Title: The Solution Revolution: How Business, Government, and Social Enterprises Are Teaming Up to Solve Society’s Toughest Problems

Authors: William D. Eggers and Paul Macmillan

Year of Publication: 2013

Category: Social Entrepreneurship

Summary Structured into Major Points

Introduction

William D. Eggers and Paul Macmillan’s “The Solution Revolution” explores how various sectors—government, business, and social enterprises—are collectively addressing some of society’s most daunting problems. The book argues that traditional approaches, dominated by fragmented efforts and limited governmental interventions, are being supplanted by collaborative, cross-sector initiatives that are scalable and more impactful. The authors articulate the emergence of what they term the “solution economy,” wherein problem solvers from different walks of life come together to create lasting social value.

1. The Emergence of the Solution Economy

Key Point: The novel idea of the “solution economy” is driven by the shift from a conventional economic model to one that is solution-oriented.

Concrete Example: Halloran Philanthropies invested in microfinance institutions like Kiva which provide small loans to budding entrepreneurs in developing regions, fostering grassroots economic growth.

Actionable Step: Individuals can contribute to platforms like Kiva by offering microloans, enabling them to directly support entrepreneurial ventures in underserved communities.

2. The Power of Hybrids

Key Point: Hybrid organizations blend elements of business, non-profit, and governmental sectors to tackle societal issues more effectively.

Concrete Example: The RED campaign collaborates with major brands like Apple and Starbucks to sell (RED) products. A percentage of profits from these products goes to the Global Fund to fight AIDS, tuberculosis, and malaria.

Actionable Step: Support hybrid initiatives by choosing products that contribute to social causes, fostering a market-driven impact model.

3. Government as a Platform

Key Point: Governments can serve as enablers by creating platforms that facilitate partnerships, data sharing, and open innovation.

Concrete Example: The UK government’s data.gov.uk portal makes public data freely available, allowing developers to create innovative solutions for public services such as transport and healthcare.

Actionable Step: Utilize open government data to develop apps or initiatives that solve local community problems, making information work for social good.

4. The Rise of Marketplaces for Social Innovation

Key Point: Marketplaces for social innovation connect those with problems to those who can provide solutions, much like a traditional marketplace connects buyers and sellers.

Concrete Example: Challenges such as the XPRIZE utilize this marketplace concept by offering substantial rewards to contestants who develop breakthrough solutions in fields like energy, robotics, and space exploration.

Actionable Step: Participate in challenge-based platforms (e.g., XPRIZE competitions) to contribute to high-impact, innovative projects.

5. Funding Social Innovations

Key Point: Innovative funding mechanisms are crucial in scaling social impact. These include impact investing, crowd-funding, and social impact bonds.

Concrete Example: Social impact bonds, like those used in Rikers Island prison in New York, fund social programs through private investment that are repaid by the government if and when programs achieve agreed-upon outcomes.

Actionable Step: Invest in or support social enterprises through platforms like Indiegogo or Kickstarter, helping to fund projects with clear social benefits.

6. Social Impact Bonds and Pay-for-Success Models

Key Point: Pay-for-success models ensure that funding is outcome-based, encouraging efficiency and efficacy in social programs.

Concrete Example: Peterborough Prison in the UK utilized social impact bonds to implement a program aimed at reducing recidivism. The savings from reduced re-offending rates would be shared between investors and the government.

Actionable Step: Advocate for or initiate pay-for-success contracts within your community to ensure the efficient use of public funds in tackling social issues.

7. Technology as a Driving Force

Key Point: Technological advancements are critical to the success and scalability of the solution economy.

Concrete Example: Mobile health initiatives (mHealth) leverage mobile technology to provide medical access in remote and underserved regions. Apps like Mobile Midwife aid prenatal care in rural Ghana.

Actionable Step: Develop or promote the use of tech solutions (e.g., health apps) that can be easily adopted to address local needs and improve quality of life.

8. The Role of Measurement and Data

Key Point: Measuring impact and utilizing data-driven insights are foundational for improving and scaling social programs.

Concrete Example: Apps like GoodGuide provide consumers with data on the environmental and health impacts of products, helping them make informed purchasing decisions.

Actionable Step: Incorporate data analytics in assessing the impact of social initiatives to ensure continuous improvement and scalability.

9. Cross-sector Collaboration

Key Point: Cross-sector collaboration brings together diverse skill sets and resources from business, government, and non-profits to tackle complex problems.

Concrete Example: The partnership between Cisco Systems and the city of Barcelona to create a smart city infrastructure, improving urban mobility and sustainability.

Actionable Step: Foster partnerships between your organization and both private companies and government bodies to leverage each sector’s unique strengths for common goals.

10. The New Role of Philanthropy

Key Point: Philanthropy is evolving from traditional grant-giving to more strategic and impactful investments.

Concrete Example: The Skoll Foundation actively funds social entrepreneurs whose ventures promise significant social return on investment, focusing on scalability and sustainability.

Actionable Step: Align philanthropic efforts with strategic goals, focusing on funding projects that offer measurable social impacts and potential scalability.

Conclusion

Eggers and Macmillan’s “The Solution Revolution” underscores a paradigm shift towards collaborative efforts in solving societal issues. By leveraging the strengths of government, businesses, and social enterprises, the solution economy emerges as a robust framework for addressing global challenges. Readers are encouraged to actively participate in this revolution—whether through financial support, innovation, or cross-sector collaboration—to effectuate meaningful and lasting social change.

Takeaway: Engage with initiatives that blend social impact with sustainable business practices, support tactical funding approaches like social impact bonds, and leverage the potential of technology and data to drive and measure impactful social innovation.