Content deleted Content added
→Modern definition: Changed "dynamicity" to "dynamic nature". Tags: Mobile edit Mobile web edit |
→Modern definition: style |
||
(45 intermediate revisions by 29 users not shown) | |||
Line 1:
{{short description|Approach to develop, fund and implement solutions to social
{{Essay-like|date=June 2023}}
{{use mdy dates|date=March 2021}}
[[File:
'''Social entrepreneurship''' is an approach by individuals, groups, [[Startup company|start-up companies]] or [[entrepreneur]]s, in which they develop, fund and implement solutions to social, cultural, or environmental issues.<ref>{{cite news | url = http://www.pbs.org/now/enterprisingideas/what-is.html | work = Enterprising Ideas | title = What is a Social Entrepreneur | publisher = PBS Foundation | quote = A social entrepreneur, in our view, is a person or entity that takes a business approach to effectively solving a social problem.}}</ref> This concept may be applied to a wide range of organizations, which vary in size, aims, and beliefs.<ref>{{cite web | title = The Meaning of Social Entrepreneurship | first = J. Gregory | last = Dees | orig-year = 1998 | year = 2001 | publisher= caseatduke.org | url= http://caseatduke.org/ | access-date= 2013-05-03}}</ref> For-profit entrepreneurs typically measure performance using business metrics like [[Profit (economics)|profit]], [[revenues]] and increases in [[stock price]]s. Social entrepreneurs, however, are either [[non-profit organization|non-profits]], or they blend for-profit goals with generating a positive "return to society". Therefore, they use different metrics. Social entrepreneurship typically attempts to further broad social, cultural and environmental goals often associated with the [[voluntary sector]]<ref>{{cite journal | last1 = Thompson | first1 = J.L. | year = 2002 | title = The World of the Social Entrepreneur | journal = The International Journal of Public Sector Management | volume = 15 | issue = 4/5| page = 413 | doi = 10.1108/09513550210435746 }}</ref> in areas such as poverty alleviation, [[health care]] and [[community development]].
At times, profit-making [[social enterprise]]s may be established to support the social or cultural goals of the organization but not as an end in themselves. For example, an organization that aims to provide housing and employment to the [[homelessness|homeless]] may operate a [[restaurant]], both to raise money and to provide employment for the homeless.
In 2010, social entrepreneurship was facilitated by the use of the [[Internet]], particularly [[social networking]] and [[social media]] websites. These [[website]]s enable social entrepreneurs to reach numerous people who are not geographically close yet who share the same goals and encourage them to [[collaboration|collaborate]] online, learn about the issues, disseminate information about the group's events and activities, and raise funds through [[crowdfunding]].<ref>{{
In recent years, researchers have been calling for a better understanding of the ecosystem in which social entrepreneurship exists and [[social venture]]s operate.<ref name=":2">{{Cite book|
== Modern definition ==
[[File:Yunus Social entrepreneurs Sanwar Uddin.jpg|thumb|
The concept of social entrepreneurship emerged in the 1980s and since then has been gaining more momentum. Despite this, after decades of efforts to find a common ground to define the concept, no consensus has been reached.<ref>
Scholars have different backgrounds, generating a great disparity of conceptualizations. These should be arranged in 5 clusters of meaning, according to the focus given and the conceptual framework assumed by the researcher. The first group of authors focuses on the person of the entrepreneur, being the mainstream definition. J. G. Dees argues that Social Entrepreneurship is the result and the creation of an especially creative and innovative leader.<ref>Dees, J. G. (1998), "''The meaning of social entrepreneurship, available in: https://entrepreneurship.duke.edu/news-item/the-meaning-of-social-entrepreneurship/''"</ref>▼
▲Scholars have different backgrounds, generating a great disparity of conceptualizations. These should be arranged in 5 clusters of meaning, according to the focus given and the conceptual framework assumed by the researcher. The first group of authors focuses on the person of the entrepreneur, being the mainstream definition. J. G. Dees argues that
