CHAPTER 1 INTRODUCTION TO SOCIAL ENTREPRENEURSHIP

Social Entrepreneurship
● holds the key for future development of the world. In the days to come, social
entrepreneurs will play a crucial role in the advancement of social changes. The best
thing about social entrepreneurship is that success is not mentioned by financial gains,
but by the number of people these enterprises are able to reach and create a positive
impact. In the coming days, social entrepreneurship and Social businesses will be in the
mainstream substantially, which will hopefully impact the society positively.

Saving the world is not easy, but someone has to do it.

Social entrepreneurship
● is the activity of establishing new business ventures to achieve social change. The
business utilizes creativity and innovation to bring social, financial, service, educational
or other community benefits.

Elements of Social Entrepreneurship

• Social mission over financial mission
• Innovative solution to social problems
• Self-sustaining business model
• Impact which could be measured
History
 Social Change: What's the Role of Civil Society?
Some of the most critical roles involve:
• Social accountability
• Empowering communities
• Ensuring good governance.

Factors behind the Emergence of Social Enterprise Sectors Worldwide

Social Entrepreneurs and social enterprises have been in existence for many centuries,
but only came into prominence in recent decades when the particular label of “social
entrepreneur” has been intentionally used to identify them, an effort in large part
pioneered and actively championed through Ashoka, a non-profit institution that
identifies and supports leading entrepreneurs globally in an effort to support social
Change.

a. Political Environment
● The extent of the government’s role
b. Legal environment
● The ease of experimentation
c. Social Environment
● The Presence of widespread focus on socio-economic problems
d. Cultural Environment
● The presence of an active Civil Society and of linkages with countries bearing
developed Social Enterprise sectors
e. Institutional Environment
● The presence of a supporting eco-system of enabling organizations

Political Environment
● The first factor necessary is a supportive political environment. The issues which social
enterprises and social entrepreneurs seek to address are often basic social problems, which
are also frequently the very issues which the government sector seeks to address.

Legal Environment
● Following the fundamental factor of the political environment, the next level in influencing
factors is that of the legal environment. Social Entrepreneurship, just as
Traditional entrepreneurship is not a moment of eureka-like discovery, but rather, a long
drawn iterative process in refining an idea and bringing it to fruition. As such, it requires
an environment that will allow for such an iterative process of continuous trial and
experimentation which is necessary for incremental fine-tuning and for it to eventually
succeed. Therefore, the legal environment should not be overly oppressive with excessive
regulation, oversight, or obstructive policies that hinder such a process of
experimentation due to difficulties in operations for the organization.

Social Environment
 ● The political and legal environment creates the necessary opportunity for social
enterprise to take a stab at addressing social problems, but on the other side of the coin,
a conducive social and cultural environment is necessary to facilitate the emergence of
social entrepreneurs who will be able to capitalize on such opportunities provided. Social
enterprises are fundamentally driven by the strength of individual social entrepreneurs,
and a conducive social and cultural environment helps to nurture and enable such social
entrepreneurs to emerge.

Cultural Environment
● A favorable cultural environment is necessary as a complement to a favorable social
environment in facilitating the emergence of social enterprise. The cultural environment
differs from the social environment in that the culture within the population comprises of
habits or customs that are ingrained and have been part of their everyday lives for a
prolonged period such that they are second nature to the population, whereas social
environments can be altered within a shorter time frame, an example being severe
economic recessions drawing attention to socio-economic issues which are amplified.

Institutional Environment
● The political and legal environments provide the opportunities and space for social
enterprises to emerge; the social and cultural environments provide the necessary
conditions for enabling social entrepreneurs to emerge; but to foster the growth from the
stage of emergence to a highly developed state, the institutional environment plays a
crucial role in supporting the scaling and development of these social enterprises.

Social Innovation
● the process of developing and deploying effective solutions to challenging and often
systemic social and environmental issues in support of social progress.
● Solutions often require the active collaboration of constituents across government,
business, and the nonprofit world. In the process of creating solutions, it is also
profoundly changing beliefs, basic practices, resources, and social power structures.
● Social innovation provides a unique opportunity to step back from a narrow way
of thinking about social enterprises, business engagement, and philanthropy and to
recognize instead the interconnectedness of various factors and stakeholders.

Types of Social Innovation

● Product-Based Social Innovation

● creates social change by offering new programs or adapting existing services to
address unmet needs. There are ways that you can engage in product based social
innovation by creating more inclusive services, adapting existing services and changing
focus of your efforts.
● Process-Based Social Innovation
● creates social change by adapting an organization structure or internal processes
to create better outcomes for service users.
 ● Socially Transformative Social Innovation
● creates social change by addressing systemic issues like oppression, social
inequality or negative perceptions and stereotypes.

