Pamela Hartigan at ESADE: "The current model, which enriches a few at the expense of the multitude, is in need of an overhaul"

At the 7th Annual Conference of the ESADE Institute for Social Innovation, Pamela Hartigan, Director of the Skoll Centre for Social Entrepreneurship at Oxford University’s Saïd Business School, declared: "The current system – which enriches a few at the expense of the multitude and drains the planet’s precious resources – is in dire need of an overhaul." Also in her talk, entitled "Social Entrepreneurship: Transformational or Palliative Movement", Ms. Hartigan argued that future models will need to "blend social innovation with financial sustainability".

Ignasi Carreras, Director of the ESADE Institute for Social Innovation, noted that the conference aimed to "strengthen the impact of social enterprises that are in the start-up phase or already established, as well as NGOs, responsible companies, and public administrations that are capable of becoming more entrepreneurial in order to further social causes". He also stressed the vital role played by intrapreneurs: enterprising employees who develop entrepreneurial projects in-house, with the support of their companies. Intrapreneurship, Mr. Carreras explained, fosters innovation and the development of new business models within companies. "We want to highlight the talent of social entrepreneurs and intrapreneurs," he added.

Under the theme of "Organisations with a Social Impact: Fostering Intrapreneurship and Social Entrepreneurship", the conference featured several international experts who have experienced social intrapreneurship at their companies. These experts discussed the leadership processes that they have used to challenge the status quo and build a better future.

Impact investing

The classic mechanism for supporting social entrepreneurship is impact investing. These investments finance social projects with the aim of making them scalable and generating a return on investment. Lisa Hehenberger, Research Director at the European Venture Philanthropy Association, noted: "It’s not just about getting the money; it’s about developing relationships between the parties." She added: "Social investors look for a motivated team."

Nicolas Hazard, President of Le Comptoir de l’Innovation and Vice President of Groupe SOS, noted that "poverty is everywhere, and in developed countries it’s a vicious cycle" by way of explaining why Groupe SOS focuses its efforts on Europe, and France in particular. With regard to financing, Mr. Hazard declared: "Money is not the most important thing." He then described three types of impact investors. First, there are big-budget investors who want to communicate (anyone who wants to attract their capital, he explained, needs to have a "very sexy" project). Then there are "hippie" investors who don’t really care about money but are very interested in social impact. Finally, there are "Anglo-Saxon"-type investors who are solely interested in earning money, regardless of the social nature of the investment.

Daniel Nowack, Programme Director for Albania at Yunus Social Business, declared: "Before you ask for money, the most important thing is to test your idea as early as possible." He added: "It’s very important to remember that investors and social actors don’t usually speak the same language."

Crisis of models in the social sector

The conference speakers stressed that the social sector is undergoing a crisis of models just when it is needed the most. They noted that social action models will need to be reoriented and redesigned in order to fit better with today’s context. The conference featured several representatives of UpSocial, a team dedicated to strengthening innovation to address social challenges. Representatives of other companies with social value, including Siel Bleu and Ship2B, also shared their success stories.

Alexia Penent d’Izarn, Director of Nutrition and Service Development at the Danone Ecosystem Fund, discussed her experiences in a talk entitled "Transforming Business Practices Through Inclusive Models and Partnerships: The Example of the Danone Ecosystem Fund".

Mr. Carreras observed, "The Annual Conference of the ESADE Institute for Social Innovation has become a meeting point where social leaders who operate in different sectors can address today’s most important social and environmental challenges. We foster the flow of knowledge and the sharing of experiences in entrepreneurship and social innovation." Ms. Hartigan offered the following observation: "This event reflects a massive worldwide movement that seeks to radically transform our market-based, consumerist societies. The current system – which enriches a few at the expense of the multitude and drains the planet’s precious resources – is in dire need of an overhaul. The model of the future will need to blend social innovation with financial sustainability."