Social entrepreneurs can include a range of career types and professional backgrounds, ranging from [[social work]] and [[community development]] to [[entrepreneurship]] and [[environmental science]]. For this reason, it is difficult to determine who is a social entrepreneur. [[David Bornstein (author)|David Bornstein]] has even used the term "social innovator" interchangeably with social entrepreneur, due to the creative, non-traditional strategies that many social entrepreneurs use.<ref>David Bornstein, "''How to Change the World''" (New York: Oxford University Press, 2007), 1, 92</ref> For a clearer definition of what social entrepreneurship entails, it is necessary to set the function of social entrepreneurship apart from other voluntary sector and charity-oriented activities and identify the boundaries within which social entrepreneurs operate.<ref>Abu-Saifan, S. 2012. [http://www.timreview.ca/article/523 Social Entrepreneurship: Definition and Boundaries]. [http://www.timreview.ca/ Technology Innovation Management Review]. [http://www.timreview.ca/issue/2012/february February 2012]: 22-27.</ref> Some scholars have advocated restricting the term to founders of organizations that primarily rely on earned income (meaning income earned directly from paying consumers), rather than income from donations or grants. Others have extended this to include contracted work for public authorities, while still others include grants and donations.▼
▲Social entrepreneurs can include a range of career types and professional backgrounds, ranging from [[social work]] and [[community development]] to [[entrepreneurship]] and [[environmental science]]. For this reason, it is difficult to determine who is a social entrepreneur. [[David Bornstein (author)|David Bornstein]] has even used the term "social innovator" interchangeably with social entrepreneur, due to the creative, non-traditional strategies that many social entrepreneurs use.<ref>David Bornstein,
Social entrepreneurship in modern society offers an altruistic form of entrepreneurship that focuses on the benefits that society may reap.<ref name="Wee" /> If a person's behaviour or motives are altruistic, they show concern for the happiness and welfare of other people rather than for themselves.<ref>{{cite web |title=Altruistic |url=https://www.collinsdictionary.com/dictionary/english/altruistic}}</ref> Simply put, entrepreneurship becomes a social endeavor when it transforms [[social capital]] in a way that affects society positively.<ref name="Alvord">Alvord, Sarah H., Brown, David L., and Letts, Christine W. "Social Entrepreneurship and Societal Transformation: An Exploratory Study." The Journal of Applied Behavioral Science. no. 3 (2004): 260-282.</ref> It is viewed as advantageous because the success of social entrepreneurship depends on many factors related to social impact that traditional corporate businesses do not prioritize. Social entrepreneurs recognize immediate social problems, but also seek to understand the broader context of an issue that crosses disciplines, fields, and theories.<ref name="Alvord" /> Gaining a larger understanding of how an issue relates to society allows social entrepreneurs to develop innovative solutions and mobilize available resources to affect the greater global society. Unlike traditional corporate businesses, social entrepreneurship ventures focus on maximizing gains in social satisfaction, rather than maximizing profit gains.<ref name="Baron">Baron, David P. "Corporate Social Responsibility and Social Entrepreneurship." Journal of Economics & Management Strategy. no. 3 (2007): 683-717.</ref> Both private and public agencies worldwide have had billion-dollar initiatives to empower deprived communities and individuals.<ref name="Alvord" /> Such support from organizations in society, such as government-aid agencies or private firms, may catalyze innovative ideas to reach a larger audience.▼
Social entrepreneurship in modern society offers an altruistic form of entrepreneurship that focuses on the benefits that society may reap.<ref name="Wee" /> Entrepreneurship becomes a social endeavor when it transforms [[social capital]] in a way that affects society positively.<ref name="Alvord">Alvord, Sarah H., Brown, David L., and Letts, Christine W. "Social Entrepreneurship and Societal Transformation: An Exploratory Study." The Journal of Applied Behavioral Science. no. 3 (2004): 260-282.</ref> If a person's behaviour or motives are altruistic, they show concern for the happiness and welfare of other people rather than for themselves.<ref>{{cite web |title=Altruistic |url=https://www.collinsdictionary.com/dictionary/english/altruistic}}</ref>