Social Entrepreneurship
● is when you start a business for a philanthropic cause. Also called “altruistic
entrepreneurship”, it’s broad and can include both non-profit and profit companies.
Social Entrepreneurs
● are innovators who start companies and organizations that are committed to giving back.

Do social entrepreneurs make money?

● The short answer is that it depends. In many cases, social entrepreneurs do make
money. They’re living proof that you can be successful as a business owner and do good
at the same time. However, in some cases, the entrepreneurs elect not to take a
profit for themselves.

Types of social entrepreneurship

Non-profit
● A tax-exempt, non-business entity that invests excess funds back into the mission.
Co-operative
● A business organized by and for its members. Credit unions and community
grocery stores are some examples of co-ops. REI is also an example of a coop.

Social Purpose Business

● These businesses start on the foundation of addressing a social mission.

Social Firm
● Social firms employ those in the community who need jobs. FareStart is a great
example; it employs at-risk youth and serves healthful meals.
Socially Responsible Business
● These companies support social missions as a part of their day-to-day business
operations.
For-Profit
● Perhaps the vaguest category, these businesses are profit-first but donate funds,
raise awareness, or otherwise support causes. Warby Parker’s Buy a Pair, Give a Pair
program is a prime example. TOMS
Who are Microfinance Clients?
● Microfinance clients typically include individuals and small businesses who lack
access to traditional banking services, particularly in low-income and underserved
communities. These clients often fall into the category of the "unbanked" or
"underbanked" population. They may include:
1. Small entrepreneurs: Individuals running small businesses needing capital for starting
or expanding.
2. Women: Often targeted for economic empowerment and community development.
3. Rural and agricultural communities: Farmers requiring funds for agricultural inputs or
other income-generating activities.
4. Urban informal sector workers: Those engaged in informal work like domestic workers,
needing financial support.
5. Micro-entrepreneurs: Small-scale business owners lacking access to formal banking
services.
6. Low-income families: Household heads seeking funds for basic needs, emergencies,
or education.

Types of Microfinance
1. Microcredit: This involves providing small loans, often without collateral, to entrepreneurs
and small business owners who lack access to traditional banking services. These loans are
typically used to start or expand small businesses.
2. Savings Accounts: Microfinance institutions offer savings accounts that allow clients to save
small amounts of money regularly. These accounts help clients build financial resilience and
save for future needs.
3. Microinsurance: Microfinance institutions offer insurance products designed to protect
clients against financial
risks associated with illness, crop failure, natural disasters, or other emergencies.
Microinsurance helps clients
manage risk and protect their livelihoods.
4. Remittances: Some microfinance institutions facilitate the transfer of remittances from
migrants to their families in their home countries. These services help families’ access funds
sent by relatives working abroad, contributing to their financial stability.
5. Payment Services: Microfinance institutions offer payment services, such as money
transfers and bill payments, to facilitate financial transactions for clients who may not have
access to traditional banking services.
6. Financial Education and Training: Many microfinance programs include financial education
and training components to help clients improve their financial literacy, money management
skills, and business knowledge.
These types of microfinance services are tailored to the specific needs of low-income
individuals and small businesses, aiming to promote financial inclusion, poverty
alleviation, and economic empowerment.

Three developments over the past decade have motivated banks to search for new
markets:
• deregulation of financial institutions, refers to the reduction or elimination of government
regulations and
restrictions on financial institutions, such as banks. Which allows banks more freedom to
innovate, compete,
and expand into new markets by reducing the barriers to entry and easing restrictions on their
operations.
• liberalization of financial markets, involves opening up financial markets to foreign
investment, reducing restrictions on capital flows, and increasing market efficiency.
Liberalization enables banks to access new sources of capital, expand their services
internationally, and operate in previously restricted markets. and,
• globalization of financial services, refers to the integration of financial markets and services
on a global scale, facilitated by advancements in technology, communication, and trade.
Globalization enables banks to operate across borders, offer services to international clients,
and access a broader customer base.

FUTURE OF MICRO-FINANCE
• Mobile banking, digital payments, and blockchain are transforming microfinance.
Through mobile banking platforms, individuals in remote or underserved areas can now access
financial services such as loans, savings accounts, and insurance with ease. Digital payment
systems enable faster transactions and lower costs compared to traditional methods, enabling
microfinance institutions to serve more clients at a fraction of the cost. Additionally, blockchain
technology is enhancing security and reducing fraud by creating tamper-proof records of
transactions. By leveraging these innovations, microfinance institutions are able to reach a
larger number of individuals in need of financial services while minimizing operational risks and
costs.
• Focus on sustainable growth and broader reach. By focusing on sustainable growth and
expanding their reach, these institutions can make a significant impact on poverty alleviation
and economic development. Sustainable growth involves balancing financial sustainability with
social impact, ensuring that microfinance institutions can continue to provide services in the long
term. Broadening their reach means reaching more marginalized communities, such as rural or
remote areas, where traditional financial services may not be available. By utilizing innovative
technology and partnerships, microfinance institutions can increase their outreach and empower
more individuals to access credit, savings, and insurance products.
• Partnerships between microfinance institutions, governments, and NGOs. Governments
contribute by creating an enabling policy environment for microfinance operations, ensuring
regulatory oversight, and implementing social protection programs that complement
microfinance initiatives. NGOs bring expertise in capacity-building, social mobilization, and
community development, enhancing the impact of microfinance interventions on vulnerable
populations. By working together collaboratively, these stakeholders can leverage their
respective strengths to design holistic solutions that address the multifaceted needs of
underserved populations and advance inclusive economic growth.

