Burton D. Morgan Center for Entrepreneurship
Social Entrepreneurship – Costa Rica
EARTH University
May 18 – June 10, 2009
Nancy Clement
nic@purdue.edu
765.494.9884
Copyright© 2009 Nancy Clement-Purdue University

Overview
• Entrepreneurship/Philanthropy/Social Entrepreneurship
• Entrepreneurship/nonprofit/Social Enterprise
• Statistics on Nonprofits
• Pioneers in Social Entrepreneurship
• Why Social Entrepreneurship?
• Social Enterprise
• Types of Business for Social Enterprise
• Examples

Defining
Entrepreneurship – The process by which one
organizes, manages, and assumes the risks of
a business or enterprise for personal gain.
Philanthropy – Giving to promote human
welfare, without expectation of receiving
something in return.
Social Entrepreneurship –
The art of simultaneously
pursing both a financial
and a social return on
investment.

Qualities of an Entrepreneur
• Sees Opportunities COMPETITION
competition
• Risk Taker
• Accepts Responsibility competition competition
• Make Money competition
• Wants to be Rich
• Protects IP
• Aspires towards IPO
• Independent IP
• Own Boss
• Maintains Control
2009 copyright nancy clement

Social Entrepreneur
• Sees Opportunities to Improve the Lives of
others
IP
• Risk Taker
• Accepts Responsibility
IP • Make Money for Sustainability of Mission
• EnRiches others
• Shares Protected IP
IP IP
• Aspires to Achieve IPO - Community Wide
• In dependence with Others
IP • Boss of Own Destiny
IP • Relinquishes Control
IP
IP IP 2009 copyright nancy clement
IP

Entrepreneurship / Nonprofit
Organizations / Social Enterprise
“Entrepreneurship is the essence of
free enterprise because the birth of new
businesses gives a market economy its
vitality.” (Bygrave, 2004)
Social service spending make up about
15% of the GDP and 2/3 of the Federal
Budget. (2007 US Census)
Social Enterprise is a combination of free
enterprise and the “love of mankind.”

*Number of Nonprofit Organizations in
the United States, 1996 - 2006
1996 2006
# of Orgs % of # of Orgs. % of change
Orgs Orgs
All Nonprofits Organizations 1,084,939 100% 1,478,194 100% 36.2%
501(c)(3) Public Charities 535,930 49.4% 904,313 61.2% 68.7%
Private Foundations 58,774 5.4% 109,852 7.4% 86.9%
* IRS Business Master File 01/2007 –
National Center for Charitable Statistics

Pioneers
for Social Entrepreneurship
• William Dryton founded Ashoka 1980 (international)
• Gregory Dees – 1989 Duke University “the meaning of social
entrepreneurship.” (www.fuqua.duke.edu) (non-profit)
• Skoll Foundation was created by Jeff Skoll in 1999 to pursue his
vision of a world where all people, regardless of geography,
background or economic status, enjoy and employ the full range of
their talents and abilities.
• Schwab Foundation – 2000 – Applying practical, innovative and
sustainable approaches to benefit society, with and emphasis on
those who are marginalized and poor.”
• Muhammad Yunus – 2006 Nobel Peace Prize for Social
Entrepreneurship (Grameen Bank-international)

Why Social Entrepreneurship?
• Creates a process that encourages change, both
economic and social, through leadership and
business practices while maintaining the focus on
the organization’s mission.
• Provides income opportunities for many people
held in the grips of poverty.
• A process by which nonprofit organizations
explore income generating businesses that
provide sustainable income and focus on the
double bottom line”.

Social Enterprise
• May be a for-profit company that has incorporated a
social mission into their way of doing business.
• May work directly with a non-profit organizations.
• May have a legal agreement which secures an income
stream to a non-profit
• May provide a service that enhances the non-profits
mission.
• May have an environmental mission.

Types of Businesses
for Social Enterprise
Social Corporate Responsible Business
• Limited Liability Company (or Partnership)
– Lowprofit Limited Liability Companies (L3C)
• Corporations:
– C-Corporation
– S-Corporation
– B-Corporation

Examples
Social Enterprise
Newman’s Own
Ben & Jerry’s
Greyston Bakery
Goodwill Industries
University Research
Private Foundations
Jerry Greenfield explains “It’s not that business is evil or bad, it is mainly
without values.” He stresses that business values should be socially
conscious or mission-based.
The Purdue Series on Corporate Citizenship and Ethics-November 29,2005

Examples cont’d
Goodwill Industries –
Social Mission with a
Retail Store?
Retail Store with a Social
Mission?
Retrieved from - http://www.goodwill.org/page/guest/about/whatwedo

Examples cont’d
Stonehenge Limited
"tie one on" before driving. Support of MADD
and its efforts to change America's attitude
toward drinking and driving, introduced "The
Molecular Expressions™ Cocktail Collection
men's neckwear. Recreate the molecular
structures of alcoholic beverages.

Examples, cont’d
eBay founder donates $100 Million to
Tufts University for social entrepreneurship
“Tufts will not lend money directly to
entrepreneurs. Instead, it will make a variety of
large investments, mostly loans at first, in private
partnerships and investment firms. They, in
turn, will support as many as 10,000 non-profit
and for profit groups.”
Source USA Today, November 4, 2005

Personal Note
Social Entrepreneurship
is the humanitarian side of
sustainability.