2 What Is Social Entrepreneurship?


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2 What Is Social Entrepreneurship?

  1. 1. What is an Entrepreneur? Entrepreneurs are (1) value-creating, (2) innovative, (3) opportunity-oriented, (4) resourceful change agents
  2. 2. Jean Baptiste Say (French economist, 19th C.) <ul><li>“ The entrepreneur shifts economic resources out of an area of lower productivity and into an area of higher productivity” </li></ul><ul><li>(value-creation) </li></ul>
  3. 3. Joseph Schumpeter (economist, 20th C.) <ul><li>“ the function of entrepreneurs is to reform or revolutionize the patterns of production” </li></ul><ul><li>New products, new services </li></ul><ul><li>Innovative ways of organizing </li></ul><ul><li>Different combination of production factors </li></ul><ul><li>(land, labor, capital, know-how) </li></ul><ul><li>New markets, new suppliers </li></ul>
  4. 4. Peter Drucker (management guru) <ul><li>“ the entrepreneur always searches for change, responds to it, and exploits it as an opportunity” </li></ul>
  5. 5. Howard Stevenson (Harvard Business School) <ul><li>Entrepreneurial management is “the pursuit of opportunity without regard to resources currently controlled” </li></ul><ul><li>entrepreneurs mobilize the resources of others to achieve their entrepreneurial objectives </li></ul>
  6. 6. What makes social entrepreneurs different? <ul><li>The best measure of success for social entrepreneurs is not how much profit they make, but rather the extent to which they create social value </li></ul>
  7. 7. J. G. Dees (definition SE): <ul><li>Adopt a mission to create and sustain social value </li></ul><ul><li>Recognize and pursue new opportunities to serve that mission </li></ul><ul><li>Engage in a process of continuous innovation, adaptation and learning </li></ul><ul><li>Acting boldly without being limited to resources currently in hand </li></ul><ul><li>Exhibit a heightened sense of accountability to the constituencies served. </li></ul>
  8. 8. Social Enterprises have social ENDS blend social & commercial MEANS
  9. 9. Social enterprise spectrum From Purely Philanthropic To Hybrids To Purely Commercial
  10. 10. From a lower-quality equilibrium to a high-quality equilibrium <ul><li>Identify a stable and unjust equilibrium that causes suffering of a sector of humanity </li></ul><ul><li>Identify an opportunity in this unjust equilibrium, develop a social value proposition, and challenge the hegemonic status quo </li></ul><ul><li>Forge a new stable equilibrium that releases trapped potential and alleviates suffering, spreading through imitation </li></ul>
  11. 11. Conclusions <ul><li>Social Impact </li></ul><ul><li>Scaling up </li></ul><ul><li>Entrepreneurship (to do a lot with a little) </li></ul><ul><li>Innovation (pattern-changing) </li></ul><ul><li>Sustainability </li></ul><ul><li>Customized organizational form </li></ul><ul><li>Partnerships (cross-sector initiatives) </li></ul><ul><li>Emphasis on problem-solving </li></ul>
  12. 12. Are you a social entrepreneur? <ul><li>Do you regularly take at least three weeks’ holiday a year? </li></ul><ul><li>Do you give any thought to what you will do when you retire, looking longingly at the time when you will no longer have to be in the office from nine to five? </li></ul><ul><li>Does the thought of not having a regular monthly pay cheque drive you to the medicine cabinet in search of a tranquillizer? </li></ul><ul><li>Do you need to feel that your friends and co-workers approve of what you are doing? </li></ul><ul><li>Do you spend any less than 24 hours a day obsessing over new ways to transform society? </li></ul>
  13. 13. Answer <ul><li>If you have answered “yes” to at least two of those questions, chances are that you are not a social entrepreneur. </li></ul><ul><li>But you do not need to be one to participate and learn about this new global phenomenon! </li></ul>
  14. 14. Muhammad Yunus <ul><li>Dr. Yunus, recently awarded the 2006 Nobel Peace Prize, describes his three-decade-long effort to extend micro-credit (small loans for self-employment). Grameen Bank, his creation, now makes small loans to seven million families in Bangladesh, and has helped almost half of them work their way out of poverty. </li></ul><ul><li>Banker to the poor </li></ul>