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{{short description|Approach to develop, fund and implement solutions to social or environmental issues}}
{{Essay-like|date=June 2023}}
{{use mdy dates|date=March 2021}}
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'''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|editor-last1=de Bruin |editor-first1=A. |editor-last2=Teasdale |editor-first2=S. |title=A Research Agenda for Social Entrepreneurship|publisher=Edward Elgar Publishing|year=2019|isbn=978-1-78897-231-4}}</ref> This will help them formulate better strategy and help achieve their [[double bottom line]] objective.<ref name=":3">{{Cite journal|last1=Purkayastha|first1=Debapratim|last2=Tripathy|first2=Trilochan|last3=Das |first3=Biswajit|date=2020-01-01|title=Understanding the ecosystem of microfinance institutions in India |journal=Social Enterprise Journal|volume=16 |issue=
== Modern definition ==
[[File:Yunus Social entrepreneurs Sanwar Uddin.jpg|thumb|upright=1.15|right|[[Grameen Bank]] founder and [[Nobel Peace Prize]] winner [[Muhammad Yunus]] (left) with two young social entrepreneurs (right)]]
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 entrepreneurship is the result and the creation of an especially creative and innovative leader.<ref>Dees, J. G. (1998), "
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>
▲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
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==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}}</ref> Creativity has two parts: [[Goal setting|goal-setting]] and [[Problem solving|problem-solving]]. Social entrepreneurs are creative enough to have a vision of what they want to happen and how to make that vision happen.<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]|url=https://archive.org/details/howtochangeworld00born_0}}</ref> In their book ''The Power of Unreasonable People,'' John Elkington and Pamela Hartigan identify why social entrepreneurs are, as they put it, unreasonable. They argue that these men and women seek profit in social output where others would not expect profit. They also ignore evidence suggesting that their enterprises will fail and attempt to measure results which no one is equipped to measure.<ref>{{cite book|last1=Elkington|first1=John|title=The Power of Unreasonable People |date=2008|publisher=Harvard Business Press|location=Boston|isbn=978-1-4221-0406-4|pages=[https://archive.org/details/powerofunreasona0000elki/page/15 15–19]|url=https://archive.org/details/powerofunreasona0000elki}}</ref> About this, the [[Schwab Foundation for Social Entrepreneurship|Schwab Foundation]] says that entrepreneurs have "A zeal to measure and monitor their impact. Entrepreneurs have high standards, particularly in relation to their own organization's efforts and in response to the communities with which they engage. Data, both quantitative and qualitative, are their key tools, guiding continuous feedback and improvement."<ref>{{cite web|title=What is a Social Entrepreneur?|url=http://www.schwabfound.org/content/what-social-entrepreneur|website=Schwab Foundation for Social Entrepreneurs|access-date=28 October 2016}}</ref> Ashoka operates in multiple countries.
