Schwab Foundation for Social Entrepreneurship Two Decades of Impact

2020 Impact Report Images Vitale | Ripple Effect Photo: Ami 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

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 Two Decades of Impact — Schwab Foundation Two 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 innovation become worked in relative obscurity. Often, they had trouble 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

Executive Summary 17 Achieving measurable 58% progress across all Adopting systems SDGs Decades of Impact — Schwab Foundation Two Revealing change strategies in the Impact 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 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 The findings show how the Schwab Foundation has had an under-recognized movement of information, insights and impact data around the world, with the findings 192m a profound effect on social entrepreneurs to help amplify people who were developing innovative on their respective organizations reaffirming the undeniably powerful Tonnes of CO 2 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, as equals at World Economic Forum events and Singling out social entrepreneurship 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 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. $6.7b Extraordinary impact has been achieved where the in contributing to the Sustainable Distributed in loans or value of Today, social entrepreneurship Development Goals. traditional approaches of markets or development have products and services provided to failed to empower and include communities in the gains represents a set of proven models individuals and approaches that are becoming 622m of the last century. The success of the field, as well as increasingly relevant as conventional People impacted directly its limitations, have revealed important innovations, Operating in sustainably improving evolutions, approaches, tools and models for a global businesses and governments in power more than lives and livelihoods are confronted with the urgent need for economy that seeks to find more sustainable, inclusive social and environmental progress. 190 ways to evolve. Social entrepreneurship, as an organizational expression Countries 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

Mission for the Decade of Decades of Impact — Schwab Foundation Two 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 Two

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 challenges. For too long we have relied on a top-down counter the entrepreneurs and our Partners, we evidence to demonstrate real impact innovation can be dismissed as small, isolated islands standard to solve some of the most complex failures in limitations of have seen overwhelming response, and systemic changes as lessons of success in the rough seas of overwhelming global our current system. Social entrepreneurs have been isolated action” participation and feedback during the for our global system, in every sector problems. Through a cumulative and detailed review of forging ahead from the bottom up, turning vision into research for this report. – 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 Two

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 Hilde Schwab, represents almost Social Entrepreneurs 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 have recognized that problems require Economic Forum convenings Leaders within multinational or regional companies who drive the development of new 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. Kennedy School Leaders within governments/international organizations who harness the power of social 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

Report Decades of Impact — Schwab Foundation Two Methodology

This study was undertaken by an external evaluation partner, Wasafiri, with two major aims:

To estimate the cumulative impact of the Schwab 1 Foundation’s community of social entrepreneurs and understand their insights from decades of practice

To better understand the contribution of the Schwab 2 Foundation to their community’s work and impact

Quantitative and qualitative impact data and narratives were collated from three sources:

Online survey with social entrepreneurs 1 A 20-question online survey of Schwab Foundation Members, which was completed by 133 organizations (approximately one-third of the total community)

Organization impact reports 2 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

In-depth interviews 3 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 Two 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 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. 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 The Collective been mitigated through the respondents’ treatment services, achieving virtual elimination 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 Two Decades of Impact — Schwab Foundation Two road for a year.4 created over 10,000 jobs for women living with Is Powerful 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 improved incomes of primary household earners, An indication of reach and Impact in numbers 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

HEALTHCARE LAND RIGHTS EDUCATION ENERGY ACCESS Youth and adult Health service Direct access to land EMPLOYMENT Distribution of solar FINANCIAL treatment, rights, improvement of education, teacher INCLUSION training, reading Technical vocational and renewable testing, laws and policies SOCIAL INCLUSION ECONOMIC programmes education, skilling, energy products Savings, diagnostics Drug rehabilitation, programmes ACTIVITY training and loans, and tracking for youth sports, physical employment through HOUSING Improved livelihoods financial disabilities, homelessness and placement or training Home improvements, refugee registrations through increased entrepreneurship housing and safer economic activity buildings Sector breakdown of reach 23 Countries where the social entrepreneurs operate

