2. MODULE 5 Social Entrepreneurship and Social Entrepreneurs

3. Contents: What is Social Entrepreneurship and Social Entrepreneur?
Boundaries of Social Entrepreneurship
What about organizational models?
Steps for starting a social enterprise
Social Entrepreneurs in action. Get inspired!

4. What is Social Entrepreneurship and Social Entrepreneurs?
Nowadays, the use of the term social entrepreneurship is gaining increased popularity.
The language of social entrepreneurship maybe looks new to you, but the phenomenon is not at all.
We have always had social entrepreneurs, even if we did not call them on that way.

5. According to Ashoka Foundation, which has pioneered the field of social entrepreneurship: “Social entrepreneurship is the use of the techniques by start-up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues”.
Bill Drayton, founder of Ashoka: “Social entrepreneurs are the essential corrective force. They are system-changing entrepreneurs. And from deep within they, and therefore their work, are committed to the good of all.”

6. Social entrepreneurship concept is centered not just on some mission, but on entrepreneurship. It makes a social benefit-focused organization become more like a business. The idea is that non-profits can benefit from the focus of for-profit businesses – customer focus, sound strategy, effective planning, efficient operations and financial discipline.
Nowadays, the concept of Social Entrepreneurship has also been included as a separate branch of management courses. Even youth is also looking forward to volunteering their services and brilliant ideas to bring a social change through social entrepreneurship.

7. Starting with ENTREPRENEURSHIP
The term “entrepreneur” originated in French economics as early as the 17th and 18th centuries and in French, it means someone who “undertakes” a project or activity.
Entrepreneurship is the capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.
It started to be used because of the identification of the venture some individuals who can stimulate the economic progress by finding new and better ways of doing things.
May looks that the main reason for all of them is to start a new business, but actually there is something more deep in the word “entrepreneurship”.

8. ENTREPRENEURSHIP Vs SOCIAL ENTREPRENEURSHIP
The main difference is that social entrepreneurship focuses beyond simply generating a profit, and measures its performance on the positive impact the business makes on society – whether social, cultural or environmental.
While the typical entrepreneurs improve commercial markets, social entrepreneurs improve social conditions. Social entrepreneurs play a pivotal role in providing products and services with the prime motive of creating social well-being, operating from a 3-tier bottom line perspective benefitting People, Planet, and Profit.

9. BUSINESS ENTREPRENEURSHIP
SOCIAL
ENTREPRENEURSHIP
Measure of Profitability
Benefiting shareholders and investors
Engage in for-profit activities
Investors
Venture Capitalists
Philanthropists
Emphasis on team and individual
Venture Capitalists invest in business on the basis of company’s leadership team and the organization supporting it.
Individuals raise and donate money for charitable causes on the basis of viability of the project gauged by the individual in charge.
Growth
Competitive for one company
Collaborative for social impact
Performance Measurement
Corporate entrepreneurs can rely on relatively tangible and quantifiable measures of performance such as financial indicators, market share, customer satisfaction, and quality.
Measuring social change is difficult due to its non-quantifiable and multi-causal characteristics, and perceptive differences of the social impact created.
GOAL
Capture a market security
Fill a market gap;
Change the world

10. We can define social entrepreneurship as:
identifying a stable but inherently unjust equilibrium that causes the exclusion, marginalization, or suffering of a segment of humanity that lacks the financial means or political clout to achieve any transformative benefit on its own;
identifying an opportunity in this unjust equilibrium, developing a social value proposition, and bringing to bear inspiration, creativity, direct action, courage, and fortitude, thereby challenging the stable state’s hegemony; and
forging a new, stable equilibrium that releases trapped potential or alleviates the suffering of the targeted group, and through imitation and the creation of a stable ecosystem around the new equilibrium ensuring a better future for the targeted group and even society at large.

11. The Social entrepreneurs play the role of change agents in the social sector by:
 Adopting a mission to create and sustain social value (not just private value)
 Recognizing and relentlessly pursuing new opportunities to serve that mission
 Engaging in a process of continuous innovation, adaptation, and learning
 Acting boldly without being limited by resources currently in hand, and
 Exhibiting a heightened sense of accountability to the constituencies served and for the outcomes created

12. Entrepreneurs Vs Social Entrepreneurs

13. BOUNDARIES OF SOCIAL ENTREPRENEURSHIP
According to the Skoll Centre for Social Entrepreneurship, the definition of social entrepreneurship should not extend to philanthropists, activists, companies with foundations, or organizations that are simply socially responsible. While all these agents are needed and valued, they are not social entrepreneurs.
There are two primary forms of socially valuable activity :
Social service provision: They are millions of such organizations, who are composed by brave and committed individual who sets up, for example, a school programe for children in Africa or other poverty regions, ensuring that the children are educated and well cared, but they should not be confused with social entrepreneurship.
Social activism: The motivator of the activity is the same – an unfortunate and stable equilibrium, but instead of taking direct action, as the social entrepreneur would, the social activist attempts to create change through indirect action, by influencing others – governments, NGOs, consumers, workers, etc. – to take action. Social activists may or may not create ventures or organizations to advance the changes they seek.

