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Chapter 2 Social Entrepreneurship.pptx
1.
2. SOCIAL ENTREPENURSHIP
• Social entrepreneurship is the use of the
techniques that start up companies and
other entrepreneurs to develop, fund and
implement solutions to social, cultural, or
environmental issues.
3. History
• Social Entrepreneurship is relatively a new term. It came
in to notice just a few decades ago. But its usage can be
found throughout the history. In fact, there were several
entrepreneurs who established social entrepreneurs to
eliminate social problems or bring positive change in the
society. Vinoba Bhave, the founder of India’s Land Gift
Movement, Robert Owen, the founder of cooperative
movement and Florence Nightingale, founder of first
nursing school and developer of modern nursing practices
might be included in this category. They had established
such foundations and organizations in 19th century that is
much before the concept of social entrepreneurship used in
management.
4. Focus Areas of Social Entrepreneurship
• Enhance a person‘s ability to improve her or his economic well-being and
personal dignity through opportunity.
• Harness aid to be more accountable, transparent and solutions-oriented,
for lasting development.
• Enable access to and ensure use of reliable, affordable and appropriate
healthcare in disadvantaged populations.
• Address issues of sustainable productivity not beneficiary by beneficiary,
but system wide.
• Lay the foundation for peace and human security.
• Harness the capital and consumer markets that drive change by considering
all costs and opportunities.
• Transform the way water is managed and provided, long-term, for both
people and agriculture
5. Role and Importance of Social
Entrepreneurship
• Employment Development The first major economic value that social
entrepreneurship creates is the job and employment Estimates ranges from
one to seven percent of people employed in the social entrepreneurship
sector.
• Innovation / New Goods and Services Social entrepreneurs develop and
apply innovation important to social and economic development and develop
new goods and services. Issues addressed include some of the biggest
societal problems such as HIV, mental ill-health, illiteracy, crime and drug
abuse which, importantly are confronted in innovative ways.
• Equity Promotion social entrepreneurship fosters a more equitable society by
addressing social issues and trying to achieve ongoing sustainable impact
through their social mission rather than purely profit-maximization. Another
case is the American social entrepreneur J.B. Schramm who has helped
thousands of low-income high-school students to get into tertiary education.
6. Social Entrepreneur
• A social entrepreneur is somebody who takes
up a pressing social problem and meets it
with an innovative or path breaking solution.
Since profit making is a secondary objective,
therefore they are people who are passionate
and determined about what they do. They
possess a very high level of motivation and are
visionaries who aim at bringing about a
change in the way things are.
9. Qualities of Social Entrepreneurs
• Ambitious: Social Entrepreneurs tackle major social issues, from increasing
the college enrollment rate of low-income students to fighting poverty.
They operate in all kinds of organizations: innovative nonprofits, social-
purpose ventures, and hybrid organizations that mix elements of nonprofit
and for-profit organizations.
• Mission driven: Generating social value —not wealth—is the central
criterion of a successful social entrepreneur. While wealth creation may be
part of the process, it is not an end in itself. Promoting systemic social
change is the real objective.
• Strategic: Like business entrepreneurs, social entrepreneurs see and act
upon what others miss: opportunities to improve systems, create solutions
and invent new approaches that create social value.
• Resourceful: Because social entrepreneurs operate within a social context
rather than the business world, they have limited access to capital and
traditional market support systems. As a result, social entrepreneurs must
be skilled at mobilizing human, financial and political resources.
• Results oriented: social entrepreneurs are driven to produce measurable
returns. These results transform existing realities, open up new pathways
for the marginalized and disadvantaged, and unlock society‘s potential to
effect social change
11. Role Of Technology
• The Internet, social networking websites and social media have been
pivotal resources for the success and collaboration of many social
entrepreneurs.
• Using wiki models or crowdsourcing approaches, for example, a social
entrepreneur organization can get hundreds of people from across a
country (or from multiple countries) to collaborate on joint online projects
• Having IT (Information Technology) enabled kiosks in rural areas in India
wherein those people and the teenagers and the youth in particular can
pick up valuable IT skills which would enhance their employability in
future.
12. Problems Facing By Social
Entrepreneur
• Funding
• Strategy and Long-Term Focus
• Remaining True to the Mission
• Lack of skilled man force
• Social and Cultural Effect
• Lack of Government support:
13. Some famous Social entrepreneurs
Bill Drayton
Drayton is recognized as one of the
pioneering social entrepreneurs of our time.
Drayton founded “Ashoka: Innovators for the
Public” in 1980, which takes a multi-faceted
approach to finding and supporting social
entrepreneurs globally
Muhammad Yunus
founded Grameen Bank 1983. In 2006, Yunus was
awarded the Nobel Prize for creating the Grameen
Bank to empower villagers with the funding to pull
themselves out of poverty.
Sanjit “Bunker” Roy
He had a privileged upbringing in India, in contrast to many
Indians who live off of less than US $1 a day. He
founded Barefoot College in 1972, a solar-powered college
for the poor.
14. GOVERANCE OF SOCIAL
ENTEREPRENEURSHIP
What is governance? Why is it important in social
entrepreneurship?
Governance is formally defined as “systems and processes that ensure
the overall direction, effectiveness, supervision and accountability of
an organization”. Governance mechanisms can include governing
boards, monitoring systems and signaling mechanisms like reporting or
codes of conduct.
