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Jim Citrin Leadership by Example

Jim Citrin, Leadership by Example

Introducing Social Entrepreneurship

by Jim Citrin

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Posted on Tuesday, April 15, 2008, 12:00AM

What do you get when you cross venture capital at its best with passionate social entrepreneurs who want to change the world? Echoing Green.

Social Entrepreneurship

Founded in 1987 by the senior leadership of global private equity firm General Atlantic LLC, Echoing Green is an altogether different kind of nonprofit organization.

Echoing Green applies a VC mindset and discipline to funding and supporting entrepreneurs seeking not to build profit-generating business models, but rather to create organizations intended to tackle some of society's most important social problems. Call them aspiring social entrepreneurs.

Over the past 21 years, the group has awarded nearly 450 fellowships, investing more than $25 million in seed capital to emerging entrepreneurs across 40 countries on five continents seeking to drive social change. Program areas have included education and youth development, human rights, healthcare, environmental sustainability, and economic development. Some of Echoing Green's notable successes include the funding and support to launch national service organizations such as Teach for America and City Year; model education programs such as Peace Games and College Summit; and economic development programs such as micro-lender SKS Microfinance (which is actually a for-profit social enterprise) and the One Acre Fund.

Not Your Grandfather's Nonprofit

Here's how it works. In 2008, Echoing Green received nearly 1,500 applications from individuals competing for 20 fellowships. Each grants up to $90,000 in funding and comes with a community of like-minded social entrepreneurs who work together to help each other, with Echoing Green's access to support resources. On May 1, 30 finalists undergo an intensive selection process with interviews by and presentations to a panel of judges, during which they'll pitch their bold ideas for social change.

When the fellows are selected, they join a growing pantheon of social innovators including Teach for America founder Wendy Kopp, Echoing Green Fellow 1991; College Summit founder J.B. Schramm, a 1997 fellow; and 1994 fellow Van Jones, creator of the Ella Baker Center for Human Rights.

The philosophy of Echoing Green bears little resemblance to traditional nonprofit mentality. Rather than the traditional philanthropic model of giving charity to worthy causes, the organization believes that innovative social change starts with an individual's passion to solve the world's biggest problems, and generates impact by driving toward measurable results to address those problems. "These social entrepreneurs are not do-gooders," says Dr. Cheryl Dorsey, president of Echoing Green and herself a 1992 fellow. "They are problem-solvers. But while they have no shortage of determination, they lack start-up funding, skills-building opportunities, and access to key networks required to build impactful models for social change."

A Charter for Change

I attended an Echoing Green presentation last week called "Entrepreneurs in Education," which featured one of the most inspiring examples of social entrepreneurship at work.

John Alford, a 2007 Echoing Green Fellow, is the principal of Langston Hughes Charter Academy, a new public school in New Orleans. Prior to Hurricane Katrina, many experts considered the New Orleans public school system to be the worst in the country. The high school dropout rate stood at 70 percent, and 7 out of 10 eighth-graders failed to meet even the most rudimentary reading, writing, and mathematics skills.

Alford, a Harvard MBA, says, "One of the silver linings of the Katrina catastrophe is that we have the chance to rebuild the school system virtually from scratch." In the aftermath of Katrina, half of New Orleans' public schools have been replaced with charter schools, and the city is moving to become the first all-charter school system of public education in the United States.

In addition to spending the majority of his time as principal, Alford is also CEO of NOLA 180, a start-up charter school management organization that aims to transform failed public schools into high-functioning charter schools that prepare all students for college. NOLA 180's goal is to send over 80 percent of enrolled students to college. Alford says his approach is to "incubate a team of educators who work together to turn around failing schools in New Orleans." By focusing on restructuring existing schools into new charter schools instead of opening new ones, Alford is convinced that the New Orleans school system can in fact be reformed at scale.

Experience in Action

Growing up in a housing project in Brooklyn, N.Y., Alford has intimate experience with the problems confronting large urban public school systems. He first went to New Orleans in 2004, when he opened a new school supported by the Knowledge Is Power Foundation (KIPP). Alford and most of the students at Langston Hughes Charter Academy (and across New Orleans' public school system overall) are African American, and its student body is comprised almost entirely of low-income students.

"It was difficult at first for the students and the teachers to follow our approach," Alford says. "The last thing that these students wanted, or anyone else in New Orleans for that matter, was another program. So our challenge was to make substantive progress without students thinking that it was through a prepackaged plan imposed on them.

"So we focused on the little things that over time actually become the big things," he continues. "We required students to keep their shirts tucked in, to say their 'pleases' and 'thank you's,' and to not interrupt. We extended the school day and began assigning homework with the expectation that students do it or face consequences. We had students wear red school uniforms and be disciplined with detention if they fought in the hallways or disrupted the learning environment in other ways."

Tackling America's Most Pressing Problems

Alford believes that if NOLA 180 can take schools that have historically had a 70 percent dropout rate and transform them into ones with an 80 or 90 percent college graduation rate, then they'll be able to prove that public education in the United States can indeed be saved.

