Social Entre
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Transcript of Social Entre
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Objectives:
To clarify and define key concepts and constructs
To unveil the core of concept of social entrepreneurs & entrepreneurship
To contribute as a drop in a large ocean of social entrepreneurial knowledge
To identify and elaborate the essential components to be a successful social entrepreneur
Introduction
We are moving toward a more open-solution society, one in which people of all walks of
life are encouraged to apply their creativity and talents to crafting innovative solutions to
social problems and increasing their impact. The democratization of social innovation isdriven by a range of factors, from cultural shifts to advances in information and
communications technology.
This is a good thing. Societies around the world are facing significant social problems forwhich they often do not have (or at least have not implemented) effective and affordable
solutions. As they struggle, they also face significant uncertainty and rapid changes (from
population shifts to technological advances) that result in new, complex, and shiftingproblems, and that open the door to new kinds of solutions. To navigate these choppy
waters, they need to be more innovative, flexible, and adaptive
Social entrepreneurs are individuals with innovative solutions to societys most pressing
social problems. They are ambitious and persistent, tackling major social issues and
offering new ideas for wide-scale change.
Rather than leaving societal needs to the government or business sectors, social
entrepreneurs find what is not working and solve the problem by changing the system,
spreading the solution, and persuading entire societies to take new leaps.
Social entrepreneurs often seem to be possessed by their ideas, committing their lives to
changing the direction of their field. They are both visionaries and ultimate realists,concerned with the practical implementation of their vision above all else.
Each social entrepreneur presents ideas that are user-friendly, understandable, ethical,and engage widespread support in order to maximize the number of local people that will
stand up, seize their idea, and implement with it. In other words, every leading social
entrepreneur is a mass recruiter of local changemakersa role model proving that
citizens who channel their passion into action can do almost anything.
Social Entrepreneurship is the work of social entrepreneurs. A social entrepreneur
recognizes a social problem and uses entrepreneurial principles to organize, create andmanage a venture to achieve social change. While a business entrepreneur typically
measures performance in profit and return, a social entrepreneur focuses on creating
social capital. Thus, the main aim of social entrepreneurship is to further social andenvironmental goals. Social entrepreneurs are most commonly associated with the
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voluntary and not-for-profit sectors, but this need not preclude making a profit. Social
entrepreneurship practiced with a world view or international context is called Corporate
Social Entrepreneurship.
Social entrepreneurship is about combining business insight and social responsibility to
positively impact lives. Strengthen Indias social fabric, from health and education toculture and sports. Promote youth athletic teams, community theater, mobile health
clinics, afterschool support centers, and more.
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. While a business
entrepreneur might create entirely new industries, a social entrepreneur comes up withnew solutions to social problems and then implements them on a large scale.
The terms social entrepreneur and social entrepreneurship were used first in the literatureon social change in the 1960s and 1970s. The terms came into widespread use in the
1980s and 1990s, promoted by Bill Drayton and others such as Charles Lead beater.
During the nineteenth and twentieth centurys some of the most successful social
entrepreneurs successfully straddled the civic, governmental, and business worlds -
promoting ideas that were taken up by mainstream public services in welfare, schools,and health care.
In India, a social entrepreneur can be a person, who is the founder, co-founder or a chief
functionary (may be president, secretary, treasurer, chief executive officer (CEO), orchairman) of a social enterprise, which primarily is a NGO, which raises funds through
some services (often fund raising events and community activities) and occasionally
products.
If the opportunity space for social entrepreneur is defined by the specific local social,economic and political arrangements, then it is not surprising that the social
entrepreneurship phenomenon manifests itself differently in different contexts. As a
result, and similar to the social intrepreneurial actor, researchers, policy makers orbusinesses have to situate the phenomenon in its context.
A useful typology to understand entrepreneurship across economic and cultural contextsdistinguishes between
The liberal economy: The market mechanism is the best way to shape and maintaineconomic and social justice. The US economy is an example.
The cooperative economy: The state plays an important role in redistributing wealth;markets are conditioned by regulative interventions. Most European economies function
according to this principle.
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The informal economy: Neither the state or the regulated market can create wealth and
social justice. Affiliation to social groups determines the creation of mostly local -
wealth and justice. Many countries of Latin America and Asia as well as India areexamples of informal economies.
