Social Entrepreneurship – A Movement Towards Building Better Business

I attended a talk given by Tal Dehtiar of Oliberté last week on Thursday, hosted by Capacity Waterloo Region as part of their Change Agent Series. Oliberté is the first company in the world to market premium urban-casual footwear that is exclusively made in Africa, from the natural rubber found in Liberia and leather from Ethiopia, to local workers manufacturing shoes in factories built to ISO 14000 (environmental management) standards, where workers are paid a fair wage and no child labor is used.

Tal is certainly an accomplished individual, having founded MBA’s WIthout Borders (MWB) several years ago prior to Oliberté, which he then eventually sold (the rights) to CDC Development Solutions.

From my perspective, it seems that a lot of his motivation comes from seeing business as the biggest change agent in the world. Perhaps this point of view was shaped by his family history and struggles as new immigrants to Canada a couple of decades ago, a story which he shared with the audience. Similar to many familiar new-immigrant stories that you hear today, Tal’s parents were highly educated back in their home country, but either due to a lack of English-speaking skills or education credentials not being recognized here, they had to make do with whatever job was necessary in order to survive. And similar in outcome to many immigrant stories, Tal’s parents ended up starting their own business, becoming successful in turning a profit, while in the process, employing hundreds of people to work for them.

With this in mind, Tal views his for-profit company Oliberté, as a social venture or social enterprise. And he does so because at the end of the day, he believes that he is charting a much more sustainable way of life for people living in countries like Ethiopia and Liberia, by providing them with a stable means of employment and fair income. Tal has also heard many local people say that they do not need any more direct aid or charity (in the traditional sense of the word) in Africa. What they do need are jobs in order to provide for their families themselves, with sustained economic growth and investment in order to build a middle-class in Africa, which currently does not exist. This is something that Dambisa Moyo argues in her book, Dead Aid: Why Aid Is Not Working and How There Is A Better Way For Africa.

That being said, Tal made the point that although Oliberté is a social enterprise, it is a footwear company first, competing with the likes of Lacoste, Roots, Nike, etc., in the premium footwear market in terms of price point and quality of the product. They are not necessarily focusing on selling the ‘social good’ aspect of the company, although it does provide a great backstory to the company, and I completely agree with this approach.

Social ventures and social enterprises, especially those competing for market share with traditional for-profit companies (social enterprise in the non-profit space is another discussion altogether), do need to compete at the very same level of traditional for-profit companies, both in terms of value the social enterprise brings to the table and/or the quality of the products they produce. Tal recognizes that if they were to rely solely on the ‘social good’ aspect of their company alone, i.e. providing jobs for people in Ethiopia and Liberia in a safe and fair manner, minimizing environmental impact and more importantly, changing the current perception of Africa as a place where you CAN invest and do business, without a strong focus on the product itself, Oliberté will only go so far in the long run.

There absolutely HAS to be a focus on producing high-quality product that is able to compete with other companies vying for market share and consumers attention. The fact that there is a ‘social good’ aspect to it, provides the social enterprise with a competitive advantage, but again, should not be made into the deciding factor for consumers in general when it comes to choosing between products to buy. The quality, attributes and brand of the product should be able to stand on its own merit, especially since, as it turns out, the market segment of those who are lifestyle-, sustainable- and health-conscious only represent 18% of the total market segment. Not too sure which consumer market Tal is referring to, but if he is referring to the US/Canadian market, this 18% number is not surprising at all.

Overall, the talk was really good and I am glad that I went. Tal was very candid and personal in his approach to storytelling and answering questions, calling it as he saw it and providing honest answers about the operations of Oliberté and future plans for his company (I had a great conversation with him on marketing and development strategies after his talk). And I believe that it was this approach that allowed him to connect with the audience.

As I have seen over and over again, it all comes down to people. From the support system of people who are there for you/your company through the good times as well as the bad, the people who work for you either as members of your team or employees who have placed their trust in your leadership and judgment, as well as your consumers who expect to receive great value for money from your product.

Speaking of which, I may just order a pair of Oliberté shoes in the next couple of days, and yes, they do ship to Canada.

Many thanks to Jennifer King and Capacity Waterloo Region for organizing the event.

Posted via email from renjie’s posterous

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