SCHWAB FOUNDATION FOR SOCIAL ENTREPRENEURSHIP Breaking the Binary: Policy Guide to Scaling Social Innovation In collaboration with InSight at Pacifi c Community Ventures, the Initiative for Responsible Investment at the Hauser Center for Nonprofi t Organizations at Harvard University, and SK Group April 2013 Schwab Foundation for Social Entrepreneurship Route de la Capite 91-93 1223 Cologny/Geneva Switzerland Phone +41 (0)22 869 1212, Fax +41 (0)22 786 2744 Email:
[email protected] www.schwabfound.org © 2013 Schwab Foundation for Social Entrepreneurship All rights reserved 2 Breaking the Binary: Policy Guide to Scaling Social Innovation Contents Foreword 3 Foreword My husband Klaus Schwab and I started the Schwab Foundation for Social Entrepreneurship over a decade ago because, although 5 How to Read This Report the World Economic Forum had engaged leaders from traditional 7 A Framework for Government Action civil society organizations for many years, we sensed that a distinct, more entrepreneurial approach to alleviating problems 10 Index to Policy Case Studies associated with poverty was beginning to take hold. We saw a 51 Social Innovation Models Explained new generation of social entrepreneurs, often well educated, some with promising private-sector careers, who were experimenting 53 Index to Social Enterprise Case with business models, innovating new distribution and replication Studies methods, and holding themselves accountable for results. 75 Acknowledgements Hilde Schwab Too often, however, especially in those early years, they worked in Chair and relative obscurity in their home countries. Often they had trouble Co-Founder, Schwab accessing high-level decision-makers who could help them scale Foundation for Social their efforts, and they were frequently misunderstood by the press Entrepreneurship and the general public, who viewed them as traditional charities.