S o c i a l Profit

oriented
Both Social
entrepreneu
entrepreneu rs.
Entrepreneurs rs

hip - Module 3
High Innovator, Mission
achiever. oriented.

- MY NOTES.
Risk bearer. Initiative Change
taker. agent.
Strategic Leader. Social value
Social Entrepreneursip - thinker. creator.
Meaning and Definition. Value Opportunity Socially
creator. alert. alert.
Social entrepreneurship is the type of
entrepreneurship in which entrepreneurs tailor
their activities to the ultimate goal of creating Dimensions of social
social value. Social entrepreneurs often act entrepreneurship.
with little or no intention to gain personal
profit.
1. Social mission.
2. Social innovation - new ideas that work
Definition in meeting social goals.
3. S o c i a l c h a n g e - e s s e n t i a l a n d
indispensable factor for social
Social Entrepreneurs are individuals with
entrepreneurship.
innovative solutions to society’s most
4. Entrepreneurial skills.
pressing social problems. They are both
5. Personality - two types of leadership
visionaries and the ultimate realists concerned
skills;
with practical implementation of their vision
1. Visionary/ goal-setting.
above all else.
- Ashoka. 2. Day-to-day/ Problem solving.

Social entrepreneurs are catalysts of long Characteristics of Social

lasting social change. They ensure that in the entrepreneurship.
long run, the changed dynamics lead to
durable and irreversible social change.
Who is a social entrepreneur?
Social entrepreneurship organisations are -
- Mission driven. 1. Social entrepreneurs do not have to be
- Act entrepreneurially. individuals.
- Wi t h i n f i n a n c i a l l y i n d e p e n d e n t 2. Social entrepreneurs seek sustainable,
organisations. large-scale change.

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3. Social entrepreneurs involve pattern- - Personal/Family background of the
breaking ideas. social entrepreneur.
4. Social entrepreneurs exist in between - Can be classified into - personal
sectors. experiences, previous experiences.
5. Social entrepreneurs need not engage in 3. Discourse -
social enterprise or use market based - At an individual and organisational
skills to be successful. level.
6. Social entrepreneurs do sometimes fail. - Distinct goals from private
entrepreneurship.
4. Demographics -
Characteristics of Social - Where the entrepreneur comes from or
Entrepreneurship. what community they are a part of can
impact both the social and
PRIMARY CHARACTERISTICS - entrepreneurial parts of their
1. Represents a variety of activities and organisation.
processes. 5. Motives -
2. Wants to create and sustain social value. - Social benefit.
3. Encourage more entrepreneurial approach
for social use. Characteristics of Social
4. Displays various degrees of innovation
and change.
Entrepreneurs.
5. Constrained by external environment.
1. Curiosity
SECONDARY CHARACTERISTICS - 2. Inspiration
1. M a y t a k e a d v a n t a g e s o f n e w 3. Resourcefulness
opportunities. 4. Pragmatism
2. May use business principles, models and 5. Adaptability
tools. 6. Openness to Collaboration
3. May resolve social market failures. 7. Persistence
4. May take a wide variety of legal forms.
5. May be achieved by creating a new Ty p e s of Social
business.
Entrepreneurship.
HOOGENDOOM, PENNINGS AND
THURIK - The Social Bricoleur
1. Skills -
- Ability to overcome social issues with Bricolage - process of improvisation in
human endeavours.
their leadership skills.
- Innovative way of thinking for social
Theoretical inspiration - Hayek.
development.
2. Background and Experience -

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Entrepreneurs who act on locally discovered The Social Engineers
opportunities with locally available resources.
Such entrepreneur address various previously
unaddressed (local) social needs. Theoretical inspiration - Schumpeter.

However, social bricoleurs are often more Solving social problems which are neglected
difficult for researchers to locate because of by the other institutions which could solve
they are based in local knowledge. these problems (governments, businesses,
etc).
- Aimed at creating social wealth for their
communities. Cause dramatic social changes.
- Limited in scale and resources required.
- Legitimacy rests in the hands of local Importance of Social
communities. Entrepreneurship.
- Do not require external or specialised
resources. 1. Socio-economic development.
2. Social change and transformation.
EXAMPLE - Oswaldo Tello’s work in Peru. 3. Social equity.
4. Social value.
The Social Constructionist. 5. Efficiency.

Theoretical inspiration - Kirzner. Objectives of Social

Entrepreneursip.
- Recognise opportunities and create
innovative goods and services to solve 1. Primary objective - social change.
these social problems. 2. Secondary objective - making money to
- Constructionist because they build, launch finance social impact.
and operate ventures.
- Be alert for new opportunities and be bold Boundaries of Social
and innovative in their actions.
- Seek to remedy broader social problems by Entrepreneurship.
planning and developing formalised,
systematic, scalable solutions. SE operate within boundaries of two business
- Acquire resources through collaborative strategies:
ventures.
- Donors have a significant voice in how 1. Non-profit with earned income strategies
they function. -
- Have to learn to raise funds which can - Hybrid social and commercial
divert their focus away from their mission. entrepreneurial activity.
- Revenues and profits are used to further
improve the delivery of social values.
2. For-profit with mission driven strategies -

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 - A social and commercial organisation way to generate a dependable way to pay for
which is mission driven. social actions.
- Stakeholder can make personal financial
gains. NETWORK -
As discussed earlier, SE’s rely on strong
Modes of Action - SE, networks of vendors and donors to facilitate
their social functions.
Haugh’s model of non-profit venture creation
- Leadership in SE.
1. Identifying opportunities.
2. Articulating ideas. In SE, leadership involves aligning the vast
3. Owning ideas. potential of individuals, groups and
4. Mobilising stakeholders. communities and enabling them to make
5. Exploiting opportunities. durable change processes aimed at social
6. Reporting to stakeholders. needs. This kind of leadership is called
empowering leadership.
MANAGEMENT -
In SE, it is assumed that market-orientation
can help social organisations deliver more
What is leadership?
social value for the money they spend.
Therefore, SE organisations can have a higher Northouse - a process whereby an individual
impact if they apply successful business influences a group of individuals to achieve a
practices such as efficient management. common goal.

