Ventures in Development
Encyclopedia
Ventures in Development is a non-profit organization that strives to be a catalyst in the creation of social enterprises in the Greater China region. Through monthly events called Social Innovation Salons, held in both Hong Kong and Shanghai, Ventures in Development's Social Innovation Factory program brings individuals from various fields together to brainstorm innovative solutions to social problems. By incubating ideas that have the potential to develop into sustainable businesses, Ventures in Development aims to bring social and economic development to impoverished areas of China.
and So from Hong Kong
, they both considered Greater China their home and wanted to apply their ideas to address social and economic challenges in the region.
On a factfinding trip in Yunnan Province in 2006, Chyau and So visited the research center of the China Exploration Research Society and learned of a project to apply Western cheese-making methods to make cheese from yak's milk. With additional research, Chyau and So also discovered that yak down can be processed into a cashmere-analogous textile. They decided to try to leverage China's thirteen million yaks to bring new income generation opportunities to impoverished Tibetan communities. Their strategy was to connect these communities to the international market by creating brands for gourmet yak cheese and luxury yak fiber and commanding a higher premium for their products.
Upon their return to the United States, Chyau and So entered a business plan into the Harvard University's Social Enterprise Business Plan Competition and were awarded first place. Ventures in Development was first established in the United States in March 2006 as a 501(c)3 organization. It was also registered in Hong Kong in January 2007 as a non profit organization.
Founders Carol Chyau and Marie So were named 2008 Fellows by Echoing Green
, a nonprofit organization that makes early-stage social investments and aims to support and promote social entrepreneurship. Other leading social entrepreneurship organizations include the Skoll Foundation
, the Schwab Foundation for Social Entrepreneurship
, and Ashoka
.
As Roger L. Martin and Sally Osberg have written in the Stanford Social Innovation Review, social entrepreneurship
has become an increasingly popular topic in recent years. In their well-cited article they identify the following three components of social entrepreneurship:
Ventures in Development has built upon recent academic discourse on social entrepreneurship to develop its theory of change. According to the Ventures in Development website, social enterprises are "profit-making but not profit maximizing enterprises that must be the double bottom line. They should solve a traditional social problem in a more innovative way."
, a popular term among proponents of social entrepreneurship
, is key to Ventures in Development's approach to poverty alleviation:
that aims to bring Tibetan yak
down to the international market in a way that promotes sustainable development
.
The Tibetan Plateau in remote Western China is one of the poorest regions in the country but is home to 95% of the world’s yaks, a natural resource with tremendous potential for generating sustainable income. Local communities live in remote areas with minimal infrastructure and lack access to market opportunities. As a result, they do not know the market value of yaks and are unable to connect to international markets. Therefore, yaks remain a highly underutilized resource in the region.
Shokay revolutionizes the yak fiber industry by connecting the local communities to brands and retail customers through Shokay's supply chain. By introducing luxury yak down to the global market, Shokay helps provide long-term employment and greater sustainable income for these communities
The triple bottom line is strongly embedded into Shokay’s business model.
On the environmental front, Shokay’s business involves a zero pollution process of collecting yak fibers, as yaks shed naturally every year.
On the social front, Shokay is keenly aware that yaks have always been a primary source of livelihood for Tibetans. They strive to provide them with an opportunity for a higher quality of life while preserving their local culture and traditional way of life.
On the financial front, Shokay provides direct income generation opportunities for the Tibetan herders by directly purchasing yak fibers from them and has given them a 20 to 30% increase in their income since 2006
Shokay’s development impact is four-fold: Direct income generation; Preserve local culture; Promote sustainable usage of the environment; and Community development work
According to the Ventures in Development website, Shokay is "a rising lifestyle brand [that] designs a unique collection of kids clothing, adult accessories, and home items made from yak down." Shokay also produces knitting yarn made from yak down. Shokay products are currently carried in over 130 stores located in Hong Kong, China, the United States, and Japan. The company also operates two of its own stores in Shanghai.
Mei Xiang Cheese Farm is a social enterprise
run by a Tibetan family whose members seek to bring development to their village in Yunnan Province, Western China. The family has been trained by a U.S. cheese expert from Wisconsin
to make cheese using yak milk and Western cheese-making methods. Ventures in Development is currently working with the family to help them gain access to the international market of gourmet cheese consumers. The cheese is currently sold locally at the Mei Xiang Cheese Shop as well as in organic food
stores and hotels in Hong Kong and abroad.
, a nonprofit organization that makes early-stage social investments and aims to support and promote social entrepreneurship. Other leading social entrepreneurship organizations include the Skoll Foundation
, the Schwab Foundation for Social Entrepreneurship
, and Ashoka
.
In 2009, Marie was selected as a Young Global Leader by the World Economic Forum
, putting her among internationally-known leaders including notable honoree actress Zhang Ziyi
. Carol was also been selected for the 2009 Cartier Women's Initiative Award
, an international business plan competition awarding women entrepreneurs who lead creative, sustainable, and socially responsible companies.
