The Perspective of Social Entrepreneurship in India

Economic history is witness that ‘social entrepreneurship’ is a new term, but old concept. Yes,
it has gained renewed currency in a world characterized by a growing divide between the haves
and have-nots. Given this heightened visibility, individuals have come forward to help the
down-trodden and have-nots of the society.

These are solution-minded pragmatists who are not afraid to tackle any big problem for the
cause of poor people in the society. They have uncanny knack to recognize the tremendous
potential the billions of poor people possess.

They are absolutely committed to helping them use their talents and abilities to harness their
potential for their improvement and upliftment. For doing so, they use inspiration, creativity,
courage, fortitude and, most importantly, direct action, to create a new happening and reality
that results in enduring social benefits and a better future for society.

These individuals, or say, social entrepreneurs introduce solutions to seemingly intractable

social problems for improving the lives of countless marginalized, disadvantaged and
disenfranchised people who are weak and poor in financial means and political clouts.

Just as entrepreneurs change the face of business, social entrepreneurs act as the change agents
for society. They seize opportunities which others miss and improve the existing equilibriums.
They do so by inventing new approaches and creating sustainable solutions to change society
for the better from status quo.

However, unlike business entrepreneurs who are generally motivated by profit earnings, social
entrepreneurs are motivated to improve the social wellbeing. Nonetheless, social entrepreneurs
are just as innovative and change oriented as their business counterparts, searching for new and
better ways to solve the problems that plague the society.

SOCIAL ENTREPRENEURSHIP OPPORTUNITIES

1. Waste Management:
2. Deep Cleaning Services
3. Green Infrastructure
4. Water Management
SOCIAL ENTREPRENEURSHIP MODEL

Social entrepreneurship refers to business solutions to social problems. The ultimate goal is to
achieve sustainability by enabling non-profits to support themselves financially in innovative
ways instead of relying solely on grants and donations. Since there are no shareholders in a
non-profit organization, the profits from the related social enterprise are completely re-invested
in the work of the organization.

The emergence of revenue-generating activities for non-profits has created a new operating
model where business principles, market characteristics and values (competition,
diversification, entrepreneurship, innovation, and a focus on the bottom line) co-exist and work
with traditional public sector values like responsiveness to community and serving the public
interest. Essential to the success of a social enterprise is an effective business model.

A business model includes two key elements:

1. an operating strategy that includes internal organizational structure and external

partnerships that are crucial for creating the organization’s intended impact; and,
2. a resource strategy that defines where and on what terms the organization will acquire the
resources (financial and human) it needs to do its work.
The business model for a social enterprise is the channel that the social entrepreneur converts
inputs into outcomes; the generation of both social value (measurable impact) and economic
value (revenue).

A social enterprise can be integrated with the non-profit organization in one of several ways:

Embedded:

• The enterprise and the social program are one and the
same
• The business is created to serve clients (central to the
mission)
Integrated:

• The business activities overlap with the social programs

 • The business is created as a funding mechanism and to
expand/enhance the mission of the organization
External:

• Social and business activities are separate and may or

may not be related to the mission of the organization
• The business is created mainly as a funding mechanism
to support social activities
Virtue Ventures provides an excellent summary of the various types of business models that
are summarized in the table below. These social enterprise business models can be applied
equally to institutions, programs, or service delivery. These models are designed in accordance
with the social enterprises’ financial and social objectives, mission, marketplace dynamics,
client needs or capabilities and legal environment. Most of the business models are embedded
within the organization.

Business
How it works Examples Key success factors
model

Microfinance
Entrepreneur Sells business support organizations, Appropriate training for
support to its target population. consulting, or tech the entrepreneur
support

Supply
cooperatives like
Provide services to Low start-up costs, allows
Market fair trade,
clients to help them clients to stay and work in
intermediary agriculture, and
access markets. their community
handicraft
organizations
 Disabilities or
Provide employment
youth organizations
opportunity and job
providing work Job training
training to clients and
Employment opportunities in appropriateness and
then sells its products or
landscape, cafes, commercial viability
services on the open
printing, or other
market.
business

Establishing
Membership the
Selling social services
Free-for- organizations, appropriate
directly to clients or a
service museums, and fee structure
third-party payer.
clinics vis a vis the
benefits

Similar to fee-for-
service in terms of
Healthcare Creative distribution
offering services to
Low-income (prescriptions, systems, lower production
clients but focuses on
client eyeglasses), utility and marketing costs, high
providing access to
programs operating efficiencies
those who couldn’t
otherwise afford it.

