Social Enterprise:An innovative business model forcreating sustainable social impactAttila J. TurosInternational Development andHumanitarian Assistance Consultant
Lecture Overview• Introduction to social entrepreneurship.• Stimulating systemic change throughinterventions and collaboration.• Drawing on market-based mechanisms tocreate positive change.• Finding innovative ways to leverage resourcesin the pursuit of social value.
What is a Social Enterprise?An enterprise involving pursuing financial andsocial goals simultaneously, with an emphasis onreplicability and sustainability.What is Social Entrepreneurship?A social action involving ways of meeting long-standing as well as new social needs, with anemphasis on individual action and initiative
Who/What are Social Entrepreneurs?• Social entrepreneurs draw on professionalismand market based mechanisms to create positivechange in the world.• Social entrepreneurs find new ways to solvesocial problems usually affecting large portions ofthe population.• Social entrepreneurs are relentless in the pursuitof their visions, simply do not take “no” for ananswer, and do not give up until they spread theirideas as far as they possibly can.
Social entrepreneurshipActing as an enablingcatalyst by using marketbased mechanisms tocreate positive change.Conducting business notsimply to gain profit, butto also have positivesocial impact.Delivering public andquasi-public goods in amore efficient andeffective manner.Creating systemic change indomains of social valuecreations: i.e. education,environment, trade,health, banking, etc.InnovationPerformanceLeadershipIdentityKey Elements of SocialEntrepreneurship
Social entrepreneurs as leadersSocial entrepreneursrepresent the vanguard ofcivil society in terms ofeffectiveness and adaptivitybecause they overcomeobstacles that seeminsurmountable.
Social entrepreneurs as innovatorsSocial entrepreneursfind innovativeways to leverageresources in thepursuit of socialvalue.
Systemic change throughinterventions and collaboration• To help to turn the tide on the great challenges of the 21stcentury as exemplified in the Millennium DevelopmentGoals (MDGs), a quantum leap in scale and impact isrequired, thus many more social enterprises must becreated in a short period of time.• Social entrepreneurs realize that not everything can beaccomplished alone and therefore participate in “changecommunities”, which typically include technical experts,philanthropist, other entrepreneurs, etc.• About a quarter century ago, restless people seeking to dealwith problems that were not being successfully coped withby existing institutions, escaped the old formats and createda new sector dubbed “the third sector” or rather the“citizen sector”.
Creating change through marketbased mechanisms
The Social Business ModelType I –focuses onproviding a productand/or service with aspecific social, ethicalor environmental goal.Type II – is a profit-oriented business thatis owned by the poor orother underprivilegedparts of society, whocan gain throughreceiving directdividends or by indirectbenefits.
From one bottom line to three• Generate profit.• business andemploymentopportunities forlocal people.• Reducemalnourishmentin children.