UNIVERSITI KUALA LUMPUR BUSINESS SCHOOL

SOCIAL ENTREPRENEURSHIP (ECB20203)

ASSINGMENT :
REPORT ON SOCIAL ENTREPRENEUR

PREPARED BY:
NURUL ALYA ASILAH BINTI ISNAIN
62212118269

PREPARED FOR:
PUAN NOR ROSMAWATI BINTI ABDUL KARIM

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Contents
1. What is social entrepreneurship? .................................................................... 3
2. What is social enterprise? ............................................................................... 4
3. Who are social entrepreneurs? ........................................................................ 5
4. What are some characteristic of social entrepreneurs?................................... 5
5. What is different between social business and social entrepreneurship? ....... 7
6. What challenges do leaders in social entrepreneurship usually face? ............ 8
7. Who are social enterprise investors? .............................................................. 9
8. Who are social enterprise service providers? ............................................... 10
9. What is social change?.................................................................................. 10
10. What is social impact? ............................................................................... 11

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1. What is social entrepreneurship?

Social entrepreneurship is an innovative, social value-creating activity that can occur

within or across the non-profit, businesses or government sectors. ( Austin, J., Stephenson,
H., & Wei-Skillern, J., 2006 ). It is important to be more innovative to create opportunity
being an entrepreneur to create opportunity in both sector according to the definition from
Austin, J., Stephenson, H., & Wei-Skillern, J. The most common definition of social
entrepreneurship is that social entrepreneurs focuses primarily on its social missions while
wealth creation is not a goal as it is deemed as a mean or tool to accomplish the social
missions (Dees, 2007).From the definition by Dees explained that business in social
entrepreneurship not only making profit but also have a social mission that give benefit to
people. Social entrepreneurship creates new models for the provision of products and
services that provide directly to basic human needs that remain unsatisfied by current
economic or social institutions.
Then, Social entrepreneurship creates innovative solutions to immediate social problems
and mobilizes the ideas, capacities, resources, and social arrangements required for
maintain social transformations. Through the research by Mair and Marti social
entrepreneurship is a process consisting in the innovative use and combination of resources
to explore and exploit opportunities, that aims at catalyzing social change by catering to
basic human needs in a sustainable manner. (Mair and Martí ,2004)
Besides, according to Johnson “the most successful innovators have learnt to operate
across the boundaries between these sector” (Johnson, 2000). Point out that with its
emphasis on problem solving and social innovation, socially entrepreneurial activities blur
the traditional boundaries between the public, private and non-profit sector and emphasize
hybrid model of for-profit and non-profit activities. Promoting collaboration between
sector without doubt within the social entrepreneurship. Weerawardena and Sullivan Mort,
(2006), social entrepreneurship is a bounded multidimensional construct that is deeply
rooted in an organization’s social mission, its drive for sustainability and highly influenced
and shaped by the environmental dynamics. Opportunity recognition is embedded in these
three dimensions. From the researcher the multidimensional concept stated includes
financial, social, and environmental wealth creation.

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2. What is social enterprise?

A social enterprise is a commercial organization that has specific social objectives that
serve its primary purpose. Social enterprises seek to maximize profits while maximizing
benefits to society and the environment. Their profits are principally used to fund social
programs. Social enterprise is a powerful global concept, describing businesses with
primarily social objectives whose surpluses are principally re-invested for that purpose in
businesses or in the community. According to Catford (1998) Social entrepreneurs combine
street activism with professional skills, visionary insights with pragmatism, and ethical
fiber with tactical trust. Means that they are able to see opportunities where others only see
empty buildings, unemployable people and unvalued resources.
Social enterprises pursue the dual mission of achieving both financial sustainability and
social purpose and, therefore, do not fit neatly into the conventional categories of private,
public or non‐profit organizations. A Social enterprise is an organization that trades, not for
private gain, but to generate positive social and environmental externalities
(Santos,2012).Santos believed that social enterprise carry out the business not focused on
profit but create value for people. Usually social enterprises focused on Creating jobs within
the communities they care about, such as hiring local ex-convicts or ethically outsourcing
production to communities in need of fair work and career development opportunities.
Reducing their carbon footprint by planting trees or going out of their way to reduce carbon
emissions throughout their entire supply chain and educating customers about it.Hosting
workshops and people development initiatives to teach skills and empower people to build
better lives for themselves and their communities.
Advocating for diversity and inclusion on behalf of underrepresented groups and
becoming an engine of inspiration , social enterprise are associated with pro‐social
motivations of wealth‐giving, cooperation and community development (Lumpkin et al.
2013). For example, a social firm is an organization that, as part of its mission, employs
people who are disadvantaged in some way or people with disability such as Starbucks
hiring people with down syndrome working at their outlets. This social mission able create
a good positioned in the market. The dual mission to achieve financial sustainability and
create social value by integrating the socially excluded and disadvantaged into the
workplace categorizes a social firm as a Social Enterprise (Borzaga and Defourny
2001).means that creating social value able to stabilize a firm financial.

