8. Social Entrepreneurship vs. Entrepreneurship Social Business Risk your own capital/Bootstrap it Risk other people’s capital Relentless pursuit of growth Fast-moving and nimble Low structure/hierarchy Work 24-7 Seek to solve a social problem and a return (SROI) No clear exit strategy Capital markets not well developed Seek a financial return (ROI) Exits are clear – sale, IPO, etc. Both
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Editor's Notes
Ask people how familiar they are with social entrepreneurship. JVS: lawyer, Director of Social Embeddedness at ASU – explain what that means; I’m excited to be a part of this summit because I’m new to AZ – great introductions, lots of energy (previously DC and NJ) RD: born in Mexico City and arrived at age 8, nonprofit leadership and management business and global politics major, I’m excited to be here because I was exposed to social e-ship at a young age and it’s amazing that all of you have the capacity to expose your students as well.
2 minutes TOPS to do this activity
JVS use audience answers to come up with definition Regina: ex post??
Identifying an unsatisfactory equilibrium: An equilibrium, or a norm, that is currently present at an unsatisfactory state. Pierre Omidyar & Jeff Skoll: The E. Context was the inability of geographically based markets to optimize the interests of both buyers and sellers. Wanting to sell his girlfriends PEZ containers and finding no buyers Omidyar started Ebay with the help of Skoll.
ask them to define it with what they have learned about entrepreneurship. It will be a good point to synthesize the complete definition of entrepreneurship. JVS: explain what Ashoka is, mention in 2 more slides Regina will tell a story about a specific Ashoka Fellow
Direct Value Proposition (for those who might not know): The benefit offered by an organizations products or services. In entrepreneurship profit is prerequisite for sustainability thus large-scale market adoption and ultimately a new equilibrium. What distinguishes social entrepreneurship is the primacy of social benefit, but this does not mean that a SE cannot make profit or develop a for-profit institution, it just means that rather than driven by money it is driven by mission of social impact.
Started in 1993, College summit is a 4 day intensive program that guides students in the college application process and prepares them for success. College summit estimates that out of the 900,000 low income students at least 180,000 could succeed in colege but fail to enroll. Inspiration: Continually saw high school students who had potential not attend college. First his friend in HS, then the kids that attending the flyers after school program. Saw that there was a market niche ready to be filled. Creativity: seeing that a six month program didn’t have the results he expected, he used his creative skills and created college summit an intensive program that condensed the 6 months into one weekend. Direct Action: He saw that Universities were hungry for “low-income talent” and that many low income students didn’t have the support or the knowledge (since many of their parents didn’t go to college) that they were opting out of college and getting a job instead. He took Direct Action, started the program, and enlisted help from his friends. Courage & Fortitude : It took a lot of work to get people to believe in his cause, the first summit, he couldn’t get the 13,000 to cover expenses and was about to cancel the summit, but kept going.
A person has entrepreneurial characterisitcs, but an idea has to have outcomes and create change to be entrepreneurial. In the case of College summit, J.B. Schramm had the characteristics, and college summit had the outcomes. 80% of students who attend college summit go on to college with over 75% retention rate. Mass market adoption: after several years of creating a successful pipeline of low income students to colleges, Colleges were begging for more. he has gone from one regional office to over 10 states. Significant levels of imitation: In social entrepreneurship, the levels of imitation, is looking at the idea’s ability to be imitated in different places. College Summit scalability and success in multiple cities shows that this program is more than a great program, but a social enterprise. Creation of new ecosystem: College summit is creating a new ecosystem, and changing the way of college process for low income students. Through two more programs he is changing the students and its surroundings, attacking to problem at the root. In the high schools he has created a curriculum to help teachers become college experts to help students with the program. In colleges, he is creating partnerships and learning the truths about the admission requirements and providing colleges with a portfolio showcasing students. He is changing not just one thing, but the whole educations system.
JVS – share story about Food Bank student at ASU According to his research, Bornstein found that the most successful entrepreneurs were the ones who were most determined to achieve a long term goal. It was motivation , not confidence, persistence, or knowledge. They are concerned with quality and efficiency, long term over short term. Willingness to self-correct Successful SEs are attached to the goal, not to the approach to accomplish the goal. Younger entrepreneurs tend to be better at this than more experienced entrepreneurs Willingness to chare credit It takes a team. Ideas. Implementers. Skills. Knowledge. Willingness to break free from structure Ability to separate from the past Willingness to cross disciplinary boundaries Gather people’s ideas, experiences, skills, resources in ways society is not naturally aligned. Willingness to work “quietly” Bill Drayton: do something v. be someone – little efforts add up over time Strong ethical impetus Ethics, motivation Make decisions based on what is best for the idea and its outcomes
LEARNING OUTCOMES, Top Tips for Soc Ent. Differentiating SE between Social Service Provision and Social Activism. - Within Social Service Provision there is a direct action performed, and a community is improved but there is no large systematic change thus not qualifying it as SE. Example: creating a tutoring center to combat high school drop out rates. Unless it is replicated in a large scale and there is a movement that springs all over the country to create a new equilibrium it cannot be called SE Social Activism: Creates a new equilibrium but there is no direct work involved. ie. martin luther king. creates change through influencing others (NGOs, governemnts) rather than directly tackling the issue.
Nonprofits: Embed Entrepreneurship in the culture of the organization Government: Creating policy that fosters innovation that promotes social entrepreneurship, tax breaks, incentives for businesses to invest etc. Business: Support social enterprises through partnership, provide volunteers, goods, services. Fund, create funding opportunities that foster innovation. Academic Institution: Create Curriculum, funding opportunities, research all to advance the field of Social Entrepreneurship.
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