1 Andorra Antigua and Barbuda 3 Brunei Darussalam Algeria Cyprus Azerbaijan Eritrea Belarus Decades of Impact — Schwab Foundation Two Guyana Bhutan Kazakhstan Comoros Libyan Arab Republic of the Congo Jamahiriya Djibouti Liechtenstein Estonia 5 North Korea Finland 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 Romania 2 Yemen 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 Ireland 7 Italy Kuwait Lithuania Angola Kyrgyzstan Mauritius Malaysia Armenia Nicaragua Luxembourg Micronesia Guinea Marshall Islands Mongolia Portugal Lesotho Sri Lanka Nauru Norway Madagascar 13 Republic of Korea Qatar Netherlands Argentina Republic of Moldova Samoa Sweden 11 Congo Saint Lucia Solomon Islands Pakistan Timor-Leste Australia Tajikistan Honduras Viet Nam Tonga United Arab Emirates 15 17 19 21 23 26 29 34 40 46 Vanuatu Morocco 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 Switzerland 25 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. 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

34 31 22 17 14 13 12 12 Decades of Impact — Schwab Foundation Two KENYA 46 35

USA 34 RURAL HEALTH AND DEVELOPMENT ECONOMIC HEALTHCARE 40 ETHIOPIA OPPORTUNITY AND EDUCATION DEVELOPMENT ENTREPRENEURSHIP ENVIRONMENT, FINANCIAL AND ENTERPRISE CLIMATE AND INCLUSION CHILDREN 23 DEVELOPMENT CIRCULAR ECONOMY AND YOUTH RIGHTS AND GENDER 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 the community of social entrepreneurs community’s impact 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 Foundation community 23 UGANDA 23 BRAZIL Participation in mainstream leadership networks and events 26 Peer support through the Schwab 29 INDIA Foundation like-minded community SOUTH Helped with more strategic approach AFRICA 46 Media exposure 26 Introduction to systems change thinking Contributed to partnerships Contributed to funding opportunities Other % 10 20 30 40 50 60 70 80 90 27 Child and Youth Finance Movement (CYFI) Reflection Johanna Mair 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 Two Decades of Impact — Schwab Foundation Two 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 5 sustaining, spurred on by partners . 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 Design 29 Common elements of Snapshots: Partnerships successful partnerships 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 Two Decades of Impact — Schwab Foundation Two 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 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 Partnerships 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 Enable Scale 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 entrepreneurs with global leaders and also been critical in shifting important national governments to universities and Despite this progress, more needs 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 A global recycling organization creating Subramanian Rangan 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 Decades of Impact — Schwab Foundation Two 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

BroadReach

For nearly 20 years, BroadReach has partnered with governments, multinational health organizations, donors and private- sector companies to effect large-scale healthcare reform. Decades of Impact — Schwab Foundation Two

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 broader outcomes such as Universal Health Coverage and the Sustainable Technology Is Development Goals. Through the use of the innovative Vantage technology platform, BroadReach is supporting clients to manage the health of an Equalizer 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 and solving problems in provide insights and proactive management humanize development, and can provide beneficiaries consequences. health, education, security action recommendations, thereby enabling with direct access to the services and facilities needed to real-time responses, efficient and targeted and food. It’s critical we improve their lives. It removes intermediaries, providing Technology can democratize the economy if treated as a 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 our lifetimes.” health systems to do more with limited 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. Zipline International 35 Snapshots: Technology Unlocking the potential of technology

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 Two Decades of Impact — Schwab Foundation Two 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 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. Two Decades of Impact — Schwab Foundation Two and better partnerships are required. There is wide recognition amongst key 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 Funding Models capacity for fundraising, work in coalition to find wellbeing for all at all ages”, but it was not clear 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 Must Evolve 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 pursued, traditional funding models of systems work is a opportunities to secure funding from diverse sources member – to leverage collective experience do not allow social entrepreneurs the barrier, for example, for many. Some examples include: in community health to deploy 50,000 digitally-empowered CHWs in partnership freedom, flexibility and ways of working we’re still asked to 2012 award helped secure funding with governments in West and East Africa. they need. identify numbers Nuru Energy’s from both Bank of America and Africa Enterprise Supported by the Audacious Project, this of beneficiaries in Access to the right funding at the Challenge Fund (AECF). This is the largest pot of partnership aims to serve 34 million people by a year.” appropriate time, is critical to social 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 partner. The Foundation itself does not · $50 million from the Audacious Project with additional credibility to seek new partners, provide direct funding or grant support, for Living Goods and Last Mile Health from funders, supporters and customers. yet the Schwab Foundation members a coalition of philanthropic individuals and organizations such as: the Skoll Foundation, have benefited from introductions Dimagi’s official recognition from the Schwab Virgin Unite, Children’s Investment Fund to stakeholders that have led either Foundation offered an effective framework within Foundation and the ELMA Foundation directly or indirectly to funding 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

