Chapter 4: Social Entrepreneurship
licensing
a business arrangement in which the manufacturer of a product grants permission to a group or individual to manufacture that product in return for specified royalties or other payment
social entrepreneurship
a new form of entrepreneurship that exhibits characteristics of nonprofits, government, and businesses; applies to traditional entrepreneurship's focus on innovation, risk taking, and large-scale transformation to social problem solving
triple bottom line
an accounting framework that goes beyond the traditional measures for profit, return on investment, and shareholder value to include environmental and social dimensions
global entrepreneurs
an entrepreneur who relies on global networks for resources, design, and distribution
international alliances
another alternative for the entrepreneur in the international arena; alliance types: informal international cooperative, formal international cooperatives, and international joint ventures
importing
buying and shipping foreign-produced goods for domestic consumption
social value
contribution to the welfare or well-being in a given community
market-rich countries
countries have something that others need, thus forming the basis of an interdependent international trade system
resource-rich countries
countries have something that others need, thus forming the basis of an interdependent international trade system
European Union
economic and political union of 27 member states which are located primarily in Europe
ecopreneurship
environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment
sustainable entrepreneurship
focused on the preservation of nature, life support, and community in the pursuit of perceived opportunities to bring into existence future products, processes, and services for gain, where gain is broadly construed to include economic and noneconomic gains to individuals, the economy and society
political risks
include unstable governments, disruptions caused by territorial conflicts, wars, regionalism, illegal occupation, and political ideological differences
North American Free Trade Agreement
international agreement eliminating trade barriers between Canada, Mexico and USA (NAFTA)
ecovision
leadership style for innovative organizations; encourages open and flexible structures that encompass the employees, the organization, and the environment with attention to evolving social demands
B corporation
legal structure that expands corporate accountability to make decisions that are good for society, not just shareholders; standards enable consumers to support businesses that align with their values
Benefit corporation
more sustainable than traditional corporations, except with purpose, accountability, and transparency
diaspora networks
relationships among ethnic groups that share cultural and social norms
exporting
shipping of domestically produced goods to a foreign destination for consumption; it is important for entrepreneurs because it often means increased market potential
learning curve
the time needed for new methods or procedures to be learned and mastered
World Trade Organization
the umbrella organization governing the international trading system. Its job is to oversee international trade arrangements, but, contrary to popular belief, it does not replace the General Agreement on Tariffs and Trade (WTO)
shared value
transformation of business thinking recognizing societal weaknesses that create internal costs for firms