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3. Who are social entrepreneurs?

A social entrepreneur is an individual, group, network, organization, or alliance of

organizations that seeks sustainable, large-scale change through pattern-breaking ideas in
what or how governments, non-profits, and businesses do to address significant social
problems.( Light, 2006).Again ,social entrepreneur can be anybody with a vision that seek
various opportunity in any business. People with the qualities and behaviors we associate
with the business entrepreneur but who operate in the community and are more concerned
with caring and helping than “making money’.(Thompson, 2002 ) Social entrepreneurs play
the role of change agents in the social sector by adopting a mission to create and sustain
social value not just private value recognizing and relentlessly pursuing new opportunities
to serve that mission engaging in a process of continuous innovation, adaptation, and
learning acting boldly without being limited by resources currently at hand and exhibiting
heightened accountability to the constituencies served and for the outcomes created. A path
breaker with a powerful new idea, who combines visionary and real-world problem solving
creativity, who has a strong ethical fiber, and who is ‘totally possessed’ by his or her vision
for change.( Bornstein, D., 2004). Bornstein believed that social entrepreneurs able to
generate ideas to solve their problem that are different from others could create a way to
success.
Besides, according to Ashoka social entrepreneurs are individuals with innovative
solutions to society’s most pressing social problems. They are ambitious and persistent,
tackling major social issues and offering new ideas for wide-scale change. The social
entrepreneur should be understood as someone who targets an unfortunate but stable
equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity;
who brings to bear on this situation his or her inspiration, direct action, creativity, courage,
and fortitude; and who aims for and ultimately affects the establishment of a new stable
equilibrium that secures permanent benefit for the targeted group and society at large. (
Martin, R. L. & Osberg, S., 2007).The social entrepreneur as society’s change agent and a
pioneer of innovation that benefits humanity. Finnally , Social entrepreneurs are ambitious,
mission driven, strategic, resourceful, and results oriented.

4. What are some characteristic of social entrepreneurs?

First, Social entrepreneurs are problem solvers with innovative solutions for unsolved
community needs, by mobilizing and using scarce resources in inventive ways (Dees,
1998; Henton et al.. 1997; Johnson, 2000; Johnson, 2001). Their ability to think ideas
in creative way and social entrepreneurship has no profit motive but that does not
mean social entrepreneurs don not pay attention to budgetary constraints. In fact, they
have and most of them always seek effective and efficient ways to operate their
organizations. They have to, otherwise, they will vanish as fast as they appear on their
social and economic landscape.The bottom line is that competent social entrepreneurs
find smart ways to solve problems without breaking their bank which, again, is not

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really the case because they don’t have that much money to start with, and therefore
there is no real bank.

Second ,as Mair and Noboa (2006, p. 121) argue, social entrepreneurship “involves
innovative approaches to address issues in the domains of education, environment, fair
trade, health and human rights and is widely regarded as an important building block
of the sustainable development of countries.” Innovation is always present in the
minds of successful social entrepreneurs. They embrace technology fully, finding new
ways to make things, deliver products and services, heal people, improve their lives
and others.The idea is to use expertise and competence acquired in the business world
to change mindsets and improve or save the lives of millions around the world.

Third, they seek fresh opportunities and produce positive impact by using leadership
and management methods (Dees, 2009).Which means they also a risk taker, Risk
taking is essential in social entrepreneurship and in any kind of entrepreneurship, for
that matter. It takes a special mindset to wake up one day and say you want to change
things in this world. The risk becomes even greater when the business carry out not
enough capital, do not have a posh social background, leave your day job, or begin on
a project that with high cost heavily on finance. The social entrepreneurs work
towards getting profit while creating change by providing community value (Ashoka,
2014; Dees, 1998; Johnson, 2000; Johnson, 2001; Johnson, 2001 b; Teakle, 2000),
towards building a sustainable community (Johnson, 2000).