Prominent individuals associated with social entrepreneurship include Pakistani [[Akhter Hameed Khan]] and Bangladeshi [[Muhammad Yunus (economist)|Muhammad Yunus]], a leader of [[social entrepreneurship in South Asia]]. Yunus was the founder of [[Grameen Bank]], which pioneered the concept of [[microcredit]] for supporting innovators in multiple developing countries in [[Asia]], [[Africa]], and [[Latin America]].<ref name=":0" /> He received a [[Nobel Peace Prize]] for his efforts. Others, such as former [[Indianapolis]] mayor [[Stephen Goldsmith]] addressed social efforts on a local level by using the private sector to provide city services.<ref name="economist810">{{cite news▼
▲Social entrepreneurship
▲Prominent individuals associated with social entrepreneurship include Pakistani [[Akhter Hameed Khan]] and Bangladeshi [[Muhammad Yunus (economist)|Muhammad Yunus]], a leader of [[social entrepreneurship in South Asia]]. Yunus was the founder of [[Grameen Bank]], which pioneered the concept of [[microcredit]] for supporting innovators in multiple developing countries in [[Asia]], [[Africa]], and [[Latin America]].<ref name=":0" /> He received a [[Nobel Peace Prize]] for his efforts. Others, such as former [[Indianapolis]] mayor [[Stephen Goldsmith]], addressed social efforts on a local level by using the private sector to provide city services.<ref name="economist810">{{cite news
|url=http://www.economist.com/node/16789766
|title=Let's hear those ideas
|date=August 12, 2010
|
|access-date=July 28, 2014}}</ref><ref name="goldsmith">{{cite book
|title=The Power of Social Innovation: How Civic Entrepreneurs Ignite Community Networks for Good
Line 32 ⟶ 36:
==Characteristics ==
Bill Drayton founded Ashoka in 1980, an organization which supports local social entrepreneurs. Drayton tells his employees to look for four qualities: creativity, entrepreneurial quality, social impact of the idea, and ethical fiber.<ref>{{cite book|last1=Bornstein|first1=David|title=How to Change the World|date=2007|publisher=Oxford University Press|location=New York|isbn=978-0-19-533476-0|pages=[https://archive.org/details/howtochangeworld00born_0/page/121 121–122]|url=https://archive.org/details/howtochangeworld00born_0
Entrepreneurial quality builds from creativity. Not only do entrepreneurs have an idea that they must implement, they know how to implement it and are realistic in the vision of implementing it. Drayton says that, "Entrepreneurs have in their heads the vision of how society will be different when their idea is at work, and they can't stop until that idea is not only at work in one place, but is at work across the whole society."<ref>{{cite book|last1=Bornstein|first1=David|title=How to Change the World|date=2007|publisher=Oxford University Press|location=New York|isbn=978-0-19-533476-0|pages=[https://archive.org/details/howtochangeworld00born_0/page/124 124–126] |url=https://archive.org/details/howtochangeworld00born_0
Social impact measures whether the idea itself will be able to cause change after the original founder is gone. If an idea has intrinsic worth, once implemented it will cause change even without the charismatic leadership of the first entrepreneur.<ref>{{cite book|last1=Bornstein|first1=David|title=How to Change the World|date=2007|publisher=Oxford University Press|location=New York|isbn=978-0-19-533476-0 |pages=[https://archive.org/details/howtochangeworld00born_0/page/126 126–127] |url=https://archive.org/details/howtochangeworld00born_0
Ethical fiber is important because leaders who are about to change the world must be trustworthy. Drayton described this to his employees by suggesting that they picture a situation that frightens them and then place the candidate in the situation with them. If they feel comfortable in this scenario, the entrepreneur has ethical fiber.<ref>{{cite book|last1=Bornstein|first1=David|title=How to Change the World|date=2007|publisher=Oxford University Press|location=New York|isbn=978-0-19-533476-0|pages=[https://archive.org/details/howtochangeworld00born_0/page/127 127–128]|url=https://archive.org/details/howtochangeworld00born_0
==Challenges==
Because the world of social entrepreneurship is relatively new, there are many challenges facing those who delve into the field. First, social entrepreneurs are trying to predict, address and creatively respond to future problems