Social entrepreneurship contributes to the SDGs

3 ALL 17 SDGs GOOD HEALTH AND 9 WELL-BEING INDUSTRY, INNOVATION Decades of Impact — Schwab Foundation Two 15 AND INFRASTRUCTURE The SDGs LIFE ON LAND 7 AFORDABLE AND 14 LIFE CLEAN ENERGY BELOW WATER 6 Are a Rallying CLEAN WATER AND SANITATION 1 12 NO POVERTY RESPONSIBLE Cry for Action 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 16 who has more, it’s about PEACE, recognized as a rallying point for change. The Goals set my ability to reach my JUSTICE the many targets and indicators for change, and define the AND STRONG 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 REDUCED framework. strategies that are influenced somewhat or significantly by INEQUALITIES 4 the SDGs. QUALITY 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 Centre 41

The Poverty Stoplight, Fundación In the Decade of Delivery – how solutions are implemented streetfootballworld Paraguaya and who implements them will matter most. Much innovation 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 Decades of Impact — Schwab Foundation Two 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. 43 Kickstart International Reflection Precious Moloi-Motsepe Deputy Chairman and Chief Executive Officer, Motsepe Foundation, South Africa

My husband and I set up the family foundation to formalize our philanthropy, with a focus on education and youth empowerment in South Africa, and to support humanitarian events in continental Africa (such as Ebola or the cyclone in “ Decades of Impact — Schwab Foundation Two Mozambique). About the same time, we were introduced to social entrepreneurship by the World Economic Forum: a model to face multiple problems with multiple stakeholders.

The self-sustaining feature of social enterprises also appealed to us. In the last four years, I’ve seen some really powerful examples – such as the divorced woman who had been marginalized and impoverished in South Africa, but was empowered by The Clothing Bank. Or the drone transportation of blood in Rwanda by Zipline – as a doctor, I know how important blood transfusions can be, especially in preventing maternal death and in neonatal healthcare. And I have seen how technology has been used to close the digital divide in rural communities, to great effect.

The Motsepe Foundation is proud to support the executive education of Schwab Foundation awardees. Many social entrepreneurs have been acting instinctively, doing what they felt was right, until they experience the Harvard Kennedy School programme. There, they receive academic input, training, exposure and peer learning; it’s an important continuous learning opportunity for them. In addition to the HKS programme, we support site visits to peer social enterprises, which create a safe space for learning and feedback.

I am particularly keen to support systems thinking because I believe it’s how we will solve these complex problems. Solving just one problem requires us to think about and understand broader contexts and engage with many stakeholders to address root causes.

I always say that the social entrepreneur community is the Schwab Foundation’s “best kept secret!” That’s why we support the Social Entrepreneur of the Year Award at the annual World Economic Forum meeting in Africa – to raise the profile of social entrepreneurs, to make their great work visible amongst the Forum community, and to give them recognition from government and business leaders, who can help them solve the problems they tackle. Most of all, we want to make people understand that social enterprise is not charity. You can make money while having a positive impact.

In the next ten years, social enterprises are going to gain momentum in Africa and other emerging markets, especially where there is so much change and so many inequalities. Social entrepreneurs need to figure out how to combine technology with their systems thinking to leapfrog and scale up – like they’d never imagined – to create new business models and opportunities for everyone. ” 45 distinctions between different types of unique position as an organization that by The Water of Systems Change14 organizations become less relevant. can “lift its head up” in the fragmented which are: policies, practices, resource Systems work therefore requires more system of optical healthcare in flows, relationships and connections, shared decision-making, a strong order to identify, fund and embed power dynamics and mental modes. In learning culture, space to experiment proven innovative solutions within the model, systems change happens and test together, with less certainty, governments. across these six conditions and three Systems evolving metrics and higher levels of levels – explicit, semi-implicit, and adaptation. We need to think creatively about implicit. Explicit change is surface level how to shift mindsets and is the least likely to permanently Scaling nimbly and diffusely alter a system change. At the implicit Are Changing Mindset shifts – implicit and level (for example mental models), Several entrepreneurs referred to often difficult to achieve – lead to permanent and effective systems Two Decades of Impact — Schwab Foundation Two the impact of the systems training transformative change. For Tom Szaky change is most likely to occur. in influencing the way in which they of Terracycle, changing the linear Based on survey responses, the tried to scale up. Janet Longmore physical manufacturing process was most common type of approaches In this report, we understand the term systems of Digital Opportunity Trust on the relatively easy compared to what is to systems change in the social change to refer to changes that: “Systems change starts by debunking increase in local ownership and shift needed to change “consumption entrepreneur community, occurs at the in the centre of gravity from North to mindsets”, for real behaviour change practices level, followed by the policy · Address root causes rather than symptoms by conventional wisdoms that South within the organization: “The around waste. level. Changing mental models is the altering, shifting and transforming perpetuate failing systems education from the Foundation inspired third most common systems change · Affect structures, customs, mind-sets, dynamics in an evidenced-based the organizational shift ‘from model to In this report, we reference the six approach undertaken. For the social and rules way.” movement.’” EYElliance has used its conditions of systems change, defined entrepreneurs, signs that systems are · Have intent to solve a societal problem with a Gary White —Co-Founder, water.org lasting effect