Social entrepreneurship can provide a positive force to not only spur economicdevelopment directly but also, and especially, to provide a fertile ground for economic
development and to ensure its sustainability. Social entrepreneurs provide the fertilizer in
the form of social capabilities and therefore address inequalities in different dimensions(social, economic, and political) that can be a source of unbalanced progress and that
make development vulnerable.
Today, nonprofits and non-governmental organizations, foundations, governments, andindividuals also play the role to promote, fund, and advise social entrepreneurs around
the planet. A growing number of colleges and universities are establishing programs
focused on educating and training social entrepreneurs.
The internet and social networking websites have been pivotal resources for the successand collaboration of many Social Entrepreneurs, allowing ideas to be heard by broader
audiences, allowing networks and investors to develop globally and all achievable withlittle or no startup capital.
Social entrepreneurs drive social innovation and transformation in various fieldsincluding education, health, environment and enterprise development. They pursue
poverty alleviation goals with entrepreneurial zeal, business methods and the courage to
innovate and overcome traditional practices. A social entrepreneur, similar to a businessentrepreneur, builds strong and sustainable organizations, which are either set up as not-
for-profits or companies.
A 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.
Focuses first and foremost on the social and/or ecological value creation and tries tooptimize the financial value creation.
Innovates by finding a new product, a new service, or a new approach to a socialproblem.
Continuously refines and adapts approach in response to feedback.
Social entrepreneurs share come common traits including:
An unwavering belief in the innate capacity of all people to contribute meaningfully toeconomic and social development
A driving passion to make that happen.
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A practical but innovative stance to a social problem, often using market principles
and forces, coupled with dogged determination that allows them to break away from
constraints imposed by ideology or field of discipline, and pushes them to take risksthat others wouldn't dare.
Zeal to measure and monitor their impact. Entrepreneurs have high standards,particularly in relation to their own organizations efforts and in response to the
communities with which they engage. Data, both quantitative and qualitative, are their
key tools, guiding continuous feedback and improvement.
A healthy impatience. Social cannot sit back and wait for change to happen they are
the change drivers.
Social entrepreneurship is
About applying practical, innovative and sustainable approaches to benefit society ingeneral, with an emphasis on those who are marginalized and poor.
A term that captures a unique approach to economic and social problems, an approachthat 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.
It is this approach that sets the social entrepreneur apart from the rest of the crowd ofwell-meaning people and organizations who dedicate their lives to social
improvement.
Social entrepreneurs arent traditional activists. They dont often drive millions of peopleto the streets, but they do seek to create social change that can scale up. Scale is what
separates good from great, the well-intended from the truly transformative. Social changeis participatory. Thats what makes it social. It has always required intellectual and moral
catalysts. But lasting change happens by engaging and affecting large numbers of people.
Today, scale comes from connectivity. With mobile phones, the Internet, and social
media, the tools of social change now allow us to reach billions of people.
At the heart of such a society lies social entrepreneurship, which is the epitome of a
decentralized exploration of alternative solutions to social problems. Through theirinnovations, experimentation, and persistent efforts, social entrepreneurs expand the
portfolio of options available for dealing with current and future social and environmental
issues, thus providing an essential ingredient for enhancing adaptive efficiency.
Yet entrepreneurial exploration is not enough. It can lead to fragmentation, frustration,
and confusion, if it is not done within an institutional framework that helps us assess,evaluate, and appropriately scale the most promising of the experimental efforts. Markets
guide this process in the case of business entrepreneurship, but the success of
decentralized social problem-solving depends on the effectiveness of other supporting
institutions (legal, financial, cultural, intellectual, and more) in promoting an adequate
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level of social entrepreneurship, improving its effectiveness, and capitalizing on what we
learn through the explorations.
Creating effective solutions is not a matter of simply sorting what works from what does
not work, and then scaling up what works, as some would have it. It is a matter of
understanding what works under which circumstances and for whom. The world is morenuanced and complicated than we want to admit. Rarely is the solution to a problem
one-size-fits-all. We need to realize that what appears to be best practice has to be
qualified and is usually temporary, best only until something better comes along. And weshould always be challenging ourselves to do better.
