Social Enterprise Knowledge Network Established in Latin America

Social Enterprise Newsletter, Spring 2001

Social enterprises are a necessary complement to market economies. "It is very important that businesses and individuals in emerging economies find ways to contribute to improving the living conditions of those who are in need, without crippling their ability to advance their own competitiveness," observes Gustavo A. Herrero (MBA '76), executive director of the HBS Latin America Research Center (LARC) in Buenos Aires. "Academic institutions can play a significant role by providing valuable assistance to those who want to develop competencies in this field."

Aware that intellectual capital is crucial to creating and sustaining social enterprises, the Initiative on Social Enterprise (ISE) recently established the Social Enterprise Knowledge Network (SEKN) with a goal of "promoting vibrant social enterprise education programs in the leading Latin American business schools." Working with LARC and AVINA, a foundation that supports sustainable development in Latin America, the ISE will partner with several business schools in the region to generate knowledge, teaching materials, and educational programs that will be used by the participating institutions.

"We take a global perspective in social enterprise," says ISE faculty chair HBS professor James E. Austin, who has done extensive research in Latin America. "We believe in the power of comparative, cross-country analyses. Social enterprise has a very important role to play in Latin America."

"The Social Enterprise Knowledge Network is an excellent example of how the School can use its resources to mobilize different groups and help them work together toward common goals," says HBS Dean Kim B. Clark. "I expect the network will have a powerful impact."

The vision of strengthening the capacity of Latin American business schools to leverage the power of social enterprises grew out of the ISE's commitment to making a global impact, Austin's knowledge of the sector and of the region, and the School's commitment to the region. Austin and Herrero began by identifying and approaching a diverse group of high-caliber Latin American business schools to see if they would be interested in participating. "We had a 100 percent hit ratio," explains Herrero. "Everyone we contacted was enthusiastic about the project."

They then began discussions with their Latin American colleagues to determine the best way to pool and enhance their knowledge and understanding of social enterprises. With Herrero's help, Austin developed a plan wherein the schools would collaborate on research efforts and share their knowledge with each other, with the ultimate goal of improving nonprofit — or nongovernmental organization (NGO) — management in Latin America. "There is no question that Latin America is one of the regions of the world that is in greatest need of care for social concerns," observes Herrero. "The SEKN will contribute to the formation of an academic network that can help alleviate those needs."

"The participating universities," says Austin, "are uniquely positioned to contribute to strengthening the effectiveness of nonprofits as well as business involvement in the social sector." Leadership of the group will rotate among the participating universities, and Austin has agreed to chair the project for the first two years.

AVINA, an innovative foundation with administrative offices in Miami and satellite offices throughout Latin America, is a leading supporter of grants to Latin American development projects. The organization agreed to provide financial support for up to six years to 16 Latin American business schools that will participate in the network. The schools will be invited to present funding proposals based on criteria defined jointly by HBS and AVINA. "The SEKN fits AVINA's entrepreneurial vision, which seeks to create synergies between the business and social sectors to promote a more sustainable development of Latin American societies," says Brizio N. Biondi-Morra (DBA '88), a former dean of INCAE, the Central American business school, who will oversee the project for the foundation. He is also a member of the ISE Advisory Board.

AVINA was founded in 1995 by Swiss industrialist Stephan Schmidheiny on the guiding principles of human dignity, equity of opportunity, freedom, responsibility for society, and respect for the environment.

"Launching social enterprise teaching and research programs in Latin America will raise the business sector's awareness of social responsibility and how to carry it out in practice. Simultaneously, providing civil society organizations with access to private-sector management tools will enable them to enhance their effectiveness and efficiency in achieving their societal goals," says Biondi-Morra.

"This is going to be a true partnership," notes Austin, adding that not only will HBS, AVINA, and the Latin American schools work together but that there will be other underlying collaborations within each of these three areas. For instance, in Argentina, two universities will team up with a social enterprise foundation to leverage the SEKN's impact. "The whole project," Austin states, "breathes partnership and alliances among all its members."