"I've spoken to far too many Americans -- black and white; rich and poor -- who have given up on public education and are convinced that it will never be fixed. I want to prove all of those people wrong," he says conclusively.

Seeing Echoing Green at work and meeting some of their amazing fellows, it's evident to me that social entrepreneurship is proving itself a viable strategy for attacking some of society's most important problems today.

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29 Comments

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  • Pam - Wednesday, April 16, 2008, 1:34PM ET  Report Abuse

    • Overall: 3/5

    Coming from a family of educators, we learned to read at an early age, and were taught phonics...now I see so many grade schoolers who can barely read or write due to the fact they were taught to SPELL as the word sounds (and not taught the rules of our language), nor encouraged to read more (not get a digest from the tube). Kids are not stupid by nature, they are curious and have a hunger to learn, and will learn what they are encouraged and rewarded to do; before long they are anxious to learn because the joy of learning that what interests them has caught root. All kids will not be interested in World History or Higher Math or Chemistry; but will have a passion for woodworking or fixing things, or composing music or writing great books. I say find out what that child's passion is while they are young and allow it to develop to its full potential, but along the way impress upon them the need to know basic math, geography, science as it relates to their own FUTURE life. Too much of repetition, memorization just to pass a test and then its forgotten. (At least the kids I have been around complain at the useless information they are required to learn even temporarily...)

  • Yahoo! Finance User - Wednesday, April 16, 2008, 1:27PM ET  Report Abuse

    • Overall: 1/5

    I agree Sara. I am trying to save my 401k and I get this kind of crap.

  • Yahoo! Finance User - Wednesday, April 16, 2008, 1:25PM ET  Report Abuse

    • Overall: 1/5

    where is the expert advice?

  • Sara - Wednesday, April 16, 2008, 1:21PM ET  Report Abuse

    • Overall: 1/5

    Is this financial advice? I could give a s**t.

  • D P - Wednesday, April 16, 2008, 1:05PM ET  Report Abuse

    • Overall: 1/5

    Does Yahoo Finance have a single decent writer with something useful to say? Just one?

  • Da Big Guy - Wednesday, April 16, 2008, 12:54PM ET  Report Abuse

    • Overall: 2/5

    Two stars because you seem like a nice person with good intentions. Social entrepreneurship as you descibed has been tried and tested for decades in many venues. Sometimes it works well but is publicly unwelcome (commercial prisons as an example). Investment is very risky and return very slow. So your article however inspiring, lacks the substance and detail to be of any relevance to almost all of us readers. Keep trying JIM!

  • Yahoo! Finance User - Wednesday, April 16, 2008, 12:24PM ET  Report Abuse

    • Overall: 1/5

    I fail to see the comparison to venture capitalism. Successful venture capitalism is self sustaining and generates a return on its investment, there is nothing self-sustaining about this system you've described. Maybe one day enviromentalists and do gooders will figure out that people will be much more interested in saving the world when it is to their financial benefit to do so. Very few people in the world have the disposable income needed to finance "feel good" projects which don't produce positive financial results.

  • Yahoo! Finance User - Wednesday, April 16, 2008, 12:04PM ET  Report Abuse

    • Overall: 1/5

    ma, this is draining, Well, under the Communist system. A one plan to be worked under hard Labor. umm. yet now we live in a Capitalistic world when the big swine like Bearish Stearn under the leader ship of a bad CEO get a Social deal. Yeah the CEO remain rich. Well the market is still bearish. You must be saying I am, a fool for saying the market is bearish, but why :: Let see earning per a share in JP beat the estimate, around a $ so on. Price per a share 40 something. make it the price is 40 times over price. People are stupid in high market.

  • wgaf - Wednesday, April 16, 2008, 11:15AM ET  Report Abuse

    • Overall: 3/5

    Another artcle that would go in the round "outbox" if not online. Thanks for saving paper ( but not time)

  • Kirk J - Wednesday, April 16, 2008, 10:26AM ET  Report Abuse

    • Overall: 1/5

    Social entrepreneurship was the rage twenty years ago. Perhaps a bit of updating to keep up with reality. Gremeen Bank founder M. Yanus recent publication on Social Businesses - profit making ventures which pay back investors the initial funding and then use all future profits to expand their socially necessary services but retaining earnings rather than distributing dividends. This eliminates the need for great saviors to descend from wealthy heights to take the poor, sick, homeless,... to the promised land. This also eliminates the need for ongoing charitable donations. The only charity is the lost interest that could have made during the period in which the venture is repaying the investors. "A World Without Poverty" by Yunus provides a couple of examples of successful Social Businesses in Bangladesh, and his website provides links to others in other parts of the world.

  • groblix - Wednesday, April 16, 2008, 10:26AM ET  Report Abuse

    • Overall: 2/5

    Several years ago, charter schools were touted as a panacea around here. Now, they are failing left and right.

