Introduction to Social Entrepreneurship
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This document provides an overview of key concepts related to social entrepreneurship including definitions of social enterprise, social business, social innovation, and social entrepreneurship. It discusses characteristics of social entrepreneurs and provides examples of different types of social enterprises. Forms of capital that can be leveraged through social enterprises are explored. The document also covers identifying social opportunities, strategies for addressing opportunities, developing a theory of change, and factors that can lead to social entrepreneurial behavior. Overall, the document serves as an introductory guide to understanding the landscape of social entrepreneurship.
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Introduction to Social Entrepreneurship
- 2. 28-Aug-14 www.oikos-summerschool.org Contents • What is a social enterprise? • What is a social business? • What is social innovation? • What is social entrepreneurship? • Types and Examples of Social Enterprise • Forms of Capital • Opportunity Identification • Theory of Change • Wrap-Up
- 3. 28-Aug-14 www.oikos-summerschool.org Who is an entrepreneur? • Opportunity Identifier • Risk Taker • Creating marketable products out of nothing • Innovating from available resources better than peer group • Proactive • Autonomous and Independent • Dreamer 3
- 7. 28-Aug-14 www.oikos-summerschool.org 7 ENTREPRENEUR Brings a radically new solution with the potential to revolutionize a whole area Has all the qualities of an entrepreneur : Vision, pragmatism, creativity… SOCIAL Adresses most crucial problems of our society in the fields of health, education, human rights, environment… Seeks Social Impact, does not use economic profit as a measure of success Social Entre- preneur Who is a Social Entrepreneur?
- 12. 28-Aug-14 www.oikos-summerschool.org What is a Social Enterprise? • Address a social issue using business proposition – Fair Trade :: ethical wages – Organic Farming :: environmental degradation – Ethical Trading :: Promotes ethical trading practices 12
- 13. 28-Aug-14 www.oikos-summerschool.org EMES Definition of Social Enterprise 13 Three indicators reflect the economic and entrepreneurial dimensions of social enterprises: a) A continuous activity producing goods and/or selling services b) A significant level of economic risk c) A minimum amount of paid work Three indicators encapsulate the social dimensions of such enterprises: d) An explicit aim to benefit the community e) An initiative launched by a group of citizens or civil society organizations f) A limited profit distribution Finally, three indicators reflect the participatory governance of such enterprises: g) A high degree of autonomy h) A decision-making power not based on capital ownership i) A participatory nature, which involves various parties affected by the activity Source: EMES Website
- 14. 28-Aug-14 www.oikos-summerschool.org Social Innovation • Social disequilibrium – Social Marginalization of refugees or immigrants – Learning disabilities – Lack of ethical codes – Lack of shared ethical moral practices 14
- 15. 28-Aug-14 www.oikos-summerschool.org Dividend/ No-Dividend View on Social Enterprise by Yunus • Why do you create an enterprise? • What do you do with the profits made from an enterprise? • Who owns the enterprise? • Why is ownership important to you? 15
- 16. 28-Aug-14 www.oikos-summerschool.org Social Entrepreneurship • Process of Starting a social enterprise • Process of addressing a social disequilibrium • Process of managing a social enterprise 16
- 17. 28-Aug-14 www.oikos-summerschool.org Types of Social Enterprise • For-Profit Social Enterprise • Non- Profit Social Enterprise • Sustainable Social Enterprise • Community Based Social Enterprise • Cooperative Social Enterprise 17
- 18. 28-Aug-14 www.oikos-summerschool.org Types • WISE • Fair Trade • MicroFinance • Clean Tech • Ed-Tech • Health Care • WatSan • Culture 18
- 19. 28-Aug-14 www.oikos-summerschool.org Activity • In groups of 5 discuss 10 different social enterprises – List them – Discuss why they are social enterprise – You have 15 minutes 19
- 20. 28-Aug-14 www.oikos-summerschool.org Sound Bytes 6 (Bill 1) “Social entrepreneurs are not happy to give a fish, or teach how to fish. They will not have a rest until they have revolutionized the fishing industry.” — Bill Drayton
- 21. 28-Aug-14 www.oikos-summerschool.org Ashoka FELLOWS Worldwide To date, a network of 2700 innovative Social Entrepreneurs 204 571 192 638 293 *as of 2007
- 22. 28-Aug-14 www.oikos-summerschool.org “If I have a chance to meet someone who is different and have an exchange which is not based on prejudices, is not based on stereotypes, not based on clichés, not driven by pity, suddenly something happens.” Andreas Heinecke Founder & CEO Insight: The best way to create conditions for and open exchange and change sighted people’s views about the capabilities of blind people is to immerse sighted people in total darkness and let blind people act as their guides. Dialogue in the dark
- 23. 28-Aug-14 www.oikos-summerschool.org Dialog in the Dark is an experiential exhibition in the dark. Darkness as a medium to enable sighted people better understand what blind people experience. Dialogue in the Dark creates conditions for and open exchange and transforms individuals. A dialogue is created by using blind people as guides in the darkness.
