Harvard Case - Dasra: From Strategic Philanthropy to Field Building
"Dasra: From Strategic Philanthropy to Field Building" Harvard business case study is written by V. Kasturi Rangan, Tanya Bijlani. It deals with the challenges in the field of Social Enterprise. The case study is 29 page(s) long and it was first published on : Mar 1, 2021
At Fern Fort University, we recommend that Dasra adopt a hybrid model that combines its existing strengths in strategic philanthropy with a more active role in field building. This approach will leverage Dasra's expertise in impact investing, social innovation, and strategic partnerships to catalyze the growth of a vibrant social enterprise ecosystem in India.
2. Background
Dasra, a leading philanthropic organization in India, has been instrumental in driving social change through strategic grantmaking and capacity building of non-profit organizations (NGOs). However, the case study highlights the organization's desire to expand its impact by actively fostering the growth of social enterprises. This shift reflects a growing recognition of the potential of social entrepreneurship to address complex social issues in a sustainable and scalable manner.
The main protagonists of the case study are:
- Deval Sanghavi: Founder and CEO of Dasra, who is passionate about leveraging market forces to address social challenges.
- Dasra's Board: The board is responsible for guiding the organization's strategic direction and ensuring its financial sustainability.
- NGO Partners: Dasra collaborates with numerous NGOs across various sectors, providing them with funding, capacity building, and technical support.
3. Analysis of the Case Study
The case study presents Dasra with a strategic dilemma: how to balance its traditional role in strategic philanthropy with its ambition to become a catalyst for social enterprise development. To analyze this challenge, we can utilize the following frameworks:
a) Stakeholder Theory: Dasra needs to carefully consider the needs and expectations of its various stakeholders, including:* NGO Partners: They rely on Dasra's funding and expertise to advance their missions.* Social Entrepreneurs: They require access to capital, mentorship, and networks to launch and scale their ventures.* Donors: They expect Dasra to deliver measurable social impact with their contributions.* Government: It plays a crucial role in creating an enabling environment for social enterprises through policy and regulation.
b) Social Impact Measurement: Dasra needs to develop robust metrics to track the impact of its field building initiatives. This includes:* Measuring the growth of the social enterprise ecosystem: This can be assessed by tracking the number of social enterprises launched, their revenue generation, and their impact on beneficiaries.* Evaluating the effectiveness of Dasra's support programs: This involves assessing the impact of its training, mentorship, and funding programs on social enterprise performance.
c) Strategic Alliances: Dasra can leverage its existing network and partnerships to build a robust social enterprise ecosystem. This includes:* Collaborating with corporations: This can provide access to capital, expertise, and market networks.* Partnering with incubators and accelerators: This can provide social entrepreneurs with access to infrastructure, mentorship, and funding.* Working with government agencies: This can facilitate policy changes and access to public resources.
4. Recommendations
To effectively transition from strategic philanthropy to field building, Dasra should adopt the following recommendations:
a) Develop a Hybrid Model: Dasra should continue its strategic grantmaking activities while simultaneously investing in field building initiatives. This will ensure continuity for existing NGO partners and enable Dasra to explore new avenues for social impact.
b) Establish a Social Enterprise Investment Fund: Dasra should create a dedicated fund to invest in promising social enterprises. This fund should provide both early-stage capital and growth funding, enabling social entrepreneurs to scale their ventures.
c) Develop a Social Enterprise Support Ecosystem: Dasra should create a comprehensive support ecosystem for social entrepreneurs, including:* Mentorship and Training Programs: Provide social entrepreneurs with access to expertise in business development, impact measurement, and social enterprise governance.* Networking Events: Facilitate connections between social entrepreneurs, investors, and other stakeholders.* Incubation and Acceleration Programs: Offer dedicated spaces and resources for social enterprises to develop and scale their ventures.
d) Advocate for Enabling Policies: Dasra should actively engage with the government to advocate for policies that support the growth of social enterprises. This includes:* Tax incentives for social enterprises: This can encourage investment and promote the growth of the sector.* Simplified regulatory framework: This can reduce the administrative burden on social enterprises and facilitate their operations.* Public procurement policies: This can create new markets for social enterprises and incentivize their growth.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: Dasra's expertise in impact investing, social innovation, and strategic partnerships aligns well with the field building approach.
- External Customers and Internal Clients: The recommendations address the needs of both existing NGO partners and emerging social entrepreneurs.
- Competitors: Dasra can differentiate itself by offering a comprehensive support ecosystem that goes beyond traditional grantmaking.
- Attractiveness: The proposed hybrid model offers a balanced approach that leverages Dasra's existing strengths while exploring new opportunities for impact.
- Assumptions: The recommendations assume that Dasra has the resources and capacity to implement these initiatives effectively.
6. Conclusion
By embracing a hybrid model that combines strategic philanthropy with field building, Dasra can significantly expand its impact and contribute to the growth of a vibrant social enterprise ecosystem in India. This approach will leverage Dasra's expertise and resources to empower social entrepreneurs and drive sustainable solutions to complex social challenges.
7. Discussion
Alternatives:
- Focusing solely on strategic philanthropy: This would maintain Dasra's traditional approach but may limit its impact in addressing emerging social challenges.
- Becoming a pure social venture capital fund: This would require a significant shift in focus and expertise, potentially alienating existing NGO partners.
Risks:
- Financial sustainability: The field building initiatives may require significant investment, potentially impacting Dasra's financial stability.
- Capacity constraints: Dasra may face challenges in building the necessary infrastructure and expertise to support a growing social enterprise ecosystem.
Key Assumptions:
- Government support: The success of Dasra's field building initiatives depends on a supportive policy environment.
- Investor interest: Attracting sufficient investment capital for social enterprises is crucial for the long-term success of the ecosystem.
8. Next Steps
Timeline:
- Year 1: Establish a Social Enterprise Investment Fund, launch mentorship and training programs, and engage with the government on policy advocacy.
- Year 2: Launch an incubation program, organize networking events, and expand the investment fund.
- Year 3: Develop a comprehensive social enterprise support ecosystem, including acceleration programs and partnerships with corporations.
Key Milestones:
- Secure funding for the Social Enterprise Investment Fund.
- Develop a robust impact measurement framework for social enterprise initiatives.
- Establish strategic partnerships with key stakeholders in the social enterprise ecosystem.
- Advocate for policy changes that support the growth of social enterprises.
By taking these steps, Dasra can position itself as a leading force in the development of a thriving social enterprise ecosystem in India, creating a lasting impact on the lives of millions.
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Case Description
Dasra, a pioneer in the Indian Strategic Philanthropy space founded by a husband and wife team, had grown and evolved with the fast changing philanthropy scene in India. By 2017 it had managed to raise nearly $100 million of new capital for NGOs and Nonprofits in India. At the same time, the rapid growth demanded internal changes that stretched the organization and raised questions regarding structures, systems and capabilities.
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