates
Vanuatu Morocco 15 17 19 21 23 26 29 34 40 46
Tuvalu Namibia Cameroon Colombia Indonesia Peru Ethiopia South Africa Brazil Kenya United States of America India
Singapore Mozambique Nepal Zambia Nigeria Uganda
Togo Tanzania
0 6 8 10 12 14 16 18 22 24
Belgium Austria Afghanistan Burkina Cambodia Bangladesh China Ghana México
Greece Botswana Burundi Faso Cote d’Ivoire Canada Zimbabwe Malawi
Hungary Denmark Costa Rica Egypt Ecuador Chile Philippines
Lebanon France Hong Kong Liberia Germany Rwanda UK and Northern
Papua New Guinea Gambia (S.A.R.) Mali Guatemala Ireland
Russian Federation Israel Myanmar Spain Haiti
South Korea Japan Panama Thailand Jordan
Turkey Laos Paraguay
Sierra Leone Senegal
Venezuela Switzerland25
This community operates in more than to middle income markets, and six of 83% of entrepreneurs work on more combined with entrepreneurship and workforce development and financial
190 countries, with 25% in at least 90 those are in Africa. They include India, than one issue. Education – the top- enterprise development, environment, inclusion.
Two Decades of Impact — Schwab Foundation
countries each. With the exception of the US, Kenya, Brazil, South Africa, ranked – is for example, commonly climate change and circular economy,
the US, all 10 countries in which social Uganda, Mexico, Ethiopia, Nigeria and
entrepreneurs are most active are low Tanzania.
Top 10 issues for survey
respondents
10 countries in which social entrepreneurs
are most active
KENYA
46 35 34 31 22 17 14 13 12 12
USA
34 RURAL
40 ETHIOPIA
ECONOMIC
OPPORTUNITY AND
HEALTH AND
HEALTHCARE
DEVELOPMENT
23 EDUCATION DEVELOPMENT ENTREPRENEURSHIP
AND ENTERPRISE
DEVELOPMENT
ENVIRONMENT,
CLIMATE AND
CIRCULAR ECONOMY
GENDER
FINANCIAL
INCLUSION CHILDREN
AND YOUTH
RIGHTS AND
WORKFORCE DEVELOPMENT
EQUALITY DEVELOPMENT
The Schwab Foundation’s and the three most-valued benefits Foundation’s community of
contribution to the provided by the Schwab Foundation to like-minded social entrepreneurs
community’s impact the community of social entrepreneurs
3. Introduction to systems thinking
are:
which enables a more strategic
The Schwab Foundation has had
1. Global visibility - inclusion as equals approach to their enterprise models
a profound impact on the social
at World Economic Forum events and
entrepreneurs who responded to the
exposure to high-profile stakeholders
survey. Many value the recognition and
legitimacy gained through membership, 2. Peer support through the
UNITED
MÉXICO REPUBLIC OF
NIGERIA TANZANIA Benefits of being part of the Schwab
24 23 UGANDA 23
Foundation community
BRAZIL
26 Participation in mainstream leadership networks and events
29 INDIA Peer support through the Schwab
Foundation like-minded community
SOUTH
AFRICA 46 Helped with more strategic approach
Media exposure
26 Introduction to systems change thinking
Contributed to partnerships
Contributed to funding opportunities
Other
% 10 20 30 40 50 60 70 80 9027
Child and Youth Finance
Movement (CYFI) Reflection
Johanna Mair
Two Decades of Impact — Schwab Foundation
Child and Youth Finance International
– a Schwab Foundation member Professor of Organization, Strategy and Leadership,
working globally to ensure full economic Hertie School of Governance, Germany; Director,
citizenship for children and youth – Global Innovation for Impact Lab, Stanford Center on
grew over eight years beyond the Philanthropy and Civil Society; and Academic Editor,
organization’s wildest expectations. The Stanford Social Innovation Review (SSIR) and Schwab
changes the movement has brought Foundation Board Member.
