Fostering social change through social

entrepreneurship: Challenges and impact

A case study of the ViaVia cafe
Social insecurity, welfare, poverty, and development are societal challenges that we
often associate with developing economies. However, these institutional voids and
social opportunities are also at our front door. Belgium, like any other country is facing
societal challenges - recent flows of migrants from the Middle East and Africa, poverty
and social exclusion, the aging of the population and youth unemployment,
environmental issues including air quality control and renewable energy, are just a few
of the challenges that are apparent. Following the 2008 financial crisis, new and
innovative solutions need to be developed to tackle societal challenges, as public
support programs and resources are already stretched thin. Social entrepreneurship
can bring such a solution, by pursuing social goals in an entrepreneurial way and
contributing positively to society and its challenges.

DEFINING SOCIAL ENTREPRENEURSHIP

DRIVERS AND BARRIERS TO SOCIAL INNOVATION

A social enterprise is a hybrid organization that applies commercial

strategies to find solutions for social problems. The main difference
between entrepreneurship in the business sector and social
entrepreneurship lies in the relative priority given to social wealth
creation versus economic wealth creation [1]. Compared to
corporate social responsibility (CSR) whereby social responsibility
is separated from the business, a social enterprise has its social
mission at the core of its activities. For example, a tobacco
company can have a CSR strategy but cannot become a social
enterprise with the production and sale of tobacco related
products. Hence, for an organization to be considered a social
enterprise, a few defining and common characteristics are
evident; (1) the primacy of the social mission and environmental
mission of the enterprise; (2) generating a big part of its income
through trade; (3) reinvesting a big part of its profits in its social
mission, (4) and operating transparently.

In their endeavor in solving societal problems, social entrepreneurs

need to come up with new and innovative solutions that extend
beyond the traditional ways of overcoming societal challenges. In
order to be considered a social innovation, the business model
proposed must be more effective, efficient and sustainable then
the current alternative. Generally speaking, three main drivers affect
innovation in social enterprises. The main driver to innovate is to
increase the range and/or quality of their products and services.
Then, social entrepreneurs want to innovate in order to achieve
social goals by increasing and spreading the social impact, and
reducing environmental impact. Finally, social entrepreneurs
innovate to increase the enterprises financial sustainability and
expand its market [3].

Social entrepreneurs need to come up

with new and innovative solutions that
extend beyond the traditional ways
of overcoming societal challenges.

From a Belgian perspective, there is no legal definition of social

enterprise, and this is unlikely to change anytime soon.
However, some key elements characterize social enterprises
such as: primary social aim, self-generation of market income,
limits on distribution of profits and assets, independence and
participatory governance. As for the legal form, a category
exists in Belgium for enterprises with a social purpose, but it
is not widely used at this moment [2].

Despite programs put in place to support social entrepreneurship,

social entrepreneurs report a set of internal and external barriers
that hinder their development. Internal barriers such as lack of time
available, a degree of reliance on volunteers, and a lack of
qualifications in terms of human capital slow the development of
social enterprises. Often, social enterprises lack the financial
resources to hire qualified and/or enough human capital. Internal
resistance to change is also an internal barrier that hinders social
innovation. However, the most important barrier to social
entrepreneurs is cost-related. Much like commercial enterprises,
social enterprises face problems with the availability of finance and
the high cost of financing their projects. According to Bob Elsen,
co-founder of ViaVia caf: More and more social entrepreneurs
and projects are seeking external funding, while external funding
resources are not growing as rapidly. This therefore has resulted
in an increased competition for a piece of the same size pie.

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Research@FEB

MEASURING THE SOCIAL IMPACT

One key element that differentiates social enterprises from their
commercial counterparts is the double (even triple) bottom line.
As traditional businesses account for economic performance,
social enterprises need to take into consideration both economic
and social performances. The economic performance is relatively
easy to define and assess, whereby it is either a positive or
negative number with a Euro sign attached to it.

