Chapter 2
The Core of Social Entrepreneurship
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Objectives
• To understand concept of social entrepreneur and its growing
importance
• To develop comprehensive understanding of social entrepreneur and
social entrepreneurship
• To understanding motivation & vision of social entrepreneur
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Introduction
• Doing a business and contributing to a social cause simultaneously is
a real win-win situation for all stakeholders.
• The significant differentiation point of social entrepreneurs is their
relatively high social conscience.
• Social entrepreneurs look at any social problem as a challenge and
opportunity to serve a social cause. Money is not a bigger motivation
than getting to address a social need.
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Different Views on Social Entrepreneur
• Social entrepreneurs are individuals with innovative solutions to
society’s most pressing social problems. (Ashoka)
• A person who pursues an innovative idea with the potential to solve a
community problem. These individuals are willing to take on the risk
and effort to create positive changes in society through their
initiatives.( Adam Smith)
• 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. ( Schwab
Foundation)
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Ten Characteristic of Social Entrepreneur
1. Try to shrug off the constraints of ideology or discipline.
2. Identify and apply practical solutions to problems, combining
innovation, resourcefulness and opportunity.
3. Innovate by finding a new product, service or approach to a social
problem.
4. Focus first and foremost on social value creation and, in that spirit,
are willing to share their innovations and insights for others to
replicate.
5. Jump in before ensuring that they are fully resourced.
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Ten Characteristic of Social Entrepreneur
6. Have an unwavering belief in everyone's innate capacity, often
regardless of education, to contribute meaningfully to economic
and social development.
7. Show a dogged determination that pushes them to take risks that
others wouldn't dare.
8. Balance their passion for change with the zeal to measure and
monitor impact.
9. Have a great deal to teach change-makers in other sectors.
10. Display a healthy impatience.
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Social Entrepreneurship
• Is about applying practical, innovative and sustainable approaches to
benefit society in general, with an emphasis on those who are
marginalized and poor.
• A term that captures a unique approach to economic and social
problems, an approach that 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.
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Social Entrepreneurship
• It is this approach that sets the social entrepreneur apart from the
rest of the crowd of well-meaning people and organizations who
dedicate their lives to social improvement.
• Definition of social entrepreneurship should reflect the need for a
substitute for the market discipline that works for business
entrepreneurs.
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Criteria
Role
Charity
of
Social
Creation
Social Entrepreneurship
Value To redistribute income from To be a change agent
the haves to the have-nots
through
innovative
mutually
beneficial
Social Entrepreneurship
Charity Vs. Social Entrepreneurship
exchanges and create social
values
Works
within
structures in society
given social
entrepreneurship
creates opportunities and
enables
social structural
change
Purpose
the purpose of charity is to social
alleviate
entrepreneurship’s
immediate purpose is to improve social
suffering rather than deep conditions
social change
Chapter 2: The Core of Social Entrepreneurship
Social Structure
Criteria
Charity
Social Entrepreneurship
Financing
Primary source of finance A self-sufficient working
is donation
Sustainability
business model
Sustainability depends on entrepreneurship
is
sustainable as it uses a
self-sufficient
business
model
Time Frame
charity is designed to social
relieve
entrepreneurship
immediate can be short-lived or run
distress, the response is for decades just like any
quick and the impact is enterprise
short lived
Chapter 2: The Core of Social Entrepreneurship
funding by donors
Social Entrepreneurship
Charity Vs. Social Entrepreneurship
Need of Social Entrepreneurship in India
• It’s beyond reach of Indian government to bring upon positive sustainable
change in lives of these many citizens with limited financial and human
resources at disposal.
• The main players namely government and NGOs who can contribute
significantly towards social causes have not performed up to expectations..
• Social entrepreneurship can be useful to balance economic growth as well
well-being of down trodden of society.
• The CSR bill proposed by the government where 2 per cent of profits for
big companies will be used for social programmes that includes investment
in social business ventures.
• Government subsidies and charity initiatives are not sustainable in long
run, but social enterprises are.
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Motivation for Social Entrepreneur
1.
2.
3.
4.
5.
More than good intentions
Look outward, not inward, for motivation
Efficient compassion is the best kind
Listening to voices other than your own
Beware of branding at someone else’s expense
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Motivation for Social Entrepreneur
6.
7.
8.
9.
10.
Bottom-up solutions, not top-down
Results matter, not mission or programs
There’s plenty of room for genuinely new ideas
Drawing the line between good and evil
Government’s Imperative towards Social Cause
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship
Summary
• Social entrepreneurship means different things to different people.
• Social entrepreneurs are individuals with innovative solutions to society’s most
pressing social problems
• Social entrepreneurs are ambitious and persistent, tackling major social issues
and offering new ideas for wide-scale change.
• Charity & social entrepreneurship differs significantly in its processes and goals.
• Country like India requires growth of social entrepreneurship as limited natural
and financial resources in the country capitalism cannot be the answer of all sorts
of problems.
• Government subsidies and charity initiatives are not sustainable in long run, but
social enterprises are.
• Social entrepreneur’s motivation goes beyond philanthropy and leans towards
innovation and meeting challenges.
Social Entrepreneurship
Chapter 2: The Core of Social Entrepreneurship