The Social
Entrepreneurship Toolkit
2015 EDITION
Dr. Ayman Tarabishy
Nile University
&
The George Washington University
Social Entrepreneurship Toolkit –
2015 Edition
• The SE2015 Toolkit will be organized as
following:
– The Person
– The Idea
– The Business Model
– The Execution
Part I.
Why People Go Into Social Businesses
• Social Opportunity – why do they go into business
–
–
–
–
–
–
Self-Realization, e.g., fulfill a personal vision ***
Financial Success, e.g., financial security *
Recognition, e.g., respect from friends, etc. **
Roles, e.g., continue family tradition *
Innovation, e.g., develop an idea ***
Independence, e.g., flexibility in personal life *
***
**
*
Highly Likely
Likely
Not very likely
Definition of Social Entrepreneurship
• Addresses social problems or needs that
are unmet by private markets or
governments
• Social entrepreneurship is motivated
primarily by social benefit
• Social entrepreneurship generally works
with – not against – market forces
4
The only big difference between
commercial and social entrepreneurship:
Denomination of the returns
Social and commercial entrepreneurship
have most of the same characteristics
5
Social Innovation
• Social innovation is, “a novel solution to a
social problem that is more effective,
efficient, sustainable, or just than existing
solutions and for which the value created
accrues primarily to society as a whole
rather than private individuals” (Phills, et.
al, 2008).
Part II.
What’s your view in
Creativity and Innovation?
Innovation
Creativity
Innovation
Innovation
Creativity
Creativity
Innovation
Creativity
Different but overlapping concepts
Innovation:
Introducing
successfully a
change in an
existing system
Innovation
Creativity
Creativity:
conceive and
express new
ideas
Creative
innovation
However, it’s when creativity and
innovation overlap that things get
interesting!
Creative Innovation defined
reativity
xecution
Creative innovation is actionable:
finding a solution (being creative) + implementing the
solution (execute)
Govindarajan (2010), http://blogs.hbr.org/2010/08/innovation-is-not-creativity/
PART III
What’s a Business Model?
• Three key questions to answer – identify all
key assumptions for each:
1) Value Proposition [what customer values]
2) Value Delivery [how to make it happen]
3) Value Capture [how to get paid]
(shall we get started??)
CONSTRUCTION OF THE SOCIAL INNOVATION INDEX
MARKET
ECONOMY
DIMENSION
CIVIC ECONOMY
DIMENSION
Social innovation tends to be located at the
points of contact between the two dimensions
examined that group together all the indicators
and are more concentrated in the territories.
11
www.businessmodelgeneration.com
Possible Financing Sources
Now You Are Serious
•
•
•
•
•
•
•
Your personal funds
Mom and Dad; friends, family
Venture capitalists
Banks/Bankers
Former owners/Take-backs
Government
Suppliers/Trade credit
Conventional
entrepreneur
Social entrepreneur
1. Individualist vision
1. Community vision
2. Goods and services for market
2. Goods and services for community
3. Focus on the market
3. Focus on the solution of social issues
4. Traditional performance measures, like
profit
4. Performance measures are social
changes
9-18
Typology of Ventures
VENTURE MISSION
ECONOMIC
SOCIAL
ECONOMIC
Traditional
Social Ventures
(Social Entrepreneurship)
MARKET
IMPACT
SOCIAL
Socially
Responsible
(corporate
social responsibility)
Enterprising
Nonprofits
= Hybrids Exist
Neck, H.; Brush, C. and Allen, E. (2009). The landscape of social entrepreneurship,
Business Horizons. Elsevier’s. 52. pp. 13-19.
SE Toolkit 2015
INNOVATION MUST BE
UNDERSTOOD
INNOVATION MUST BE
SHARED
20