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I. Executive Summary
This report provides an overview of a South African social enterprise called Lumkani that is protecting lives
and properties from destruction through fire outbreaks. This is done through the engineering of a sensor
device that can detect heat rather than smoke to send an early warning to homeowners and the wider
community necessitating a community-wide response to fire. In pursuit of its social mission, the organization
considers and incorporates the interest of numerous stakeholders such as the founders, the partners and the
community who are also the beneficiaries. This leads to mass acceptance by the community and thus leading
to greater impact and success.

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 Table of Contents

Executive Summary 2

1. Introduction 4

2. Lumkani 4

3. Social Mission of Lumkani Fire Detector 5

4. Main Features of Lumkani Fire Detector 6

4.1 Community-wide response to fire 6
4.2 Accessibility and affordability for the poor 6

5. The Key Stakeholders of Lumkani Social Enterprise 7

5.1 The Founders of Lumkani 7
5.2 The Partners of Lumkani 7
5.3 The community 7

6. Social Innovation of Lumkani 8

6.1 Analysis using the 4Ps 8
6.2 Analysis using the Impact model 9

7. Conclusion 10

8. List of References 11

9. Appendix 13

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 1. Introduction
According to UNICEF, the world population is currently 7.9 billion people and is expected to grow by 2.5
billion in 2050 (Nwuneli, 2018). All these people will need basic needs such as food, education, health,
transportation, energy, housing etc. Meeting the increasing demand of these people is a significant concern of
the world. In recent years, social enterprises are considered a more effective alternative to traditional and
charitable organizations in addressing social problems (Gideon and Hasenfeld, 2012). The Uk Government
report describes social enterprises as “organizations with commercial operations to address a societal problem
whose surpluses are principally reinvested in the business or the community” (Department of Trade and
Industry, 2002, p. 7). This report will introduce a South African social enterprise called Lumkani which is
protecting lives and properties from fire through an innovative device called the Lumkani fire detector. The
report will further provide an analysis of the social mission, key features of the product, stakeholders and
innovations of the organization.

2. Lumkani
Lumkani which means “be careful” in the South African Xhosa language is a social enterprise that was
founded in November 2014 by five South African students (Eastaugh, 2017). The organization seeks to build
resilience to the risk of fire in urban and rural informal settlements. They use an innovative sensor device that
detects rising temperatures rather than smoke to send an early warning to all other nearby Lumkani devices
and SMS alerts to households triggering a swift community response (Bruce, 2017). The organization was
listed among the ten innovative companies in Africa in 2020 by Fast Company (Lumkani, n.d).

Figure 1: The picture of the Lumkani technological fire detector.

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 3. Social Mission of Lumkani Fire Detector
A social mission refers to any engagement of organizations and individuals that positively impact society, the
economy and or the environment (Battilana et al, 2012). Social enterprises drive social mission by satisfying
the triple bottom line, also known as the 3 p's which are the People, planet and profit (Bessant and Tidd,
2007). This is the art of simultaneously meeting financial, social and environmental objectives on investments
(Peredo and McLean, 2006). Sometimes the organizations face conflicts between attaining social mission and
financial outcomes (Donaldson & Preston, 1995). However, Lumkani is bent more on providing social
benefits rather than commercial gains (Hoogendoorn et al, 2010).

The African continent is named “ the fire continent” because of the numerous outbreaks of fire every year
(Strydom and Savage, 2016). In South Africa, many people live in slums and densely informal settlements
which are built with flammable materials and extremely close to each other putting them at higher risk during
a fire outbreak. In 2009 the country reported more than 40,000 fires, 376 fatalities and a financial loss of ZAR
4 billion with open flames identified as the major cause (Strydom and Savage, 2016). This incident and many
others triggered the founders of Lumkani to engineer a technological affordable fire sensor device that can
detect changes in temperatures rather than smoke and send early warning and SMS alerts to residents and
neighbours to allow swift community response to mitigate the loss of life and property in South Africa
(Lumkani.com, n.d). The organization has a mission of mitigating the rapid spread of slum fire around the
world starting in South Africa. They presently installed more than 20,180 fire sensors in slums and 87% of
households in slums claimed they felt safer and at peace of mind because of the Lumkani fire sensors
(Lumkani.com, 2022).

