The module is intended to provide the learners a detailed information of social entrepreneurship, social enterprises and the concepts that are related to the concepts.

1. Module: 1
WHAT IS SOCIAL ENTREPRENEURSHIP AND HOW TO BECOME A SOCIAL
ENTREPRENEUR
Women Entrepreneurs Association of Turkey
(KAGIDER)

2. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
What is Social Entrepreneurship? Who is a
Social Entrepreneur?
Social entrepreneur is an entrepreneur whose
primary goal is to create social impact through a
user need or aspiration-driven, financially
sustainable model.
Main pillars:
- social impact
- financial sustainability
- sustainability in the work done

3. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
• Definition in Wikipedia could be addressed based on its comprehensive explanation:
«Social entrepreneurship is an approach by individuals, groups, start-up companies or
entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or
environmental issues. This concept may be applied to a wide range of organizations, which vary in
size, aims, and beliefs. For-profit entrepreneurs typically measure performance using business
metrics like profit, revenues and increases in stock prices. Social entrepreneurs, however, are either
non-profits, or they blend for-profit goals with generating a positive "return to society".»

4. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Social entrepreneurship:
• Social entrepreneurship is an umbrella term that refers to all "activities and processes undertaken
to discover, define, and exploit opportunities to enhance social wealth by creating new ventures
or managing existing organizations in an innovative manner" (Zahra et al., 2009)
• It’s the act of starting a business with the main objective being to help solve a social issue.

5. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
What is a ‘social enterprise’?
• Social enterprises are organizations
whose primary goal is to create
social impact through a user need
or aspiration-driven, financially
sustainable model.
• Thus, social enterprises, and the
social entrepreneurs which lead
them, typically harness market
forces to achieve their social
objectives

6. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
What makes social enterprises distinct from
other types of businesses?
• Social enterprise
- profitable social
value creation,
based on using
business activities
to achieve a social
purpose
- social impact
through their
business ventures
Private enterprise
- economic value
creation based
-profit
maximization,
-increasing its
market share,
business growth
and shareholder
value creation

7. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Social enterprises and traditional initiatives differ from
each other through the following criteria:
- Mission/objectives
- Target audience
- Strategies
- Key stakeholders
- Values
- Legal form
- Profit distribution

8. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Basic concepts of social enterprises
• Sociality
• Innovation
• Market orientation
• Hybridity

9. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Different types of social enterprises and legal forms
• Non-profit
with earned
income
strategies
• For-profit
with
mission-
driven
strategies
Abu-Saifan, 2012

10. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
1. Not-for-profit: uses all of the money it they earn or receive as grants
to keep themselves running
2. For-Profit: enterprises that have a social mission built into their
business model.
3. Hybrid: social enterprises require both grant and investment capital
to fulfil their mission.
Different types of social enterprises and legal forms

11. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Legal forms of social enterprises
Cooperatives
Community organizations/enterprises
Association or Foundations
Non-Governmental Organizations (NGOs) and Charities
Incorporated and limited companies
Sole proprietorships
Associations and mutual assistance funds
Socio-economic establishments under trade unions, etc.

12. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Sectors in the social enterprise space
• Social enterprises are generally established to cover gaps present for
serving a local community.
• Education
• Health
• Livelihoods and agriculture
• Water and Sanitation
• Technology

13. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Why is social entrepreneurship important?
• business activities as a
vehicle for social change
• policy and advocacy,
• interaction with
government, policymaking
organs for advice
• enhancing their influence
• social causes, alturism
• business development

14. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
How to Become a Social Entrepreneur?
• Why is social entrepreneurship important?
Researches reveal that young people are drawn to work that they find
meaningful and purposeful at an earlier stage in their life. Traditionally,
most people prioritized finding stable work, and only social
contribution came afterwards. However, today, people from a wide
range of socio-economic backgrounds devote themselves to social
causes at an early age.

15. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Establishing a social enterprise
• Why? / How? / What?
• understanding end users and/or beneficiaries
• useful business model
• value proposition
• Identifying customers/target group of stakeholders
• Sustainability
• Design of services for the social problem set to resolve
• how the products or services are marketed
• understanding and articulating the ecosystem
• stakeholder mapping for

16. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Why?
How?
What?
• Simon Sinek
explains how
to use the
Golden Circle
model to
truly
differentiate
your brand's
value
proposition

17. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
-Does the problem that I have identified have an enterprise solution?
-Why do I think that I could make a difference? Is there anybody else
doing this? How is what I am doing different?
- Will my proposed solution be sustainable and scalable?
- Am I willing to take on the risks, which include low financial returns,
delays, and stress for both myself and my family?
Establishing a social enterprise
Questions to ask yourself:

18. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Identifying and addressing the challenges of a
social enterprise
• Funding
• Managing growth
• Managing growth
• Demonstrating real impact
• Building brand value
• Customer acceptance
• Purpose
• Value
• Guidance
• Lean Methods
• Culture
• Audits
• Best vs. Unique

19. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Sustainability

20. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Advantages & disadvantages of social
entrepreneurship
• Significantly at practical level
• Serving a purpose
• Changemaking
• Social innovation
• Multiplier effect
• Making money and creating a
positive social impact at the
same time
• Lack of a common definition
• Lack of legal definition and
regulations in some countries
• Making money and creating a
positive social impact at the
same time

21. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Relevance with women’s empowerment
• addressing a social problem
• women starting a social enterprise is itself contributing to women’s
empowerment
• women’s entrepreneurial activity
• economic growth

22. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Learning Pathway Quiz
Question 1:
• Social entrepreneurship is a field that is distinct from the broader field of
entrepreneurship because:
A) social entrepreneurs aren’t looking to set up an organisational form, whereas
traditional entrepreneurs are
B) innovation is inherent to social entrepreneurship, but not to
entrepreneurship
C) social entrepreneurs don’t attempt to scale up their initiatives, but
entrepreneurs typically attempt to scale up
D) creating both social and economic value is a complex process that social
entrepreneurs tackle, whereas entrepreneurs are typically driven to attain
economic (profit-driven) outcomes

23. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Correct Answer of Question 1:
• Correct answer is D
social enterprises juggle both value appropriation (financial
sustainability) and a value creation (social sustainability) objectives,
while they may look to establish a social enterprise; a vehicle through
which they can organise their activities to achieve their social and
commercial objectives

24. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Question 2:
Social innovation is significant within socially entrepreneurial activity
because:
A) it makes a social enterprise viable, without it, a social enterprise will
fail
B) it minimises the impact that contextual factors may have on the
socially entrepreneurial activity
C) it is the one key component that leads to social entrepreneurship
D) it is inherent to the processes by which social entrepreneurs use
resources in new ways and ultimately can lead to system-level change

25. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Correct Answer of Question 2:
Correct answer is D
• there are many factors which support the viability of a social
enterprise. Innovative practices is only one component
• regardless of how socially innovative socially entrepreneurial activity
is, if it contextually inappropriate, or not supported by macro-level
factors, the entrepreneur will struggle to achieve their goals
• many factors contribute to socially entrepreneurial behaviour,
including entrepreneurial orientation, sustainability orientation and
connections with networks of individuals

26. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Question 3:
Which of the following statements best describe social enterprise?
A) Social enterprises do not strive to generate profits
B) Social enterprises are driven by a primary desire to generate social
impact, and they engage in trading activities to support their social
mission
C) Social enterprises sell goods and services, these activities only take
up a minor part of their overall business model
D) All social enterprises operate as a non-profit

27. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Correct Answer of Question 3:
• Correct answer is B
Social enterprises engage in trading activities to support their social
mission, which are fundamental characteristics of social enterprise are
inherent within most definitions of social enterprise

28. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Question 4:
• A social entrepreneur is someone who is the head of a non-profit
organization, not a for-profit business.

29. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Correct Answer of Question 4:
A social entrepreneur is not defined by the profit nature, or lack
thereof, of the organization which they lead. The term “social” applies
to organizations whose primary goal is to create social impact through
a user need or aspiration-driven, financially sustainable model.

30. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of
the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Thank you for completing the 1st module!
WHAT IS SOCIAL ENTREPRENEURSHIP AND HOW TO BECOME A SOCIAL
ENTREPRENEUR