In parallel with the number of articles in public press and journals, the number of
definitions used to describe the phenomenon of social entrepreneurship has also notablyincreased. Social entrepreneurship means different things to different people. It also
means different things to people in different places. Social venturing, not-for-profit
organizations adopting commercial strategies, social cooperative enterprises, andcommunity entrepreneurship are just some of the distinct phenomena discussed and
analyzed under the umbrella construct of social entrepreneurship.
Social entrepreneurship, commonly defined as entrepreneurial activity with an
embedded social purpose (Austin, Stevenson, & Wei-Skillern, 2006), has become an
important economic phenomenon at a global scale (Mair & Marti, 2006; Zahra,Rawhouser, Bhawe, Neubaum, & Hayton, 2008). Some of the most striking social
entrepreneurship innovations originate from developing countries and involve the
deployment of new business models that address basic human needs (Seelos & Mair,
2005), such as the provision of low- cost cataract surgeries to cure blindness or thedeployment of sanitation systems in rural villages (Elkington & Hartigan, 2008). Yet,
social entrepreneurship is a vibrant phenomenon in developed countries as well. For
example, according to the Global Entrepreneurship Monitor 2005 survey, an estimated1.2M people in the UK (representing 3.2% of the working age population) are social
entrepreneurs (defined in the survey as being involved in founding and running a social
oriented venture younger than 42 months). Given that the comparable number forcommercial entrepreneurship is 6.2%, these data raises the intriguing possibility that
social entrepreneurship may be almost as important a phenomenon as commercial
entrepreneurship (Harding, 2006).
Although social entrepreneurs usually start with small, local efforts, they often target
problems that have a local expression but global relevance, such as access to water,
promoting small-business creation, or waste management. The innovative solutions thatsocial entrepreneurs validate in their local context often get replicated in other
geographies and can spun new global industries (Zahra, 2008). An example is the growth
of the microfinance industry throughout the world (Seelos, 2005). Socialentrepreneurship is thus having profound implications in the economic system: creating
new industries, validating new business models, and allocating resources to neglected
societal problems.
These developments have started to spark academic interest. Practitioner oriented
research and several books focused on social entrepreneurship have been published in the
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last few years (Dees, Emerson, & Economy, 2001; Elkington, 2008; Nichols, 2006).
Business schools which, with a few exceptions (Dees, 2001), had largely ignored this
phenomenon, have been joining the field in the last six years by creating academiccenters and developing new courses and research (Mair, 2006).
Yet, and despite the increasing academic interest in social entrepreneurship, themanagement field still lacks a good conceptual understanding of the economic role and
logic of action of social entrepreneurship. Definitions abound - a recent paper
summarized twenty of them (Zahra, Gedajlovic, Neubaum, & Shulman, Forthcoming) -but they are usually driven by practice rather than theory (Mair, 2006). Current
researches typically (and tautologically) define social entrepreneurs as entrepreneurs with
a social mission (Dees, 2001; Martin & Osberg, 2007) and consider social
entrepreneurship as entrepreneurial activity with an embedded social purpose (Austin etal., 2006). Definitions are then derived from the integration of these two concepts
entrepreneurship and social (Mair, 2006; Martin, 2007). Social entrepreneurship has also
been called the simultaneous pursuit of economic, social, and environmental goals byenterprising ventures (Haugh, 2007). One sector (Dees, 2001). This approach contrasts
with more pragmatic definitions that see social entrepreneurship as the generation of
earned income by ventures in the pursuit of social outcomes (Boschee, 2001).
The concept of social entrepreneurship has thus become a large tent (Martin, 2007) where
many different activities are finding a home under a broad umbrella of activities andprocesses to enhance social wealth (Zahra, Forthcoming) or entrepreneurship with a
social purpose (Austin, 2006). As a consequence, the concept of social entrepreneurship
is poorly defined and its boundaries with other fields of study remain fuzzy (Mair, 2006).
Some authors consider this inclusive approach a beneficial situation for the developmentof the scholarly field of social entrepreneurship (Nichols & Young, 2008). Based on this
approach they develop arguments about how social entrepreneurship is connected with
and may enrich more established fields of inquiry such as structuration theory,institutional entrepreneurship and social movements (Mair, 2006).