The challenge for social enterprises

comes from assessing the social
performance and impact.
Figure 2 ViaVia Jogja cooking class

The challenge for social enterprises comes from assessing the

social performance and impact. Quantifying and tracking social
impact aims to assess the social value produced by the
activities or operations of the social enterprise. Given the recent
development of this field, new social impact-driven instruments
are being developed, and various initiatives are undertaken to
raise awareness about the value of social impact measurement
amongst social entrepreneurs. However, given the limited
resources available in most social enterprises, such a task is
seen as an extra burden. One way to bypass such challenge is
to have social impact indicators embedded in everyday tasks.
Instead of seeing the measurement of social impact as another
bureaucratic undertaking, it could instead be used to enhance
a social enterprises performance. Another challenge, and given
the diversity of sectors in which social enterprises operate, it is
nearly impossible to come out with one size fits all social
indicators. Hence comparing social enterprises social performance
is no easy task. Additionally, these projects and initiatives do
not create value over night, but instead require extended
periods of time and experimentation before any results that can
be quantified begin to emerge. This push for assessment and
monitoring of social impact will favor those social enterprises
with tangible outcomes which may then translate to more
funding than organizations whose outcome is harder to account
for. ViaVia cafs are a great example.
THE CASE OF VIAVIA CAF [4]
ViaVia cafs are a space of encounter between
local populations and travelers. The hope
was that the sharing of experiences,
food, drinks, music, art, trips, tours, and
cultural and social projects would
bring people and cultures together in
an open-minded spirit based on
mutual respect. There are 16 ViaVias
across Africa, Asia, Europe, and
Central and South America. The idea
was to merge the ViaVia concept with
the local environment and community,
ensuring that each ViaVia was unique.
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ViaVia followed a soft franchising strategy. The ViaVia headquarters in Belgium developed general guidelines for franchisees
and co-invested with them, but each franchisee was free to
adapt his or her caf and activities in response to local needs
and aspirations. Each caf offers local and world food that relied
on local availability of ingredients and reflected the taste and
style of the owners and the community. Their emphasis on
sustainable tourism and sustainable businesses before profit
maximization have made the ViaVia cafs renowned social
enterprises. Amongst the ViaVia cafs, ViaVia Jogja in Indonesia
can be considered as the one taking this philosophy of
sustainability the furthest, with its far-reaching support of local
community projects. What started as a small project in 1995,
includes twenty years later:
(a) A caf that uses as much local and organic produce as
possible, preferring small local suppliers over larger ones.
(b) An art space for contemporary art exhibitions where young
artists can display their work. (c) In a joint venture with ViaVia
employees who co-invested to become shareholders, Mie and
Ingvild the ViaVia Jogja Co-founders set up a guesthouse
with seven rooms and two dormitories. Profits are shared
amongst the team. (d) A fair trade shop provides opportunities
for individuals and small groups to sell their products based on
principles of environmental sustainability, innovation and
creativity, and the economic empowerment of marginal groups.
(e) An artisanal bakery using the best bread-making techniques
using sourdough starters. (f) A travel agency offering ecofriendly alternative tours, including cooking and
traditional crafts courses, as well as
bicycle and walking tours of the city.
(g) A non-profit whose purpose is
to assist the community. For
these activities and the synergies
between them, ViaVia Jogja won
the 2013 Wild Asia Responsible
Tourism Award for the most inspiring
responsible tour operator in Asia.