· Have influence on the community, national and global level stakeholders approach systems change in the future: Systems change leader refers to any individual or Levels of systems change organization intentionally adopting strategies and practices Go Slow to Go Fast among respondents for systems change. Many of the most successful social entrepreneurs interviewed recognize We believe is a distinct set of activities systems work that systems change requires MENTAL MODELS from delivering products and services, and that it involves a stakeholders to take a slower approach (IMPLICIT) RELATIONSHIPS departure from growing a single organization to coordinating than they would otherwise do. AND CONNECTIONS and influencing the work of multiple actors in a system. Stakeholders need to build evidence, (SEMI-EXPLICIT) systems and processes early on The Schwab Foundation has been a strong proponent of because “more complexity requires systems-thinking approach to social impact for the last five more discipline” (Lisha McCormick, years, providing executive training to social entrepreneurs Last Mile Health). “System work is not through the Harvard Kennedy School and through its about solutions; it’s about discovering 22 20 19 6 partnership with the Motsepe Foundation. This has created a and steering local pathways for change 72 27 supportive environment for social entrepreneurs to consider at a pace appropriate for our ability to systems approaches in their work. For Aajeevika Bureau, learn and for what local communities 13 RESOURCE FLOWS “this investment [in Executive Education] has helped us can enact and absorb.” (EXPLICIT) become more ‘systems’ and ‘scale’ competent.” And for Dia Dia Practimercados, “being part of the Schwab Foundation Systems change calls for even POLICIES (EXPLICIT) POWER DYNAMICS has allowed me to think more strategically about system greater collaboration and (SEMI-EXPLICIT) change”. partnership

