Social Entrepreneurship Test 1

What is the Wikipedia definition of social enterprise?

"A social enterprise is an organisation that applies commercial strategies to maximise improvements in human and environmental well-being - this may include maximising social impact alongside profits for external shareholders." - Wikipedia

What is the Centre of Entrepreneurship definition of social enterprise?

"Social enterprises are revenue-generating businesses with a twist. Whether operated by a non-profit organisation or by a for-profit company, a social enterprise has two goals: to achieve social, cultural, community economic and/or environmental outcomes; and, to earn revenue." - centreforentrepreneurship.com

What is the Guo and Bielefield definition of social enterprise?

"Social entrepreneurship refers to the pursuit of social objectives with innovative methods, through the creation of products, organisations, and practices that yield and sustain social benefits." - Guo and Bielefeld (from the slides)

What is the balanced scorecard and describe for non-profits.

- Elements of the balanced scorecard: o Financial o Customer o Learning and Growth o Internal Business Processes - The balanced scorecard goes further than tracking financial measures. It allows a business to analyse the above aspects of their business, see how they interact with each other, from realistic goals based on current capabilities, and create a strategy for the business moving forward. - Non-profits do not have a wealth of financial resources. Using the balanced scorecard allows them to maximise their current resources in order to make the most out of what they have despite their financial limitations

5. What are the 'failures' that cause SE?

- Factors driving the birth and development of SE: o Unment demands of social needs: • Govt failure • Market failure • Contract failure o Need for earned income: • Reagan's budget cits • Bush's budget cuts • Recent economic crisis o Opportunities from the external environment: • Demographic • Technological • Global o Impact on socal value creation: • Support during an economic downturn • Employment development • Innovation of new goods and services • Equity promotion

What are the major sections of a SE business plan or a BMC?

- Key Resources - Key Partners - Key activities - Value proposition - Customer segment - Customer relationship - Distribution Channels - Cost Structure - Revenue Stream

Why are charities interested in social entrepreneurship?

- One aspect of entrepreneurship is innovation. In regards to SE, charities take interest because it is the social ventures that will push innovation to achieve a social goal. Once a breakthrough is achieved, charities can invest and reap the benefits of an innovation without the risk of pushing for it themselves. This allows them to focus fully on their social mission while breakthroughs are achieved.

Why are stakeholders so critical in SEs

- One critical stakeholder for an SE is the customer. It is critical because he customer is more important to an SE than a for-profit because the mission of an SE is to improve the customer's situation and hopefully solve their problem rather than just sell them a product/service to generate wealth - Those who help fund the SE are also critical stakeholders because without the wealth generated from these external sources, an SE will struggle to achieve their mission and the problems will persist.

What is the difference between social entrepreneurship and for profit entrepreneurs? Why has social entrepreneurship become so popular?

- Social Entrepreneurship is a form of entrepreneurship that exhibits characteristics of non-profits, governments, and businesses, combining private sector focus on innovation, risk taking, and large-scale transformation with social problem solving - For profit organisations operate with the intention to make a profit without external concerns

What are 3 dimensions of entrepreneurship and how are they employed by entrepreneurs?

- Triangle: o Imagination o Willingness to accept risk o Flexibility - When deciding on an idea, it must have an acceptable amount of risk, but must also be flexible to change as the environment changes

7. What is effectuation logic and describe how it can be used to help feed the homeless in Christchurch?

Bird in hand - Who am I - What do I Know? - What resources can I use? Affordable Loss - What can I lose Exploit Contingencies - Turn lemons into lemonade Leverage Partnerships - use early customers/funders to enhance reputation for additional sales and funding from others Effectuation can be used to feed the homeless because it allows the business/entrepreneur to identify where they are currently positioned in relation to the market need (homeless), what goals they want to achieve (feeding the homeless), and the means and needs to reach those goals (Distribution channels, food preperation, non-perishable food supply)

8. An SE opportunity? What are 7 types of innovative opportunities in SE?

C A P S I P I • Conservers • Artists • Professionals • Searchers • Income seekers • Power seekers • Independent entrepreneurs

Write up a policy field analysis for your proposed venture or any venture?

Chapter 3

What is your SE project and frame its value proposition (or create an example)

Create a project

2. How does effectuation matter in SEs?

Effectuation matters to SEs because the identification of social venture opportunities takes on greater importance because SEs are looking to solve problems rather than generate wealth. A SE venture is designed to benefit society and improve the wellbeing of those who are in problematic situations.

6. What is EO, EI, and how are they different in SE vs. for-profits and how are they measured in SE?

Entrepreneurial Orientation (EO) seeks to capture this variability by focusing on the extent to which a company is innovative, risk-taking and proactive. Entrepreneurial Intensity (EI) focuses on the occurrence of entrepreneurial events within an organisation. EI reflects both how often the company engages in such events (frequency), and how innovative, risky, and proactive these events are (degree).

1. Can we re-frame social problems due to government and market failure as opportunities to invest in?

Yes. For example, Christchurch earthquake provided a number of opportunities to a variety of markets that helped people in a number of different ways. It's simply identifying opportunities during times of adversity - and adverse conditions often create radical movements in demand and opportunities for a wide variety of ventures.

How is SE different from for-profits and charities?

• Social Entrepreneurship: A new form of entrepreneurship applies to social problem solving traditional, private-sector entrepreneurship's focus on innovation, risk-taking, and large scale transformation • For-Profit: An organisation operated to with the intentions to make a profit • Conventional entrepreneurs typically measure their performance based on return, but social entrepreneurs also take into account a positive return to society. Social entrepreneurship typically attempts to further broad social, cultural, and environmental goals often associated with the voluntary sector. • SE's and Charities are both founded with the aim of providing social value in the community. The key difference is an SE relies on it's own profits to sustain the business and help their target market, whereas charities rely on donations and funding to achieve the same goal