Social Entrepreneurship

Course instructor: Prof. Dr Abhishek Yadav

Group Assignment

Submitted by:

Chirag | IPM/2121/01

Dishant Kumar Yadav | IPM/2125/01

Vishal Kumar | IPM/2171/01

Vishal Ventures
About 7 million people die due to air pollution worldwide and about 2.18 million
people die due to air pollution in India itself so it is important to tackle the root of this
problem. The main reasons for this pollution are transports and stubble burning. After
the Punjab Prevention of Subsoil Act, 2009, the gap between rice harvesting and
wheat sowing decreased to 10-15 days for the farmers so they were unable to treat the
stubble or rice residual accordingly. In this short time, the only possible solution left
with them was to burn them because the machines that remove and collect the stubble
were too expensive and even inefficient because they did not remove the stubble from
the root. Also the stubble from the rice has zero nutrients value so it also cannot be
added to the fodder of cattles. So the only possible way left with the farmers is to burn
that stubble which causes smog and air pollution in Delhi and NCR region. To counter
this big societal problem, we have started Vishal Ventures.

1. Explain and justify the reason for choosing that particular social or
environmental problem.

The reasons for choosing this particular problem are:

 Environmental effects- Stubble burning is a very big reason for air pollution.
They release harmful pollutants (black carbon and PM2.5) and gases in our
atmosphere. Stubble burning affects the local air quality and also helps in
lowering the negative changes happening to the global climate.
Also, the thermocol which is used for packaging, is non-biodegradable in
nature and can last in the environment for hundreds of years. They ultimately
cause harm to the ecosystem and the plants and animals living in it.
So, if we address this issue through our startup, we can reduce environmental
harm and promote sustainability.
  Utilization of resources- Stubble, which is mostly considered a waste by
farmers, can be reused as a valuable resource to produce packaging materials
that are eco-friendly. When we use agricultural waste in such a way then we
can minimize the use of conventional packaging production. This type of
startup helps in promoting a circular economy in which we transform waste
into valuable resources.

 Impact on health- The stubble burning not only harms our environment but
also creates health risks to farmers and the people living in the nearby area due
to the release of toxic gases. So, by using the agricultural residues our startup
can help in reducing the health risks. Also, replacing non-biodegradable
packaging with biodegradable will help in reducing pollution-related health
risks.

 Market opportunity- There has been an increase in awareness and regulations

by the government of India to reduce environmental pollution and promote
sustainable practices. By entering this market, our venture can create a viable
business model that generates both social and economic value.

 Promoting Innovation- We require research and innovation in developing

alternative packaging solutions. Our startup can foster innovation in the field of
sustainable materials used for packaging.

2. Explain your product (if any, if not then explain how do you plan to make it
financially viable in the long run), customer, and beneficiary groups?

Product Details:
Our product is a sustainable essential that comprises disposable plates and other
packaging materials for various items. It is produced through the conversion of
residual trash stubble from rice cultivation. The process of hydrothermal treatment and
refiners is used to execute it. The products possess excellent cushioning properties and
are fully biodegradable. Moreover, our production procedure does not involve any
chemicals or colors.

Financial Viable:
According to the Times of India, the cost of collecting and managing stubble ranges
from 2500-3000 per tonne. The market price of stubble products is 25% higher than
that of thermocol or plastic items.
Enhancing operational efficiency and strategic planning can lead to financial viability.
Haryana, Punjab, Delhi, and Uttar Pradesh are among the leading Indian states in
terms
of plastic waste generation as of 2020. In 2023, several states have implemented new
measures to address the issue of stubble burning. One of these measures involves the
collection of stubble from farmers' fields and its subsequent decomposition. Here, we
can directly collaborate with the governments of various states to provide us with the
leftover stubble from the farms. It will significantly decrease the majority of our
operational expenses. In addition, our products address both the problem of air
pollution and the reduction of plastic consumption, which would potentially attract
government subsidies.

Target Customers:

 Event agencies: Plastic utensils are predominantly utilized in Events.

Therefore, we can focus our efforts on managing companies or contractors.
 The food industry: Food service establishments such as restaurants, cafes, and
catering companies.
 Producers: It is suitable for companies who need environmentally friendly
packaging.

3. Write a mission statement for the social entrepreneurial organization.

Mission Statement:

Vishal Ventures - “Our aim is to lower the air pollution caused by the stubble
burning and lower the use of plastics by creating other eco-friendly alternatives. We
collect and treat residual stubble of rice to make bowls, plates and other packaging
materials that lowers the plastic use and plastic pollution”

4. Draw a Theory of Change (ToC) for your social entrepreneurial organization.

Theory Of Change

Theory of change can be seen as an explanation of how social entrepreneurship aims

to generate social and environmental impact. It articulates the assumptions and logical
connections between the resources, activities, and outcomes of an initiative.