PRACTICES (EXPLICIT) Lessons from systems changes By far the most common way of achieving systems change for There are several lessons from social entrepreneur social entrepreneurs is through experience with systems change that can frame how partnerships. In a systems perspective, Figure 6: Levels of systems change among respondents, adapted from Six Conditions of Systems Change 15 47 changing include indicators that other organizations are VisionSpring and EYElliance Special Envoy for Health, the Kenyan integration of reading-glasses provision The Schwab Foundation’s support replicating the entrepreneur’s model, changes in policies, Government, CHAI, and the Global in the country’s Community Health in co-publishing a critical report changes in government or organizations’ practices, positive Founded in 2001, VisionSpring social Disability Innovation Hub – all of whom Assistant programme. The government on the centrality of vision to global feedback from beneficiaries, changes in mindsets or in enterprise is dedicated to providing global now have a new focus on access to has already included school national development: Eyeglasses for Global the way that stakeholders or beneficiaries engage in their access to affordable and durable eyewear eyeglasses. eye health in its next education plan Development: Bridging the Visual systems. to emerging and frontier markets, working with 58% of all Liberian schoolchildren Divide, was launched in collaboration to transform the systemic dysfunction EYElliance’s efforts have led to an in primary and secondary schools with the World Economic Forum in Social entrepreneurs measure these systems changes and of the optical market, which has failed unprecedented allocation for glasses reached in under 3 years. 2016. It provided a powerful platform impact in a range of different ways, from the number of to deliver a 700-year old technology to in The Department of State, Foreign to build recognition for the issue times their model has been replicated, anecdotal information nearly 1 billion people earning less than Operations, and Related Programs EYElliance recently co-authored a among key stakeholders, enabling from their interactions with communities and beneficiaries, $4 a day. Bill. A total of $6M in 2019 and report on School Eye Health released Jordan Kassalow and Liz Smith to baseline and end line surveys; or regular monitoring plans, 2020 has been budgeted for the by the World Bank as part of its The pivot from social change to system Two Decades of Impact — Schwab Foundation Two impact analyses, or randomized control trials with partner For many of these individuals, the lack of USAID’s implementation of a low-cost Price of Exclusion, Disability and change entrepreneurs. NGOs or academic institutions. Examples include: access to affordable eyeglasses leads to eyeglasses pilot programme reaching Education series. The report includes the loss of educational and employment children and adults in less developed a costing analysis of school eye health Snapshots: Systems Change opportunities. VisionSpring is filling the countries. models and, for the first time, the Bank market gap by providing vision screenings has concluded that the cost of school PlanetRead has implemented the Same Language and radically affordable eyeglasses. In Liberia, EYElliance has built a eye health programmes is relatively Subtitling (SLS) on over 10,000 film songs on TV in eight country-level coalition to deploy low and should be affordable for many major Indian languages and delivered regular reading ­—To date VisionSpring has facilitated a government-led national school governments and therefore a priority practice to over 100 million weak-reading viewers. vision screenings for 5.8 million low- eye health initiative and to test the for achieving inclusive education. More importantly, their research studies, conducted in income consumers and reached over 4.4 partnership with the Indian Institute of Management, million with corrective eyeglasses. Ahmedabad, have proven that SLS causes inescapable reading engagement and skill improvement among Despite VisionSpring’s success, Founder, 90% TV viewers. Earlier this year, SLS became national Jordan Kassalow recognized that to VisionSpring broadcast policy, with a mandate that by 2025, 50% of all solve the problem, the private sector TV programming must carry SLS. That is expected to put and governments need to be actively 850 million weak readers in India on track to get a daily engaged in the solution. He and Liz 1-2 hours of reading practice, for life. Smith co-founded EYElliance, a multi- sector coalition that is the holder and Associação Saúde Criança Renascer (ASC) driver of an adaptive global strategy to undertook an impact evaluation in collaboration with close the gap in access to eyeglasses. Georgetown University which concluded that ASCs EYElliance makes the case for action holistic approach to development effectively targets the and investment in this issue area, with a most vulnerable groups and empowers beneficiaries to view to ultimately unlocking government overcome the vicious cycle of severe illness and extreme funding and crowding in private capital poverty, bringing about systemic change within the to solve the problem in its entirety. They families. source scalable solutions; demonstrate the viability of these solutions at the national Indus Tree Crafts Foundation works with Industree to and regional levels; and de-risk adoption of evaluate systemic change as part of its Theory of Change proven scaling-up strategies by new actors across key indicators including: increased and regular who bring their own resources to bear. income; decent and equitable work conditions; women’s empowerment; improved standard of living for the next The prioritization of glasses among the generation; and increased resilience to life crises. WHO’s top five assistive technologies, due to EYElliance’s efforts, has been Shekulo Tov Group sees changes to governments’ operationalized by a new fund: The Global practices in the bidding processes for supplying Partnership for Assistive Technologies. rehabilitation services to people with disabilities, as a The founding members are WHO, positive sign of systems change. USAID, DFID, UNICEF, NORAD, the UN 49

Reflection Julie Battilana The Alan L. Gleitsman Professor of Social Innovation, Harvard Kennedy School; Joseph C. Wilson Professor of

Business Administration, Harvard Business School, USA. Decades of Impact — Schwab Foundation Two Founder and Faculty Chair of the Social Innovation and Change Initiative (SICI) at the Harvard Kennedy School and co-chair of the Schwab Social Entrepreneurs’ eight-day executive education programme.

To tackle issues that arise in a broad eco-system involving actors across sectors and locations, social entrepreneurs need to be able to think at the systems level. They need to understand power “ relationships beyond a single interaction, and understand the political landscape, in order to bring about change. The Social Innovation and Change Initiative at HKS aims to help social change makers navigate the politics of social change, while influencing the system itself in ways that will enable and support their work.

As leaders in the field, they all face critical tensions in choosing how to use their time and resources most effectively and knowing when the time is right for change. The community is now self-organizing around the collective impact they could have as part of a broader movement to accelerate change around the Sustainable Development Goals at the transnational level.

Over the years, the Schwab Foundation has used its prestige and status to shed light on these change makers, legitimizing, celebrating and helping to grow this important work. We are entering a new phase globally, and we all can and should learn from the solutions developed by social entrepreneurs and innovators.