about have been extraordinary: 70
“
countries have changed policies and
174 countries took part in Global Money I have studied, researched, and taught social
Week in which 32 million children were innovation and entrepreneurship over decades.
reached and 53,300 organizations were My professional experience has paralleled the
involved. Schwab Foundation’s evolution, where it and
other global agenda councils advocated for social
These changes have meant that the entrepreneurship’s inclusion in the larger debate
movement has reached a point of critical with companies and policy-makers, coining them
mass; it is self-propelling and self- ‘laboratories of society’, in which experimentation
sustaining, spurred on by partners5. CYFI about novel or unconventional ways to address
focuses on increasing the economic societal challenges took place.
citizenship of children and youth through
its global multistakeholder network. The Schwab Foundation was fostering collaboration
Acting as an advocate, connector among social entrepreneurs and with companies and
and adviser, it leverages its network governments at a time when partnering with these
to integrate economic citizenship ‘unusual bedfellows’ was gaining momentum.
into educational and finance systems
throughout the world. It currently runs The Foundation has paved the way over
four active initiatives, is partnered with the past twenty years in seeding the ideas
14,000 organizations, reaches 36 million generated by the model, in showcasing what
children and youth and is active in 132 social entrepreneurs do and how they operate,
countries. providing legitimacy, forging and enabling
connections between stakeholders, and
critically, enabling informal ways of thinking
about collaboration.
As we look to the future, harnessing the power of the
Foundation and the Forum to continue to support
social entrepreneurs, widening the community to
experimental and unconventional individuals and
organizations in other sectors, collaborating beyond
formal forums such as the Annual Meeting in Davos-
Klosters, could help to identify social solutions early
enough so that they can become part of the larger
business or government machinery. This would make
us more effective in addressing these issues and in an
”
ideal world, prevent them from arising.
Proximity Design29
Common elements of Snapshots: Partnerships
successful partnerships
Two Decades of Impact — Schwab Foundation
Tech Matters (Benetech). The biggest impact the
Schwab Foundation social entrepreneurs Schwab Foundation had on my organization was
identified a number of common elements connecting us to other social entrepreneurs, who
to successful partnerships: are our most important partners in accomplishing
systems change.
—Identify a shared problem and
vision: Successful partnerships Marine Stewardship Council. (I) met a Chinese
are supported by social enterprise, fishery company in Davos in 2015 – now a leading
Last Mile Health, is a good example. supporter of the MSC (Marine Stewardship Council)
The partnership really grew after programme, having led their first fishery into the
partnering with community health programme, (I am) just back from China where the
worker programmes to create a global, same company/individual put four more fisheries
indispensable solution to the challenge into assessment.
of quality universal healthcare that is
accessible and affordable. PlanetRead. At Davos, Gordon Brown (as UN
Special Envoy for Global Education) asked to
—Seek out and benefit from meet me one-on-one to discuss our SLS (Same
diversity: Diverse actors achieve Language Subtitling) work and that was because
something that neither partner can do Daphne Koller (Stanford) mentioned our work to
alone. Social entrepreneurs often play him. I had shared our work earlier with (Daphne
Partnerships
a unique role in their system but they Koller) as part of the Forum’s Global Agenda
lack the means to develop or access Council in Dubai.
new markets. For example, Child
Enable Scale
and Youth Finance Movement (CYFI) Nisaa Broadcasting Radio Company
experimented with and kickstarted new (Nisaa FM). As the first and only Palestinian entity,
global interventions that once proven, the Schwab Foundation Fellowship gave more
could be taken over by bigger partners. recognition to us locally and regionally. We were
Social entrepreneurs have sought this able to get regional sponsorship thanks to this.
