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2. What is Social Entrepreneurship?
n. 1. Recognizing and resourcefully pursuing opportunities to create
social value
2. Crafting innovative approaches to addressing critical social nee
ds Social entrepreneurship is the process of recognizing and resourc
efully pursuing opportunities to create social value. Social entrepren
eurs are innovative, resourceful, and results oriented.
"What business entrepreneurs are to t
he economy, social entrepreneurs are
to social change.”
-being a social entrepreneur is doing business with a conscience.

3. What solutions do we have today?
• Government – Alone is not the answer
[Inefficiencies, slow, bureaucratic, prone to corruption]
• Non Profit Orgs – Inadequate
- Dependant on grants [uncertain, demand>supply]
- “Compassion Fatigue”
- Fundraising takes time & energy, which can be spent planning growth/expansion
• Multilateral Institutions like World bank – Ineffective
- Conservative, slow, under-funded, unreliable
- Success is measured by
(a) GDP [might not be helping poor]
(b) Volume of loans negotiated [not measuring impact]
- Exclusively work with the government
• Corporate Social Responsibility – Fundamentally Flawed
- “As long as it can be done without sacrificing PROFITS”

4. SE Quadrant
• Quadrant I: traditional NPO; Found
ations, trusts, charities; dependant on
grants. Birthplace of modern SE
• Quadrant II: Tipping point; for-profi
t; promise of economic transformation
• Quadrant III: Transient Org; market
driven but not profit oriented; defined
path towards solution of complex socia
l problems, but may not have a defined
path for growth
• Quadrant IV: Conventional Business
; Profit oriented and market driven; So
cially responsible business models

5. Forms of SEs
• Cooperatives: associations to meet common economic
and social needs through jointly owned enterprises
• Trusts: actors in community-based regeneration
• Social Firms: mainly focus on creating employment & t
raining for the disadvantaged
• Community Enterprises: strong geographical definiti
on with a focus on local markets & services
• Nonprofit Trading arms: enabling nonprofits to meet
their objectives in innovative ways, like fair trade compa
nies
• Credit Unions: providing access to finance
• New age SEs: For profit companies with a focus on crea
ting socio-economic and/or environmental benefits

6. Characteristics of SEs
• Enterprise Oriented: directly involved in pro
duction of goods and services to a market
• Social Aims: explicit social aims such as job cre
ation, capacity building, provision of local servic
es, etc. Accountability towards social, economic a
nd environmental impacts
• Social Ownership: autonomous organizations
with a governance and ownership structure base
d on participation by wide stakeholders. Profits s
hared or used for the benefits of the community

7. SEs Vs. Conventional Business
S.No
.
Parameters Similarity Difference
1 Management Requires similar mgmt. practices; SE manag
ers need to be skilled in more than one mgm
t function
BoD is structured differently and usuall
y includes non executive members as we
ll; lack of well defined roles for manager
s [jack of all, master of few]
2 Marketing Like CBs, SEs too sell their products & servi
ces in the market, and thus need to develop
good marketing skills
Community loyalty & trust helps SEs in
difficult times. Such loyalty and trust do
es not substitute for providing good pro
ducts at good prices
3 Finance Balance sheets looks similar in most of the
ways as any CB
Investment instruments are different. P
rofits in full or parts may be used for co
mmunity benefits. Access to finance is d
ifficult.
4 Organizational
Structure
Operational structures are similar, with a e
mphasis on teamwork
More focus on capacity building, team w
ork, and participatory structures
5 Legal Framewo
rk
All the same regulatory frameworks, esp. for
a profit-oriented SE. Common regulatory fr
amework for SEs & CBs in countries like US
A, UK, Australia, etc.
Incorporation may be different, and thu
s taxation.

8. Social Innovation & Enterprise
• Innovation is invariably a cumulat
ive, collaborative activity in which
ideas are shared, tested, refined, d
eveloped and applied. Social innov
ation applies this thinking to socia
l issues: education and health, issu
es of inequality and inclusion.
• Be You. Be New.
• Innovation rocks. Improvisation d
oesn’t always suck.
• More social entrepreneurs = more
social enterprises + well managed
growth of social enterprises = mor
e social impact
Biz Ecosystem
Improvised Biz
Innovative Biz
Cheap Imitations

9. Case Discussion
• Green Livelihoods, Hyderabad [http://gre
enlivelihoods.org]
• Acumen Fund [http://acumenfund.org]
• Husk Power Systems [http://huskpowersy
stems.com]