Monica C. Diochon and Yogesh Ghore
The subject areas are social entrepreneurship and marketing in social enterprises.
Abstract
Subject area
The subject areas are social entrepreneurship and marketing in social enterprises.
Study level/applicability
This study is applicable to undergraduate or MBA-level courses; possibly executive programs as well.
Case overview
Farm Shop was established in 2012 as a not-for-profit trust, with an aim of developing a distribution platform for poor, rural communities across sub-Saharan Africa so that smallholder farmers could get the farm inputs and services needed to increase their productivity and income. Attempting to reach scale, this social enterprise is in the process of building a micro-franchise network. Unlike franchises in industrialized countries where the franchisor starts with a vetted and replicable turnkey business, Farm Shop was created from scratch. After prototyping the shop concept and validating the business model in Kiambu County of Kenya, Farm Shop has 10 fully operational shops and is keen to start its growth phase, aiming to have 120 shops in its network within the next 12-18 months. It is only at that point that break-even will be achieved. Recognizing the key role of marketing in Farm Shop’s growth efforts, the founders are now focused on finalizing their go-to-market (GTM) strategy. Having initiated and measured the results of a number of marketing activities over the past six months, it is now time to decide which of these activities should be incorporated into their micro-franchise system. The management team knows that to provide advice, training and quality products to farmers, they first needed to develop awareness, interest and desire for what Farm Shop has to offer, not to mention the need to gain the farmers’ trust. Fundamentally, farmers needed to be convinced that Farm Shop can help them improve their productivity and income.
Expected learning outcomes
The study enables to gain an overall understanding of the range of challenges and opportunities associated with establishing a micro-franchise in an emerging market context; to gain a better understanding of social marketing, including the four types of behavioral influence it attempts to achieve and the similarities and differences between social and commercial marketing; to introduce the “theory of change” concept, providing a framework for understanding how and why change will occur; to introduce the concept of business models and explore the differences between “traditional” and “social entrepreneurship” business models; to understand how a competitive advantage is created; to introduce basic marketing concepts and the GTM concept and its role and application in a business model for a new social enterprise and to understand how marketing contributes to the social enterprise’s strategic goals and sustainability, thereby gaining an understanding of how “social marketing” is differentiated from commercial marketing.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 3: Entrepreneurship.
Details
Keywords
Monica Diochon and Yogesh Ghore
The purpose of this paper is to contribute to a better understanding of how a social enterprise opportunity is brought to fruition in an emerging market.
Abstract
Purpose
The purpose of this paper is to contribute to a better understanding of how a social enterprise opportunity is brought to fruition in an emerging market.
Design/methodology/approach
This real-time longitudinal case study tracks the emergence of a micro-franchise start-up from conception to inception. Using a narrative perspective as a conceptual lens focuses attention on the relational, temporal and performative elements of the interactive process that occurs between social entrepreneur(s) and the environment(s). While interviewing provides the primary source of evidence, multiple data collection methods were utilized.
Findings
The analysis of the process elements centres on the narratives of the micro-franchise co-founders and other key informants that prompt action aimed at bringing the opportunity to fruition, showing how the social entrepreneurs bring the inside out and the outside in.
Research limitations/implications
Despite challenges to the appropriateness of Western management theory within emerging markets, this study has shown that theory at a sufficiently high level of abstraction can be useful. It also demonstrates the need to study process over time and be inclusive of the range of stakeholders and contexts that influence it.
Social implications
The findings indicate that social enterprise start-up is a co-creative process that evolves in unpredictable ways over time. Beyond start-up, only time and further study will determine whether social enterprise will prove to be the panacea for poverty and marginalization that governments expect.
Originality/value
This research gains real-time insight into social enterprise emergence. It underscores the multi-dimensional nature of context and provides evidence indicating that the relationship and influence between social entrepreneur(s) and their environment is not one way.