Social Entrepreneurship
Social Entrepreneurship (Dees)
"Play the role of change agents in the social sector, by: - Adopting a mission to create and sustain social value (not just private value), - Recognizing the relentlessly pursuing new opportunities to serve that mission, - Engaging in a process of continuous innovation,adaptation,and learning, - Acting boldly without being limited by resources currently in hand, and - Exhibiting heightened accountability to the constituencies served and for the outcomes created."
Enterprise/entrepreneurship concept
- Business tools and skills - Innovation - Commercial acumen - Efficiency and effectiveness
Social concept
- Mission - Impact - Change - Issues/ problems
Developing a plan for a social venture
1. What is the social problem? 2. Vision 3. Mission 4. Theory of change 5. Specific activities 6. Business model 7. Who else is in this space?
When scaling, orbs should consider (Dees et al)
5 Rs 1. Readiness 2. Receptivity 3. Resources 4.Risk: chances that the innovation will be implemented correctly, or will fail to have impact? 5. Returns: What is the bottom line? What kind of impact is the scaling aiming for?
4 different Social Entr schools of thoughts
American social innovation school, American social enterprise school, EMES (Emergence of SE in Europe), UK Approach
Opportunity (Kikul and Lyons)
An opportunity is a business concept for a product or service that adds value to the lives of its customers by uniquely addressing an identified need or desire in a way that takes advantage of existing market conditions and the skill set of the entrepreneur(s) and ensures the financial violability of the enterprise delivering the product or service.
Second part of Entrepreneurial Process (Brooks)
Concept Development- An opportunity cannot yield a valuable venture without its translation into a business concept. For example, a change in consumer tastes may open the door to a new product geared to the change or the improvement of an existing technology An opportunity and a business concept- for profit or otherwise- are not the same thing. And as one entrepreneurship expert notes, confusion between the two is "one of the leading causes of product and business failure."
Social Entrepreneurship (Brooks)
Definition 1: Brooks (Social) entrepreneurship is "the process of pursuing opportunities without limitation by resources currently in hand": - Opportunity recognition (Addresses social problems or needs that are unmet by private markets or governments); - Concept development (Is motivated primarily by social benefit); - Resource determination and acquisition (Generally works with - not against - market forces); - Goal attainment (Harvest the social benefits of mission success).
UK approach
Enterprise. 1990s, partnerships between public, private and non-profit sectors. New legal form: Community Interest Company (CIC).
American social enterprise school
Enterprise. An "entrepreneurial non-profit that generates "earned-income" while serving a social mission". Pioneer Edward Skloot founded New Business Ventures for NPOs in 1980.
EMES (Emergence of SE in Europe)
Enterprise. Includes any org initiated by a group of citizens for community benefit. Associations, cooperatives, mutual orgs, foundations.
4 keys contributions of Social Entrepreneur (Thompson)
Envisioning- a need, gap, opportunity Engaging- opportunity with intention to act Enabling- acquiring resources, connecting Enacting- championing projects
Social Constructionist
Exploit market failures, underserved clients, reforms, and innovations of social systems
Social Entrepreneurship Process begins
External Forces: -Environmental factors (social, political climate) -Availability of financial and non financial resources -Environmental disturbance (political, cultural, economic change) Internal Factors: -Entrepreneurial personality traits -Preparation to exploit opportunities: Education, experiences, background
Three separate sectors
Government, private, non-profit
Fifth Part of Entrepreneurial Process (Brooks)
Harvest the Venture: Ultimately, the entrepreneur exits from the venture, ideally in a way that maximizes his or her benefit. Exit may mean taking a company public, selling it to another company, liquidating assets, or passing the venture on to heirs.
American Social Innovation school
Individual. Bill Drayton and Ashoka have pioneered this approach. Application of commercial principles to social problems.
Ex: Paul Mooney
Job Care, I think he's probably social bricoleur, helps Dublin folk get jobs when they've been long term unemployed
Four key elements in the map of the world of the social entrepreneur (Thompson)
Job creation, buildings, volunteers, focus on helping people in need
Ex: Caroline Casey
Kanchi, helps create inclusion for the 1 billion people in world who have disabilities in the work place, created awards for companies best at inclusion. I'd say she's a social engineer.
Fourth Part of Entrepreneurial Process (Brooks)
Launch and venture growth: After an opportunity is recognized and resources acquired, the venture can be launched. Then, an entrepreneur grows the venture in a way that will maximize its payoff. This frequently means continuing to invest, developing a larger business strategy, retaining (as opposed to acquiring) human resources, and dealing with inevitable conflict
Muhammad Yunus
Loans to Bangladesh microlending
First part of Entrepreneurial Process (brooks)
Opportunity recognition- Entrepreneurship begins with the recognition that an opportunity exists to create value. For example, an entrepreneur may perceive an opportunity contained in a demographic shift, a change in consumer tasters, a new public policy, or an unmet need.
PEST (Bryson)-- strategic planning for seeing changes
Political Economic Social Technology
Third part of Entrepreneurial Process (Brooks)
Resource Determination and Acquisition: If an entrepreneur proceeds to develop a business concept, the next step involves the determination and acquisition of sufficient resources. These resources generally include money, of course, but they are not limited to the financial dimension. The entrepreneur also needs information and human resources as well. For example, the decision to start a business requires money to cover start up costs, information about the market the entrepreneur is entering, and usually, some human assistance is executing the plan.
Social Value Proposition (SVP) (Wei-Skillern)
Spells out intended impact of venture, shows how the three elements (People, opportunity, capital) support the SVP
Types of Ideas (Longenecker)
Type A: new market for existing product Type B: Completely new product or service, often tech breakthrough Type C: creating new processes for producing/delivering existing products or services
Social Bricoleur (Zahra et al)
address small scale local social needs
innovation
implementation of invention or original ideas
creativity
invention of original ideas
Social engineer
recognize systematic problems and introduce revolutionary change
Cooperatives
• "...autonomous associations of people who voluntarily cooperate for their mutual social, economic, and cultural benefit." • Can be nonprofit ,or profit making business, PLC.... • Are values based, democratically run, promote equality and fair treatment of workers. • Usually have a mission statement.
Goal Attainment (last step) (Brooks)
• Attainment of a stable service equilibrium • Integration into another social venture • Winning and moving on
For Profit Business/ Corporation
• Legal entity - Co. limited by guarantee, SME, etc. • Board of directors - obliged to look after interests of shareholders and are usually paid. • Shareholders - investors who expect to earn profit. • Activities aim to generate income • Pay tax on income • Can be inwardly social to varying extents - e.g. CSR, 1-for-1 model, through business processes.
Nonprofits/ Charities
• Legal entity - Co. limited by guarantee. • Board of directors cannot be paid, cannot remove profit from the org. • Usually dependent on grants and fundraising. • Different kinds of fundraising • Don't pay tax on donated income. • Can also have members
Unincorporated Membership Association
• Not the same legal status, but can have a bank account, and can be regulated. • Members pay dues, that are used to fund activities. • Membership and activities regulated by a constitution. • Often cannot receive grants, but can fundraise.
Bradach (2003), Critical for success
• People: recruitment,training and socialization;the person's ability to adopt social creation culture of the parent org. • Context:Vital part of parent org. Consideration to both suitability to new environment and relatedness to parent org. • Financial structure: Orgs must articulate cost basis for process of change and social value creation before reproduction. •Service recipients: beneficiaries should consist of a similar group as with parent org
