Social entrepreneurship is on the rise in Indonesia, and often using online platforms to promote positive change. William Hendradjaja is Program Director of the Social Innovation Acceleration Program (SIAP), which is fostering the next generation of social entrepreneurs.
Can you briefly describe SIAP?
The Social Innovation Acceleration Program (SIAP) is an education platform and an acceleration program for early-stage social entrepreneurs. Our goal is to become a launch pad for social enterprises in Indonesia and work with them to create long-term sustainable impact and solve some of the country’s most pressing economic and social issues.
SIAP focuses on entrepreneurs with ideas and solutions to create positive impact and drive change through business, and assists them to further grow their product. In the process, we provide entrepreneurs with mentorship, personal, team and business development, knowledge resources, as well as impact assessment methodology and community support.
We have two main incubation programs:
First, Social Enterprise Development (SED) Bootcamp for two months. There are 15 Workshop Sessions delivered by our mentors and board of directors. This bootcamp is dedicated for aspiring, ideating to early stage social entrepreneurs.
Second, Advancement Stage. In our Social Enterprise Advancement Stage (SEAS), we offer hands-on venture building methods. We aim to intake early stage social enterprises that have been established for more than six months and have a validated minimum viable product with solid traction and at least one full time founder. We are using an equity-sharing venture building model where we will sweat equity in the social enterprises who are entering our advancement stage with a maximum of 12.5% of shares in the company.
You refer to SIAP as an “incubator for social enterprise development programs.” How can you make such incubation profitable?
We are experimenting with business models, and we can say that we are the first paid social entrepreneurship bootcamp model. We were successfully able to cover operational costs in our last two cohorts. Next, we are also trying to create a licensing model for the SED Bootcamp Program. In the next five years, we plan to scale our SED Bootcamp program to 15 cities around Indonesia by collaborating with local ecosystem builders. We want to expand our network and collaborate with local change-makers to use our curriculum to help develop local social entrepreneurs.
There is skepticism here in Indonesia about startup and social enterprise incubators, since the success rate is low. How do you answer this challenge?
Venture Building Acceleration Model. The Social Enterprise Advancement Stage (SEAS) is our latest innovation to answer the critical question “why have so many startup incubation programs failed to produce good-quality startups that not only survive, but are also able to grow their product, team and impact sustainably?” We understand that for product stage startups, the mentor acts as a good motivator and source of knowledge. However, these startups need more than a mentor; they need a partner who can help them get things done in the most effective and productive way.
And so we not only act as a mentor, but more as a team that helps the founders in specific working areas so that they can focus on their core areas of work. In implementation, we will put one facilitator to work side by side with the founding team for at least two days a week for six months.
Our SEAS focus helps the founders on three main working areas: Product Development, Network Enhancement, and Impact Assessment. In Product Development, we help founders develop their digital product as a Product Development Manager–from creating the digital roadmap, to doing customer research and step-by-step developing the digital product through continuous iteration. If needed, we can also assemble the in-house development team for the startup. In Network Enhancement, we help the founders expand their network by connecting and onboarding the right partners–from creating a stakeholder mapping, creating the pitch deck, pitching and presenting on behalf of the team, and focusing on onboarding the right partner, investor, advisor, and mentor. In Impact Assessment, we help founders optimize their social impact in a sustainable way. From creating the change theory for the startup, understanding deeply about the targeted community, and assessing the impact on a routine basis as a guide for the development of the startup.
SIAP is currently recruiting its second batch of incubatees. Can you provide examples from the first batch of how SIAP is supporting social enterprises and what difference they hope to make?
We have a different Key Performance Indicator to determine success for our main programs:
For SED Bootcamp: participants are able to validate ideas and building a MVP/Prototype maximum 3 months after the bootcamp is finished. One example is Rhaka Ghanisatria, The Co-founder of Menjadi Manusia. Rhaka is part of our SED Bootcamp Batch 1. He successfully launched his idea– which is to create a media/video content about sharing perspective—right after the program finished. Just two weeks after launching, he managed to get 17,000 subscriptions to his youtube channel.
For Social Enterprise Advancement Stage: becoming investment ready after finishing the program (one year of Advancement Stage), which includes 1) Get Equity-based Investment; 2) Create a Clear Impact Metric and Solid Business Model; and 3) Product Development. An example here is Indri Mahadiraka, Co-founder of Saveyourselves.id. Indri has a vision to help increase awareness about Mental Health in Indonesia. Through her platform, she wants to help people with mental health problems to get help online through a chat platform and also create a suicide prevention hotline. Indri is part of our Advancement Stage in 2017 where we have managed to help her successfully revamp her website and digital products and help her creating a solid business model plan.
What do you look for in incubatees?
Our main focus is with impact-driven startups that have a valid business model to scale. We don’t focus on specific technology but rather on the potential of the business model that can drive positive change in a sustainable manner. We regard our program as a founder’s incubator program since we believe that it is the people behind the company that will make or break it.
Our three main focus sectors are Education, Health and Agriculture. Although for our Social Entrepreneurship Development Bootcamp we didn’t specify any sector, since this stage is more for aspiring and ideation stage social entrepreneurs.
You mention that SIAP is part of the Impact Hub network. Can you explain how this network benefits your incubatees? And how else do you promote networking within the broader innovation ecosystem?
Yes, specifically with Impact Hub Jakarta. They have been supporting the SIAP program from the beginning. Impact Hub Jakarta offers a venue for events/gathering and co-working space. This gives value and provides a sense of “home” for our incubatees. Not only that, Impact Hub Jakarta, as part of the global network of change-makers, also helps us to look for opportunities beyond Indonesia. We see potential collaboration to expand our program abroad and also to learn from others as well.
We are trying to reach out to as many partners as possible, from co-working spaces, ecosystem builders/enablers, government, NGO, fellow incubators, entrepreneurs, and agencies. Furthermore, we have created an alliance of sorts with other local impact actors such as ANGIN, Instellar, Impact Hub Jakarta, Limitless Campus, PLUS, KINARA, and Patamar Capital. For example, we send selected entrepreneurs from our SED bootcamp to Instellar’s Rise.inc incubation program. This has helped create a more sustainable pipeline of social enterprises in Indonesia.
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Image credit: William Hendradjaja