Criteria for Selection into the Schwab Foundation Network

Social entrepreneurs can work in various fields. Among the most common areas are health, education, environment, micro-finance and enterprise development. Since a balanced intervention requires an integrated approach, their activities often span several fields at the same time. When selecting the members for its network, the Schwab Foundation applies a number of criteria that together characterize an outstanding social entrepreneur.

The top 3 most important criteria are:

1. Innovation: The candidate has brought about social change by transforming traditional practice. Such transformation can have been achieved through

• an innovative product or service,
• the development of a different approach, or
• a more determined or rigorous application of known technologies, ideas and approaches.

A salient characteristic of a social entrepreneur is coming up with a pattern-changing idea and implementing it successfully.

2. Sustainability: The candidate has generated the social conditions and/or institutions needed to sustain the initiative and is dedicating all of his/her time to it.

• If set up as a non-profit entity, the organisation is achieving some degree of financial self-sustainability through fees or revenues or is engaged in creating mutually beneficial partnerships with business and/or the public sector. Where possible, economic incentives are embraced. In any case, there is a clear difference from traditional charity and a move towards community-based empowerment and sustainability. There is also a difference with traditional business.
  
• If set up as a for-profit entity, the orientation toward social and environmental value creation predominates, with financial return treated as a secondary means to an end, rather than an end in itself.

3. Direct social impact: The candidate has founded, developed and implemented the entrepreneurial initiative directly, together with poor or marginalised beneficiaries and stakeholders. Impact manifests itself in quantifiable results and testimonials and is well documented. There are no significant negative externalities.

The Schwab Foundation will also consider the following criteria:

4. Reach and Scope: The social entrepreneur’s initiative has spread beyond its initial context and has been adapted successfully to other settings in the country or internationally, either by the entrepreneur him/herself, or through others who have replicated or adapted elements of it.

5. Replicability: The initiative can be adapted to other regions of the world to solve similar problems. The entrepreneur is open to sharing with others the tools, approaches and techniques that are critical to the adaptation of the initiative.