diversity with all types of organizations
The Schwab Foundation has a unique Bringing together and nurturing a from international donors and investors
and powerful role to connect social community of social entrepreneurs has to local and international NGOs, from
national governments to universities and Despite this progress, more needs
entrepreneurs with global leaders and also been critical in shifting important
cultural centres. to be done to change entrenched “Innovation happens
influencers and also with like-minded power dynamics and increasing status power dynamics, and bridge the when systems that
peers. This has been overwhelmingly – giving social entrepreneurs voice, —Look to co-create solutions: divides between public, private and don’t know each other,
the most valuable benefit to Schwab credibility and visibility well beyond their
Through co-creation, both partners can societal sectors. touch each other.”
shift their mindset and create something
Martin Burt —Fundación Paraguaya
Foundation Members. Connections forged borders. Many social entrepreneurs, truly new. Social entrepreneurs The Foundation’s expansion of
in the community and at the Forum have focused on serving their communities at emphasized the need to cultivate a its award categories to recognize
mindset that did not assume the solution social innovators in companies,
led to further funding opportunities and the grassroots, have little or no exposure but sought to empathize with the government and social innovation
partnerships which unlock roadblocks, to the international ‘system’. Interacting for concerns of the others, including clients thought leaders, is a step in that
enable scale, create new powerful the first time on the global stage as part and partners. Tom Szasky Founder and direction, and the opportunity now
Chief Executive Officer of TerraCycle is to fast track those connections.
innovations, marry complementary skills of the Foundation community has built developed “Loop” in partnership with Critically, a more intentional
and expertise, and expand access to new courage, pride and strengthened self-trust. some of the world’s largest plastics approach to accelerate the
markets. producers, Unilever, Nestlé and Suez adoption of these models and
among others, to design high quality tested solutions in several sectors is
packaging that can be reused and needed, and most likely to happen
refilled at least 100 times, and reduce the through partnerships, coalitions and
alarming density of plastic in the oceans. multistakeholder initiatives.31
Industree/Mother Earth
TerraCycle
Reflection
Subramanian Rangan
Two Decades of Impact — Schwab Foundation
A global recycling organization creating
turnkey and affordable recycling options The Abu Dhabi Crown Prince Court Endowed Chair in
with materials that are otherwise landfi- Societal Progress, INSEAD, France, and Board Member of
lled or incinerated the Schwab Foundation
“
TerraCycle has a mission to eliminate
Today we face global challenges that require us to
the concept of waste. It operates in
complement the architecture of states and markets
21 countries and partners with major
with collectives and communities.
consumer packaged goods companies,
retailers, distributors, facilities and cities,
Social entrepreneurs operate beyond the
to change the traditional linear physical
conventional dimensions of business and
manufacturing process to a circular
society; they enact the realm of humanity.
economy.
They embrace hard problems where states and
In partnership with Procter & Gamble,
—
markets have fallen short, enabling better outcomes
TerraCycle created the first totally
in the form of products and services that are local
recyclable shampoo bottle in 2017 at the
and sustainable.
Forum, followed by LOOP, a multistake-
holder platform that enables consumers
The World Economic Forum is relevant as an
to buy their favourite goods in returnable
“architectural innovator;” a platform that convenes,
packaging from their favourite retailers.
activates, and enables communities to address
Loop was launched in 2019 and has
global and local challenges. The Schwab Foundation
since gone live in France and the US,
plays a key role in connecting its social entrepreneur
and will be launching in 2020 in the UK,
community to this platform. Both enable a
Canada, Germany, Japan and Australia.
community of communities.
—Through the Schwab Foundation com-
The Schwab Foundation has delivered a new
munity, and through its increased profile
‘institution’ to complement the public and private
as a result of launch events hosted in
sector. Problems and people are embedded
collaboration with the Forum, TerraCy-
in systems and thinking more rigorously about
cle Chief Executive Officer, Tom Szaky,
complementarities and eco-systems will be a
involved new investors and expanded his
part of the future of social entrepreneurship. The
corporate partnerships to include Procter
Forum’s role is to continue to focus on bringing the
”
& Gamble, Coca-Cola, Carrefour, Tesco,
institutions together.
Mondelēz, PepsiCo, Danone, Mars,
Nestlé, Unilever, UPS and others.
