Self Sustaining Social Enterprise: A Promising Model

Social innovation as a strategy to reach low income groups of the society has vast untapped potential. This potential which, on one hand reaches out to a billion dollar market, on the other hand require a very different approach in order to be successful. As the reading correctly points out that, products targeted towards the bottom of the economic pyramid should be based on the following four characteristics: 1) Affordability 2) Acceptability 3) Availability and 4) Awareness (Source: Strategic Innovation at the Base of the Pyramid, Anderson and Markides, MIT Sloan Management Review, July 2010).

This reminded me of the Sehat First (Read: Health First) Project started in Pakistan by Unilever. Sehat First is an initiative of Unilever Pakistan to deliver basic health and pharmaceutical services across Pakistan. In the beginning, a network of 500 health centers and retail outlets will be setup under this project to provide affordable healthcare which is easily available through this extensive network. The project is being undertaken in collaboration with the Department of Health so that an acceptable service to the customers can be provided. Volunteers from the customer & development department in Unilever Pakistan have been working on this project since January 2008, in developing the:

1. Retail outlets
2. Advising & assisting the set-up of retail outlets
3. Inventory and store management
4. Selecting and training retail entrepreneurs
5. Advise on sales generation in rural retailing
6. Strategic input

Project link: http://www.unileverpakistan.com.pk/sustainability/casestudies/economic-development/sehat-first.aspx

This would facilitate the awareness and availability of this service to the remotely located low income population of Pakistan. The important thing to note here is each shop is established with the aim to generate profit. So this can be termed as a social cause targeted, with going the non-profit route. Projects like these make one thing that,

1. Can projects like these continue to be profitable in the long run?
2. Will the aim change or deviate from a purely social one if the profit factor is retained?
3. Is it only large companies like Unilever that can risk such kind of ventures?
4. Is for-profit social business to risky of an endeavor? What are the chances for success?