Introduction
Aravind Eye Care Systems is the largest eye care provider in the world. The hospital chain was formed in 1976 in Tamil Nadu, India by Govindappa Venkataswamy, a world-renowned ophthalmologist. (Ruth, 143) Ever since it was founded, Aravind has performed over 3 million eye surgeries and treated more than 30 million patients, mostly in India. The mission objective of Aravind is to eliminate treatable blindness and other eye problems by providing compassionate and high-quality eye care to all. To achieve this mission objective, the organization pursues its goals by strict attention to cost management, waste reduction, elimination of low-value processes and commitment to operational excellence. In a way, Aravind can be considered a mass service provider because it focuses on a reduced portfolio of specialized eye care services performed on a large scale (Ruth, 143). Although the founder is no more, he left behind a very rich legacy, which has seen Aravind flourish ten years after his demise. The hospital chain has attained a significant presence in India, especially in the southern states. As a social enterprise, its chain of hospitals and eye care centers serve millions of urban and rural poor people. The organization has a modern training school and a medical equipment factory. Unlike its competitors, Aravind’s business is based on a unique service-oriented model. In this model, free eye care and treatment are provided to those who cannot afford the services. For all other patients, affordable eye care services are available (Ruth, 143).
About AECS Founder
Dr. Govindappa Venkataswamy was born in 1918 in India’s southern state of Tamil Nadu. He studied ophthalmology at various Indian universities including the American College (Madurai), the Stanley Medical College (Madras) and the Government Ophthalmic Hospital (Madras). Upon graduation, he joined the Indian Army where he worked as a specialized eye physician. After four years in the military, Venkataswamy joined the Government Madurai Medical College as the head of the Ophthalmology Department. He also worked at the Government Erskine Hospital (Madurai) as an eye surgeon for 20 years. During this time, Venkataswamy conducted a lot of research in ophthalmology, clinical best practices and community programs. He also wrote articles in these areas. Having treated a large number of people with preventable blindness, Venkataswamy came up with the idea that the best way of dealing with this problem was by initiating mobile clinics in rural areas and far-flung villages (Francesco, 52-63).
When he retired in 1976, Venkataswamy founded the Aravind Eye Care Systems. Initially, it was a small hospital with a bed capacity of eleven people. In Venkataswamy own word, the reason for starting the hospital was to eradicate blindness by enabling poor people to gain access to eye treatment services. Accordingly, Venkataswamy developed mass-marketing programs and a surgical process that paralleled an assembly line to assist people with cataracts and other eye problems. This arrangement allowed the hospital to provide free eye care to a very large number of patients using the small revenue generated by paying patients. Over the years, the organization has grown into the largest not-for-profit eye care facility in the world. Venkataswamy died in 2006 having received many awards including the Padma Shri (1973), the WHO Award for Health for All, the Academy International Blindness Prevention Award, International Social Entrepreneurship Award and the Medal of the Presidency of the Italian Republic Award among others. He is best known as a leading social entrepreneur in the field of ophthalmology (Francesco, 53-63).
Aravind’s Social Enterprise Business Plan
Social enterprises are business organizations, which exist purposely to address specific social, environmental or cultural issues. Like all other businesses, social enterprises operate in competitive commercial markets and generate revenue from their operations. However, social enterprises are not motivated by profit but aim to fulfill an overriding social purpose. The business plan of a social enterprise has two important components: mission and financial resilience. Mission refers to the specific goals, which a social enterprise aims to address or champion. Financial resilience on the other hand refers to the ability to meet mission objectives without being profit motivated (Pavithra & Suchitra, 43).
Aravind Eye Care Systems is one such enterprise. As a social enterprise, Aravind’s mission is to eliminate curable blindness by offering free or low cost eye treatment to all people. Making profit is not the primary motivation of Aravind business plan. Instead, the organization focuses on the greater good of addressing the social issue of blindness in a country where millions of people are suffering from blindness-related problems. Although there are many initiatives that provide free eye care in India, Aravind’s social enterprise plan differs from all these others in the volume of work and the unparalleled financial resilience. No other eye facility in the world matches Aravind’s routine outpatient and eye surgical volumes. In addition, no other organization in the medical field provides such essential services to millions of poor people at the scale of Aravind’s in the confines of a self-sufficient business plan (Pavithra & Suchitra, 43-45).
Evaluation of Aravind against SEI Framework of Social Enterprise
The SEI framework of social enterprise provides a general criterion for testing whether an enterprise is indeed a social enterprise. The framework gives further guidelines for evaluating whether a social enterprise is a high-performing one, and whether it is sustainable. High performing social enterprises are motivated by the desire to have a significant social impact within their business domains, are innovative in the way they achieve this impact and are designed to operate in the most efficient manner (Jill & Sophie, 13-15). The SEI framework addresses six key areas as highlighted below:
Was the founder of the social enterprise motivated by social impact or by profit? The founder of Aravind, Venkataswamy, was motivated by the desire to end blindness in India. While working for the government, he witnessed large number of Indians in dire need of eye treatment. This motivated him to start an organization that could help these people.
Is the enterprise using the right business model for the chosen social cause? This refers to whether an enterprise is using a profit model or a not-for-profit model to advance its social impact. Aravind operates on the not-for-profit model and seeks to serve as many people as possible even if they are not in a position to pay for the services.
Are there sustainable innovations at the core of the enterprise? Aravind is one of the most innovative enterprises. The organization has its own factory where it manufacturers medicines, eye lenses and other equipments at reduced costs. In addition, the organization trains a large number of professionals to offer voluntary services.
Does the enterprise measure and evaluate the outcomes of its social causes? Aravind measures its social impact through the number of patients treated and surgeries conducted as well as number of eye care centers established. So far, the organization has treated over 30 million people, which is a very big social impact.
Is the enterprise sustainable? Aravind has been in business for forty years and has put in place various mechanisms to ensure long-term growth and survival. These include leadership training and succession planning. In addition, the organization operates on a modest budget, which ensures reduced expenses.
Is the enterprise scalable? The Aravind business model can be replicated in other places and sectors of the economy to address social issues.
Is the enterprise scalable? Scalability refers to the potential for growth with greater impact. Aravind has been growing each year with the volume of patients doubling over the past decade. Although its profit is very small, the number of patients it serves is very big.
Conclusion
Based on the SEI framework of social enterprises, Aravind is a good and high performing social enterprise. The organization was founded with the sole motive of addressing the problem of blindness in the country. Its founder had worked as an eye specialist for several years and understood the social impact of starting an organization to champion eye problems. Today, Aravind is the largest eye specialist centre in the world with a highly sustainable business model. Although the organization has not ventured into global markets, it continues to expand throughout India with unmatched capabilities. Its business model is easier to replicate in other areas with greater success.
Works Cited
Francesco Perrini. The New Social Entrepreneurship: What Awaits Social Entrepreneurial Ventures? New York: Edward Elgar Publishing, 2006.
Jill Kickul & Sophie Bacq. Patterns in Social Entrepreneurship Research. New York: Edward Elgar Publishing, 2012.
Pavithra Mehta and Suchitra Shenoy. Infinite Vision: How Aravind Became the World's Greatest Business Case for Compassion. Chicago: Berrett-Koehler Publishers, 2011.
Ruth Levine. Case Studies in Global Health: Millions Saved. Boston: Jones & Bartlett Publishers, 2007.