  • taopraxis - Wednesday, April 16, 2008, 9:20AM ET  Report Abuse

    • Overall: 1/5

    Public education is not failing; it is just a misnomer. Replace "public education" with "state-controlled indoctrination" and it can readily be seen the system is working quite well. Now, let the brainwashing continue...peace is war, war is peace...

  • Steven - Wednesday, April 16, 2008, 9:19AM ET  Report Abuse

    • Overall: 2/5

    Of course private and charter schools can achieve high graduation rates -- they can kick out the troublemakers before they would be old enough to drop out. A lot of the students who would drop out never count against them in graduation rate statistics. These schools aren't necessarily taking kids who would have dropped out at others schools and turning them into successes, a lot of the gains come from their ability to not even have to deal with kids that are highly likely to drop out.

  • RobertM - Wednesday, April 16, 2008, 9:13AM ET  Report Abuse

    • Overall: 3/5

    Its nice that the people are trying to do good things, but an important point is being missed in that one cannot change others but setting out to do so. The only way the world gets changed if is that if we all change ourselves. So the Echoing Greeners are making a positive contribution by living THEIR lives in a more positive way. Returning to the New Orleans schools; they were not so horrible because of the schools themselves or the teachers, but because the students and their parents just did/do not give a damm about education. Students can learn in what would be considered very poor conditions if they really wanted to learn.

  • ag - Wednesday, April 16, 2008, 8:58AM ET  Report Abuse

    • Overall: 2/5

    We are all doomed.

  • Bryan - Wednesday, April 16, 2008, 8:38AM ET  Report Abuse

    • Overall: 1/5

    where do they get these guys, this is another nauseating article. This guy and the naked economist should get together and create their own green fund. Let's see how that works out.

  • Yahoo! Finance User - Wednesday, April 16, 2008, 8:33AM ET  Report Abuse

    • Overall: 1/5

    Aren't these kinds of groups plentiful in the U.S.? Every non-profit is unique in it's own way but there must be thousands of non-profits trying to make a difference in the world. That's great but then it gives rise to more liberals who want the government, not non-profits, to run our lives. That part I don't like. It's a shame we need a non-profit organization to do things parents and school administrators are paid to do with taxpayer money...Jim, do you know anyone in the private sector who has built a business? Do you have any book reviews written by people who have built businesses. Your making a difference columns are nice but they are not relevant to most people because we don't have the money or time to save the world.

  • Yahoo! Finance User - Wednesday, April 16, 2008, 8:33AM ET  Report Abuse

    • Overall: 2/5

    I have lots to question about the program. First, as usual with non profits, there is not much money. In 2008, Echoing Green received nearly 1,500 applications from individuals competing for 20 fellowships (1.3%) Second, "NOLA 180's goal is to send over 80 percent of enrolled students to college. " That is a higher rate than most any school in the country. As an educator, I seriously question whether 80% of any group of students has the skill to get through college. Yes, they may be accepted, but as the data shows, 50% or less will finish college. Lastly, "We extended the school day and began assigning homework with the expectation that students do it or face consequences. We had students wear red school uniforms and be disciplined with detention if they fought in the hallways or disrupted the learning environment in other ways." Successful public schools are already doing this (other than the uniforms). As a teacher, the problems of discipline, the problems of uninvolved parents, the problems of overly protective parents suing at every chance, having to teach to the test for No Child Left Behind, all contribute to problems with public schools. I personally am awaiting real facts from charter schools over the longer term to see if it really works.

  • Dylan - Wednesday, April 16, 2008, 7:38AM ET  Report Abuse

    • Overall: 5/5

    What the heck is there not to like? A private organization trying to address world problems using private funds, and they happen to use a different style then traditional non-profits to achieve their goals.

  • SandyLady - Wednesday, April 16, 2008, 7:24AM ET  Report Abuse

    • Overall: 1/5

    Yada, yada.....while the country burns...!

  • Yahoo! Finance User - Wednesday, April 16, 2008, 6:27AM ET  Report Abuse

    • Overall: 1/5

    This is absolute baloney.

  • Anthony - Wednesday, April 16, 2008, 6:18AM ET  Report Abuse

    • Overall: 4/5

    This social VC is a wonderful innovational idea/ tool that will positively benefit society! The other 2 comments posted are pathetic and ignorant. Wath the movie "A Beautiful Mind", when people do what is best for others and not just themselves, everybody benefits! Crazy ideas are not alway's all that crazy afterall. We are going to need some real drastic changes to make the world a better place, environmentally and socially! GOD be with us!!!

  • Yahoo! Finance User - Wednesday, April 16, 2008, 2:17AM ET  Report Abuse

    • Overall: 1/5

    Is this nonsense going to go away when Microsoft buys google? Please?!

  • beotch - Wednesday, April 16, 2008, 12:10AM ET  Report Abuse

    • Overall: 1/5

    I would expect the liberal montra to be with the bent Yahoo! News, not the financial blogs. Yuck for this socialist Commie Crapola

Showing comments 6-29 of 29<< Previous
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