- 24. 28-Aug-14 www.oikos-summerschool.org Dialogue in the Dark has been presented largely through exhibitions and workshops in over 30 countries and more than 160 sites in over 110 cities throughout Europe, Asia, the Middle East, Africa and the Americas since it’s opening in 1988. 7 Million visitors have experienced Dialogue in the Dark worldwide. Over 7,000 blind candidates have found employment through Dialogue in the Dark. Learn more about Dialogue in the Dark: http://www.dialogue-in-the-dark.com/
- 27. 28-Aug-14 www.oikos-summerschool.org What is Capital? 27
- 28. 28-Aug-14 www.oikos-summerschool.org Forms of Capital • Money • Public Capital • Social Network Capital • Nature as Capital • Culture as Capital • Art as Capital • Health • Humanity
- 29. 28-Aug-14 www.oikos-summerschool.org Money as Capital • What can you buy from Money? – Food – House – Education – Happiness – Respect – Luxury Products – Start a company – Higher People to run your company
- 31. 28-Aug-14 www.oikos-summerschool.org Public Goods as Capital • Roads • Air • Water • Public transportation • Good Governance and Social Harmony
- 37. 28-Aug-14 www.oikos-summerschool.org Social Capital • Your work in the community vs your work for a private enterprise • GoodWill • Being part of a community • Benefits – Collateral – Newer Business Routes
- 38. 28-Aug-14 www.oikos-summerschool.org Social Capital Benifits • The more people you know the more opportunities you have • The more kind of people you know the more opportunities you have • The more open you are to different people the more opportunities you have 38
- 39. 28-Aug-14 www.oikos-summerschool.org Nature As Capital • Beautiful scenery • Swiss Alps • Clean Beaches • Green Forests • Clean rivers and lakes where you can swim
- 44. 28-Aug-14 www.oikos-summerschool.org Culture as Capital • Bollywood • Georgian Wines • Georgian Cuisine • Traditional Marriages in different parts of the world
- 53. 28-Aug-14 www.oikos-summerschool.org Activity 2 • In Groups of 5, Select a form of Capital and leverage that capital through a social enterprise . You have 15 minutes 53
- 54. 28-Aug-14 www.oikos-summerschool.org Social Opportunity • Social Disequilibrium • Social Movements • Normal Markets • Within a group of Social Enterprises in a similar industry • National and International Policy towards certain Business Practices 54
- 55. 28-Aug-14 www.oikos-summerschool.org Social Disequilibrium • Refugees • Immigrant unemployment • Child Labor • Old age home and old age care • Child Care • Favellas/Slums 55
- 56. 28-Aug-14 www.oikos-summerschool.org Social Movement • Climate Change Movement • Organic Food Movement • Ethical Product movement • Bio-Ethical Product Movement • Ethical and Responsible Finance 56
- 57. 28-Aug-14 www.oikos-summerschool.org Within a group of Social Enterprises in a similar industry • Innovation in products, services and operations • Branding :: How you do it? 57
- 58. 28-Aug-14 www.oikos-summerschool.org Normal Markets • Cooperatives • Handicraft 58
- 59. 28-Aug-14 www.oikos-summerschool.org National and International Policy towards certain Business Practices • Ozone Layer • Cap and Trade • CDM • Tax Incentives 59
- 60. 28-Aug-14 www.oikos-summerschool.org Strategies to address Social Opportunity • Causation – Followers like SKS Microfinance or Compartamos – Nokia Microsoft SmartPhone Series • Effectuation – Mahatma Gandhi – Yunus and Grameen Bank – Iphone Series 60
- 61. 28-Aug-14 www.oikos-summerschool.org Causation Effectuation Begin with a goal in mind Beginning with a set of given means Focusing on returns than idea alone Focusing on Affordable loss to innovation or start something new Emphasizing competitive analysis Emphasizing on strategic alliances Emphasizing market analysis Leveraging environmental contingencies Avoiding environmental contingencies Seeking to understand and evaluate the uncertainties Predict uncertainties 61 Sharada and Iyer, ESU 2014
- 62. 28-Aug-14 www.oikos-summerschool.org 62 Causation Effectuation Questioning Analyzing Observing Planning Experimenting Detail Oriented from the onset Networking Self Disciplined Associating
- 63. 28-Aug-14 www.oikos-summerschool.org Theory of Change • Every Social Enterprise has a theory of Change – Number of Jobs created – Salary increased – Quality of education delivered – Improvement in health-care delivery – Impact on environment 63
- 64. 28-Aug-14 www.oikos-summerschool.org Activity 3 • In groups of 5...Find a Social Opportunity...think about a social enterprise...think about its theory of change...you have 15 minutes 64
- 65. 28-Aug-14 www.oikos-summerschool.org What leads to Social Entrepreneurial Behavior? Mair Naboa 2006
- 67. 28-Aug-14 www.oikos-summerschool.org Institutional environment Social Public regulatory investor Comme rcial Legitimacy, Reputation, Mission, Vision, Objectives, Sustainability Organizational Maintenance, Expansion and Transformation Identity construction, Memory, Power, Degree of coupling What is a social enterprise
- 68. 28-Aug-14 www.oikos-summerschool.org How to create a social enterprise • Find your capital • Find your opportunity : convert one capital into another capital • Find your theory of change 68