Fourth,a social entrepreneur must be healthy Impatience A social entrepreneur shows

a healthy impatience with the way things are, according to Duke University’s Fuqua
School of Business, in a report by its Center for Advancement of Social
Entrepreneurship.Case notes that socially minded entrepreneurs want to change things
right away, know it can be done, and are sometimes frustrated that bureaucracy and
the lack of political will, among others, impede on social changes that could benefit
the masses.

Moreover, they connect sectors, stakeholders and diverse community networks

(Henton et al., 1997; Teakle, 2000) by building a strong, resilient and productive
relationship between the private, public and civil sectors (Henton et al, 1997).
Finnally,They need to give full commitment on Improve Social Welfare Social
entrepreneurs are socially committed first.But what differentiates them from, say, a
company engaging in corporate social responsibility (CSR), is their ability to fully
devote their time, energy and meager resources to make sure things actually change
for the better. A business can use corporate social responsibility (CSR) which entails
everything from charitable donations to community work to improve social welfare,
but critics also point out that some for-profit entities use CSR as a public-relations
tool.

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 5. What is different between social business and social entrepreneurship?

Both approaches fulfil a need in the market and aim to earn a sustainable profit. The main
difference is that social entrepreneurship focuses beyond simply generating a profit, and
measures its performance on the positive impact the business makes on society whether social,
cultural or environmental.Social entrepreneurship, as defined by Said Business School (SBS)
here in Oxford, "refers to the practice of combining innovation, resourcefulness and
opportunity to address critical social and environmental challenges." It is not philanthropy,
activism or companies with a foundation. "Social entrepreneurs focus on transforming
systems and practices that are the root causes of poverty, marginalization, environmental
deterioration and accompanying loss of human dignity. In so doing, they may set up for-profit
or not-for-profit organizations, and in either case, their primary objective is to create
sustainable systems change." social business is defined as a business whose purpose is to
solve social problems in a financially sustainable way. According to Professor Muhammad
Yunus Social Business can be defined as “a non-dividend company that is created to address
and solve a social problem”.
Social businesses function in most ways like for-profit businesses, yet since the social impact
is the primary purpose of this business, all profits have to be reinvested into the business (i.e.
no dividends are paid out to the owners) or are used to start new social business to increase
the impact of the organization. The ultimate effect is to generate profit in the form of material
things (Ashoka, 2007).While ,Social entrepreneurship focuses on gaining understanding of
how a social problem develops and how an entrepreneur with the use of his innovative
practical ideas and business strategies develop solutions to resolve the problem; and motivates
him to utilize the available social entrepreneurship resources to overcome the problem to
benefit the society as a whole. Social entrepreneurs focus at utilising the various available
resources to create a better and progressive society. Like any business entrepreneur, social
entrepreneurs also find gaps and create a venture to serve the unserved ‘markets’ (Ashoka,
2007).
Social businesses are designed to use market mechanisms to solve social challenges With the
idea of social business, Prof. Muhammad Yunus has introduced a new dimension for
capitalism: a business model that does not strive to maximize profits but rather to serve
humanity’s most pressing needs. Although the social business is pioneering in its aims, it is
traditional in its management. Social entrepreneuership objective is earned income ventures
are socially entrepreneurial only when they have a social purpose beyond simply making
money. If social entrepreneurship is to be distinctive in any way, it must be because social
objectives matter in how the venture is organized and managed. If the only way a venture
serves your mission is by generating funds, it may be business entrepreneurship, but it is not
social entrepreneurship.Social Business objective is to use market mechanisms to address
problems which threaten people and society such as education, health, technology access,
environment, and other.

