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SOCIAL
ENTREPRENEURSHIP
An Entrepreneurial Revolution
• 1 million new ventures a year in U.S.
• 85% of the new jobs in small and start-up
firms
• ...
What Is Social Entrepreneurship?
Nonprofits making money
The only big difference between commercial and
social entrepreneurship:
Denomination of the returns
Social and commercial ...
The Process of Social
Entrepreneurship
1. Find an opportunity
2. Develop a business concept
3. Figure out what success mea...
The Main Difficulty: Measurement
• What is profit?
• How do we count it?
• What is “social return o n investment” for
vent...
Three characteristics
• Social entrepreneurship meets needs unmet by
commercial markets and (usually) the
government
• Soc...
Case 1: Housing Opportunities Made Equal
(H.O.M.E.)
• Services
– Core services in housing disputes and fair housing
advoca...
Case 2: Boaz & Ruth
• Opportunity: Underused human capital
• Endeavor: New businesses using former inmates
in an aggressiv...
Social Entrepreneurs “Look” Like
Any Other Kind of Entrepreneur
Innovativeness
Education and experience
Achievement orient...
Risk + Innovation
High risk
aversion
Low risk
aversion
Highly-
innovative
Dreamer Entrepreneur
Not
innovative
Stuck Gambler
Opportunities vs. Threats
Opportunities for social entrepreneurs look like
threats and tragedies to others
Myths about Social
Entrepreneurship
• Social entrepreneurs are anti-business
• The difference between commercial and socia...
Why does social entrepreneurship
matter?
A Nation of Social
Entrepreneurs
Immigrant stock with a high
entrepreneurial orientation
+ Faith in own abilities
+ Vast u...
What Is a Nonprofit?
• Tax & regulatory definition: an organization that
– Enjoys special tax status
– Faces a nondistribu...
International Facts
• U.S. is very large
– represents more than ½ of all nonprofit activity worldwide
($600b)
– has 45% of...
Main Challenges at Present
• Money
• Competition
• Demonstrating effectiveness
• Technology
• Trust
• Human resources
• Pu...
Main Opportunities at Present
• Demographic shifts
• New philanthropy
• Heightened awareness of sector
• Increased social ...
Main Trends at Present
• Explosive growth
• Attention to marketing and management movements
• Commercial ventures
• Develo...
Main Risks at Present
• Identity loss, “mission creep”
• Industry concentration
• Pressure on managers for results
• Loss ...
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Social entrepreneurship arise roby

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SOCIAL ENTREPRENEURSHIP:
The only big difference between commercial and social entrepreneurship:
Denomination of the returns
=====================

Published in: Business
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Social entrepreneurship arise roby

  1. 1. SOCIAL ENTREPRENEURSHIP
  2. 2. An Entrepreneurial Revolution • 1 million new ventures a year in U.S. • 85% of the new jobs in small and start-up firms • Product/service introduction rate higher than ever before • Rate of wealth creation exploding • And it’s a global revolution
  3. 3. What Is Social Entrepreneurship? Nonprofits making money
  4. 4. The only big difference between commercial and social entrepreneurship: Denomination of the returns Social and commercial entrepreneurship have most of the same characteristics
  5. 5. The Process of Social Entrepreneurship 1. Find an opportunity 2. Develop a business concept 3. Figure out what success means and how to measure it 4. Acquire the right resources 5. Launch and grow 6. Attain goals
  6. 6. The Main Difficulty: Measurement • What is profit? • How do we count it? • What is “social return o n investment” for venture philanthropists? • Can we compare investments?
  7. 7. Three characteristics • Social entrepreneurship meets needs unmet by commercial markets and (usually) the government • Social entrepreneurship is motivated by social benefit • Successful social entrepreneurship usually works with, not against, markets
  8. 8. Case 1: Housing Opportunities Made Equal (H.O.M.E.) • Services – Core services in housing disputes and fair housing advocacy in Virginia – Special projects and lawsuits • Opportunity: Educate people on fair housing before-the-fact, instead of fixing situations after- the-fact • Enterprise: Start fair housing training Institute • Returns: More housing for the disadvantaged, fewer complaints
  9. 9. Case 2: Boaz & Ruth • Opportunity: Underused human capital • Endeavor: New businesses using former inmates in an aggressively faith-based setting • Social returns: Young people not returning to jail, peaceful neighborhood
  10. 10. Social Entrepreneurs “Look” Like Any Other Kind of Entrepreneur Innovativeness Education and experience Achievement orientation Independence Sense of control over destiny Low risk aversion Tolerance for ambiguity Entrepreneurial orientation Community awareness And social concern Socially-entrepreneurial orientation Innate characteristics Innovativeness Education and experience Achievement orientation Independence Sense of control over destiny Low risk aversion Tolerance for ambiguity Entrepreneurial orientation Community awareness And social concern Socially-entrepreneurial orientation Innate characteristics
  11. 11. Risk + Innovation High risk aversion Low risk aversion Highly- innovative Dreamer Entrepreneur Not innovative Stuck Gambler
  12. 12. Opportunities vs. Threats Opportunities for social entrepreneurs look like threats and tragedies to others
  13. 13. Myths about Social Entrepreneurship • Social entrepreneurs are anti-business • The difference between commercial and social entrepreneurship is greed • Social entrepreneurs are nonprofit managers • Social entrepreneurs are born, not made • Social entrepreneurs are misfits • Social enterprises usually fail • Social entrepreneurs love risk
  14. 14. Why does social entrepreneurship matter?
  15. 15. A Nation of Social Entrepreneurs Immigrant stock with a high entrepreneurial orientation + Faith in own abilities + Vast ungovernable frontier = Citizens willing to meet their own social needs, without an excessive reliance on the state
  16. 16. What Is a Nonprofit? • Tax & regulatory definition: an organization that – Enjoys special tax status – Faces a nondistribution constraint (profit=0) • Functional definition: an organization that forms to – perform “public tasks” • environmental protection, social service provision – perform tasks for which there is demand but no supply from for-profits or governments • religious activity, art museum – influence the direction of public policy • political party, issue organization 16
  17. 17. International Facts • U.S. is very large – represents more than ½ of all nonprofit activity worldwide ($600b) – has 45% of all world’s nonprofit employees • Rich nations tend to have more developed nonprofit sectors than poor nations – Government social spending is positively correlated with nonprofit sector size
  18. 18. Main Challenges at Present • Money • Competition • Demonstrating effectiveness • Technology • Trust • Human resources • Public-sector relations Ref. Salamon 2002
  19. 19. Main Opportunities at Present • Demographic shifts • New philanthropy • Heightened awareness of sector • Increased social welfare spending through sector – Entitlement expansion – Welfare reform Ref. Salamon 2002
  20. 20. Main Trends at Present • Explosive growth • Attention to marketing and management movements • Commercial ventures • Development of umbrella organizations and formal education • Effectiveness in competing economically and politically Ref. Salamon 2002
  21. 21. Main Risks at Present • Identity loss, “mission creep” • Industry concentration • Pressure on managers for results • Loss of public trust Ref. Salamon 2002

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