The NZ Centre for Social Innovation closed last week due to lack of funds. NZCSI were an Auckland-based organisation that facilitated the early introduction of new thinking and international expertise on social innovation process, policy, and models. They imported and piloted the School for Social Entrepreneurs programme and consistently sought to bring about greater collaboration in this emerging field.
It’s sad to see an organisation seeking to do new and innovative work go, and reflects the wider struggle New Zealand faces in getting resources and talent into formative areas which are rapidly taking off in other countries we consider our peers. The wider field that covers social innovation, entrepreneurship and enterprise will take time and investment to take shape and become functional. But with JP Morgan predicting the global impact investment market to be up to US$1 trillion by 2020 we should seriously start to think about how we build the capability and organisations that can access and benefit from these significant new capital markets.
On the demand side, key indicators of our social, cultural, and environmental health continue to provide deep cause for concern - inequality in New Zealand is rising faster than in any other OECD country; greenhouse gas emissions reached their highest level ever this month; and anti-depressant prescriptions have increased 3% in the last year. If the wicked problems are not managed, indeed resolved, they will erode economic value and leave us with a society that is the antithesis of what we actually want - fair, respectful, caring, cohesive and resilient. Whether you’re on the left or the right, these issues are non-negotiable - neither growth or community will flourish if you degrade the basic components that are necessary for both.
It is a cliche and a truth that if we do not find new ways of approaching, designing and executing solutions to difficult problems, then we will not get different results. Social innovation is the deliberate act to address systemic failures and use resources more effectively. This is not a soft intent - the development of a global micro-finance solution that addresses the market failure of financial services and serves the needs of billions was not the result of a soft intent. Social innovation is hard, practical and focused on the things that pose the most risk and are of critical importance. It brings the social, economic, and environmental together in an interdependent model of value - with people at the centre.
The challenge of developing new understanding, models, capabilities, and markets is well documented - and we’ll happily share the resources that we’ve found the most insightful and pragmatic. It will require investment and bear risks but we can afford this because the returns and impact will be high. The city of San Paulo has committed 1% of its tax take to innovation - and investment into people, experimentation, and enterprise.
If we don’t invest in new organisations and people establishing the building blocks of this new and exciting field of social innovation and enterprise, as they have done at scale in Canada, Australia, Singapore, and the UK, we will fall behind a global trend. I, for one, am getting a little sick of talking about the ‘image’ of a clean, green country, or being part of a culture that claims an aptitude for ingenuity and practical solutions. I want the real thing.
Alex Hannant
Executive Director