—Loop is now part of the Forum’s
Loop Alliance partnership programme
to introduce zero-waste packaging and
eliminate plastic waste.33
Two Decades of Impact — Schwab Foundation
BroadReach
For nearly 20 years, BroadReach has
partnered with governments, multinational
health organizations, donors and private-
sector companies to effect large-scale
healthcare reform.
It has focused in recent years on
health-systems management using
technology, big data and analytics and
artificial intelligence (AI) to radically
improve healthcare delivery and promote
Technology Is
broader outcomes such as Universal
Health Coverage and the Sustainable
Development Goals.
an Equalizer
Through the use of the innovative Vantage
technology platform, BroadReach is
supporting clients to manage the health of
2.4 million people who are HIV positive, or
8% of the total HIV population globally. In
South Africa alone over the past five years
BroadReach has tested over 5.5 million
For social entrepreneurs, technology is increasingly a The Fourth Industrial Revolution (4IR) describes the current people for HIV, of which 530,000 were
critical tool and enabler for scaling up impact. It facilitates anticipated phase of technological advancements that are “Technology, and the initiated for treatment and 93% of these
collaboration, it is the critical means by which social bringing rapid and disruptive change to every industry and tools of the Fourth individuals are virally suppressed.
entrepreneurs become visible beyond their borders, and society. In this era, significant challenges lie in the safe and Industrial Revolution
is a tool to track developments and trends. It can enable equitable provision of and access to technology, while real offer solutions to issues The technology, advanced analytics,
social entrepreneurs to predict, respond and adapt to concerns are emerging in the use of such technologies including job creation artificial intelligence and machine learning,
dynamic operating environments. It has the ability to driving inequality further or causing unintended provide insights and proactive management
and solving problems in
humanize development, and can provide beneficiaries consequences. action recommendations, thereby enabling
health, education, security
with direct access to the services and facilities needed to real-time responses, efficient and targeted
improve their lives. It removes intermediaries, providing Technology can democratize the economy if treated as a
and food. It’s critical we planning and at-scale central monitoring.
safer and faster solutions, for example, for the indigenous tool for human advancement, used to actively fill in gaps to
get this right…The social It supports thousands of frontline health
woman who gains access to online banking, or the benefit more people, with solutions that are co-designed entrepreneur model is workers.
household now able to self-identify poverty gaps and to serve the poor. In Klaus Schwab’s book “The Fourth needed more than ever to
directly access support services. Industrial Revolution”, he calls for leaders and citizens to meet the big challenges Vantage also provides good and best
“shape a future that works for all by putting people first, with practical on the practice implementation workflow
For some technology-enabled social entrepreneurs the empowering them and constantly reminding ourselves ground solutions. If these toolkits that provide step-by-step guided
success of their business relies on the acceptance, that all of these new technologies are first and foremost can be quickly scaled up support to allow thousands of workers
adoption and ongoing integration of technology in the tools made by people for people.”6 The viability of this we really do have a chance to implement solutions at scale, with
communities they serve, and this cannot be done in proposition is demonstrated by the Forum’s focus on the of changing the world in consistent quality and fidelity. This helps
isolation. They adapt services to address infrastructure impact of 4IR technologies and the Schwab Foundation’s health systems to do more with limited
our lifetimes.”
gaps where government investments in the provision of recognition of social entrepreneurs who use these tools to resources, address the profound lack of
technology solutions means they are balancing the real reduce inequality, overcome barriers and empower local Ernest Darkoh —BroadReach Healthcare leadership and management skills, and
potential impact of systems change and the realities of actors. improve governance and accountability.7
local contexts and constraints.35
Zipline International
Snapshots: Technology Unlocking the potential of technology
Two Decades of Impact — Schwab Foundation
Refunite uses technology to reconnect refugee Through its Centres for the Fourth Industrial Revolution,
families separated by displacement, and provides the Forum is working with governments to advance
them with employment training and job opportunities enabling policy and regulatory environments, and leverage
in the digital microtask economy. It has so far technological progress to support digital adoption,
registered 1.3 million refugees, reconnected in integration and innovation to solve global issues. Equally,
excess of 45,000 family members and trained development stakeholders need to actively engage
26,000 workers in Uganda, over 30% of which technology stakeholders in the Agenda 2030. Strengthening
are women. Refunite’s grassroots communication understanding, collaboration and mutually beneficial
networks enable 6,300 community leaders to outcomes create significant opportunities for communities
communicate with more than 5 million refugees. Its and world leaders, all of whom will reap the benefits of
cost-free communication solution in refugee camps inclusion, equality, access and innovation.