Figure 1 ViaVia Jogja team

While income is generated through the caf, the guesthouse,

the fair trade shop, and the local tours, Mie and Ingvild reinvest
part of these revenues in a multitude of social projects. Over
the past 20 years, they have supported or initiated more than
50 projects impacting the whole community. Some of the
projects initiated/supported include: free annual training for
people interested in becoming tour guides; supporting small
projects such as a street festival for street kids, a small
environmental festival, or religious activities for the transgender
community; financing the studies of children through their
dance and art educations; small grants have been provided to
help individuals from vulnerable groups set up sustainable
businesses and social enterprises; to reduce their environmental
footprint, a tree is donated through the ViaVia Jogja travel
department for every tour made by car or for every two
motorbike tours; following the 2006 earthquake, ViaVia Jogja
assisted in the reconstruction of 26 of their staff members
homes and also contributed and raised funds for a series of
relief and rehabilitation initiatives across the affected area,
including the rehabilitation of a destroyed art studio and a
kindergarten. Furthermore, they have provided food and nonfood items to 3000 individuals.
The ViaVia case is a good example of how calculating social
impact can be a challenge. As economic performance is
relatively easy to determine for ViaVia Jogja, the challenge
stems from evaluating social performance. The social mission
is so engrained in ViaVias day-to-day operations that it
was difficult for Mie and Ingvild to isolate how much was
(re)invested in social projects. For instance, the choice to work
with small organic farmers meant that the cost of ingredients
went up, but this was not counted as a project investment.
In conclusion, while the social benefits are not easily measurable,
it is for sure that social enterprises such as ViaVia Jogja, play
a key role in making the society a better place.

References:
[1] Mair, J., & Marti, I. (2006). Social Entrepreneurship Research:
A Source of Explanation, Prediction, and Delight. Journal of
world business, 41(1), 36-44.
[2] Huysentruyt, M., Lardinois, I., & Oers, B. (2014). The State of
Social Entrepreneurship in Belgium. SEFORIS Country Report.
[3] Huysentruyt, M., & Kint, A., Weymiens, S. (2013). Mapping of
social enterprises in Belgium. I-propeller with support of the
King Baudouin Foundation.
[4] Andries, P., & Daou, A. (2016). Teaching Case: ViaVia Yogyakarta:
Choosing the Right Strategy to Maximize Social Impact.
Sustainability, 8(1), 70.

Given the diversity of sectors in which

social enterprises operate, it is nearly
impossible to come out with one size
fits all social indicators.

This project has received funding from the European Unions Seventh
Framework Programme for research, technological development and
demonstration under grant agreement no 613500.

About the author:

Alain Daou, PhD
Research Associate | Seforis.eu
MSI Department | KU Leuven
[email protected]
For more information:
www.seforis.eu
www.mdpi.com/2071-1050/8/1/70/pdf
www.joker.be
www.viaviajogja.com

ViaVia cafes from the perspective of

co-founder Bob Elsen (Ekonomika Alumni)
Human Development is about creating an
environment in which people can develop
their full potential and lead productive,
creative lives in accord with their needs and
interests. (United Nations Development
Programme). The booming tourism industry
is such possible environment. By its
leverage on most economic sectors, it is
a motor for increasing prosperity for local
communities, both at the micro level of
involved individuals and their families,
and at the level of the communities in
the region where they live and work.
In this environment the ViaVia Traveller
Cafes have taken their significant place.

The ViaVia family belongs to the Joker/ViaVia Network.

From the beginning, the aim has been to set up a global
network that contributes to an open and enjoyable world
where people, planet, profit and pleasure are in harmony, and
that connects people and make them aware of the positive
aspects of difference. The first ViaVia Travelers Cafes opened
in 1995 in Leuven and in Yogyakarta.
Today 16 ViaVia are operating in 12 countries on 4 continents.
They can be found in Belgium (2 in Leuven, Brussels, Antwerp,
Mechelen); Argentina (Buenos Aires); Chile (Valparaiso); China
(Chengdu); Ethiopia (Addis Ababa); Honduras (Copan); Indonesia
(Yogyakarta); Mali (Mopti); Nicaragua (Lon); Peru (Ayacucho);
Senegal (Dakar); Tanzania (Arusha). New ViaVia are on the road.
ViaVia s are meeting places between East and West, North and
South, committed to sustainable tourism as a vehicle for socioeconomic development and increased tolerance.
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Thus, locally embedded meeting places are developed where

