Theoretical Sample Defined

The panel of experts first assisted in defining a shortlist of potential pairs of high performing and average performing social enterprises within their respective networks or cluster. From the shortlist, the researcher chose a preferred pair and an alternate pair. The pairs chosen by the researcher were what seemed the most similar, and hence comparable, in terms of their nature of products or services, the nature of the poor served, age and size in terms of assets or revenues. In all three pairs, the preferred pair was validated by the panel of experts as an appropriate set of cases for the theoretical sample given the basis used by the researcher. Table 2.1. shows the matched pairs of social enterprises that were identified for the theoretical sample.

The 3 cooperatives among the 6 case subjects, such as Lamac MPC, Cordova MPC and the PWD Fed, by their nature also featured the poor as owners of the social enterprises. The 3 others, Alter Trade, Upland Marketing, and Tahanan, were not owned by the poor in the beginning. However, in both Alter Trade and Upland Marketing, the social enterprise system that evolved over time included people’s organizations, cooperatives or community-based enterprises owned by the poor by virtue of partnerships with these entities (in the case of Upland Marketing) or as a direct result of organizing and capacity development services provided by the social enterprise (in the case of Alter Trade)

Table 2.1. Matched Pairs of SEPPS in Theoretical Sample Fair Trade Network

(Poor as Suppliers)

PWD SE Cluster (Poor as Workers)

Coop Cluster (Poor as Clients) Alter Trade Group

(Alter Trade)

National Federation of Cooperatives of Persons with Disability (PWD Fed)

Lamac Multi Purpose Cooperative (Lamac MPC) Upland Marketing Foundation

Inc.

(Upland Marketing)

Tahanang Walang Hagdanan (Tahanan)

Cordova Multi Purpose Cooperative (Cordova MPC)

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Table 2.2. Poverty Sectors Served by SEPPS in Theoretical Sample Name of Social Enterprise Description of Poverty Sector(s)

Served

Scale of Reach

Alter Trade Agrarian reform beneficiary-sugar farmers; 9

Backyard growers of bananas (naturally grown Balangon variety)

820 sugar farmers in 1 province (Negros Occidental) and 3,493 banana growers spread nationwide

Upland Marketing Community-based producers of food: majority are muscovado sugar producers and organic rice farmers

60 community-based enterprises with 3,000 poor producers as members/partners in upland, lowland and coastal communities nationwide

PWD Fed Unemployed persons with

disability (PWD) trained to manufacture school chairs

1,250 PWDs organized in 15 cooperatives nationwide Tahanan Unemployed persons with

disability trained in metal craft, woodwork, needlecraft

273 PWD employees, workers, producers and students Lamac MPC In Lamac: upland farmers and

livestock raisers, construction, domestic and migrant workers and entrepreneurial poor

In other areas: entrepreneurial poor

35,040 poor representing 90% of 38,933 members in various provinces located in the Visayan region10 Cordova MPC Artisanal fishers, handicraft

makers, tricycle and trisikad drivers, workers, entrepreneurial poor

5,694 or 90% of 6,327 members spread in 1 municipality (Cordova) and in 1 city (Lapu-Lapu) in Cebu province11

In terms of age, the social enterprises have been in existence for a period ranging from 15-38 years and have annual revenues ranging from PhP 24.0 million to PhP 202.8 million. Details of the age and annual revenues of the SEPPS in the theoretical sample are contained in Table 2.3.

The researcher noted the diversity and complexity of organizational forms between and among the social enterprise pairs chosen. Table 2.4. provides details of these diversities and complexities.

Alter Trade and Upland Marketing (as one pair) were both multiple organizations, while the pair comprising of Lamac MPC and Cordova MPC were single organizations. Only the pair of PWD Fed (multiple organization) and Tahanan (single organization) exhibited a marked difference in terms of complexity of

9_{Former workers of big lands called haciendas that used to be owned by sugar barons or landlords, who were awarded} part of the land they were tilling under the Comprehensive Agrarian Reform Program of government.

10 _{The other 10% of members are professionals and salaried employees like teachers, and government employees} 11 _{The other 10% of members are professionals and salaried employees like teachers, and government employees}

organization. The most complex of the social enterprise cases in terms of organization was Alter Trade as it exhibited the most variety of organizational forms, and the only one that utilized a stock-for-profit corporation (e.g. Alter Trade Corporation) as a subsidiary of the Alter Trade Foundation.

Table 2.3. Age and Revenues of SEPPS in the Theoretical Sample Name of Social Enterprise Years in existence (year

established)

Annual Revenues (M means millions of pesos)12

Alter Trade 21 (1988) PhP 202.8 M (2007) Upland Marketing 17 (1992)13 PhP 32.0 M (2007) PWD Fed 15 (1994) PhP 48.0 M (2007) Tahanan 36 (1973) PhP 24.0 M (2007) Lamac MPC 17(1992)14 PhP 101.4 M (2008) Cordova MPC 38 (1971) PhP 25.8M (2008)

The researcher noted that the organizational diversity and complexity of the social enterprises was unavoidable. The researcher observed that the multiple organizational cases (Alter Trade, Upland Marketing and PWD Fed), without exception, involved cooperatives or associations of the poor that were intentionally organized and linked to the core social enterprise at the onset (in the case of PWD Fed) or over time (in the case of Alter Trade and Upland Marketing). This indicated that the diversity of organizational forms might have represented different ways that the social enterprises engaged the poor, the main area of inquiry of the dissertation.

Table 2.4. Diversity and Complexity of Organizational Forms in Theoretical Sample

Name of Social Enterprise Organizational Form(s) Organizational Complexity Alter Trade Corporations, foundation,

cooperatives/associations

Multiple organizations Upland Marketing Foundation, cooperatives/

associations

Multiple organizations

PWD Fed Primary cooperatives,

cooperative federation, foundation

Multiple organizations

Tahanan Foundation Single organization

Lamac MPC Cooperative Single organization, with area-

based chapters

Cordova MPC Cooperative Single organization, with area-

based branches

12

PhP stands for Philippine pesos, the local currency. Exchange rate is about Php 46 to 1USD

13

The Foundation was set up in 2000 but it evolved from an Upland Marketing Program set up in 1992

14_{Lamac MPC has its roots in the Lamac Samahang Nayon composed of farmers set up in 1973. After experiencing}

management and leadership problems resulting to its financial decline, the Lamac Samahang Nayon was reconstituted in 1992 into a multisectoral and multipurpose cooperative called the Lamac MPC with a local professional group taking over the management.

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The relationship between organizational complexity and the nature of stakeholder engagement among the poor was explored during the analysis phase and became the subject of one of the propositions (Proposition 6) and conclusions.