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 — Schwab Foundation 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 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 — Schwab Foundation Executive Summary 17 Achieving measurable 58% progress across all Adopting systems SDGs Decades of Impact 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 — Schwab Foundation Mission for the Decade of Decades of Impact 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