There is critical work still to be done that will require organizing to reform current systems and adopting and normalizing new models to solve our global challenges. The role of governments in influencing this agenda is critical.

The Schwab Foundation and World Economic Forum constitute powerful platforms from which to lead this important agenda. ” mothers2mothers 51 Our Collective Mission

At the start of the Decade of Delivery for the Sustainable 4. We should build enabling environments in which Decades of Impact — Schwab Foundation Two Development Goals, as the Schwab Foundation reflects on social innovations across all sectors can flourish, through 20 years in support of social entrepreneurship, and as the advancing policy, regulation and funding models. World Economic Forum begins its milestone 50th year in 5. We need to harness technology as an equalizer and 2020, it is undeniable that it will take more than cumulative as an enabler of change, enhancing distributed ownership efforts to solve the global challenges we face, to protect our and increasing access, while ensuring protection against planet, reduce inequality and provide healthy societies and unintended consequences. communities. Widescale, urgent change is needed. 6. We need to find meaningfulways of making local and Social entrepreneurs have demonstrated that a values- global decisions around progress collectively. based approach centering on inclusivity, collaboration and sustainability, can deliver significant impact to many, along with financial gains. They have achieved great success with creativity, effectiveness and adaptability, in spite of persistent “Our platform presents a and systemic challenges. great opportunity to advance the adoption, mainstreaming As a global leadership community, as citizens, our collective and integration of proven future will be shaped by our commitment to bring about social innovations into larger change at pace and at scale. The convergence is taking systems.” shape as citizens, governments and businesses recognize the urgency and their role.

The time for adoption, investment, collaboration and As the global dialogue around the Sustainable Development collective action is now. Goals continues to evolve, social innovators have an important role to play in highlighting what already works, Emerging from the insights of this report, there are clear what can be measured as progress in specific contexts, areas for opportunity: and highlighting what is not captured in current frameworks.

1. We need new mechanisms to spur integration at the The Schwab Foundation for Social Entrepreneurship system level, through more intentional collaborations and is taking up these recommendations, starting with the coalitions, building of evidence and adoption of proven recognition of an intersectoral community of social approaches and solutions. innovators to enhance multistakeholder collaboration on social and environmental goals, driven by values and people 2. We need to recognize the emergence of social innovation who represent communities and the planet. beyond the field of social entrepreneurship,across sectors and inside large institutional actors including Together with the World Economic Forum, we recognize corporations, governments and international organizations that our platform presents a great opportunity to advance (social intrapreneurs). the adoption, mainstreaming and integration of proven 3. We need to shift power dynamics to achieve deeper social innovations into larger systems. We commit to transformative change (inclusion in diversity and gender fulfilling our part in this collective mission, and invite you to representation, capital flows and decision-making). join us in service of our shared future. 53 Acknowledgments Two Decades of Impact — Schwab Foundation Two

