Module 2

• Social Entrepreneurship is the use of the  techniques that start up companies and  other entrepreneurs to develop, fund and  implement solutions to social, cultural, or  environmental issues.
• Social Entrerpeneurship is relatively a new term. It came  in to notice just a few decades ago. But its usage can be  found throughout the history.
• Vinoba Bhave, the founder of India’s Land Gift Movement
• Robert Owen, the founder of cooperative movement.
• Florence Nightingale, founder of first nursing school and developer of modern nursing practices.
• They had established such foundations and organizations in 19th century that is much before the concept of social entrepreneurship used in management.
• Social Entrepreneurs' Areas of Focus:

  • Improve economic well-being and personal dignity through opportunity
  • Harness aid to be more accountable, transparent, and solutions-oriented for lasting development
  • Enable access to and ensure use of reliable, affordable, and appropriate healthcare in disadvantaged populations
  • Address issues of sustainable productivity system-wide
  • Lay the foundation for peace and human security
  • Harness the capital and consumer markets that drive change by considering all costs and opportunities
  • Transform the way water is managed and provided, long-term, for both people and agriculture
• Roles and Importance of Social Entrepreneurs

  1. Employment Development
  2. Innovation / New Goods and Services
  3. Equity Promotion
• Employment Development - The first major economic value that social entrepreneurship creates is the job and employment Estimates ranges from one to seven percent of people employed in the social entrepreneurship sector.
• Innovation / New Goods and Services - Social entrepreneurs develop and apply innovation important to social and economic development and develop new goods and services. Issues addressed include some of the biggest societal problems such as HIV, mental ill-health, illiteracy, crime and drug abuse which, importantly are confronted in innovative ways.
• Equity Promotion - social entrepreneurship fosters a more equitable society by addressing social issues and trying to achieve ongoing sustainable impact through their social mission rather than purely profit-maximization. Another case is the American social entrepreneur J.B. Schramm who has helped thousands of low-income high-school students to get into tertiary education.
• Development Goals: 17 Goals to Transform our World

  1. No Poverty
  2. Zero Hunger
  3. Good Health and Well-being
  4. Quality Education
  5. Gender Equality
  6. Clean Water and Sanitation
  7. Affordable and Clean Energy
  8. Decent Work and Economic Growth
  9. Industry, Innovation, and Infrastructure
  10. Reduced Inequalities
  11. Sustainable Cities and Communities
  12. Responsible Consumption and Production
  13. Climate Action
  14. Life Below Water
  15. Life on Land
  16. Peace, Justice, and Strong Institutions
  17. Partnership for the Goals
• Social Entrepreneur - is somebody who takes up a pressing social problem and meets it with an innovative or path breaking solution.

  Since profit making is a secondary objective, therefore they are people who are passionate and determined about what they do. They possess a very high level of motivation and are visionaries who aim at bringing about a change in the way things are.
• Qualities of Social Entrepreneur

  1. Ambitious
  2. Mission-Driven
  3. Strategic
  4. Resourceful
  5. Results Oriented
• Ambitious: Social Entrepreneurs tackle major social issues, from increasing the college enrollment rate of low-income students to fighting poverty. They operate in all kinds of organizations: innovative nonprofits, social- purpose ventures, and hybrid organizations that mix elements of nonprofit and for-profit organizations.
• Mission driven: Generating social value —not wealth—is the central criterion of a successful social entrepreneur. While wealth creation may be part of the process, it is not an end in itself. Promoting systemic social change is the real objective.
• Strategic: Like business entrepreneurs, social entrepreneurs see and act upon what others miss: opportunities to improve systems, create solutions and invent new approaches that create social value.
• Resourceful: Because social entrepreneurs operate within a social context rather than the business world, they have limited access to capital and traditional market support systems. As a result, social entrepreneurs must be skilled at mobilizing human, financial and political resources.
• Results oriented: social entrepreneurs are driven to produce measurable returns. These results transform existing realities, open up new pathways for the marginalized and disadvantaged, and unlock society‘s potential to effect social change
• Goal : 

  Social Entrepreneur - Fill a market gap; change the world!

  Entrepreneur - Capture a market securely
• Objective :

  Social Entrepreneur - Create sustainable solutions for social change

  Entrepreneur - Build a business; earn profits
• Profit Motive : 

  Entrepreneur - Maximize share holder value; profit as an end

  Social Entrepreneur - Advance social aims; profit as a means to financial sustainability
• Risk :

  Entrepreneur - Basic business risk

  Social Entrepreneur - Basic business risk plus social aspect
• Growth :

  Entrepreneur - Competitive for one company 

  Social Entrepreneur - Collaborative for societal impact
• Link to social problems :

  Social Entrepreneur - Direct

  Entrepreneur - Indirect
• Feedback :

  Entrepreneur - Established consumer and market information sources

  Social Entrepreneur - Need to be creative in obtaining market responses
• Competition :

  Social Entrepreneur - Exists because no one else adequately solving problem; “win” for society

  Entrepreneur - “win” for one business over others in a market 
• Capital :

  Entrepreneur - Benefit from robust financial and managerial services

  Social Entrepreneur - Contend with unpredictable and fragmented financing
• The Role of Technology:

  • The Internet, social networking websites and social media have been pivotal resources for the success and collaboration of many social entrepreneurs.
  • Using wiki models or crowdsourcing approaches, for example, a social entrepreneur organization can get hundreds of people from across a country (or from multiple countries) to collaborate on joint online projects
• Problems faced by Social Entrepreneurs:

  1. Funding
  2. Strategy and Long-Term Focus
  3. Remaining True to the Mission
  4. Lack of skilled man force
  5. Social and Cultural Effect
  6. Lack of Government support
• Bill Drayton is recognized as one of the pioneering social entrepreneurs of our time
• Bill Drayton founded “Ashoka: Innovators for the Public” in 1980, which takes a multi-faceted approach to finding and supporting social entrepreneurs globally
• Blake Mycoskie, in 2006, founded TOMS with the One for One model to provide shoes to children in need, later extending it to address other vital needs like eye care and safe water through TOMS eyewear and coffee sales
• Muhammad Yunus founded Grameen Bank in 1983, which empowers villagers with funding to pull themselves out of poverty; Yunus was awarded the Nobel Prize in 2006 for this initiative
• Social Entrepreneurs are the forefront of innovative solutions that make a meaningful impact on people's lives. Addressing pressing social and environmental issues to fostering sustainable development and promoting inclusive growth