SOCIAL ENTREPRENEURSHIP 4 PICS 1 WORD Learning Objectives: • Process of Social Entrepreneurship • Difference between Commercial and Social Entrepreneurship • Difference between Cooperative and Social Entrepreneurship • Social Entrepreneurship in the Philippines Process of Social Entrepreneurship All acts of entrepreneurship start with the vision of an attractive opportunity. For social entrepreneurs, an “attractive” opportunity is one that has sufficient potential for positive social impact to justify the investment of time, energy, and money required to pursue it seriously. This model breaks the opportunity creation process into two major steps. First, a social entrepreneur generates a promising idea. Second, the social entrepreneur attempts to develop that idea into an attractive opportunity. The entrepreneurial process provides information about the steps an individual has to follow in an attempt to become a social entrepreneur. Thompson (2002) simplified the process into the following four stages: 1. Envisioning - Perceiving an opportunity. 2. Engaging - Engaging the opportunity with a mind to do something about it. 3. Enabling - Ensuring something happens by acquiring the necessary resources. 4. Enacting - Championing and leading the project. Social entrepreneurship unites the passion of a social mission with an image of business like discipline, innovation, and determination. Many social entrepreneurs launch whole new ventures applying innovative and often risk taking approaches to create scalable solutions, which includes inventing new products and services. Entrepreneurs create sustainable organizations, which can be set up as nonprofit or traditional companies, with the overall goal to achieve large scale, sustainable and systematic change through new ventures. The process by which individuals, startups and entrepreneurs develop and fund solutions that directly address social issue. A social entrepreneur, therefore, is a person who explores business opportunities that have a positive impact on their community. Difference between Commercial and Social Entrepreneurship WHAT IS COMMERCIAL ENTREPRENEURSHIP? COMMERCIAL ENTREPRENEUSHIP Is motivated primarily by profit, they seek economic growth by providing valuable goods or services to the individuals and society. The objective of commercial entrepreneurship is creating wealth and adding value to society, the value of commercial entrepreneurship could be measured by the monetary terms, which is much easier than that of social entrepreneurship. SOCIAL ENTREPRENEURSHIP Social entrepreneurship is the creator of new models that provide products and services that directly meet the basic human needs that are still unsatisfied in current economic or social institutions. Its strategic focus is to solve social market failures, systematically using new resources and organizational forms to create new opportunities, increase social values, maximize social impact, and achieve change. DRIVE COMMERCIAL SOCIAL Are market-driven or driven by profit. Commercial entrepreneurs have to profit-drive as it helps firms or businesses grow. Are mission-driven. A mission-related impact is the standard of social entrepreneurs rather than economic value. MEASUREMENT COMMERCIAL SOCIAL Measure success of enterprise in terms of profits, turnover, market-share, etc. Measure success of the venture in term of the impact it has on the lives of the society or community. APPROACHES COMMERCIAL SOCIAL Employ competitive and promising employees and pay them accordingly. Could contain fulltime staffs, part-time staffs, and volunteers. GOVERNMENTAL SUPPORT COMMERCIAL SOCIAL Does not receive any support Receive many support from governmental agencies Difference between Cooperative and Social Entrepreneurship COOPERATIVE SOCIAL ENTREPRENEURSHIP Cooperatives are democratically run for-profit entities where people voluntarily unite to achieve a common social or economic aim. Business entities that have clear social goals, with clear management intent, and resources allocated to fulfill their social objectives. They make a profit while operating with a social cause that benefits their members. Can be structured as for-profit or non-profit. Focuses on self-help and mutual help. They provide services and offer employment for their members and promote community development in the district. Focuses on serving the social, economic, and cultural needs of the society. Social enterprises serve a larger audience All members contribute equitably to their cooperative’s capital which is a common member extending beyond its members. Hence, contributing members may be lesser than the property. people that benefit from the social enterprise. COOPERATIVE SOCIAL ENTREPRENEURSHIP Examples: Examples: Pamilyang Filipino Farmers Agricultural Cooperative (PFFAC) Greenelas.ph Candid Clothing Squeaky Clean Kids Malingkat Weaves Indayog PH Hinabi.ph Astella Philippines Alpas Pet Accessories Laguna Health Services Cooperative PLDT Employees Credit Cooperative Palawan Electric Cooperative Cubao Motor Specialist Workers Cooperative QUICK SUMMARY Social entrepreneurship is an organization that applies business strategies to achieve selfless goals. It can be structured as a non-profit or a for-profit organization. While a cooperative organization is a business owned, controlled, and operated majorly by some individuals for their mutual benefits. Social Entrepreneurship in the Philippines According to a study by ADB, as of July 2019, there were 164,473 social enterprises in the Philippines. That’s 17% of the total registered businesses in the country. Furthermore, 71% of the social enterprises are micro, small, and mediumsized businesses. The remaining 23% are NGOs and 6% are coops. A new study published by the British Council and the Philippine Social Enterprise Network (PhilSEN) with support from the European Union (EU) and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) found that there may be as many as 164,473 social enterprises operating in the Philippines whose top objectives are to generate employment, alleviate poverty, improve a local community and empower marginalised groups. They favour inclusion of the most vulnerable and marginalised and provide a platform for voice and economic participation for those left behind. We found that: • social enterprises are empowering women through employment and leadership of social enterprises • young people are becoming active in the sector particularly in the newer startups • social enterprises are creating new pathways to better livelihoods and supporting inclusive growth • of the 34 per cent growth in jobs in the Philippine economy, it is estimated that 5 per cent come from social enterprises • in terms of sectors, social enterprises are mostly in agriculture. This support is welcome and critical to alleviate the conditions of our farmers, producers and cooperatives. Some sectors have very little representation such as fisheries, energy, housing and justice and rehabilitation • social enterprise activity in the Philippines is taking off – the number of social enterprise startups has more than tripled in the last decade alone. THANK YOU!
