SOCIAL ENTREPRENEURSHIP

The Case for Definition What is Social Entrepreneurship?  Broadly put, Social Entrepreneurship refers to initiatives with two goals in mind:  They seek to fill a social need which is not being met by the State or by private enterprise, and to be financially self-sustaining.

The Case for Definition  Social Entrepreneurship can include work in a wide range of fields, including health, education, and cultural production.  There is much debate about what counts as Social Entrepreneurship, about its future potential as an economic model, and its historical significance.  Means of producing social value by mobilizing resources in innovative ways.

 Social entrepreneurship gives the perfect blend of welfare combined with business activity. The society benefits with the innovative ideas injected by social entrepreneurs. This practise has existed since the 1970’s and continues till this very day. Famous founders of social entrepreneurship include Bill Drayton-the founder of Ashoka), Susan B. The Case for Definition

 Social entrepreneurs are ventures promoting prosperity in the society; they act in many diverse ways, including non-profit organisations. Just as entrepreneurs change the face of business, social entrepreneurs act as the change agents for society, seizing opportunities others miss and improving systems, inventing new approaches, and creating solutions to change society for the better The Case for Definition

Why Entrepreneurship?  The word Entrepreneurship is a mixed blessing. On the positive side, it connotes a special, innate ability to sense and act on opportunity, combining out-of-the-box thinking with a unique brand of determination to create or bring about something new to the world. On the negative side, entrepreneurship is an exposit term, because entrepreneurial activities require a passage of time before their true impact is evident.

Why Entrepreneurship?  Regardless of whether they cast the entrepreneur as a break-through innovator or an early exploiter, theorists universally associate entrepreneurship with opportunity. Entrepreneurs are believed to have an exceptional ability to see and size upon new opportunities, the commitment and drive required to pursue them, and an unflinching willingness to bear the inherent risks.

Education Economic Development Housing Healthcare Community development NGOs operating independently to deliver their services Community development NGOs collaborating to raise communities out of poverty Social Entrepreneurship Before: generate 50 houses per year. After: collectively generate 1000 houses per year.

 The Skoll Foundation defines a social entrepreneur as "society's change agent: a pioneer of innovation that benefits humanity.“Skoll Foundation  Wikipedia reads, "A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change" – but does not say the change must be positive.Wikipedia

10 Personality Traits of SEs 1. Try to shrug off the constraints of ideology or discipline. 2. Identify and apply practical solutions to problems, combining innovation, resourcefulness and opportunity. 3. Innovate by finding a new product, service or approach to a social problem.

10 Personality Traits of SEs 4. Focus first and foremost on social value creation and, in that spirit, are willing to share their innovations and insights for others to replicate. 5. Jump in before ensuring that they are fully resourced. 6. Have an unwavering belief in everyone's innate capacity, often regardless of education, to contribute meaningfully to economic and social development.

10 Personality Traits of SEs 7. Show a dogged determination that pushes them to take risks that others wouldn't dare. 8. Balance their passion for change with the zeal to measure and monitor impact. 9. Have a great deal to teach change-makers in other sectors. 10. Display a healthy impatience.

 To understand what differentiates the two sets of entrepreneurs from one another, it is important to dispel the notion that the difference can be ascribed simply to motivation – with entrepreneurs spurred on by money and social entrepreneurs driven by altruism. Entrepreneur Vs Social Entrepreneurs

 Both the entrepreneur and the social entrepreneur are strongly motivated by the opportunity they identify, pursuing that vision relentlessly, and deriving considerable psychic reward from the process of realizing their ideas.

 Unlike the entrepreneurial value proposition that assumes a market that can pay for the innovation, and may even provide substantial upside for investors,  The social entrepreneur’s value proposition targets an underserved, neglected, or highly disadvantaged population that lacks the financial means or political clout to achieve the transformative benefit on its own. Entrepreneur Vs Social Entrepreneurs

Differentiate the Social Entrepreneur from Social Service  In this case, a courageous and committed individual identifies an unfortunate stable equilibrium – AIDS orphans in Africa, for example – and sets up a program to address it – for example, a school for the children to ensure that they are cared for and educated.

Differentiate the Social Entrepreneur from Social Service  The new school would certainly help the children it serves and may very well enable some of them to break free from poverty and transform their lives.  But unless it is designed to achieve large scale or is so compelling as to launch legions of imitators and replicators, it is not likely to lead to a new superior equilibrium.

 It would be possible to reformulate a school for AIDS orphans as social entrepreneurship.  But that would require a plan by which the school itself would spawn an entire network of schools and secure the basis for its ongoing support. Differentiate the Social Entrepreneur from Social Service

 The outcome would be a stable new equilibrium whereby even if one school closed, there would be a robust system in place through which AIDS orphans would routinely receive an education. Differentiate the Social Entrepreneur from Social Service

Social Activists and Social Entrepreneurship  What is different is the nature of the actor’s action orientation.  Instead of taking direct action, as the social entrepreneur would, the social activist attempts to create change through indirect action, by influencing others –

Social Activists and Social Entrepreneurship  Governments, NGOs, consumers, workers, etc. – to take action. Social activists may or may not create ventures or organizations to advance the changes they seek.

The Hybrid Case  In the pure form, the successful social entrepreneur takes direct action and generates a new and sustained equilibrium; the social activist influences others to generate a new and sustained equilibrium;

The Hybrid Case  It is arguable that Yunus, for example, used social activism to accelerate and amplify the impact of Grameen Bank, a classic example of social entrepreneurship. By using a sequential hybrid – social entrepreneurship followed by social activism – Yunus turned micro-credit into a global force for change.

 Our view is that a clearer definition of social entrepreneurship will aid the development of the field.  The social entrepreneur should be understood as someone who targets an unfortunate but stable equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity; The Hybrid Case

 Who brings to bear on this situation his or her inspiration, direct action, creativity, courage, and fortitude;  And who aims for and ultimately affects the establishment of a new stable equilibrium that secures permanent benefit for the targeted group and society at large. The Hybrid Case

Bill Drayton, Ashoka “Social Entrepreneurs are not content just to give a fish, or teach how to fish. They will not rest until they have revolutionized the fishing industry”

A Social Entrepreneur’s View… Focus on Character  Mutual trust  Accountability  Participation  Creativity

Conventional EntrepreneurSocial Entrepreneur 1. Individualist vision 1. Community vision 2. Products goods and services for market 2. Product goods and services for community 3. Focus on the market 3. Focus on the solution of social issues 4. His performance measure is the profit 4. His performance measure are the social charges 5. Aims to satisfy costumers needs and to improve the business 5. Aims to protect people against social risks and promote them A Social Entrepreneur’s View… Focus on Character

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