Chapter 4 - Supporting Social Entrepreneurship

Embrace - survival of low weight birth babies by providing sleeping bag to keep them warm instead of incubator Building Impact - makes access to volunteering and donating easy by bringing events and opportunities right to office and residential buildings (civil engagement is the goal)

2 examples in the book for enterprising nonprofits

1. engage more customers 2. lead to real innovations 3. decreases costs 4. increase public image 5. bring people together

5 reasons why CSR makes good business sense?

Venture Philanthropy funding

A combination of financial assistance, such as grants, with a high level of engagement by the funder

Collaborative Fund

A company that provides financing to entrepreneurs

Social Consequence Entrepreneurship

A for-profit venture whose primary market impact is social

Enterprising Nonprofits

A form of social entrepreneurship where both the venture mission and the market impact are for social purposes

Work Integration Social Enterprise (WISE)

A social enterprise whose mission is to integrate people who have been socially excluded into work and society through productive activity

power

A stakeholder in a position of ________________ has the ability to either help or hinder your social objectives.

"Community" fund

A type of fund used by social entrepreneurs with a goal of investing in economic development and job creation in impoverished areas..

Hybrid Model of Social Entrepreneurship

An organization with a purpose that equally emphasizes both economic and social goals

No, they can evolve into other types of stakeholders

Are stakeholders static?

Change the World

Bill Drayton, the founder of Ashoka, stated that • "The life purpose of the true social entrepreneur is to ____________________________________."

Sword & Plough - hires army veterans to recycle surplus military materials into fashionable bags and accessories

Book's example of Social Consequence Entrepreneurship

New Profit, Inc. - who raise money from donors to create a large fund where money is granted to select nonprofits

Book's example of a Venture Philanthropy

TOMS Shoes - "Buy one, Give one" to people in impoverished countries VisionSpring - eyeglass company Sustainable Harvest - coffee importer Better World Books - takes donations of new and unwanted books and sells them online

Book's examples of hybrid social entrepreneurship?

Rienserta un Mexicano - helps mothers in prison raise their children The Specialists - a for-profit consultancy firm that hires our employees with autism InnerCity Weightlifting - give former criminals (mostly gang members) the chance to become personal trainers

Book's examples of work integration social enterprise (WISE)?

Organic clothing company PACT

Books example of a social purpose venture

value

Building relationships with key stakeholders is an important way to gain support, but you must also prove to your key stakeholders how you intend to generate ________________ for them.

Social Purpose Ventures

Businesses created by social entrepreneurs to resolve a social problem and make a profit

No, they can have two or three of the attributes

Can a stakeholder only have one attribute of key stakeholders? (power, legitimacy, urgency)

The giveaway scheme may harm local businesses in that area as it stifles local industry and potentially increases unemployment. Why would anyone buy shoes from a local business if they could get them for free? It may also create dependency.

Describe the unintended consequence of social entrepreneurship TOMS shoes and their "Buy one, Give one" method?

Corporate Social Responsibility (CSR)

Describes the efforts taken by corporations to address the company's effects on environmental and social well-being in order to promote positive change

The difference lies in the primary objective: CSR adds social objectives to a company while still pursuing the main goal of making a profit. Social Entrepreneurship models, including the hybrid model, place equal emphasis on social and economic goals.

Distinguish the difference between corporate social responsibility and social entrepreneurship.

Microfinance

Financing in offering loans to the poor in developing countries to help them start their own businesses

Impact-Investment Funds

For-profits may also seek investment from Social Venture Capitalists (SVC) - also known as ________________________________________________ - which are funds that look both for a return on investment and to make a specific goal/environmental impact

Less

Hybrid Models are ___________ (more/less) likely to receive venture capital funding or philanthropic donations because they sit in a gray zone between business and charity.

Venture Philanthropists

In Venture Philanthropy, _________________________________________ will share their experience with nonprofit entrepreneurs to help grow and scale the company to drive social change, which might take the form of marketing, communications, executive coaching, HR, or networking.

Enabling the nonprofit to become financially independent by the end of this period

In Venture Philanthropy, financial support is typically provided for 3 - 5 years with the goal of what?

Wicked Problems

Large, complex social problems where there is no clear solution, where there is limited, confusing, or contradictory information available, and where a whole range of people with conflicting values engage in debate

TRADITIONAL: Mission: Economic Impact: Economic SOCIAL PURPOSE: Mission: Social Impact: Economic SOCIAL CONSEQUENCE: Mission: Economic Impact: Social ENTERPRISING NONPROFITS Mission: Social Impact: Social

List the venture mission (economic or social) and the primary market impact (economic or social) for the 3 types of social entrepreneurship and traditional entrepreneurship. **Draw the Box Chart**

False, all (if any) profits made must be channeled back into the organization and profit may not be distributed to owners, etc.