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6. What challenges do leaders in social entrepreneurship usually face?
The relevance of social entrepreneurship very much depends on the economic
conditions in the respective countries. However, the challenges faced by the social
entrepreneurs’ world over revolve around conveying their business ideas, attracting
donors, working conditions, hiring staff, financing, support from family and business,
government policies, maintaining quality, competitive forces and acquiring
technology.Search for opportunities ,Strategic selection , Implementation ,Innovation
strategy , Innovative organisation , Rich linkages (Bessant& Tidd, 2007).The problems
that social entrepreneurs face can be similar to the problems that they encounter in the
business world like challenges of starting, running and sustaining a business. Before
entering a market with a new business idea, a social entrepreneur should have clear
understanding of the problems and issues they may face. Policy of non-profit Social
enterprises can be run as for profit and sit somewhere in the middle of the traditional
corporation and purely charitable organization. Some organization is able to generate
sufficient income through the sale of socially beneficial goods or services, but many are
not.
Governmental approval is a lack of social enterprises accessing publicly funded
business support. On the other side it is difficult to come up with the proposition that
will appeal to corporate and funders where your objective as an organisation is not to
maximise shareholder values. Lack of government support is a major hindrance for
social business development in India. Currently government is not providing any kind
of support. The government’s policies and regulations for social entrepreneurs are very
strict and complex, with no tax incentives or subsidies being for social enterprises,
combinations of which act as a major process to the growth of social ventures in our
countries. Legal barriers in some countries, just the process of starting up business can
be cumbersome enough to discourage even the bravest innovator. Joining a social
entrepreneurial organisation will be a great opportunity to learn from experts in an
organisation and structure that is already established. Beside, getting skilled employees
This is a real problem when social enterprise moves past it founders, it is difficult to
find employees who are talented, who share the vision and who are willing to generally
take less money. Social enterprises have to get competent man power from a variety of
sources; professionals, volunteers, labourers and community participants.

To align the motives of all these groups with the long term growth of the
organization is a challenge for the founders. In order for social enterprises to full-fill
their mission in a holistic manner they must typically employ man power from the
underprivileged sector of the society, leading to increased developmental cost as these
people are typically uneducated and unskilled. The organisations have to attempt to full-
fill the aspirations of all these divergent groups and still come out with the best result
Technological Challenges that,social entrepreneurs need to understand the deep value
that can bring to social changes when it is offered in context, with appropriate training,
and with the intent of empowering the user. Technology can empower social
entrepreneurship initiatives by democratizing access to information, creating business
value, and enabling new capabilities. Major problem faced are poor digital literacy

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 Lack of capital It is the major challenge for the Indian entrepreneur. Generally, the
social entrepreneurs run their business with their own funds or by raising funds from
the local money lenders at a high rate of interest, which sometimes become a financial
burden on them. The reason behind this is the banks avoidance to providing loan
facilities for them. Hence the social enterprises had to deal with challenge of facing a
holistic reaction from financial institution and governments as far as funding is
concerned. This forces social entrepreneurs to take, what can be, a more difficult path
of approaching venture capitalist and philanthropic organisation

7. Who are social enterprise investors?

The first assumption that is born from social enterprise investment is that, since their
potential in returns on investment is limited by the social nature of the business, investing
in them would generate losses or slow returns on investment (Bocken, 2015).Resource
mobilization is the manner in which social entrepreneurs utilize resources that come in the
form of financial capital or human capital, such as volunteers who donate their time to an
enterprise (Gardin, 2006).
Investors are likely to engage if social investment can offer an expectation of market or
close to market returns, Some guarantee or mitigation of risk while approaching market
level returns; protection of the downside is more important than potentially high upside,
Liquidity if possible, which helps reduce perceived risk , Robust measurement of the social
returns generated by the investment ,Larger-sized investment opportunities example
through pooled funds ,Products and managers with a track record in which City institutions
can develop confidence .
Institutional investors could help supply long term, stable growth capital. Government
fund capital and temporary funds may not be able to underpin the sector’s need for secure
stable flow of finance for long term growth , Appetite has not been fully tested to date
because of limited access to a weak range of social investment products to date ,
Government funds are nearly exhausted. BSB funds will not directly replace these, there
may be a funding gap of the right forms of capital in the medium-term, The BSB will need
financial support to meet expectations: it will aim to leverage additional finance to support
its work (as stipulated in the Outline Business Plan) ,Slow growing social venture capital
funds may not be able to keep pace should demand , as expected, in part to finance public
sector spin-outs .Then, Institutional investors could help to reduce the concentration of
investment deals within the sector by spreading the potential investor base

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8. Who are social enterprise service providers?

According to Dr. Pravin V.Bhise (2013) ,Social enterprises should be seen as a positive
force,i.e change agent providing leading-edge innovation to unmet social needs Social
entrepreneurship is not a cure because it works within the overall social and economic
framework,but as it starts at the ground level and is often overlooked and deserve more
attention from theorist as well as policy makers.This is especially important in developing
countries and welfare states facing increasing financial stress.