is serving NGOs and refugees.
The Schwab Foundation can promote the benefits of
Dimagi is using cloud-based data collection technology as an equalizer and enabler of change, but
software to improve healthcare tracking on a global critically, should also nurture dialogue with stakeholders
scale through their CommCare platform. Dimagi has around its potential risk, in an effort to prevent them. Finally,
digitized health workforces across 2,000 projects social entrepreneurs at the forefront of using technology to
in 80 countries. The project in India alone has seen address vulnerabilities in their communities, need to have a
over half a million community health workers adopt seat at the table when discussing regulation and potential
Dimagi’s mobile applications to provide critical expansion of technology use.
services to 300 million people.
Digital Opportunity Trust runs networks of schools
that train youth on technology for employment
supporting them to become innovators and leaders,
and to create and apply digital solutions that have
positive impact in their communities. Since 2002,
DOT has worked with more than 7,000 young
women and men who have changed the lives and
livelihoods of over 1 million people through DOT’s
unique youth-led model.37
Whether investors or donors, funders dictate how Last Mile Health and Partners
money is spent. Data and metrics conventionally
Two Decades of Impact — Schwab Foundation
regarded as credible (particularly by the global An organization leading a coalition of
community), and a narrow definition of what counts as government entities, donors and NGOs in
acceptable evidence, do not always align with what Liberia, working to transform community health
is needed to be effective at the grassroots level. For worker (CHW) programmes through joint-
social enterprise JAVARA, at the forefront of promoting up approaches to policy, capacity building,
Indonesia’s indigenous food biodiversity heritage, technology and local ownership.
access to working capital investment is difficult to
secure from social impact investors who tie funding Partnerships have been critical, not only in
to expectations to reduce product lines, which runs expanding CHW programmes, but also in
counter to the organization’s mission. New models, mobilizing funding to support this expansion.
and better partnerships are required. There is wide recognition amongst key
Funding Models
multilateral stakeholders that CHWs are central
Potential solutions raised highlight roles for multiple to delivering the third Sustainable Development
stakeholders where social entrepreneurs, with limited Goal to “ensure healthy lives and promote
capacity for fundraising, work in coalition to find wellbeing for all at all ages”, but it was not clear
Must Evolve
funding solutions. Funders need to adopt and integrate how CHW programmes should be delivered in
systems thinking and critically, relationships need to different localities and healthcare systems.
evolve to become true partnership models, creating
safe spaces for entrepreneurs to experiment or explore With Last Mile Health’s longstanding
new areas, while allowing for flexibility, uncertainty partnership approach to advancing universal
and evolving metrics. The key is to build and nurture a health coverage, it has collaborated with
learning culture. Harvard University and Harvardx to co-
produce the Community Health Academy’s
first leadership course that has enrolled over
Given the experimental nature of social Snapshots: Funding 11,000 learners from 180 countries. Last
entrepreneurship and the unique and “Getting funders to Mile Health also formed a partnership with
sometimes innovative solutions being understand the nature The Schwab Foundation has helped increase Living Goods – another Schwab Foundation
opportunities to secure funding from diverse sources member – to leverage collective experience
pursued, traditional funding models of systems work is a
for many. Some examples include: in community health to deploy 50,000
do not allow social entrepreneurs the barrier, for example,
freedom, flexibility and ways of working digitally-empowered CHWs in partnership
we’re still asked to
they need. Nuru Energy’s 2012 award helped secure funding with governments in West and East Africa.