T/F: For enterprising nonprofits, profits made are allowed to be distributed to owners/managers of the enterprising nonprofit for salary, etc.

True

T/F: It is possible for enterprising nonprofits to use both earned-income activities and venture philanthropy

False, they can be both for-profit and nonprofit

T/F: Social Entrepreneurs can only be nonprofit?

Salience

The _______________ model helps social entrepreneurs select the most suitable communication approach for each group of stakeholders by classifying stakeholders based on their salience (significance) in the social enterprise.

Woodland Park Zoo in Seattle, Washington that sells their exotic animal feces to guests as opposed to paying to have it removed to landfills

The book's example of an earned-income activity

Urgency

The extent to which stakeholders demand your attention.

Stakeholders

The people or groups affected by or involved with the achievements of the social enterprise's objectives

Earned-income activities

The sale of products or services that are used as a source of revenue generation

1. The problem is not understood until after the formulation of a solution. 2. Wicked problems have no stopping rule. 3. Solutions to wicked problems are not right or wrong. 4. Every wicked problem is essentially novel and unique. 5. Every solution to a wicked problem is a 'one shot operation.' 6. Wicked problems have no given alternative solutions.

What are Conklin's 6 defining characteristics of wicked problems?

1. Earned-income activities 2. Venture Philanthropy

What are the 2 types of enterprising nonprofits?

1. Social Venture Capitalists (impact-investment funds) 2. "Community" funds 3. Microfinance

What are the 3 capital markets for social entrepreneurs?

1. Power 2. Legitimacy 3. Urgency

What are the 3 primary attributes of stakeholders that must be considered when trying to achieve your objectives?

1. Social Purpose Ventures 2. Social Consequence Ventures 3. Enterprising Nonprofits

What are the 3 types of social entrepreneurship?

• Found new organization • Find information and resources • Form connections • Create marketing initiative • Promote offerings

What are the 5 similarities between traditional and social entrepreneurs?

1. High Engagement 2. Multi-year Support 3. Tailored Financing 4. Organizational Capacity Building 5. Non-financial Support 6. Performance Measurement

What are the 6 characteristics of Venture Philanthropy?

1. Describe what social entrepreneurship is and the role it plays. 2. Explain how social entrepreneurship can help resolve wicked problems around the world. 3. Identify the different types of social entrepreneurship. 4. Explain how social entrepreneurs can use capital markets to fund their ventures. 5. Explain the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur. 6. Distinguish between corporate social responsibility and social entrepreneurship. 7. Assess the value of social inclusion globally within social entrepreneurship.

What are the 7 learning objectives for this chapter?

1. Dormant 2. Discretionary 3. Demanding 4. Dominant 5. Dependent 6. Dangerous 7. Definitive

What are the 7 types of stakeholders?

• Environment • Poverty • Sustainability • Equality • Education • Child mortality • Sanitation • Terrorism • Health and wellness

What are the 9 examples of wicked problems given?

Enterprising Nonprofits have: - Higher survival rate after first 5 years (50% vs. 84%) -higher percentage of women (41% vs. 60%) -higher age of the average founder (40 vs. 53) -more highly educated w/ college degrees (31% vs. 89%) -have more experience in the private sector

What are the big differences between traditional nonprofit entrepreneurs versus enterprising nonprofit entrepreneurs?

There intended mission: Traditional Entrepreneurs create ventures with a goal of making a profit and measure performance as such. Social Entrepreneurs create ventures to tackle social problems and to bring about social change and measure performance by advancing social and environmental goals

What is the main different between traditional and social entrepreneurs?

Dormant

___________________ stakeholders are "sleepers" - they hold power but do not tend to use that power unless they are given a reason to do so.

Definitive

___________________ stakeholders are the only ones who possess all three attributes of power, legitimacy, and urgency. These stakeholders have a significant role to play in your organization and must be given priority when it comes to handling their claims.

Dominant

___________________ stakeholders have both power and legitimacy, which gives them strong influence in the organization.

Dependent

___________________ stakeholders have both urgency and legitimacy. but lack the power to influence. These stakeholders are the most passionate, and their passion is likely to attract dominant stakeholders.

Discretionary

___________________ stakeholders have no power to influence and no urgent claims, but they have legitimacy. They could come in the form of philanthropists who donate to the organization and willing to support social causes.

Dangerous

___________________ stakeholders possess both power and urgency, but may use this power to coerce or even resort to violence.

Demanding

___________________ stakeholders possess the urgency attribute, but they have no power or legitimacy and may be the only dissenting voice in the room. (i.e. protesters)

Legitimate

_____________________ stakeholders are those whose actions are appropriate, proper, and desired in the context of the company, organization, or community.

Social Inclusion

_____________________________ is meant to directly confront some of the inequality that creates personal marginalization and its resulting issues head-on. It attempts to create similar opportunities and encourage hope.