The Schwab Foundation recognizes the incredible group Precious Moloi-Motsepe, Deputy Chairman and Chief The Schwab Foundation community members who Dialogue Social Enterprise GmbH of social entrepreneurs in our community, along with their Executive Officer, Motsepe Foundation, South Africa contributed to this impact report: Digital Opportunity Trust teams, for all their pioneering work around the world, Dimagi, Inc. their support for each other and the Foundation, and their Subramanian Rangan, The Abu Dhabi Crown Prince Court Aajeevika Bureau Divine Chocolate persistence and progress in the service of others. Endowed Chair in Societal Progress, INSEAD, France abcdespañol | Literacy4All Echale Access Israel Ecofiltro We would like to thank the Schwab Foundation Board, The social entrepreneurs who shared experiences and Afghan Institute of Learning Editora MOL both current and past members who have shepherded the insights through deep dive interviews: Aflatoun International Education For Employment (EFE) organization over the years, and our partners who support Akatu Institute Enda inter-arabe the Foundation, in particular the Mostepe Foundation and Brij Kothari, Director, PlanetRead, India Akhuwat Ensena Chile the Frey Charitable Foundation. Ernest Darkoh, Founding Partner and Co-Chief Executive AMH Group (Amicale Marocaine des Handicapés) Entrepreneurs Associates Officer, BroadReach Healthcare, South Africa APOPO Equal Chances Foundation Finally, we are thankful to the Schwab Foundation team, Goy Helianti Hilman, Founder and Chairperson, JAVARA, Aravind Eye Care System Ethmar Islamic Microfinace Phumtim, Pavitra Raja, Ahmed Soliman, and our colleagues Indonesia Artscape EveryLayer at the World Economic Forum, who work tirelessly to make Janet Longmore, Founder and Chief Executive Officer, ASAFE Fair Trade USA this community’s impact visible, supported and integrated. Digital Opportunity Trust (DOT), Canada Ashesi University Fairtrasa Internatiaonal AG Jeroo Billimoria, Founder, One Family Foundation, Asiembra Inc. First Book For this report, we thank our partners who undertook the Netherlands Associação Saúde Criança Renascer Friends-International external evaluation, Wasafiri, an institute and consultancy Jordan Kassalow, Founder and Co-Chairman of the Board, Association la Voûte Nubienne Friendship helping leaders and organizations create system change in VisionSpring, USA BackaBuddy NPC & Thundafund Fundacion Capital order to tackle humanity’s toughest problems. The Wasafiri Lisha McCormick, Chief Operating Officer, Last Mile Barefoot College International Fundación Paraguaya team comprised: Ian Randall, Jenny Costelloe, Georgie Health, Liberia/USA BasicNeeds, citiesRISE and Mentor Solutions Fundacion Proyecto Maniapure (Maniapure Foundation) Passalaris, Ben Nemeth, Sophie Tidman, Cameron Willis, Elizabeth Smith, Co-Founder and Chief Executive Officer, BioRegional Development Group Gandang Kalikasan Inc (Human Nature) and Ana Nikolic. EYElliance, USA Bina Swadaya Foundation Goonj Luvuyo Rani, Co-Founder and Managing Director, Silulo BRAC Green Monday We are grateful to everyone who has contributed to this Ulutho Technologies, South Africa Brazilian Fraternity of Assistance to Convicts GROUPE SOS report, including the following: Martin Burt, Founder and Chief Executive Officer, Bridge Grupo Ecológico Sierra Gorda Fundación Paraguaya, Paraguay BroadReach Consulting Grupo para Promover la Educación y el Desarrollo The stakeholders who shared reflections through Meagan Fallone, Director, Barefoot College, India Build Change Sustentable, A.C. (GRUPEDSAC) partner interviews: Runa Khan, Founder and Executive Director, Friendship Centro de Recuperação e Educação Nutricional (CREN) Hapinoy Bangladesh, Bangladesh Child and Youth Finance International Heartlines Julie Battilana, Alan L. Gleitsman Professor of Social Tom Szaky, Founder and Chief Executive Officer, CID Consulting Homeless World Cup Foundation Innovation, Harvard Kennedy School; Joseph C. Wilson TerraCycle, USA Clinicas del Azucar Hybrid Social Solutions, Inc. Professor of Business Administration, Harvard Business Yasmina Filali, Founder and President, Fondation Orient- Community Solutions Impact Hub Caracas School, USA Occident, Morocco Crisis Text Line Indus Tree Crafts Foundation d.light IPÊ Institute for Ecological Research Johanna Mair, Professor of Organization, Strategy and Daily Dump (PBK Waste Solutions Pvt Ltd) JAVARA Leadership, Hertie School of Governance, Germany Dia Dia Practimercados Karuna Trust 55 Kashf Foundation Together Association for Development and Environment Kennemer Foods International Turma do Bem Landesa (Rural Development Institute) Unlad Kabayan Migrant Services Foundation Lifeline Energy & Lifeline Technologies Trading VillageReach References Livox International LLC VisionSpring and EYElliance Mann Deshi Foundation Waste Concern Marine Stewardship Council Water For People Maths Centre Incorporating Sciences Water.org & WaterEquity Medical