identify numbers Supported by the Audacious Project, this
from both Bank of America and Africa Enterprise
of beneficiaries in Challenge Fund (AECF). This is the largest pot of partnership aims to serve 34 million people by
Access to the right funding at the
appropriate time, is critical to social
a year.” funding it has received to date. 2021. It has attracted significant funding from a
entrepreneurs’ ability to measure Liz Smith —EYElliance variety of sources, namely:
Rags2Riches, Inc. found that being a member of
impact, to scale up, invest, advocate or
the Schwab Foundation provided the organization · $50 million from the Audacious Project
partner. The Foundation itself does not
with additional credibility to seek new partners, for Living Goods and Last Mile Health from
provide direct funding or grant support,
funders, supporters and customers. a coalition of philanthropic individuals and
yet the Schwab Foundation members
have benefited from introductions organizations such as: the Skoll Foundation,
Dimagi’s official recognition from the Schwab
to stakeholders that have led either Virgin Unite, Children’s Investment Fund
Foundation offered an effective framework within
directly or indirectly to funding Foundation and the ELMA Foundation
which to communicate to funders, partners
opportunities. and others, who were less familiar with social
· $50 million in matching funds to be raised
entrepreneurship.
Funding models are typically time from 2018-2021 through partners of the World
bound and generally over the Economic Forum
short-term, whereas longer funding
timeframes are essential if funders · An additional $50 million to be raised to meet
and social enterprises are to deliver the total goal of $150 million for this project
systems change.39
Two Decades of Impact — Schwab Foundation
Social entrepreneurship contributes
to the SDGs
ALL 17 SDGs 3
The SDGs
GOOD HEALTH AND
9 WELL-BEING
INDUSTRY,
INNOVATION
15 7 AND INFRASTRUCTURE
Are a Rallying
LIFE ON LAND
AFORDABLE AND 14
LIFE
CLEAN ENERGY BELOW
WATER
6
Cry for Action
CLEAN WATER
AND SANITATION 1
NO POVERTY
12
RESPONSIBLE
CONSUMPTION
17
PARTNERSHIPS
FOR THE GOALS
Launched in 2015, the Sustainable Development
Goals (SDGs)8 provide a unified approach and narrative “Inequality is not about
for identifying and addressing global issues and are who has more, it’s about 16
PEACE,
recognized as a rallying point for change. The Goals set my ability to reach my JUSTICE
AND STRONG
the many targets and indicators for change, and define the aspirations, whatever they INSTITUTIONS
stakeholders or sectors, which are responsible for them. are, with the same lack of 8
resistance along the way.” 13 DECENT WORK AND
Change from the ground up CLIMATE ECONOMIC GROWTH
Meagan Fallone —Barefoot College
ACTION
Although the Goals can be clustered into three areas –
environment, society and economy – they are all intersectoral
and cannot be achieved in isolation. They require innovation, in June 2019 commits signatories to “accelerate 11
imagination, funding and collaboration – behaviours which implementation of the 2030 Agenda for Sustainable SUSTAINABLE CITIES
are integral to most social entrepreneurs. Many of the Development”: strengthening their partnership to help each AND COMMUNITIES
Schwab Foundation social entrepreneurs address at least other; increase their outreach; share networks, communities, 5
GENDER
one of the SDGs in their work and they are acutely aware of knowledge and expertise; foster opportunities for innovation; 2 EQUALITY
the factors that might inhibit or enable impact at scale. The and encourage a wide understanding of and support for ZERO
difference with social entrepreneurs is that they often adopt priority issues among relevant stakeholders. HUNGER
a ground-up approach, responding instinctively to the micro
issues that they see, rather than issues identified in a macro Nearly 90% of the social entrepreneurs in the survey have 10
framework. strategies that are influenced somewhat or significantly by REDUCED 4
INEQUALITIES QUALITY
the SDGs.
