Sunday 27 October 2013

Myanmar: lessons from social enterprise in a frontier market

British Council and partners have just released the first mapping study of social enterprise in Myanmar

What role can social enterprise play in supporting inclusive economic and social development in Myanmar? What are the priorities in fostering the nascent sector's growth? What international experience can be usefully applied in Myanmar?


As the country emerges from decades of isolation and foreign donors and investors return, the British Council and its partners have just released the first mapping study of social enterprise in Myanmar. The study, 'The Social Enterprise Landscape', which draws on over 50 interviews with economists, policy makers, social entrepreneurs and other key influencers, sheds light on the opportunities and challenges for social entrepreneurs in the country.

Tristan Ace, who manages the
British Council's Skills for Social Entrepreneurs programme in Myanmar, reflects on the report's findings and offers five key insights for social enterprise in that country and in other frontier markets.

Don't try to define it

One of the distinctive characteristics of the nascent social enterprise space in Myanmar is the variety of forms that organisations are employing to deliver impact. Rather than enter into the potentially distracting debate around form that exists elsewhere in the region and globally, Myanmar social entrepreneurs should focus instead on delivering the change itself. A socially enterprising organisation may be registered as an NGO, a private company, a training school or a cooperative – it might not even be registered at all. Some make financial returns; some don't. The important point is that these organisations deliver impact using enterprising approaches that respond to the needs of the bottom of the pyramid. As the sector finds its feet, it may become necessary to think about definitions, but while people are still toying with and translating the term it makes sense to allow the sector to develop its own Myanmar character.

Invest in innovation now

Higher risks and lower returns make it difficult to attract investment in sectors that benefit the poor. This is why it is important to create funding mechanisms that spread risk between donors and the private sector. Doing so will help to catalyse ideas and foster innovative thinking, whilst developing a culture of investing in inclusion. It will also help to disseminate local good practice, which is critical in a country where quality impact data is extremely rare. Attracting venture philanthropists both domestic and international would be a good first step. Currently, philanthropy or corporate social responsibility in Myanmar is actively disconnected from core business strategy. Changing this mind-set will help to unleash not only capital, but also private sector skills to address some of the critical development challenges Myanmar faces.
Build on existing successful models
Civil society organisations have long played an important role in delivering public services. Community organisations have responded to local needs and provided appropriate services for many years. The knowledge that exists within these communities must be harnessed and, where appropriate, replicated and scaled across the country. A good example of this is in the Monastic Education sector. Monastic schools play an important role in providing basic education for the poorest children in Myanmar, often at significant scale. Building on this system to improve the quality and scale of provision, provides an opportunity for social entrepreneurs.
Building trust and understanding
Among the greatest assets of the social enterprise 'movement' are its diversity and ability to build connections across sectors. It is a medium for cultural relations. It brings together civil society, government and business in a way that sparks creativity and fosters trust and understanding. This is critical in Myanmar where, for historical reasons, there is a climate of mistrust and disillusionment around the role of business. In this context, social enterprise offers an opportunity to start a positive conversation and engagement between business, civil society and government. The Myanmar Business Executives (MBE) provides an example of how this is happening on the ground. MBE is made up of successful business owners who are graduates of the Yangon Institute of Economics. MBE came together after Cyclone Nargis, to assist in the humanitarian effort and have grown now to be a key link between civil society and business. They are now driving forward awareness of the United Nations global compact in Myanmar and direct their knowledge to support pro-poor businesses.

A need to find a role

Social enterprise needs to be viewed as part of a wider strategy to ensure that the current transition benefits everyone in Myanmar. It is not a 'magic bullet', but rather part of the answer. Social entrepreneurs need to work with the private sector and donors to offer when applicable an alternative model to deliver impact. It is unlikely that social enterprise models will work in every sector in Myanmar, but where there is an opportunity to deliver a market based solution and encourage a move away from donor dependency and towards sustainability, social enterprise should be supported.


source: The Guardian
http://www.theguardian.com/british-council-partner-zone/lessons-from-myanmar

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