Faltin 2009

Prof. Dr. Günter Faltin

Arbeitsbereich EntrepreneurshipFreie Universität Berlin

Stiftung Entrepreneurship

Social Entrepreneurship

Faltin 2009

Twenty years ago the idea of nonprofits acting in an entrepreneurial manner was anathema to most people in

the sector:

The idea of merging mission and money filled them with distaste.

Boschee/McClurg

Faltin 2009

The basic thesis:

“Social problems are becoming more complex. They cannot be solved by conventional

approaches any longer.”

Faltin 2009

We need social entrepreneurs to help us to find new avenues toward social improvement .

J. Gregory Dees

Faltin 2009

Social Entrepreneurship, we believe, is as vital to the progress of societies as is

entrepreneurship to the progress of economies.

Roger Martin /Sally Osburg

Social Entrepreneurship: The Case for Definition,

Stanford Social Innovation Review 2007

Faltin 2009

Social Entrepreneurs play the role of change agents by

• Adopting a mission• Recognizing opportunities• Engaging in innovation• Acting without being limited by resources currently in hand

• Exhibiting accountability.

Dees

Faltin 2009

We should build our understanding of entrepreneurship on this strong tradition of

entrepreneurship theory and research.

Social entrepreneurs are one species in the genus entrepreneur.

They are entrepreneurs with a social mission.

Dees, Martin and Osberg, Boschee and McClurg,

Alvord, Brown and Letts

Faltin 2009

The essence of entrepreneurship

is being different.

Marc Casson

Faltin 2009

Social Entrepreneurship

Social ActivismSocial

Entrepreneurship

SocialServices

Faltin 2009

The test of successful business entrepreneurship is the creation of a viable and

growing business. The test of social entrepreneurship, in contrast,

maybe a change in the social dynamics and systems that created and maintained the

problem.

Alvord/Brown/Letts

Faltin 2009

Markets do not do a good job of valuing social improvements...for people

who cannot afford to pay.

It is inherently difficult to measure social value creation.

Dees

Faltin 2009

Is it realistic to pursue the avenue of social entrepreneurship?

 

Faltin 2009

Is it realistic to presume that social entrepreneurship can withstand the forces of a market economy?

 

Faltin 2009

The American system of ours,

call it Americanism, call it Capitalism,

call it what you like,

gives each and every one of us a great opportunity

if we only seize it with both hands

and make the most of it.

Al Capone

Chicago 1928

Faltin 2009

„Thesis of incompatibility“

Participants work under the constraint of economic forces

Only those who adjust to the economic rules of competition survive

Social engagement finally degrades to a superficial facade

Faltin 2009

Economic faction

vs.

Social faction

Faltin 2009

I strongly advise idealistic people not to follow this utopia anymore.

Franz Oppenheimer

Faltin 2009

„Thesis of Compatibility“

Times have changed.

These days it is a competitive advantage to tune in with society‘s values

.

Faltin 2009

Those driven by the pursuit of money only

will not have a long enough breath

(a prerequisite for successful entrepreneurs).

Richard Olsen

Founder of the Research Institute

for Applied Economics, Switzerland

Faltin 2009

• Educational trends

• Better access to information

• Much better opportunities to compare (comparative tests, Internet portals)

• Markets become more transparent

Ethics pay

Faltin 2009

Wenn Business nur Business ist,ist es auch im Sinne von Business

kein gutes Business.

Faltin 2009

„Thesis of Convergence “

Social entrepreneurs are adapting basic concepts of business entrepreneurship

Business entrepreneurs learn that they can succeed by adapting to ethical standards.

Faltin 2009

Entrepreneurs of the future will have to develop

a much greater sense of responsibility,

not for lofty moral reasons,

but for the survival and the success.

Gareth Morgan,Management Consultant

Faltin 2009

Entrepreneurial ideas must be woven

into the fabric of societal values

and shared problems.

Gareth Morgan,Management Consultant

Faltin 2009

Indifference to social problems

scares the public,

undermines confidence,

and almost always backfires

Gareth Morgan,Management Consultant

Faltin 2009

„Go for a cause.

Make meaning!“

It took me twenty years

to come to this conclusion.

Guy Kawasaki

Faltin 2009

Let‘s allow our ideas

to shape a better world

Faltin 2009

Faltin 2009

The End

For complaints:

Prof. Dr. Günter Faltin

Entrepreneurship Department

Freie Universität Berlin

www.entrepreneurship.de