Social entrepreneurs are incrementally making real progress EDUCATION
against this shared agenda. Social entrepreneurs are primarily working on Goals 1-No
Poverty, 3-Good Health and Wellbeing, 4-Quality Education,
The United Nations – World Economic Forum Strategic 5-Gender Equality and 8-Decent Work and Economic
Partnership Framework for the 2030 Agenda9, signed Growth. Figure 5: Source: Stockholm Resilience Centre41
The Poverty Stoplight, Fundación In the Decade of Delivery – how solutions are implemented streetfootballworld
Paraguaya and who implements them will matter most. Much innovation
Two Decades of Impact — Schwab Foundation
is required. As the global dialogue around the shared issues
The Poverty Stoplight programme was created continues to evolve, social entrepreneurs have an important
in 2010 to measure and address the quality catalytic role to play in highlighting not only what has worked
of life of its microfinance clients, based on effectively with local, sustainable solutions, and in raising the
Fundación Paraguaya’s experiences in the voice of communities, but also in advocating for current gaps
fields of microfinance and entrepreneurship. in the discourse.
Fundación Paraguaya’s mission is to eliminate
poverty in Paraguay and in the world. The
Snapshots: SDGs
Poverty Stoplight is a social innovation
Since its inception in 1986, Karuna Trust has grown to
multidimensional poverty measurement tool
manage 71 Primary Health Centres reaching 1.5 million
with 50 subjective multidimensional indicators
people. Annual turnover has increased to $5 million,
across 6 dimensions including: income and
reducing Infant Mortality Rate (IMR) from 70 to 5 (per
employment; health and environment; housing
1,000) and Maternal Mortality Ratio (MMR) from 280
and infrastructure; education and culture;
to 50 ((per 100,000 live births), in Karnataka, achieving
organization and participation; and interiority
99.9% institutional delivery rate across the state. The Trust
and motivation.
addresses goals 1, 3, 5, 6 and 7.
The initiative is reshaping the globally accepted
Worldreader has created 13.8 million readers in 45
definition of poverty, currently limited to
countries with a library of 19,740 books in 52 languages.
income deprivation, to be multidimensional
The project meets goals 4 , 5, 8 and 10.
and to involve those most affected, in defining
their own needs and designing their specific
Tech Matters (Benetech) built the largest library for
solutions. Using technology, Fundación
people with disabilities in the world, reaching over 1
Paraguaya has developed a platform to
million people with disabilities with over 15 million e-books
put the tool and solutions in the hands of
downloaded. It helped draft and bring into effect the Treaty
its community members, democratizing
of Marrakesh, it created the first project management
data and empowering families and support
tool for the environmental movement, and the first secure
organizations. Being able to define their own
crypto application for documenting human rights abuses.
situations creates ownership, and allows
It also incubated and built the first big data group in
family members to take responsibility for
human rights, testifying in multiple genocide trials. The
poverty-related problems10. The Poverty
initiative delivers on goals 1, 2, 4, 6, 7, 8, 12, 13, 15, 16
Stoplight increases participants’ agency,
and 17.
helps to enhance aspirations, and empowers
participants to work for a better future11.
streetfootballworld has established a whole new sector:
“Football for Good”. It has surfaced and connected 150+
· The Poverty Stoplight methodology has
community-based organizations, leading to a rise from
been replicated in more than 24 countries by
400,000 to 2.5 million underserved youth attendance per
more than 284 organizations including 126
day between 2004 and 2019. This collective has unlocked
companies in Paraguay since its inception in
a total of €1 billion in the past 15 years. Common Goal is
2013.
a pro-athlete driven movement that sees investments of
1% of the industry's revenues in a collective and purpose-
· Ecuador is exploring formal adoption of the
driven impact fund for the SDGs. Since its launch in 2017,
programme and the Paraguayan Ministry of
over 130 athletes have pledged 1% of their earnings. It
Foreign Affairs and Fundación Paraguaya have
works across all 17 SDGs.
signed a formal memorandum of a strategic
alliance on the Agenda 203012.You can also read
