©2013 INSEAD Case Study
Also available: Teaching Note
Case A describes the creation and growth of Nuru Energy. Starting from nothing, the founder 'bootstraps' a social venture with the goal of providing affordable and effective lighting solutions for 800 million people without access to the electricity grid in sub-Saharan Africa and India. The case narrates the challenges involved in developing a social enterprise with a dual aim of turning a profit and making a social impact. It focuses in particular on the finanical challenge and provides a context to discuss difference financing options and their implications. It looks at the different business model alternatives - market-based and donor-based. The central theme is to assess the merits and drawbacks of the different funding alternatives. Case B is an update that explains what financing option the founder chose and its implications. It sets the stage for a discussion about trade-offs in the geographical expansion of social ventures.
Pedagogical Objectives: The teaching objectives are for students to: - understand the emerging and diverse field of social investment (from donors to impact investors) - realise the importance of a sustainable business model and how it can be developed - discuss the role of the social entrepreneur, how to achieve focus and avoid burn-out.