It is true that modern economies include different types of business organizations withdifferent governance models: publicly-owned corporations, family-owned businesses,
partnerships, and cooperatives. Yet, and despite their differences (ownership structure,
profit vs. non-profit), all these organizational forms share a commonality they are run to
defend interests of the dominant organizational coalition, be they shareholders, owner-managers, partners or members. Social entrepreneurship initiatives, in contrast, do not
seem to be run for the self-interest of its dominant coalition but, instead, appear to be run
for the benefit of specific users or society as a whole. Yet, social entrepreneurs interact in
the market for resources and services with other types of economic actors. It is importantto understand what their role is and how they operate.
The changing landscape of entrepreneurism is one of the drivers behind the rapid rise of
social entrepreneurs. Literature suggests that an important moderating factor for
entrepreneurial success is the personality of entrepreneurs. However, fewer studies havelooked into personality traits of social entrepreneurs. so, we have to discuss which the
most influence factors affecing to the journey of social entrepreneurship.
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An individual requires literacy, vocational, sports, cultural, and recreational skills. Social
entrepreneurs having different skills related to self-awareness, creative thinking, critical
thinking, effective communication, interpersonal relationships, decision making, andproblem solving. It is the responsibility of both parents and schools to provide a
conducive climate to their wards to develop these skills. Academic skills are often
measured, unfortunately, based on marks or grades the students scores in the finalexaminations without realizing such scores of individual. Ultimately, imparting academic
and other skills to children is the responsibility of parents, teachers, school, and
neighborhood and of course, media too. Every school should enable children andadolescents at all levels to learn critical entrepreneurship skills. Such education
includes. comprehensive, integrated personality development programmes that can
enable young people to make healthy choices and adopt healthy behavior throughout their
lives.
A social entrepreneur identifies and solves social problems on a large scale. Just as
business entrepreneurs create and transform whole industries, social entrepreneurs act asthe change agents for society, seizing opportunities others miss in order to improve
systems, invent and disseminate new approaches and advance sustainable solutions that
create social value.
Unlike traditional business entrepreneurs, social entrepreneurs primarily seek to generate
"social value" rather than profits. And unlike the majority of non-profit organizations,their work is targeted not only towards immediate, small-scale effects, but sweeping,
long-term change.
The job of a social entrepreneur is to recognize when a part of society is stuck and toprovide new ways to get it unstuck. He or she finds what is not working and solves the
problem by changing the system, spreading the solution and persuading entire societies to
take new leaps.
Identifying and solving large-scale social problems requires a committed person with a
vision and determination to persist in the face of daunting odds. Ultimately, socialentrepreneurs are driven to produce measurable impact by opening up new pathways for
the marginalized and disadvantaged, and unlocking society's full potential to effect social
change.
"Social entrepreneurs identify resources where people only see problems. They view the
villagers as the solution, not the passive beneficiary. They begin with the assumption of
competence and unleash resources in the communities they're serving.
"Social entrepreneurs are not content just to give a fish or teach how to fish. They willnot rest until they have revolutionized the fishing industry."
The art of simultaneously pursuing both a financial and a social return on investment (the
double bottom line).
Social entrepreneurship is the process of bringing about social change on a major scale.
Social entrepreneurs function as the agents of change, questioning the status quo,
grabbing the new yet overlooked opportunities, and changing the world for the better.
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Today, they are making up for the shortcomings of the bureaucracies and government.
social entrepreneurs aim to improve social values. But they differ from non-governmentalorganizations in that they aim to make broad-based, long-term changes, instead of few
immediate small-time results. They recognize when a section of the society is stuck and
offer innovative ways to break out of its stagnant state. They find out the things that dontwork and alter the system to solve the problems. They detect resources while others see
problems. They consider the affected people as part of the solution and not as passive
beneficiaries. They propagate the solution and persuade the whole society to adopt it.
The degree to which social entrepreneurs pursue social impact as opposed to profitability
vary, but in all cases financial sustainability is fundamental. One approach is to create
business models revolving around low-cost products and services to resolve socialproblems. The objective is to create a social benefit that is not limited by personal gain.
Social Entrepreneurship is the process of bringing about social change on a major and
more effective scale than a traditional Non-Governmental Organisation (NGO). Theydiffer from NGOs in that they aim to make broad-based, long-term changes, instead of
small-scale and time-limited changes. Furthermore, a NGO raises funds through events,activities and sometimes products. However, raising money takes time and energy, whichcould be spent in direct working and marketing processes. Above all, Social
Entrepreneurs consider the affected people as part of the solution and not as passive
beneficiaries.