14. Social entrepreneurs also operate within the boundaries of two business strategies
Non-profit with earned income strategies: a social enterprise performing hybrid social and commercial entrepreneurial activity to achieve self-sufficiency. In this scenario, a social entrepreneur operates an organization that is both social and commercial; revenues and profits generated are used only to further improve the delivery of social values.
For-profit with mission-driven strategies: a social-purpose business performing social and commercial entrepreneurial activities simultaneously to achieve sustainability. In this case, a social entrepreneur operates an organization that is both social and commercial; the organization is financially independent and the founders and investors can benefit from personal monetary gain.

15. WHAT ABOUT ORGANIZATIONAL MODELS?
Leveraged non-profit ventures
The entrepreneur sets up a non-profit organization to drive the adoption of an innovation that addresses a market or government failure. In doing so, the entrepreneur engages a cross section of society, including private and public organizations, to drive forward the innovation through a multiplier effect. Leveraged non-profit ventures continuously depend on outside philanthropic funding, but their longer term sustainability is often enhanced given that the partners have a vested interest in the continuation of the venture.
Hybrid non-profit ventures
The entrepreneur sets up a non-profit organization but the model includes some degree of cost-recovery through the sale of goods and services to a cross section of institutions, public and private, as well as to target population groups. Often, the entrepreneur sets up several legal entities to accommodate the earning of an income and the charitable expenditures in an optimal structure. To be able to sustain the transformation activities in full and address the needs of clients, who are often poor or marginalized from society, the entrepreneur must mobilize other sources of funding from the public and/or philanthropic sectors. Such funds can be in the form of grants or loans, and even quasi-equity.

16. Social business ventures
The entrepreneur sets up a for-profit entity or business to provide a social or ecological product or service. While profits are ideally generated, the main aim is not to maximize financial returns for shareholders but to grow the social venture and reach more people in need. Wealth accumulation is not a priority and profits are reinvested in the enterprise to fund expansion. The entrepreneur of a social business venture seeks investors who are interested in combining financial and social returns on their investments.

17. STEPS FOR STARTING A SOCIAL ENTERPRISE
Before you start your social enterprise business you should be able to answer these three questions:
Does my idea solve a problem?
Who will this business benefit?
How do you combine profit with purpose to create a thriving social enterprise?

18. Keep this in mind when you are pitching for finance!
Recognize / Identify a large scale social problem
Identify a solution or needed change to the system
Make people aware about your solution and persuade entire societies to embrace it
Be able to measure your impact

19. Social Entrepreneurs in action. Get Inspired!
BILL DRAYTON is not just a great example of a social entrepreneur, he actually helped to define and promote the term itself. He is the founder and current chair of Ashoka Foundation: Innovators for the Public, an organization that is dedicated to finding and helping social entrepreneurs around the world. Drayton spreads out his social entrepreneurship expertise in other organizations as well, working as a chairman at Community Greens, Youth Venture, and Get America Working!
Ashoka Foundation has elected and supported over 3,000 Fellows – social entrepreneurs with innovative solutions to society’s most pressing social problems – in over 70 countries and some of them made a huge impact on communities around the world.

20. BLAKE MYCOSKIE is an American entrepreneur, author, and philanthropist, best known as the founder and Chief Shoe Giver of Toms Shoes. Mycoskie founded TOMS in 2006 after a visit to Argentina where he learned that many children get sick or injured because they do not have shoes to wear. To combat this, he created TOMS, a business that donates one pair of shoes to needy people for every pair that's bought. So far, the company has donated more than a million pairs of shoes.

21. XAVIER HELGESEN, CHRIS FUCHS, AND JEFF KURTZMAN
B corporation Better World Books is an amazing example of a truly successful social entrepreneurship venture. Founded in 2002 by Notre Dame grads Xavier Helgesen, Chris "Kreece" Fuchs, and Jeff Kurtzman, Better World's mission is to maximize the value of every book out there and to help promote literacy around the world.
The company works by reusing or recycling books through sales on their website and donations to schools, and so far has used 84 million volumes to raise $12.1 million for literacy funding. The company attributes its success to using a "triple bottom line" model, caring not only about profits but also about the social and environmental impact of everything they do.

22. WILLIE SMITS is a trained forester, a microbiologist, conservationist, animal rights activist, wilderness engineer and social entrepreneur. He never really expected to become a social entrepreneur, but when he found an abandoned baby orangutan in 1989 while working in Indonesia, his career would quickly alter direction.
Smits' work with orangutans would blossom into the Borneo Orangutan Survival Foundation, which not only works to help orphaned or imperiled apes, but also helps locals learn sustainable farming methods and the benefits of reforestation. Smits also takes part in the Masarang Foundation, an amazingly innovative social entrepreneurship enterprise that uses thermal energy to turn sugar palm juice into sugar and ethanol, providing jobs and power to the community while preserving the local forests.