Bulk purchasing,
Members have common
Provides members with collective
interests/needs, are key
Cooperative benefits through bargaining (union),
stakeholders, and
collective services. agricultural coops,
investors
credit unions
 Facilitates trade
Import-export, Does not sell clients’
relationships between
Market linkage market research, products but connects
clients and the external
and broker services clients to markets
market.

Sells products or
services to an external
market to help fund Consulting, Can leverage tangible
other social programs. counselling, assets (buildings, land,
Service This model is integrated employment employees) or intangible
subsidization with the non-profit training, leasing, (expertise,
organization; the printing services, methodologies, or
business activities and and so forth relationships)
social programs
overlap.

Similar to service
Similar to service
subsidization, but
subsidization–
Organizational applying the external Similar to service
implement any type
support model; business subsidization.
of business that
activities are separate
leverages its assets
from social programs

Requirements For Social Entrepreneurship

1. It is a good fit with the agency

2. You know your industry
3. You treat your enterprise as a business
4. You hire the right people
5. You set realistic expectations
6. You improve your financial literacy
Consider the following questions:

• How can you tell if your group is ready to embark on a social enterprise?
• What are the steps in a social enterprise planning process?
• How do you identify and assess enterprise opportunities?
• How do you plan for a social enterprise?
• How can you measure social returns in a business setting?
• What do you need to know about the legal context?

MARKETING MANAGEMENT OF SOCIAL ENTREPRENEURSHIP

Know who your customers are

Or in marketing speak, ‘define your target market’. You need to know who the people are that
are most likely to buy from you. If you don’t, you can waste a lot of time trying to sell to people
who are never likely make a purchase. By understanding the needs of your target market you
can make sure that your marketing speaks directly to the people who are most likely to be
customers.

It’s worth doing (or even essential to do) some market research to begin building up the profile
of who your customers are.

Understanding who your customers are will also help you to decide how and where you do
your marketing. Are your potential customers on social media, or will you need to arrange
meetings and do presentations to make a sale? Get to know your customers’ businesses and the
problems and challenges that they face and how you can work with them to help them.

Get your pricing right

It sounds obvious but a lot of social entrepreneurs (in fact a lot of entrepreneurs) struggle with
pricing. The first thing to work out is your costs, so that you are not selling something for less
than it costs you to produce. Then think about how you want to position yourself; too cheap
and you are going to have to sell a lot to generate a profit, too expensive and you may price
yourself out of the market.
Sell benefits, not features

This can be a little bit difficult to get your head around and it is dependent on you understanding
the needs of your customers.

When someone buys something, they are buying it because it will help to improve their life in
some way. They are buying the impact of the product, rather than the product itself. It’s this
impact, or the benefit, that you need to focus on.

For example, if you were selling a camera you wouldn’t focus on fact that it had 15 megapixels
(the feature) but would instead highlight how the camera will enable the buyer to take better
photos allowing them to capture their precious memories (the benefit).

Always remember that people buy for their reasons, not yours.

Referrals, referrals, referrals!

Your existing customers can be an excellent source of leads. Ask who they know like them that
would benefit from what you are selling. Ask for a testimonial that you can use when
approaching anyone that they have suggested. People are more likely to buy from you if you
have been recommended by someone that they know.

Learn from rejection

Sadly, not everyone will become a customer! If someone didn’t buy from you, try and find out
why not and learn from the experience. It could just be a matter of timing, or they could have
an objection which will provide useful feedback to help you shape your future marketing or
sales.

Don’t give up

The hardest sales to make are the first sales that you make. It can be easy to get disheartened,
but if you are confident that you are selling something that people will want to buy, you will
get there. Go out of your way to give your initial customers truly excellent service and they
will start talking about you; before you know it you’ll have enquiries coming to you.