We think that there are various key mindsets and skills sets that help an individual to be a
successful social entrepreneurs. we have identified eight important competencies that are
essential for success: 1. Leadership. These people take initiative and action to solveproblems (rather than complaining about whats wrong) 2. Grit. This is a combination of
perseverance, passion, and hard workthe relentless drive to achieve goals, complete
commitment to achieving their task. 3. Creativity and innovation. These people see newpossibilities and think in unconventional ways. They see connections and patterns where
few other people would imagine. 4. Optimism. These people are confident that they can
achieve a bold vision, even when many other people doubt them. They have a strongsense of self-efficacy and a belief that they have control to change their circumstances. 5.
Empathy. These people are able to put themselves in the shoes of others, and imagine
perspectives other than their own; this is one of the most valuable qualities for
understanding the needs of others whom they serve. 6. Emotional and social intelligence.These people are excellent at connecting with others and building strong relationships.
Building and maintaining relationship is a skill that needs to be cultivated. 7. Decision-
making ability to evaluate information and advice to make informed decisions, assess
advantages and disadvantages of different options, change decisions to adapt to newsituations, and plan for the future; and 8. Problem solving - helps us to deal
constructively with problems in our lives. Significant problems that are left unresolvedcan cause mental stress and give rise to accompanying physical strain.
The important thing to note here is that each one of these qualities is something thatpeople can develop with practice.
For a long time, people thought that these traits were fixed. You either had them or you
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didnt. There were some people who were born creative, and others who would never
have an ounce of creative inspiration. There were some people who were naturally
optimistic, and others who just were naturally pessimistic. People couldnt change.
But now we know that people can develop these competencies. They can learn these key
skills for being great social innovatorsbecoming proficient, or even fluent, in thesecore competencies. this bunch of skills is also known as Life skills or Personality traits.
Personality is a set of human skills acquired via teaching or direct experience that areused to handle problems and questions commonly encountered in daily human life. The
subject varies greatly depending on societal norms and community expectations.
Personality is often taught in the domain of parenting, either indirectly through theobservation and experience of the child, or directly with the purpose of teaching a
specific skill. Yet skills for dealing with pregnancy and parenting can be considered and
taught as a set of life skills of themselves. Teaching these parenting styles can alsocoincide with additional personality of the child. Many personality development
programs are offered when traditional family structures and healthy relationships havebroken down, whether due to parental lapses, or due to issues with the children such assubstance abuse or other risky behavior.
These traits are found through living, school, work, family, environment and the worldaround us. Reading, working and volunteering are wonderful ways to seek and find life
skills...
These traits help us know how to fit in well with the perfection. This is where familycomes in as you will learn from them what is right and what is not acceptable. Things as
simple as how to care for yourself and personal hygiene and how to talk to people
without being offensive are some of the life skills that you need to become part of
society.
The phenomenon of social entrepreneurship challenges our assumptions about humanbehavior and economic action. It also challenges our beliefs about the role of
entrepreneurship in society. Social entrepreneurship is a complementary economic
approach that is based on value creation and operates by its own rules and logic. Yet, it is
an approach that seems able to address some of the most pressing problems in modernsociety but these challenges are handled with the help of cognitive consciousness. Social
entrepreneurs can also play an important role in developing and improving their
personality and it enhances the well being of a society and promote positive outlook andhealthy behavior.
Every social entrepreneur is a mass recruiter and facilitator of local change-makers,says Drayton. Because they are role models, other people say, If they can do that,
maybe I can do something like it, too, and most of the time the way they get their work
done is to create a movement.
Other terms used in place of "social entrepreneur":
Social capitalist
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Social innovator
Venture philanthropists
References:
Borzaga, C., J. Defourny. 2001. Conclusions: Social Enterprises in Europe: A Diversity
of Initiatives and Prospects. C. Bozaga, J. Defourny, eds. The Emergence of Social
Enterprise. Routledge, London.
Dorado, S. 2006. Social entrepreneurial ventures: different values so different process of
creation, no?Journal of Developmental Entrepreneurship.
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26-02-2013
http://www.ssireview.org/articles/entry/fifty_years_of_social_changeretrieved on 26-02-
2013
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