Social Enterpreneurship, Anyone?

One of the more interesting recent debates within the CSR context, is whether CSR has any relevance for the poor. In comparison with the 'Bottom of the Pyramid' approach championed by C.K Pralahad, which focuses on the plight of the poor and proposes that entrepreneurship can be used to extricate large groups from poverty, the whole CSR agenda and the Global Compact, have been criticised as being the rich man's club. Although the Global Compact strives to shed this tag, by encouraging SMEs to join it, the negative perception lingers.

I have for some time been advocating that the CSR and Bottom of Pyramid agenda can and should, converge. That was the central theme of the paper I presented at the launch of the Unleashing Entrepreneurship report in Pakistan in late 2005. At that time, there was a great enthusiasm for the report and its recommendations, which is a highly recommended read by the way, for it is an excellent amalgam of what I term as pragmology--the happy marriage of ideology, practicality and practice. The Pakistan launch of the report was a high-profile affair, with Dr. Ishrat Husain, the-then Governor of Pakistan's central bank presiding and Dr. Hafeez Pasha, Assistant Secretary General of the UN flying in. Dr. Husain's speech was--as always--perceptive and highlighted the potential in promoting entrepreneurship as a poverty reduction instrument. I roped in the Federation of Pakistan Chambers of Commerce and Industry (FPCCI)and the Small & Medium Entreprises Authority (SMEDA), to enter into a tripartite partnership with UNDP to encourage social entrepreneurship, targeting the rural areas. Although we managed to take the first step--publish an Urdu version of the report--other plans, including launching a pilot project for creating an e-marketplace for women, have not yet materialised.

By any standard, social entrepreneurship has not yet taken root in Pakistan. While organisations, notably Kashf Foundation and Acumen Fund, have promoted it, social entrepreneurship continues to hover near the periphery of policy and practice. Often confused with SMEs or not-for-profit endeavours, the very notion of being able to meet social needs through for-profit business models, seems alien to many. Oddly enough, there is a role for the Government in creating enabling environments for social entrepreneurship, but there is little evidence of the Government facilitating entrepreneurship. This is a theme that I intend to explore --and report on through this blog--when I speak at the Asian Forum for CSR conference in September 2007.

However, I am glad to report that young Pakistani entrepreneurs continue to explore opportunities for social entrepreneurship. The latest to join the party is Pani Ghar , which is a for-profit private sector initiative to resolve a public problem-access to clean drinking water in low income urban areas. Led by Ali Salman, whom I've known for nearly a decade now and who has never been short of ideas or initiative, Pani Ghar presents the perfect example of how for-profit business models can help meet the MDGs. Needless to say, the path to set up such ventures is strewn with all manner of obstacles, as Ali has found out.

Watch this space as we explore the trials and travails of existing and would-be social entrepreneurs in Pakistan.