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}}</ref> This manifests through a clear idea of what they believe the future will look like and a drive to make this come true. Besides this, entrepreneurs are not happy with the status quo: they want healthy change.<ref>{{cite book |last1=Elkington|first1=John|title=The Power of Unreasonable People|date=2008|publisher=Harvard Business Press|location=Boston |isbn=978-1-4221-0406-4 |pages=[https://archive.org/details/powerofunreasona0000elki/page/11 11–13]|url=https://archive.org/details/powerofunreasona0000elki}}</ref> This changemaking process has been described as the creation of market disequilibria through the conversion of antagonistic assets into complementarities.<ref>{{cite journal |last1=Hockerts |first1=K. |year=2015 |title=How hybrid organizations turn antagonistic assets into complementarities |journal=California Management Review |volume=57 |issue=3| pages=83–106 |doi=10.1525/cmr.2015.57.3.83 |s2cid=154538481}}</ref><ref>{{cite book|last1=Komatsu|first1=T.|title=Finance and Economy for Society: Integrating Sustainability |year=2016|isbn=978-1-78635-510-2|series=Critical Studies on Corporate Responsibility, Governance and Sustainability|volume=11 |pages=315–347 |chapter=Social Innovation Business Models: Coping with Antagonistic Objectives and Assets|doi=10.1108/S2043-905920160000011013}}</ref>
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==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<ref>The Power of Unreasonable People; Elkington, John, Hartigan, Pamela; Harvard Business Press, 2008; p. 86</ref> and often face difficulties in identifying the right problems to solve.<ref>{{Cite journal |last1=Kuckertz |first1=Andreas|last2=Bernhard |first2=Alexander |last3=Berger |first3=Elisabeth S.C. |display-authors=etal |title=Scaling the right answers – Creating and maintaining hope through social entrepreneurship in light of humanitarian crises |journal=Journal of Business Venturing Insights |date=2023 |volume=19 |pages=e00356 |doi=10.1016/j.jbvi.2022.e00356|doi-access=free }}</ref> Unlike most business entrepreneurs, who address current market deficiencies, social entrepreneurs tackle hypothetical, unseen or often less-researched issues, such as overpopulation, unsustainable energy sources, food shortages.<ref>{{cite journal |title=The Power of Unreasonable People |last1=Elkington |first1=John |last2=Hartigan |first2=Pamela |journal=Harvard Business Press |date=2008 |pages=
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"/>
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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=[[U.S. News & World Report]] | title=The Social Entrepreneur Bill Drayton| date = 2005-10-31 | url=https://www.usnews.com/usnews/news/articles/051031/31drayton.htm | access-date=2006-11-03}}</ref> Charles Leadbeater, and others.<ref>'The Rise of the Social Entrepreneur, Demos, London, 1996</ref> From the 1950s to the 1990s, the politician [[Michael Young, Baron Young of Dartington|Michael Young]] was a leading promoter of social entrepreneurship and in the 1980s, he was described by Professor [[Daniel Bell]] at Harvard University as the "world's most successful entrepreneur of social enterprises". Young created more than sixty new organizations worldwide, including the [[School for Social Entrepreneurs]] (SSE) which exists in the UK, Australia, and Canada and which supports individuals to realize their potential and to establish, scale, and sustain, social enterprises and [[social business]]es. Another notable British social entrepreneur is [[Andrew Mawson, Baron Mawson|Andrew Mawson]] [[OBE]], who was given a peerage in 2007 because of his [[urban regeneration]] work including the [[Bromley by Bow Centre]] in East London. Although the terms are relatively new, social entrepreneurs and social entrepreneurship may be found throughout history. A list of a few noteworthy people whose work exemplifies the modern definition of "social entrepreneurship" includes [[Florence Nightingale]], founder of the first [[nursing school]] and developer of modern nursing practices; [[Robert Owen]], founder of the [[cooperative]] movement; and [[Vinoba Bhave]], founder of India's [[Bhoodan movement|Land Gift Movement]]. During the nineteenth and twentieth centuries some of the most successful social entrepreneurs straddled the civic, governmental and business worlds. These pioneers promoted new ideas that were taken up by mainstream public services in welfare, schools and health care.
==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|author=Dees, J. G. |author2=Nash, M. |author3=Anderson, B. |author4=Kalafatas, J. |author5=Tolman, R. |author6=Kuran, W. |author7=Bloom, P.|date=2008|title=Developing the field of social entrepreneurship|journal=Report from the Center for the Advancement of Social Entrepreneurship |publisher=Duke University}}</ref>
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==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==
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* [[List of social entrepreneurs]]
* [[Microfranchising]]
* [[Outline of management]]
* [[Social innovation]]
* [[Social venture capital]]
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[[Category:Entrepreneurship]]
[[Category:Activism]]
[[Category:Administrative theory]]
[[Category:Management]]
[[Category:Sustainability]]
[[Category:Sustainable development]]
[[Category:Social economy]]
[[Category:Social enterprises]]
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