inhabitants, students, artists, as well as travelers from around
the world can meet each other in a warm atmosphere. Its a
relaxing spot for those who are on the road, or, when in your
own country, a window on the world.
ViaVia are based on our Belgian caf culture and are:
places to connect: the dynamics of a global neighbourhood
with an international atmosphere that stimulates enriching
encounters and exchanges, where people feel at ease.
places to enjoy world flavours: a laidback, humorous,
contemporary blend of restaurant and bar, where hospitality,
kindness and service take a central spot.
places to explore: a window to the world by creating a bridge
between people and cultures. ViaVia organizes alternative
city tours, day trips, exhibitions, cooking, music and dance
classes, .
ViaVia are a value driven community built on the principle of
unity in diversity: each ViaVia is unique, each one is different.
They are based on an organic growth, starting from a
Joker/ViaVia philosophy based on 4 values: open-mind, respect,
dialogue and amazement.
Contribution to a sustainable society plays a key role in the ViaVia
organisation. Social innovation focuses attention on more effective,
efficient and sustainable ideas and solutions that primarily create
added value for society as a whole, rather than for private
individuals or organisations. The themes that are boosted
concentrate on ViaVia s longstanding priorities: strengthening
entrepreneurship, local job creation, community empowerment,
inclusive society and sound financial management.
Already In 2000 the Joker/ViaVia Network received the Belgian
bi-annual Award International Partnership for Sustainable
Development by the Federation of Enterprises in Belgium (FEB).
Criterion was that the ViaVia/local community partnership was
based on the principles of fairness, transparency and mutual
cooperation. Meanwhile, the ViaVia Traveler Cafs increasingly
received requests from local people for advice and training to
get a firmer grip on the growing tourism sector. In order to give
an adequate answer, the Joker/ViaVia Network founded in 2001
the non-profit organization Living Stone Dialoog.

In 2005, as an response to globalization Living Stone Centre for

Intercultural Entrepreneurship is founded as a spin-off of Leuven
Research & Development (KU Leuven). In 2012 Living Stone
Dialoog and Living Stone Centre join their forces and evolves to
ViaVia Tourism Academy (VVTA). The Joker /ViaVia Network
relies on ViaVia Tourism Academy for the coordination of the
global network of ViaVia. Individually the ViaVia may count on
VVTA for training support, expertise and advice in the fields of
sustainable tourism, entrepreneurial capacity building and
intercultural competence development. Fundamental is the
strengthening of the human competences and capabilities of
the members and local stakeholders.
To achieve this, the VVTA builds on a dynamic Knowledge
Experience - Sharing triangle:
Translate state-of-the art knowledge and field experience into
hands-on tools for Vocational Education & Training. This in
cooperation with KU Leuven, UCLL, Thomas More,
Apply the learned in-house to strengthen the development of
Joker, ViaVia Traveler Cafs, Joker Project Fund, ,
Share the applied knowledge and tools to private and public
beneficiaries in South and North regions. (Vocational training
for tourism professions , existing and start ups SMEs, tour
guides, front desk staff, product developers .., in Belgium,
Malawi, Mozambique, South Africa, Vietnam, Peru, China,
.; Active member of Innoguide Consortium, a European
Leonardo project in the lifelong learning program; Coordinator
of the Learning Network Sustainable Tourism in Higher
Tourism Education in Flanders)
In 2015 ViaVia Tourism Academy, together with the city of
Mechelen, is rewarded by European Commissioner Marianne
Thijssen and Flemish minister Philippe Muyters the title of
ESF Ambassador for their transnational project "Caf Herman.
A warm town full of diversity. Caf Herman put ethnic
entrepreneurs on track to find the right services for their
enterprise or shop. This results in more stability, in a better
integration in the urban economic environment, and in a more
sustainable growth of their business.
More info: www.viaviacafe.com
www.viaviatourismacademy.com

Two members of Ekonomika Alumni have been involved

with ViaVia from the early beginning, in 1995. Bob Elsen
is co-founder and CEO of the Joker/ViaVia network.
Arlet Wils is the creative chef who is in charge of the culinary
delights of ViaVia in Leuven. You are more than welcome to
join her in ViaVia Leuven, Parkstraat 146 (tel) from Monday
til Friday (10am til 11pm) and on Saturday evenings.
ViaVia combines tasty food with a cosy atmosphere.

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