Figure 2: The graphical distribution of fire in South Africa between 2003 and 2013.

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 4. Main Features of Lumkani Fire Detector

The Lumkani fire detection device has the following main features.

4.1 Community-wide response to fire

When the device senses fire in one home, it can send a warning to other Lumkani devices in other homes
within a 60-meter range via radio frequencies (Wollerton, 2015). This means all the devices within a
community are connected and a fire in one home warns other homes to prepare themselves before the fire
reaches their home. This system can save lots of lives as victims will quickly get support from community
members and community members can prepare themselves before the fire reaches them. Also, the device can
send mobile phone SMS alerts to homeowners and other members of the community and warn them of a
potential fire in their home or neighbourhood (Eastaugh, 2017)

4.2 Accessibility and affordability for the poor

Since the cost and installation of traditional smoke detectors are very high, many poor people cannot afford
them. However, the Lumkani device provides a bridge to that by making fire detectors available for the poor.
The organization sells the device to NGOs and the government who then make the devices available to the
poor (GLUCKMAN, 2015). For example, World Vision Australia granted $250,000 to Lumkani for them to
deploy the devices in Bangladesh (Bruce, 2017). After installing the devices, homeowners pay an equivalent
of 60 rands per month which are reinvested to ensure the continuity of the social enterprise (Lumkani, n.d).

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 5. The Key Stakeholders of Lumkani Social Enterprise
In the past businesses were considered the property of their owners and had no or little consideration of the
effect of their actions on other people and the environment. This concept is called shareholder theory
introduced by Milton Friedman (Freeman, 2001). However, in the last thirty years, a new approach called
stakeholder theory was developed by Edward Freedman to counter the traditional objectives of the business
(Freeman et al, 2010). The theory implies that managers have a moral responsibility to “proactively address
the needs and expectations of all stakeholders”(Dunham et al, 2006, p.70). A stakeholder is any group or
individuals who may be affected by the actions of a business (Freeman, 1984). Lumkani has many
stakeholders, a few of which are discussed below.

5.1 The Founders of Lumkani

The founders of social enterprises are called social entrepreneurs and they use business and innovative
approaches to solve social challenges and contribute to societal development (Tyre, 2018). The founders of
Lumakni have the core interest of increasing social value as opposed to profit maximization as in the case of
shareholders in traditional businesses. For them, any wealth generated is just a means to an end and must be
reinvested in the business to ensure sustainable operations (Peredo and McLean, 2006). The founders have
the mission of reducing the spread of shack fire in informal settlements (Lumkani, n.d). They were motivated
by the frequent destruction of lives and properties through fire which prompted them to start the social
enterprise and not the amount of revenue they could make.

5.2 The Partners of Lumkani

Social enterprises like other organizations build strategic partnerships with other entities to meet their goals.
Researchers argue that building partnerships help social organizations have access to critical resources,
markets, and competencies leading to mutual learning and the ability to scale social value (Austin, 2000).
Lumkani partners understand and support the mission of the enterprise which is to reduce the spread of fire in
poor communities. Therefore, they provide financial and moral support as a contribution to a reduction in
fatality and destruction caused by fire. For example, World Vision Australia provided Lumkani with $250,000
to install fire detectors in a poor community in Bangladesh (Bruce, 2017). In this case, World Vision
Australia is not anticipating a financial return on their investment but to see a healthy and striving community
in Bangladesh.

5.3 The community

For social enterprises, the community is their major stakeholder because all their activities are geared toward
helping the societies. The inclusion and participation of the community in the decision-making process can
lead to greater transparency, accountability and peaceful coexistence between the community and the business
(Defourny, 2001). The Lumkani community has interested to see that the business is ethical and
environmentally friendly (Weidner et al, 2019). Also, the community is the primary consumer of Lumkani
devices, therefore, they anticipate acquiring quality and affordable fire detector that has the potential to save
their lives and others around them.

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 6. Social Innovation of Lumkani
Social innovation refers to new solutions in response to societal challenges that are more effective and
efficient than existing solutions (Bessant and Tidd, 2007).