History
Ventures in Development co-founders Carol Chyau and Marie So met in 2004 at Harvard University's Kennedy School of Government while studying in the Master's in Public Administration/International Development program. They were united by a common belief that social enterprise presented a more viable solution for development problems than traditional top-down approaches. As Chyau is from TaiwanTaiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
and So from Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, they both considered Greater China their home and wanted to apply their ideas to address social and economic challenges in the region.
On a factfinding trip in Yunnan Province in 2006, Chyau and So visited the research center of the China Exploration Research Society and learned of a project to apply Western cheese-making methods to make cheese from yak's milk. With additional research, Chyau and So also discovered that yak down can be processed into a cashmere-analogous textile. They decided to try to leverage China's thirteen million yaks to bring new income generation opportunities to impoverished Tibetan communities. Their strategy was to connect these communities to the international market by creating brands for gourmet yak cheese and luxury yak fiber and commanding a higher premium for their products.
Upon their return to the United States, Chyau and So entered a business plan into the Harvard University's Social Enterprise Business Plan Competition and were awarded first place. Ventures in Development was first established in the United States in March 2006 as a 501(c)3 organization. It was also registered in Hong Kong in January 2007 as a non profit organization.
Founders Carol Chyau and Marie So were named 2008 Fellows by Echoing Green
Echoing green
For the electronic band, see The Echoing Green , for the poem see The Echoing GreenEchoing Green is a twenty year-old global non-profit organization operating in the area of early-stage social sector investing...
, a nonprofit organization that makes early-stage social investments and aims to support and promote social entrepreneurship. Other leading social entrepreneurship organizations include the Skoll Foundation
Skoll Foundation
The Skoll Foundation is a social entrepreneurship foundation based in Silicon Valley, California, with a mission to drive large-scale change by investing in, connecting, and celebrating social entrepreneurs and other innovators dedicated to solving the world’s most pressing problems...
, the Schwab Foundation for Social Entrepreneurship
Schwab Foundation for Social Entrepreneurship
The Schwab Foundation for Social Entrepreneurship provides platforms at the country, regional and global levels to promote social entrepreneurship.- History :...
, and Ashoka
Ashoka: Innovators for the Public
Ashoka: Innovators for the Public is a nonprofit organization based in Arlington, VA, supporting the field of social entrepreneurship. Ashoka was founded by Bill Drayton in 1981 to identify and support leading social entrepreneurs through a Social Venture Capital approach with the goal of...
.
Social entrepreneurship
Ventures in Development is founded on the theory that social enterprises are a means to bring forth higher levels of economic and social development.As Roger L. Martin and Sally Osberg have written in the Stanford Social Innovation Review, social entrepreneurship
Social entrepreneurship
Social entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change . While a business entrepreneur typically measures performance in profit and return, a...
has become an increasingly popular topic in recent years. In their well-cited article they identify the following three components of social entrepreneurship:
- identifying a stable but inherently unjust equilibrium that causes the exclusion, marginalization, or suffering of a segment of humanity that lacks the financial means or political clout to achieve any transformative benefit on its own;
- identifying an opportunity in this unjust equilibrium, developing a social value proposition, and bringing to bear inspiration, creativity, direct action, courage, and fortitude, thereby challenging the stable state’s hegemony; and
- forging a new, stable equilibrium that releases trapped potential or alleviates the suffering of the targeted group, and through imitation and the creation of a stable ecosystem around the new equilibrium ensuring a better future for the targeted group and even society at large.
Ventures in Development has built upon recent academic discourse on social entrepreneurship to develop its theory of change. According to the Ventures in Development website, social enterprises are "profit-making but not profit maximizing enterprises that must be the double bottom line. They should solve a traditional social problem in a more innovative way."
Double Bottom Line
The concept of a double bottom lineDouble bottom line
Double bottom line is a business term used in socially responsible enterprise and investment.While all businesses have a conventional bottom line to measure their fiscal performance—financial profit or loss—enterprises which seek a second bottom line look to measure their performance in...
, a popular term among proponents of social entrepreneurship
Social entrepreneurship
Social entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change . While a business entrepreneur typically measures performance in profit and return, a...
, is key to Ventures in Development's approach to poverty alleviation:
The success of traditional non-profits are measured by its ability to achieve social impact given its limited resources, and the success of for-profits are measured by its ability to generate financial returns for the shareholder.
The success of social enterprises are determined by both. If a SE can achieve high social impact but cannot generate financial returns, the enterprise becomes unsustainable in the long run. If a SE can generate significant financial returns but have no social impact, it is still unsuccessful because it is unable to solve the social problem that it was originally aiming to solve.