STAKEHOLDERS -
Characteristics of ethical leaders
Motivation for joint action requires a
common defined opportunity which can be (Northouse).
shared - Austin et al.
1. Respecting others.
A lack of such common shared opportunity, 2. Serving others.
or conflict with other interests can make it 3. Showing justice.
difficult for social ventures to scale up. 4. Manifesting honesty.
5. Building communities.
FINANCE -
Operation of social ventures requires capital.
For this, some ventures have developed Types of Leadership.
strategies to become at least partly for-profit
organisations. TRANSACTIONAL -
While many organisations are skeptical of - Focused on maintaining the status quo.
commercial opportunities undercutting their - Subordinates are better off if they obey the
social mission, a viable business is the only leader.

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- The leader controls the relationship 2. Lack of public exposure and recognition.
through agreements and transactions. 3. Lack of funding and support structures.
- Do not take into account the needs of
subordinates. Steps in Social
- Establish exchanges with followers and
monitor their relationships.
Entrepreneurship.
- Has two components - Contingent
(condition) and reward. 1. Write a mission statement.
2. Research the field.
TRANSFORMATIONAL - 3. Conceptualise your unique offering -
- Inspire followers to achieve extraordinary USP.
outcomes. 4. Reach out to team members for feedback
- Identify with a vision which reaches and support.
beyond their immediate self interest. 5. Develop a business model.
- Components - 6. Identify initial funding sources.
- Idealised influence - charisma of leader. 7. Write and follow an action plan.
- Inspirational motivation - articulation of
vision. SE and Poverty.
- Intellectual stimulation.
- Individual consideration. When analysing the effect of poverty,
Muhammad Yunus has compared poverty to a
LAISSEZ-FAIRE - Bonsai tree.
- Leaving things to take their own course. The seed of a Bonsai has the potential to grow
- Little to no interference. into a full size tree. But, since it is planted in
- Avoidance or absence of leadership. a small pot, it does not grow to full size.
- Most passive. Similarly, every individual has the potential to
- Usually the most ineffective style. grow and flourish. Poverty is the small pot
which restricts their growth.
Advantages and
As a result of institutionalised capitalism,
Disadvantages of SE. poverty is becoming a increasingly looming
problem today.
Advantages. Social entrepreneurs are working on changing
the mindset of the people, convincing them
that world’s biggest problems can be solved.
1. Diversity.
2. First mover advantage.
3. Positivity magnet. Case Studies

Disadvantages. South Asia.

1. Lack of success cases in history.

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1. Childline - India’s first 24 hour phone USA and Canada.
hotline service for children in distress.
2. Munir Hasan (Bangladesh) - enhancing 1. Steve Bigari - America’s Family, USA;
value of mathematics in Bangladesh and empowering disadvantaged citizens to
bringing the youth to the International successfully pursue their professional
Mathematical Olympiads. careers.
1. Research - talking to key players such 1. S t e v e B i g a r i , a M c D o n a l d ’s
as teachers, schools, parents, students, franchisee noticed a high rate of
etc. absenteeism and drop out among low
2. Instituted Mathematics festivals to income employees.
generate interest in the subject. 2. Rather than blame this on the
3. This generated interest formed a individual, Steve realised that there
feedback loop, engaging schools, were other reasons why this
parents and potential donors. happened. He was also aware of the
4. Generated public interest by asking cost of training and hiring new
leading newspapers to publish employees to the company.
mathematical riddles which gained 3. To help is employees, he made deals
popularity. with auto shops and NGO’s to provide
5. Also initiated a teacher’s organisation services to his low income workers at
which enabled teachers to improve a discount.
their math teaching skills through self 4. If an employee said they could not
help movements. come due to a car breakdown, they
6. Created a push for youth to participate would send mechanics to help the
in more and more olympiads. employee out.
3. Muhammad Yunus (Bangladesh) - 5. Through his work, Steve was able to
Grameen Bank. provide hundreds of employees with
1. In 1976, Yunus realised that the computers, affordable childcare,
smallest loans could make a housing, transportation, etc.
disproportionate difference to the 2. Planned Lifetime Advocacy Network -
lives of the poorest Bangladeshis. Canada; help disabled people particpate
2. Traditional banks did not want to as full community member, enriching
make tiny loans at reasonable interest each other’s lives.
to rural Bangladeshis due to high rate 3. Peace Games - USA; trains fifth graders
of interest. in urban elementary schools to be “peace
3. However, Yunus believed that the builders” who teach younger students to
poor would repay the loans given the resolve conflicts in school spaces.
chance and thus, microcredit was a 4. Schools founded by Social entrepreneurs
viable business model. - USA; Green Dot Public Schools,
4. This small effort was institutionalised Uncommon Schools, and Knowledge is
in the form of the Grameen Bank. Power Program (KIPP); getting
impressive results with disadvantaged
students by re-structuring the school day

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and year and providing extensive support
to teachers.

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