Why social entrepreneurs innovate: the motivations behind starting a social enterprise; new data related to inequality and happiness; the link between financial exclusion and poverty; and how social innovation has tried to tackle these problems.

Microfinance practices: the basics of microfinance, covering its historical roots and evolution, and the current provision of financial and non-financial services.

When a not-for-profit becomes a for-profit organisation: how institutions evolve beyond the not-for-profit structure; case studies exploring the impact, both internally and externally, of such a transition; and the concept of mission drift.

Sources of financing, mission drift and zoom out: how different sources of financing impact the social mission of microfinance institutions; the different strategies and practices to avoid mission drift in social enterprises; and what is specific to the commercialisation of microfinance and what is common to all social enterprises.

By the end of the course, you will be able to :

• Describe the context in which social innovations, such as microfinance, emerge.
• Explain the evolution and the main features of the microfinance sector, including products, services and organisational structure.
• Describe what happens when a not-for-profit organisation becomes a regulated for-profit company.
• Identify the practical implications of such a transformation.
• Produce different strategies and practices to avoid mission drift in social enterprises.
• Identify and discuss the managerial implications related to the shift of business model or to commercial sources of financing.
• Identify what is specific to the commercialisation of microfinance and what is common to all social enterprises.

Marek Hudon is a Professor at the Solvay Brussels School (SBS-EM), Université Libre de Bruxelles. He is the founder of the European Microfinance Program (EMP) and the co-director of CERMi and CEESE.