Shokay
Shokay is a for-profit social enterpriseSocial enterprise
A social enterprise is an organization that applies business strategies to achieving philanthropic goals. Social enterprises can be structured as a for-profit or non-profit....
that aims to bring Tibetan yak
Yak
The yak, Bos grunniens or Bos mutus, is a long-haired bovine found throughout the Himalayan region of south Central Asia, the Tibetan Plateau and as far north as Mongolia and Russia. In addition to a large domestic population, there is a small, vulnerable wild yak population...
down to the international market in a way that promotes sustainable development
Sustainable development
Sustainable development is a pattern of resource use, that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come...
.
The Tibetan Plateau in remote Western China is one of the poorest regions in the country but is home to 95% of the world’s yaks, a natural resource with tremendous potential for generating sustainable income. Local communities live in remote areas with minimal infrastructure and lack access to market opportunities. As a result, they do not know the market value of yaks and are unable to connect to international markets. Therefore, yaks remain a highly underutilized resource in the region.
Shokay revolutionizes the yak fiber industry by connecting the local communities to brands and retail customers through Shokay's supply chain. By introducing luxury yak down to the global market, Shokay helps provide long-term employment and greater sustainable income for these communities
The triple bottom line is strongly embedded into Shokay’s business model.
On the environmental front, Shokay’s business involves a zero pollution process of collecting yak fibers, as yaks shed naturally every year.
On the social front, Shokay is keenly aware that yaks have always been a primary source of livelihood for Tibetans. They strive to provide them with an opportunity for a higher quality of life while preserving their local culture and traditional way of life.
On the financial front, Shokay provides direct income generation opportunities for the Tibetan herders by directly purchasing yak fibers from them and has given them a 20 to 30% increase in their income since 2006
Shokay’s development impact is four-fold: Direct income generation; Preserve local culture; Promote sustainable usage of the environment; and Community development work
According to the Ventures in Development website, Shokay is "a rising lifestyle brand [that] designs a unique collection of kids clothing, adult accessories, and home items made from yak down." Shokay also produces knitting yarn made from yak down. Shokay products are currently carried in over 130 stores located in Hong Kong, China, the United States, and Japan. The company also operates two of its own stores in Shanghai.
Mei Xiang Cheese Farm
Mei Xiang Cheese Farm is a social enterprise
Social enterprise
A social enterprise is an organization that applies business strategies to achieving philanthropic goals. Social enterprises can be structured as a for-profit or non-profit....
run by a Tibetan family whose members seek to bring development to their village in Yunnan Province, Western China. The family has been trained by a U.S. cheese expert from Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
to make cheese using yak milk and Western cheese-making methods. Ventures in Development is currently working with the family to help them gain access to the international market of gourmet cheese consumers. The cheese is currently sold locally at the Mei Xiang Cheese Shop as well as in organic food
Organic food
Organic foods are foods that are produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers, do not contain genetically modified organisms, and are not processed using irradiation, industrial solvents, or chemical food additives.For the...
stores and hotels in Hong Kong and abroad.
Awards and recognition
Founders Carol Chyau and Marie So were named 2008 Fellows by Echoing GreenEchoing green
For the electronic band, see The Echoing Green , for the poem see The Echoing GreenEchoing Green is a twenty year-old global non-profit organization operating in the area of early-stage social sector investing...
, a nonprofit organization that makes early-stage social investments and aims to support and promote social entrepreneurship. Other leading social entrepreneurship organizations include the Skoll Foundation
Skoll Foundation
The Skoll Foundation is a social entrepreneurship foundation based in Silicon Valley, California, with a mission to drive large-scale change by investing in, connecting, and celebrating social entrepreneurs and other innovators dedicated to solving the world’s most pressing problems...
, the Schwab Foundation for Social Entrepreneurship
Schwab Foundation for Social Entrepreneurship
The Schwab Foundation for Social Entrepreneurship provides platforms at the country, regional and global levels to promote social entrepreneurship.- History :...
, and Ashoka
Ashoka: Innovators for the Public
Ashoka: Innovators for the Public is a nonprofit organization based in Arlington, VA, supporting the field of social entrepreneurship. Ashoka was founded by Bill Drayton in 1981 to identify and support leading social entrepreneurs through a Social Venture Capital approach with the goal of...
.
In 2009, Marie was selected as a Young Global Leader by the World Economic Forum
World Economic Forum
The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland....
, putting her among internationally-known leaders including notable honoree actress Zhang Ziyi
Zhang Ziyi
Zhang Ziyi is a Chinese film actress. Zhang is coined by the media as one of the Four Young Dan actresses in the Film Industry in China, along with Zhao Wei, Xu Jinglei, and Zhou Xun...
. Carol was also been selected for the 2009 Cartier Women's Initiative Award
Cartier Women's Initiative Awards
Created in 2006, the Cartier Women’s Initiative Awards are a joint partnership project initiated by Cartier, the Women’s Forum, McKinsey & Company and INSEAD business school to encourage women entrepreneurs....
, an international business plan competition awarding women entrepreneurs who lead creative, sustainable, and socially responsible companies.