6.1 Analysis using the 4Ps

According to famous scholars Bessant and Tidd (2007), innovation can be radical or incremental and takes
four dimensions called the 4 Ps of innovation. The 4P’s represent product, process, paradigm and position
which can be used to explain the innovation of every social enterprise. For example, the Lumkani device is an
incremental innovation and provides changes to the product, process and position of the existing solution.
Incremental innovation is an improvement or addition to an existing product or service while radical
innovation is the introduction of a completely new product or service (Rubin and Abramson, 2018).

The Lumkani device offers an improvement to the existing common smoke detectors. The product was
designed to detect changes in room temperature using an Arduino Uno microcontroller rather than smoke and
provide an early warning to households of a potential fire (Obanda, 2017). Also, while the traditional smoke
detectors usually alarm in one apartment at a time, the Lumkani device sends a signal to all the Lumkani
devices within the community necessitating a community-wide response (GLUCKMAN, 2015). So when
there is a fire in one home, all the Lumkani devices will alarm so the whole community becomes vigilant and
ready to help other victims. The device also sends SMS warnings to households, so if someone is out of their
home and there is a fire they will still be notified via SMS. While the traditional smoke detectors are usually
available to wealthy people and those living in modern houses, the Lumkani is designed for informal
settlements and poor people.

Figure 3. The four dimensions of innovation

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6.2 Analysis using the Impact model
Social enterprise impacts could be best explained using an impact model. The impact of social enterprise is
defined as the total result that emanates from the activities of the organization that have a profound benefit to
the beneficiaries (Bessant and Tidd, 2007). To measure the impact of the social enterprise using the impact
model follows five dimensions namely resources/inputs, activities, outputs, outcomes and impact. The
Lumkani device came into existence through an intensive investment of labour, technology and time. The
founders conducted research and prototyping multiple times before they could come up with the ideal device.
To scale from prototyping to an actual product, they incorporated feedback and engage in pitch deck
competitions to acquire funding. Through competitions, they won $75,000 from Chivas Regals’ startup
competition which enabled them to launch their product in the slums of South Africa (Fadoju, 2015).
Currently, the organization have installed more than 20,180 devices in slums and the device was able to detect
97% of fires in slums (Lumkani.com, n.d). A beneficially named Vuyo said, “the sensor has been helpful,
changed their lives and restored dignity in their community” (Lumkani.com, n.d).

Figure 4. The impact model of innovation

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 7. Conclusion
As the societal challenges increase, researchers recognised social enterprises as a beacon of hope that can
ensure sustainability in meeting these social needs. Social enterprises are commercial businesses with a social
mission and they usually reinvest their profits in the business or the community. This is explained by using a
South African social enterprise called Lumkani which is helping poor communities reduce the spread of fire
using a sensor device. The device-detect changes in room temperature and provide a warning to the house and
the wider community through networked devices and phone SMS notifications. The device provides an
effective, efficient and cheap alternative to smoke detectors because they detect heat rather than smoke,
avoiding false alarms since smoke is common in informal settlements. Also, the device is usually purchased
by governments and NGOs and then provided to people at a very cheap monthly subscription. The
organisation is important because it is helping in reducing deaths and property loss due to fire and restoring
dignity in informal settlements.

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 8. List of References:
Austin, J. E. (2000). Strategic collaboration between nonprofits and businesses. Nonprofit and Voluntary
Sector Quarterly, 29, 69-97.

Battilana, J., Lee, M., Walker, J., & Dorsey, C. 2012. In search of the hybrid ideal. Stanford Social Innovation
Review, 10(3) (Summer): 51–55.

Bessant, J. and Tidd, J., 2007. Innovation and entrepreneurship. John Wiley & Sons.

Bruce, D., 2017. Research helps fire protection in Bangladesh. Australian Journal of Emergency
Management, The, 32(2), pp.5-6.
Defourny, J. (2001), “Introduction – from the third sector to social enterprise”, in Borzaga, C., Defourny, J.,
Adam, S. and Callaghan, J. (Eds), The Emergence of Social Enterprise, Routledge, London.