Social entrepreneurs address the most pressing problems societies
face through employing scalable, self-sustainable and innovative
business models. They must balance financial responsibilities and
social impact and must coordinate among multiple stakeholder groups,
including investors, employees, regulators, clients and beneficiaries. As
a result, social entrepreneurs leaders manage complex trade-offs.
A carefully selected, well-designed and well-managed board will help
the social entrepreneurs to reach its goals.
15. Why create a board?
For social entrepreneurs, governance is key to both overseeing compliance
with policies and regulations and to safeguarding the organizational mission
while meeting the demands of various stakeholders.
Boards can help management teams reach their goals and mission in several
ways:
• Provide strategic support and expertise: Organizations can compensate for
a lack of in-house competencies or expertise through board members.
• Provide access to networks: Board members open doors to valuable
external networks (e.g. fundraising , advocacy and the recruitment of high
talent)
• Ensure the vision and legacy: Boards include and empower carefully
selected individuals to guide the enterprise. This ensures the
organization’s vision succeeds beyond the efforts of the founder or
management team.
• Signal credibility to external stakeholders: Investors, contractors and
customers may trust the organization more if it has well-regarded board.
16. How should boards evolve ?
No single governance structure fits all social entrepreneurs or
even fits the same enterprise over time. Rather, governing
boards should be tailored to the organization and be dynamic to
the changing needs of the organization over its lifespan. social
entrepreneurs should evaluate and modify their governance
structures regularly and in particular during the following:
• The enterprise reaches the next lifecycle stage
• The legal structure of the enterprise changes
• The financial structure of the enterprise changes, most
commonly related to the shareholder base
• The external environment changes (e.g. new government
regulations)
17. How do I recruit the right board members?
Many early-stage social entrepreneurs build boards out of their
network of family and friends. While this may reduce the initial
effort, it can be a disadvantage at later stages if board members
do not possess the relevant skills, representation, network and
reputation to provide strategic guidance and oversight.
To search for capable board members, social entrepreneurs can:
–Solicit recommendations from investors, foundations and other
social entrepreneurs
– Search through intermediary platforms
–Research, identify and reach out to people with expertise in or
passion for the cause
–Attend networking events and ask intermediaries for support in
making
18. Contd…
Relevant questions to ask potential board members
before selecting them include:
• What is your understanding of the mission and vision?
• How would you measure the success?
(expectations of social, financial return)
• Where do you see the enterprise and the sector within
the next 5-10 years?
• How much time can you devote to attending board
meetings?
• Which skills or other benefits (like networks) can you
provide to our enterprise?
19. What are the rights and duties of my board members?
The focus of management should be on execution, while the focus of the
governance body should be on providing guidance and oversight. Boards
should not get involved in day-to-day operations but should oversee the
results of these operations.
Boards serve two primary responsibilities: support and oversight. While many
view these as mutually exclusive, they are complementary in a high-
performing
Support
Support refers to four areas. First, boards constitute sparring partners that
provide strategic guidance and challenge management. This also includes
helping to develop innovative and effective business models. Second, board
members provide access to their networks, which can help raise awareness of
the social entrepreneurs as well as foster fundraising and business
development. Third, boards serve as ambassadors for the mission of a social
entrepreneurs and thus provide advocacy and legitimization. The fourth area
includes aspects of oversight: ensuring cash flows to increase the
sustainability of the business.
20. Contd…
Oversight
Oversight primarily refers to safe guarding the mission of a social
entrepreneurship. Boards monitor the performance of manage
men against benchmarks that reflect the double bottom line.
Thus, monitoring concerns social as well as financial
performance. While financial indicators are easy to measure and
compare, social performance is often hard to seize. To avoid an
inordinate focus on financial performance, social entrepreneurs
should pay attention to defining performance indicators for the
social mission. Furthermore, boards should emphasize the need
for external audits as well as accountability measures to increase
transparency towards external stakeholders
21. Approval of management decisions
A task amid support and oversight is the approval of certain
management decisions. Board approval should serve to guarantee
conformity with the overall mission.
Furthermore, board approval constitutes a form of legitimization
to communicate certain decisions in front of the team.
Topics that require board approval include the following:
• Decisions related to the annual budget.
• Decisions on financing.
• Changes in ownership structure
• Remuneration of the chief executive and Succession of the
chief executive and the management team.
• Decisions about overall strategy.
22. How to evaluate the work of a board?
Given that board members desire their contributions to be
meaningful, social entrepreneurs should communicate
regularly with them about what is working well and what is
not.
• A review at the end of each meeting: It is good practice to
review a meeting at the end, ask everyone for comments,
what went well and what went wrong.
• Informal conversations between meetings: The board
members should communicate with each other about any
outstanding issues or conflicts that are preventing
effectiveness affecting the culture of the board.
• Boards should evaluate their effectiveness and identify
development potentials.
23. Conclusion
Social Entrepreneurship holds the key for future
development in India. In the days to come, social
entrepreneurs will play a crucial role in the
advancement of social changes. The best thing
about social entrepreneurship is that success is not
mentioned by financial gains, but by the number of
people these enterprises are able to reach and
create a positive impact. In the coming days, social
entrepreneurship and Social businesses will be in
the mainstream substantially, which will hopefully
impact the society positively
24. REFERENCES
• www.wikipedia.com
• www.youtube.com
• www.collegejoin.org
• India.ashoka.org
• www.google.com
• World economic forum
• Schwab foundation For Social Entrepreneurship
• International Journal of Application or Innovation in
Engineering & Management (IJAIEM)
• ADB (2009). Asian Development Bank Study on
“Institutions