Inputs:
 Funding and financial resources
 Skilled workforce and technical expertise
 Partnerships with farmers and waste management organizations
 Machinery for processing crop residues

Activities:
 To collect and aggregate crop residues from farmers and farm fields
  To develop and implement processes for converting crop residues into
biodegradable packaging materials
 To establish a manufacturing facility
 To conduct research and development to improve product quality and efficiency
 To establish marketing and distribution channels for the packaging products
 To provide training for farmers and workers
 To raise awareness about the environmental benefits of using biodegradable
packaging materials

Outputs:
 Biodegradable packaging materials produced from crop residues
 Reduction in crop residue burning and air pollution
 Employment generation

Outcomes:
 Improved air quality and reduced greenhouse emissions
 Reduce reliance on non-biodegradable packaging materials
 Sustainable waste management practices
 Economic empowerment
 Promotion of circular economy

Impact:
 Healthier environment and improved air quality
 Mitigation of climate change through reduced emissions
 Sustainable and environmental-friendly packaging industry
 Improved livelihoods and economic opportunities
 Increased adoption of sustainable practices

5. Provide an analysis of the specific challenges that you may face in setting up
your social entrepreneurial organization (in the context of the place/area of
operation and the sector in which your organization will operate.

Challenges:

 Consumer Behaviour: Consumers who are using traditional, less expensive

plastic solutions will require a lot of persuasion to transition to a potentially
more expensive, sustainable alternative.
 Price Sensitivity: In our segment, there are a lot of cheap plastic alternatives,
so it would be difficult for us to position our company in the market without
the support of external sectors(NGOs and Government)
  Supply Chain: The traditional products like plastics have a better supply chain
and operational efficiency, and achieving both effectiveness and efficiency
would be challenging.
 Funding: Since our company relies on assistance from NGOs and government
entities to carry out our operations and achieve profitability, it will pose a
challenge to secure early funding from angel investors and venture capitalists.

6. 6. Suppose you were able to set up such an organisation and after a few years
of operation, even though you can see the social impact your organisation is
creating, you haven’t been able to make it is financially self-sustaining. You have
a product (or service) of your organisation in the market that gives you some
sales but the sales (demand) haven’t been enough to generate enough profit for
your organisation. You have to depend on some grants or donation from time to
time to keep the social mission unaffected. A big organisation comes up to you
with an offer that they are interested in buying your organisation and they would
incorporate it in their firm in such a manner that the product side of your
business will be included in their product portfolio and your social impact side
efforts would be continued by using their CSR spending.
What would you choose? Whether to accept this offer or reject it? Whichever
one you choose among the two, kindly justify the same. If you will accept this
offer with some added conditions from your side, kindly include that as well with
a justification.

The Utilitarian view tossed by Jeremy Bentham tells us that “The greatest amount of
good for the greatest number of people” should be our utmost priority. The act
justifies the means, so the mere act of giving up our own desires to make a scratch on
this grand canvas can be given up for the betterment of society at large.

If, by all our efforts, we are not able to make it financially viable, then the only option
left is selling it to the greater organization that can make this dream a reality. If our
venture is not sold, the operations will be disrupted, and the process of solving the
social problem may halt (temporarily or permanently). Though selling will add our
product to their product portfolio but this will keep the venture running, and
moreover, the aim is not to gain popularity or take credit for our product. The aim is
not to make a lot of profit but to make a social impact.

The advantages of selling the venture overshadow the disadvantages. A few of the
advantages are:

1. Scalability- We will be able to serve the larger section of society. We can use the
networks of the bigger organizations and increase the reach of our products. The name
of our organization, ‘Vishal’ itself means -Huge, which means that we want to make a
huge impact in a huge part of the country.
2. Resources- As the business is capital intensive, it requires more money, machinery
and resources. Our choice of resources expands as the greater organization acquires
us. We can gain more expertise with the help of extra resources.

3. Technology and Innovation- More access to the technologies of the bigger

organization. Advancement of the current technology, adoption of new technology,
and also more scope for innovation.

4. Financial stability and Dependency- It will exempt our dependency on grants and
donations for running the venture. We will become more sustainable and dependent,
and there will be no risk of disruptions of operations due to lack of money.

So, looking at the current scenario and the situation (financial viability) of our social
entrepreneurial organization, selling it to the bigger organization is a better option.
The only possible thing we can do is negotiate the contract and add a few conditions
so that the organization’s values and goals are aligned in future as well and the
autonomy in decision-making regarding our venture is still with us.

References:
https://www.who.int/health-topics/air-pollution

https://www.thehindu.com/sci-tech/health/air-pollution-causes-over-2-million-deaths-
annually-in-india-bmj- study/article67590177.ece#:~:text=Outdoor%20air%20pollution
%20from%20all,study
%20published%20in%20The%20BMJ