This document discusses social entrepreneurship and microfinancing. It defines social entrepreneurship as using business techniques to address social problems, rather than focusing solely on profit. Social entrepreneurs measure success both financially and through positive social impact. Microfinancing provides small loans and other financial services to low-income individuals who otherwise lack access. Microloans have high repayment rates and have benefited over 500 million people globally. The document also briefly mentions crowdfunding.

1. BECKER COLLEGE
Social Entrepreneurship
Microfinancing
Prof Feyzi R. Bagirov
Becker College

2. What is social entrepreneurship
• Since early 1990s there has been recognition that
entrepreneurs can operator for non private gain
• Social entrepreneurship is the attempt to draw
upon business techniques to find solutions to
social problems
• Conventional entrepreneurs typically measure
performance in profit and return
• Social entrepreneurs also take into account a
positive return to society

3. What is social entrepreneurship?
• "In social business profit is re-invested in
company growth, not a personal profit“
– Dr. Muhammad Yunus

4. What do they do?
• Philantropy, altruism +
• Utilization of entrepreneurial principles
• Targeted at making long-term sustainable
change

5. Key SE drivers
• Social issues inadequately addressed by
government
• Need to raise funds for charities
• Changing public sector
– Budget cuts require new revenue streams change
rather than good stewardship leads to promotion
• Growing demand for corporate social
responsibility and ethical entrepreneurship

6. Social entreprise challenges
(Bessant & Tidd, 2007)
• Search for opportunities
• Strategic selection
• Implementation
• Innovation strategy
• Innovative organization
• Rich linkages

7. “How to” guide for Social
Entrepreneurs (Bessant & Tidd, 2007)
• Spot a gap in the market
• Try to fill It
• Be good at spotting and re-using resources
that are underused or abandoned (e.g.
buildings and open spaces)
• Make mistakes and learn from them
• Manage the cash flow

8. The 10 Most Entrepreneurial Countries
in the World

9. The 10 Most Entrepreneurial Countries
in the World
• http://tech.co/top-15-entrepreneurial-countries-world-2015-06)
• http://www.inc.com/peter-economy/the-10-most-entrepreneurial-countries-in-the-world.html

10. The 10 Most Entrepreneurial Countries
in the World
• http://tech.co/top-15-entrepreneurial-countries-world-2015-06)
• http://www.inc.com/peter-economy/the-10-most-entrepreneurial-countries-in-the-world.html

11. The 10 Most Entrepreneurial Countries
in the World
• http://tech.co/top-15-entrepreneurial-countries-world-2015-06)
• http://www.inc.com/peter-economy/the-10-most-entrepreneurial-countries-in-the-world.html

12. The 10 Most Entrepreneurial Countries
in the World
• http://tech.co/top-15-entrepreneurial-countries-world-2015-06)
• http://www.inc.com/peter-economy/the-10-most-entrepreneurial-countries-in-the-world.html

13. The 10 Most Entrepreneurial Countries
in the World
• http://tech.co/top-15-entrepreneurial-countries-world-2015-06)
• http://www.inc.com/peter-economy/the-10-most-entrepreneurial-countries-in-the-world.html

14. Micro-financing
• A type of banking service that is provided to
unemployed or low-income individuals or
groups who would otherwise have no other
means of gaining financial service.
• The goal of microfinance is to give low income
people an opportunity to become self-
sufficient by providing a means to saving
money, borrowing money and insurance

15. Micro-financing
• Muhammad Yunus
• Bangladeshi social
entrepreneur
• Nobel Peace Prize
Laureate
• Pioneered the concepts
of micro-credit and
micro-finance

16. Micro-financing

17. Micro-financing (cont’d)
• The rate of payment default is low – more
than 90% of loans are repaid, even though
most microfinance institutions operate in
developing countries
• The World Bank estimates that there are more
than 500 million people who have directly or
indirectly benefited from microfinance-related
operations.

18. Crowdfunding