chapter 2 the core of social entrepreneurship social entrepreneurship chapter 2: the core of social...

Chapter 2

The Core of Social Entrepreneurship

Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Objectives

• To understand concept of social entrepreneur and its growing importance• To develop comprehensive understanding of social entrepreneur and

social entrepreneurship• To understanding motivation & vision of social entrepreneur


Introduction

• Doing a business and contributing to a social cause simultaneously is a real win-win situation for all stakeholders. • The significant differentiation point of social entrepreneurs is their

relatively high social conscience. • Social entrepreneurs look at any social problem as a challenge and

opportunity to serve a social cause. Money is not a bigger motivation than getting to address a social need.


Different Views on Social Entrepreneur• Social entrepreneurs are individuals with innovative solutions to

society’s most pressing social problems. (Ashoka)• A person who pursues an innovative idea with the potential to solve a

community problem. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives.( Adam Smith)• Social entrepreneur is a leader or pragmatic visionary who: Achieves

large scale, systemic and sustainable social change through a new invention, a different approach, a more rigorous application of known technologies or strategies, or a combination of these. ( Schwab Foundation)


Ten Characteristic of Social Entrepreneur 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.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.


Ten Characteristic of Social Entrepreneur 6. Have an unwavering belief in everyone's innate capacity, often

regardless of education, to contribute meaningfully to economic and social development.

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.


Social Entrepreneurship

• Is about applying practical, innovative and sustainable approaches to benefit society in general, with an emphasis on those who are marginalized and poor.• A term that captures a unique approach to economic and social

problems, an approach that cuts across sectors and disciplines grounded in certain values and processes that are common to each social entrepreneur, independent of whether his/ her area of focus has been education, health, welfare reform, human rights, workers' rights, environment, economic development, agriculture, etc., or whether the organizations they set up are non-profit or for-profit entities.


Social Entrepreneurship

• It is this approach that sets the social entrepreneur apart from the rest of the crowd of well-meaning people and organizations who dedicate their lives to social improvement.• Definition of social entrepreneurship should reflect the need for a

substitute for the market discipline that works for business entrepreneurs.


Charity Vs. Social EntrepreneurshipCriteria Charity Social Entrepreneurship

Role of Social Value Creation

To redistribute income from the haves to the have-nots

To be a change agent through innovative mutually beneficial exchanges and create social values

Social Structure Works within given structures in society

social entrepreneurship creates opportunities and enables social structural change

Purpose the purpose of charity is to alleviate immediate suffering rather than deep social change

social entrepreneurship’s purpose is to improve social conditions


Charity Vs. Social EntrepreneurshipCriteria Charity Social Entrepreneurship

Financing Primary source of finance is donation

A self-sufficient working business model

Sustainability Sustainability depends on funding by donors

entrepreneurship is sustainable as it uses a self-sufficient business model

Time Frame charity is designed to relieve immediate distress, the response is quick and the impact is short lived

social entrepreneurship can be short-lived or run for decades just like any enterprise


Need of Social Entrepreneurship in India • It’s beyond reach of Indian government to bring upon positive sustainable change

in lives of these many citizens with limited financial and human resources at disposal. • The main players namely government and NGOs who can contribute significantly

towards social causes have not performed up to expectations.. • Social entrepreneurship can be useful to balance economic growth as well well-

being of down trodden of society. • The CSR bill proposed by the government where 2 per cent of profits for big

companies will be used for social programmes that includes investment in social business ventures. • Government subsidies and charity initiatives are not sustainable in long run, but

social enterprises are.Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Motivation for Social Entrepreneur1. More than good intentions2. Look outward, not inward, for motivation3. Efficient compassion is the best kind4. Listening to voices other than your own5. Beware of branding at someone else’s expense


Motivation for Social Entrepreneur6. Bottom-up solutions, not top-down7. Results matter, not mission or programs8. There’s plenty of room for genuinely new ideas9. Drawing the line between good and evil10. Government’s Imperative towards Social Cause


Summary

• Social entrepreneurship means different things to different people. • Social entrepreneurs are individuals with innovative solutions to society’s most pressing

social problems• Social entrepreneurs are ambitious and persistent, tackling major social issues and

offering new ideas for wide-scale change.• Charity & social entrepreneurship differs significantly in its processes and goals. • Country like India requires growth of social entrepreneurship as limited natural and

financial resources in the country capitalism cannot be the answer of all sorts of problems.• Government subsidies and charity initiatives are not sustainable in long run, but social

enterprises are.• Social entrepreneur’s motivation goes beyond philanthropy and leans towards innovation

and meeting challenges.


chapter 2 the core of social entrepreneurship social entrepreneurship chapter 2: the core of social...

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