Technology Transfer and Services Co., Ltd wellcome gGmbH mothers2mothers Wilderness Foundation Africa Mozaik Foundation World Bicycle Relief Namati World Health Partners Two Decades of Impact — Schwab Foundation Two New Foundry Ventures World Toilet Organization, & BOP HUB NIDAN Worldreader Nisaa Broadcasting radio Company (Nisaa FM) YCAB Foundation Novica Nuru Energy Schwab Foundation Board Members Off Road Kids Stiftung ONG Parceiros Voluntários Hilde Schwab, Chairperson and Co-Founder, Schwab One Acre Fund Foundation for Social Entrepreneurship Operation ASHA H.M. Queen Mathilde, Queen of the Belgians (Honorary Paradigm Initiative Board Member) 1 The Davos Manifesto (1973) 9 The United Nations – World Economic Forum Strategic PlanetRead Pascale Bruderer-Wyss, State Councillor of Switzerland Partnership Framework for the 2030 Agenda https:// Possible Martín Burt, Founder and Chief Executive Officer, 2 2020 Davos Manifesto weforum.ent.box.com/s/dj7x7z2fjxrox49farw5dfxfa1hfqw3h Questscope Fundación Paraguaya, Paraguay 10 Rags2Riches Charly Kleissner, Co-Founder, Toniic, USA 3 Evidence was drawn from reports conducted by the OECD paper Poverty Stoplight 20191015.pdf Recode Johanna Mair, Professor of Organization, Strategy and individual organizations, through public impact reports, many 11 REFUNITE Leadership, Hertie School of Governance, Germany verified by independent organizations. Juan Carlos Pane Solis et al., “Mapa de Trayectoria: Un Nuevo Método Para Explorar Empoderamiento En Un Riders for Health Subramanian Rangan, The Abu Dhabi Crown Prince Court 4 Greenhouse Gas Equivalencies Calculator https://www. Programa de Mentoría de Pobreza Multidimensional” (VII Rishi Valley Institute for Educational Resources (RIVER) Endowed Chair in Societal Progress, INSEAD, France epa.gov/energy/greenhouse-gas-equivalencies-calculator Conferencia de la Asociación Latinoamericana y del Caribe Room to Read Nicole Schwab, Director, International Relations, Last Wild para el Desarrollo Humano y el Enfoque de las Capacidades Sakhrah Women’s Society Cooperative Places, National Geographic Society, USA 5 Read the full story of CYFI’s journey (ALCADECA), Puebla, Mexico, 2019). San Patrignano Foundation Helle Thorning-Schmidt, Prime Minister of Denmark (2011-15) (childfinanceinternational.org) Senior Citizen Home Safety Association 12 http://www.fundacionparaguaya.org.py/ Shekulo Tov Group Dedication 6 https://www.weforum.org/about/the-fourth-industrial- v2/?noticias=ecuadors-government-wants-to-apply-the- Shift360 revolution-by-klaus-schwab poverty-stoplight&lang=en Shonaquip This impact report acknowledges and gives special thanks Sidai Africa Ltd to Sir Fazle Abed (1936-2019). Through his work at BRAC, 7 The UNAIDS treatment target requires that by 2020, 90% 13 How to Tease Out the Complex Dynamics of Systems Silulo Ulutho Technologies he has been a great source of inspiration and support for the of all people living with HIV will know their HIV status; 90% of Change (2020) https://ssir.org/articles/entry/how_to_tease_ Simprints Schwab Foundation community from the beginning, since all people with diagnosed HIV infection will receive sustained out_the_complex_dynamics_of_systems_change# antiretroviral therapy and 90% of all people receiving SOIL being recognized as part of the inaugural awards in 2001. antiretroviral therapy will have viral suppression. 14 The Foundation Strategies Group’s Six Conditions for Solar Sister The tremendous impact he had on countless lives within Change from The Water of Systems Change as described South Pole Bangladesh and far beyond, cannot be overstated. 8 The 17 SDGs are: 1-No Poverty; 2-Zero Hunger; 3-Good by M. Kania, M. Kramer, and Peter Senge, a Schwab Specialisterne Foundation Health and Well-Being; 4-Quality Education; 5-Gender Foundation member, recognized for his work in systems streetfootballworld Equality; 6-Clean Water and Sanitation; 7-Affordable and thinking. Study Hall Educational Foundation Clean Energy; 8-Decent Work and Economic Growth; TABLE FOR TWO International 9-Industry, Innovation and Infrastructure; 10-Reduced 15 Source: Adapted from: Kania, M., Kramer, M., Senge, P. Teach For All Inequality, 11-Sustainable Cities and Communities; (2018) The Water of Systems Change. Foundations Strategy Tech Matters (Benetech) 12-Responsible Consumption and Production; 13-Climate Group. Retrieved from: https://www.fsg.org/publications/ TerraCycle Action; 14-Life Below Water; 15-Life on Land; 16-Peace water_of_systems_change The Citizens Foundation (TCF) and Justice and Strong Institutions; 17-Partnerships for the The Clothing Bank Goals. The Front Project and Future Tracks. In partnership with the World Economic Forum, the Schwab Foundation for Social Entrepreneurship is a leading global platform that accelerates outstanding models of social innovation. Working together, we help scale solutions to support millions of vulnerable and low- income people in need.

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