The lack of eager investors leads to the second problem in social entrepreneurship: the pay gap. Elkington and Hartigan note that "the salary gap between commercial and social enterprises… remains the elephant in the room, curtailing the capacity of [social enterprises] to achieve long-term success and viability."<ref name="Unreasonable People p. 201">The Power of Unreasonable People; Elkington, John, Hartigan, Pamela; Harvard Business Press, 2008; p. 201</ref> Social entrepreneurs and their employees are often given diminutive or non-existent salaries, especially at the onset of their ventures. Thus, their enterprises struggle to maintain qualified, committed employees. Though social entrepreneurs are tackling the world's most pressing issues, they must also confront skepticism and stinginess from the very society they seek to serve.<ref name="Unreasonable People p. 201"/>
Line 50 ⟶ 54:
Social entrepreneurship is distinct from the concept of [[entrepreneurship]], yet still shares several similarities with its business cousin. [[Jean-Baptiste Say]] (1767–1832), a French economist, defined an entrepreneur as a person who "undertakes" an idea and shifts perspectives in a way that it alters the effect that an idea has on society.<ref name=":0">{{cite journal | last1 = Martin | first1 = R. L. | last2 = Osberg | first2 = S. | year = 2007 | title = Social entrepreneurship: The case for definition | journal = Stanford Social Innovation Review | volume = 5 | issue = 2| pages = 28–39 }}</ref> An entrepreneur is further defined by Say as someone who "shifts economic resources out of an area of lower and into an area of higher productivity and greater yield."<ref>Peter F. Drucker, ''Innovation and Entrepreneurship'' (New York: Harper Business, 1993), 21</ref> The difference between "entrepreneurship" and "social entrepreneurship", however, stems from the purpose of a creation. Social entrepreneurs seek to transform societies at large, rather than transforming their [[profit margin]], as classic entrepreneurs typically seek to do. Social entrepreneurs use a variety of resources to bring societies into a better state of well-being.
The concept of "social entrepreneurship" is not a novel idea, but in the 2000s, it has become more popular among society and academic research, notably after the publication of "The Rise of the Social Entrepreneur" by [[Charles Leadbeater]].<ref name="Wee">Wee-Liang, Williams, John, and Tan, Teck-Meng. "Defining the
The terms ''social entrepreneur'' and ''social entrepreneurship'' were used first in the literature in 1953 by H. Bowen in his book ''Social Responsibilities of the Businessman''.<ref>For example, the phrase was used as a description of [[Howard Bowen]], ''Social Responsibilities of the Businessman'', America, 1953</ref> The terms came into widespread use in the 1980s and 1990s, promoted by [[Bill Drayton]],<ref name="social entreprenuer">{{cite web | publisher=[[
==Ecosystem of social entrepreneurship ==
The ecosystem framework can be very useful for social entrepreneurs in formulating their strategy. The need for understanding the ecosystem of social enterprises has been increasingly supported as researchers emphasize on the importance of contextual factors supporting and constraining [[social venture]]s.<ref name=":2" />
Many researchers such as P. N. Bloom and J. G. Dees attempted to develop an ecosystem model for social entrepreneurs. The ecosystem model proposed by them comprises all the actors operating in the ecosystem, as well as the larger environment the laws, policies, social norms, demographic trends, and cultural institutions within which the actors play.<ref name=":4" /> Similarly, Dees ''et al.'' (2008) developed a framework to describe the key elements of the social entrepreneurship ecosystem in which they organized the elements into two broad categories – capital infrastructure and context-setting factors.<ref>{{Cite journal|
More recently in 2020, [[Debapratim Purkayastha]], T. Tripathy and B. Das extended the business ecosystem literature to the social policy and social entrepreneurship arena. They developed a comprehensive ecosystem model in the context of the Indian microfinance sector that can be also used by other social enterprises as a framework to understand their own ecosystem and formulate their strategy. The researchers define the ecosystem as consisting of "the complex and evolving network of the focal organization (social enterprise) and all other individuals and organizations that the focal organization interact with including competitors, suppliers, complementors, customers, beneficiaries, regulators, resource providers, etc. that directly or indirectly influence each other; their interactions, as also the immediate and the broader environment (economic, social, political, etc.) the organization is influenced by and reside in".<ref name=":3" /> The model helps identify all the actors in the complex ecosystem, the capital infrastructure and the context-setting factors.
