SEC practices its own unique blend of business and social functions
to achieve the most efficient and effective social entrepreneurship organization. In
accordance with recent business trends it will outsource most of its business
activities. In this case, the term outsourcing implies no loss of
existing jobs or any other social upheavals. Quite to the contrary, it
implies creation of social wealth by SEC's numerous partners in the
corporate and social sectors to whom development and implementation of
individual SE projects will be delegated.
The delegated activities will primarily
include: 1) research and prospecting of corporate clients, 2) providing consulting
advice to corporate (both public and private) and non-profit clients,
and 3) providing value consulting advice to both private and public
As a dynamic organization, SEC will operate as a living mosaic of
collaborating enterprises - working with each other on social entrepreneurial projects and
programs initiated by SEC. SEC will act as a bridge that brings together
the corporate and non-profit world (Figure 1). Although the two worlds
will not link directly, SEC will engage both publicly listed companies
(PLC) and private unlisted companies to realize capital gains, which
will be utilized to inject much needed funding into non-profits along
with the provision of essential business mentoring and support. With
SEC's nurturing, non-profit organizations will subsequently become
self-sustaining entities. SEC is unique in the field of social entrepreneurship sector and it will become the largest global social entrepreneurship fund and knowledge provider as a
major contributor of assets that includes conceptual, intellectual,
entrepreneurial, social and philanthropic capital.
SEC implements its own unique process
of working with the different partners to achieve its goal of
creating social and financial wealth and benefits.
The objective of having a clear process of operation
is for SEC to create a set of business activities. Together these
activities will enable SEC to achieve its mission and vision in a
self-sustaining profitable manner. The following figure outlines the
Step 1: SEC's objective is to attract leaders from for-profit and non-profit sectors to join SEC's goal of social wealth creation. By leveraging their expertise, capital and network, SEC has the vital resources to effectively implement its strategy.
Step 2: SEC actively seeks PLCs that have the greatest
opportunities for SEC to increase their shareholder value. SEC will provide
consulting and mentoring to PLCs in return for shares in the company.
Due to its complexity and requirements of in-depth analysis, SEC will
outsource the prospecting and researching function to Tulane
University's A. B. Freeman School of Business, whose renowned Burkenroad
Reports will form a strong base for SEC's quantitative and qualitative company research. SEC will
also partner with management consultants to ensure the development of
effective strategies for growth and value creation. SEC also works with private companies that have the potential to become profitable and have plans for public listing.
Step 3: SEC will have two types of relationships with
1) Pure arms-length commercial relationships: In order to
increase its revenue, SEC will offer value enhancement advice through
outsourcing relationships with brokerages, mutual funds, and other
professional investment management firms. The advice will be based on
insight from ongoing consulting work with PLCs. In exchange for the
advice, corporate and private investors will agree to share a negotiated
portion of their return on investment with SEC; and,
2) Interest-aligning relationships: As pointed out earlier in the discussion of SEC's integrative strategy, companies and individuals
working with SEC under outsourcing contracts will be encouraged to have
a stake in the SEC business by investing either directly into SEC, or
into SEC-consulted businesses. The objective here is to create a vested
interest in the success of SEC.
Step 4: The SEC project is conceptualized as being part of a new wave of philanthropic enterprises in which traditional forms of
donation and funding are replaced by more entrepreneurial forms of sustainable
earned income. The new approach (SE) is best suited for non-profits
struggling to find funding to support their initiatives. SE will enable
these organizations to switch from the language of 'funding' to that of
'financing.' In other words, non-profits will adopt the cogent business
logic of generating a sustainable revenue stream on their own, in excess
of their financing costs. The outcome of which will be earned income
left for investment into purely social projects.