Backeret al distinguish in three different levels of actors in the field: Public actors, the
Free Welfare Association and private-commercial providers (Backer et al,2010, p.525f.).
According to Backeret et al explain that the social provider act as actor have three different
level in the field.A deinstitutionalisation of services can be observed more and more non-
governmental and non‐traditional welfare providers enter the market. This challenges
especially the Free Welfare Associations, because they were traditionally the most
important actors in terms of welfare provision and responsible for two thirds of the offered
social services (Falterbaum, 2009,pp. 136f.). In the pure form, the successful social
entrepreneur takes direct action and generates a new and sustained equilibrium; the social
activist influences others to generate a new and sustained equilibrium; and the social service
provider takes direct action to improve the outcomes of the current equilibrium.

According to Defourny (2001), stated that economy in terms of three poles, sometimes
represented by three types of agents (private enterprise, the state, and households) ,
sometimes according to the principles and methods by which exchanges are regulated (the
market, public redistribution and reciprocity)and in other cases according to the types of
resources involved (commercial, non- commercial or non-monetary) in such a perspective,
the third sector is viewed as an intermediate space in which the different poles can
combine.Third sector enterprise and organization may be grouped into three major
categories which is co-operative enterprise, mutual societies, and those organisations which
might generally be described as “association”, whose legal from may vary considerably
from one country to another.

9. What is social change?

social change has traditionally been associated with “development problems” that
occurred in “developing countries.”social change (or development) could be described as a
significant change of structured social action or of the culture in a given society,
community, or context. Such a broad definition could be further specified on the basis of a
number of “dimensions” of social change: space (micro, meso-, macro), time (short,
medium, long-term), speed (slow, incremental, evolutionary versus fast, fundamental,
revolutionary), direction (forward or backward), content (sociocultural, psychological,
sociological, organizational, anthropological, economic, and so forth), and impact (peaceful
versus violent). (Vago ,2003 ,Weinstein ,2010)
Boudon, Raymond. 1991. Theories of social change . Cambridge, MA: Polity. In
Boudon’s view, social life is in a fundamental sense marked by “disorder.” Patterns of

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social change continually diverge from the outcomes that social actors attempt to achieve.
From this empirically documented position, Boudon critiques the existing theories of social
change in sociology, identifying their nomological, structuralist, or ontological bias. First
published in French. (Sztompka, Piotr. 1994). The sociology of social change . Oxford:
Blackwell. This book covers the four grand visions of social and historical change that have
dominated the field since the 19th century: the evolutionary, the cyclical, the dialectical,
and the post departmentalise. By doing so, it discusses central concepts, such as social
process, development progress, social time, historical tradition, modernity, postmodernity,
and globalization.
Vago, Steven. 2003. Social change . 5th ed. Upper Saddle River, NJ: Pearson Prentice
Hall. A well-structured analysis of the major theoretical perspectives, sources, processes,
patterns, and consequences of social change. The book considers factors that stimulate or
hinder the acceptance of change in a multicultural context, and it emphasizes unintended
consequences and costs of both planned and unplanned change.
Weinstein, Jay. 2010. Social change . 3d ed. Lanham, MD: Rowman & Littlefield. The book
presents a comparative social scientific approach to change at all levels of society local,
national, and international in a time-based fashion. It discusses the components of change
and the factors driving them.

10. What is social impact?

The social impact of research is at the core of some of the debates influencing how
scientists develop their studies and how useful results for citizens and societies may be
obtained. Concrete strategies to achieve social impact in particular research projects are
related to a broader understanding of the role of science in contemporary society.The
measurement of impact needs to deal with key issues related to causality, comparability,
and measurement cost. To have different measurement techniques tackled the tradeoffs
involving these dimensions, at a more fundamental level, we can distinguish between two
general approaches to assess impact standardized and project-specific (Lazzarini, Cabral,
Pongeluppe, Ferreira, & Rotondaro, 2014).
Then, Examples of standardized tools to measure impact include IRIS (Impact
Reporting and Investment Standards), GIIRS (Global Impact Investing Report System),
and the B Lab Certification. GIIRS uses the “dictionary” of impact variables proposed by
IRIS and allows entrepreneurs and investors to self-report their performance on a set of
dimensions (governance, workers, community, environment, and focus of the business
model).
Finally The social impact of research has usually been analysed through the scientific
outcomes produced under the auspices of the research. The growth of scholarly content in
social media and the use of altmetrics by researchers to track their work facilitate the
advancement in evaluating the impact of research.Several authors have approached the
conceptualization of social impact, observing a lack of generally accepted conceptual and
instrumental frameworks . It is common to find a wide range of topics included in the
contributions about social impact.

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