SOCIAL ENTREPRENEURSHIP

LEARNING OUTCOMES

Understand what is meant by social entrepreneurs The rise of Social entrepreneurship

What is meant by a social enterprise

Forms of Social Enterprise The dangers of Social Entrepreneurship

DEFINITION.
Social entrepreneurship can be loosely defined as the use of entrepreneurial behavior for social rather than profit objectives. The differ from business entrepreneurship in terms of their mission. Social entreprenuers primary purpose is to create superior social value for their clients They identify under-utilised resources-people, buildings, equipments-and fin ways of putting them to use to satisfy unmet social needs.

RISE OF SOCIAL ENTREPRENEURSHIP

Social entrepreneurship is about putting the social objective first and utilizing commercial skills to achieve them in an entrepreneurial way.

They can take many forms.. In extremis it proposes the reconstruction of welfare by building partnerships between the public, social and business sectors.

ACTIVITIES OF SOCIAL ENTREPRENEURS

Combining an income generating activity with a social goal-often called social enterprise i.e. fund raising activities undertaken by charities. Creating social change at a community levelnormaly through voluntary or community groups

SOCIAL ENTERPRISE

In the USA it is defined as

The ability to earn revenue and to reinvest them to achieve the social aim

In the UK it is defined as

The emphasis is on community involvement and separation form the government.

SOCIAL VS. CIVIC ENTREPRENEUR

Civic entrepreneurship is to do with putting entrepreneurial behavior in the public sector. Social Entrepreneur is about putting the social objective first and utilizing commercial skills to achieve them in an entrepreneurial way.

CHARETRISTICKS OF SOCIAL ENTERPRISE

Pearce (2003) defines them as Having a primarily social purpose, with a secondary commercial activity Achieving that purpose by engaging in trade

CHARETRISTICKS OF SOCIAL ENTERPRISE

Not distributing profits to individuals but reinvesting profits either in the enterprise or new social venture
Democratically involving members in governance Being openly accountable to a defined constituency and a wider community

FORMS OF A SOCIAL ENTERPRISE

Social Firms Cooperatives Credit Unions Community Loans Mutual Insures Development trusts Intermediate labor Market projects Community foundation Trading arms of charities.

SOCIAL ECONOMY

Social Enterprise
Voluntary Charities Family Economy

SOCIAL ENTREPRENEUR

They are ambitious and socially driven, with great skill in communicating a mission and inspiring staff. Creating flat and flexible organization with a core of full-time paid staff, who work with few resources but a culture of creativity But there vision has been for something which will add value for the underprivileged sections of the community.

SOCIAL ENTREPRENEUR CONTD..

The school of social entrepreneurs identifies the basic tools of social entrepreneurs as

A) Fund Raising B) Marketing C) Finance D) Charity Law E) Publicity

GROWTH OF SOCIAL ENTERPRISE

Stages of Development Stage One Stage Two Stage Three

Endowment of Capital
Goals Set Mission Recruit Core team Acquire physical capital Organizational Growth Risks of Failure Wrong Mission Wrong Staff

Investment of Social Capital

Goals Growth New projects, users, partners Risks of Failure Mission explosion Financial Strain Management Overload

Dividends of Social Capital

Goals Security as a basis for further growth

Risks of Failure Stagnation No succession to founder Execution, evaluation

Types of skill development Types of trust development

Creativity Vision Type of trust development

Track Record of Competence

THE DANGER OF SOCIAL ENTREPRENEURSHIP

Very difficult for them to define there core mission. There range of activities can be too broad. I.E. from social services to shops The mixing of social and economic objectives within a social enterprise can be dangerous The renetaining of their moral underpinning and inspiration might be compromised with the infusion of more monetary activities. Lack of a proper performance criteria. Conflicting share holder expectations.