Line 64 ⟶ 68:
=== Major organizations ===
[[File:Panel on social entrepreneurs at Spotlight Health Aspen Ideas Festival 2015.JPG|thumb|right
Groups focused on social entrepreneurship may be divided into several categories: community-based enterprises, socially responsible enterprises, [[social services]] industry professionals, and socio-economic enterprises.<ref name="Wee" /> Community-based enterprises are based on the social ventures aimed at and involving an entire community. These enterprises build on the community's culture and capital (e.g., volunteer resources, financing, in-kind donations, etc.) to empower the enterprise and the community.<ref name="Peredo">{{cite journal | last1 = Peredo | first1 = Ana Maria | last2 = Chrisman | first2 = James J. | year = 2006 | title = Toward a theory of community-based enterprise | journal = Academy of Management Review | volume = 31 | issue = 2| pages = 309–328 | doi=10.5465/amr.2006.20208683| s2cid = 144555213 }}</ref> Socially responsible enterprises focus on creating [[sustainable development]] through their inside organization acts that focus mostly on creating societal gains for the community.<ref name="Wee" /> Social service industry professionals such as [[social worker]]s and [[public health nurse]]s work in [[social services]], either for a government or a non-profit organization. They aim to expand [[social capital]] for individuals, communities, and organizations. Socio-economic enterprises include corporations that balance earning profits with nonprofit goals, such as seeking social change for communities. Some social entrepreneurship organizations are not enterprises in a business sense; instead, they may be charities, non-profit organizations or voluntary sector organizations.
Line 83 ⟶ 87:
==International presence==
Organizations such as the [[Skoll Foundation]], the [[Omidyar Network]], the [[Schwab Foundation for Social Entrepreneurship
==Role of technology==
The Internet, [[social networking websites]] and [[social media]] have been pivotal resources for the success and collaboration of many social entrepreneurs.<ref>Malecki, E. J. (1997). Technology and economic development: the dynamics of local, regional, and national change. ''University of Illinois at Urbana-Champaign's Academy in Entrepreneurship''.</ref> In the 2000s, the Internet has become especially useful in disseminating information to a wide range of like-minded supporters in short amounts of time, even if these individuals are geographically dispersed. In addition, the Internet allows for the pooling of design resources using [[open source]] principles. Using [[wiki]] models or [[crowdsourcing]] approaches, for example, a social entrepreneur organization can get hundreds of people from across a country (or from multiple countries) to collaborate on joint online projects (e.g., developing a [[business plan]] or a [[marketing]] strategy for a social entrepreneurship venture). These websites help social entrepreneurs to disseminate their ideas to broader audiences, help with the formation and maintenance of [[business networks|networks of like-minded people]] and help to link up potential investors, donors or volunteers with the organization. This enables social entrepreneurs to achieve their goals with little or no start-up capital and little or no "[[brick and mortar]]" facilities (e.g., rented office space). For example, the rise of [[open-source appropriate technology]] as a [[sustainable development]] paradigm enables people all over the world to collaborate on solving local problems, just as [[open source software]] development leverages collaboration from software experts from around the world.
<ref>{{
==Public opinion==
Line 101 ⟶ 105:
==See also==
<!-- New links in alphabetical order please -->
{{colbegin|colwidth=18em}}
* [[Entrepreneurship]]▼
* [[Appropriate technology]]
* [[B Corporation (certification)]]
* [[Business ethics]]
* [[Collaborative method]]
▲* [[Entrepreneurship]]
* [[Geotourism]]
* [[List of social entrepreneurs]]
* [[Microfranchising]]
* [[Outline of management]]
* [[Social innovation]]
* [[Social venture capital]]
Line 150 ⟶ 155:
[[Category:Entrepreneurship]]
[[Category:Activism]]
[[Category:Administrative theory]]
[[Category:Management]]
[[Category:Sustainability]]
[[Category:Sustainable development]]
[[Category:Social economy]]
[[Category:Social enterprises]]
|