Department of Trade and Industry (2002), Social Enterprise – A Strategy for Success, HMSO, London

Donaldson, T., & Preston, L. E. 1995. The stakeholder theory of the corporation: Concepts, evidence, and
implications. Academy of Management Review, 20(1): 65–91.
Dunham, L., Freeman, R.E. and Liedtka, J., 2006. Enhancing stakeholder practice: A particularized
exploration of community. Business Ethics Quarterly, 16(1), pp.23-42.

Eastaugh, S., 2017. The little blue box that can save lives. [online] CNN. Available at:
<https://edition.cnn.com/2016/08/23/africa/lumkani-fire-detector-south-africa-2/index.html> [Accessed 31
March 2022].

Fadoju, L., 2015. South Africa's Lumkani wins part of the $1 Million funding at Chivas Regal's startup
competition | TechCabal. [online] TechCabal. Available at:
<https://techcabal.com/2015/07/31/south-africas-lumkani-wins-part-of-the-1-million-funding-at-chivas-regals
-startup-competition/#:~:text=Lumkani%2C%20a%20South%20Africa%2Dbased,a%20%241%20million%2
0cash%20prize.> [Accessed 7 April 2022].

Freeman, R.E., 2001. A stakeholder theory of the modern corporation. Perspectives in Business Ethics Sie,
3(144), pp.38-48.

Freeman, R.E. (1984), Strategic Management: A Stakeholder Approach, Pitman, Boston, MA.

Freeman, R.E., Harrison, J.S., Wicks, A.C., Parmar, B.L. and De Colle, S., 2010. Stakeholder theory: The
state of the art.

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Gideon, B. and Hasenfeld, Y. eds., 2012. Social enterprises: An organizational perspective. Palgrave
Macmillan.

GLUCKMAN, D., 2015. Lumkani | Chivas Venture - Chivas Regal. [online] Chivas Regal. Available at:
<https://www.chivas.com/en-EN/the-venture/alumni/2015/lumkani> [Accessed 1 April 2022].

Hoogendoorn, B., Pennings, E. and Thurik, R., 2010. What do we know about social entrepreneurship: An
analysis of empirical research.

Lumkani.com. n.d. About Us | Lumkani. [online] Available at: <https://lumkani.com/about-us/> [Accessed 31

March 2022].

Nwuneli, N., 2018. Social Innovation and Entrepreneurship in Africa: Catalysts for Sustainable
Transformation. [online] Hks.harvard.edu. Available at:
<https://www.hks.harvard.edu/centers/mrcbg/students/sg/social-innovation-and-entrepreneurship-in-africa-cat
alysts-for-sustainable-transformation> [Accessed 29 March 2022].

Obanda, Z.S., 2017. Multi-sensor fire detection system using an Arduino Uno microcontroller (Doctoral
dissertation, Strathmore University).

Peredo, A.M. and McLean, M., 2006. Social entrepreneurship: A critical review of the concept. Journal of
world business, 41(1), pp.56-65.

Rubin, G.D. and Abramson, R.G., 2018. Creating value through incremental innovation: Managing culture,
structure, and process. Radiology, 288(2), pp.330-340.

Strydom, S. and Savage, M.J., 2016. Spatio-temporal analysis of fires in South Africa. South African Journal
of Science, 112(11-12), pp.1-8.

Tyre, D., 2018. Social Entrepreneurship: What It Is and Why Everyone's Talking About It. [online]
Blog.hubspot.com. Available at: <https://blog.hubspot.com/sales/social-entrepreneurship> [Accessed 4 April
2022].

Weidner, K., Weber, C. and Göbel, M., 2019. You scratch my back and I scratch yours: Investigating
inter-partner legitimacy in relationships between social enterprises and their key partners. Business & Society,
58(3), pp.493-532.

Wollerton, M., 2015. Lumkani Fire Detector review: Lumkani sniffs out fires before they start. [online]
CNET. Available at: <https://www.cnet.com/reviews/lumkani-fire-detector-preview/> [Accessed 1 April
2022].

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 9. Appendix

Video Explanation of how the Lumkani device works: https://www.youtube.com/watch?v=1eIFpHAxhWc

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