TRENDS IN SOCIAL ENTREPRENEURSHIP

1. The shift from shareholder to stakeholder capitalism

● In August 2019, 181 CEOs committed to leading their companies to benefit all
stakeholders (employees, suppliers, customers, and communities), not just
shareholders.
2. Impact investing goes mainstream
● Impact investing is a type of venture capitalism that invests in companies, organizations,
and funds intending to create a measurable social or environmental benefit in addition to
a financial return.
● As impact investing and ESG (environment, social, and governance) investing continue
to gain momentum, nearly all major asset-management firms have launched impact
strategies. Impact investing’s popularity is due to two factors: financial investors seeking
purpose and meaning in their own lives. Recent studies show that impact investments
have tremendous returns that encourage other investors to fund social impact startups.
3. Changing consumer preferences contribute to the growth of benefit and social
purpose corporations.
● Benefit corporations and social purpose corporations are newer forms of businesses that
choose to dedicate their company’s existence to a purpose rather than just profits.
● Benefit corporations are a legal entity that has a greater level of transparency,
accountability, and social purpose compared to standard C Corporation or S Corporation
companies.Social purpose corporations are legal entities that are considered less
stringent benefit corporations or a hybrid between nonprofits and benefit corporations.
● With increasing demand for corporate social responsibility, there is significant growth in
benefit corporations, certified B Corps, and social purpose corporations. Mission-driven
startups find these business entities are highly successful at attracting customers,
employees, and investors with their contractual obligations to be transparent and ethical.
4. Social entrepreneurs fighting COVID-19
● Social entrepreneurs are aggressively stepping up to the pandemic challenge, not only
to address urgent needs but to transform entire systems. Given the complexity of these
integrated crises, social entrepreneurs are key to finding and implementing
comprehensive solutions.
● First, social entrepreneurs are well-positioned to address gaps in the market and reach
constituents that are not addressed by governments. Second, social entrepreneurs can
address the secondary and tertiary challenges of the pandemic. While governments
concentrate on the highest-level health and economic shocks, social entrepreneurs can
innovate solutions to all of the cascading impacts, from employment to education.
Finally, social entrepreneurs can help us rebuild better in the wake of Covid-19. Most of
our leaders have been focused on putting out fires rather than solving long-term issues.
But social entrepreneurs have the stamina to change broken systems. With support,
social entrepreneurs can not only help us survive this current crisis but create a better
world long term.
5. Purpose-Driven Celebrity Branding
● Golden State Warriors’ star Stephen Curry has a long history of social activism that
includes organizing events in support of the Black Lives Matter movement, speaking out
for women’s equality and inclusion, as well as his ongoing efforts to raise funds and his
work to eliminate infectious diseases

EMERGING TRENDS IN SOCIAL ENTREPRENEURSHIP

1. Regional trends
 ● One of the trends that is shaping social entrepreneurship is the increasing recognition
and support of regional ecosystems and networks. Social entrepreneurs are not working
in isolation, but rather in collaboration with other actors, such as governments,
corporations, nonprofits, universities, and communities. These actors provide resources,
mentorship, partnerships, and policy frameworks that enable social entrepreneurs to
scale their impact and reach more beneficiaries. For example, in Africa, the African
Social Entrepreneurs Network (ASEN) connects and supports social entrepreneurs
across the continent, while in Latin America, the Sistema B movement promotes the
certification and regulation of businesses that have a positive social and environmental
impact.
2. Industry trends
● Another trend that is influencing social entrepreneurship is the emergence and growth of
new industries and sectors that offer opportunities for social innovation and value
creation. These include areas such as renewable energy, circular economy, digital
health, education technology, and social finance. Social entrepreneurs are leveraging
new technologies, business models, and markets to address some of the gaps and
inefficiencies in these sectors, and to provide affordable and accessible solutions for
underserved populations. For example, in India, SELCO provides decentralized solar
energy solutions for low-income households and enterprises, while in Kenya, M-KOPA
enables pay-as-you-go financing for solar home systems.
3. Impact measurement
● A third trend that is affecting social entrepreneurship is the increasing demand and
expectation for measuring and communicating the social and environmental impact of
their activities. Social entrepreneurs are not only accountable to their customers and
investors, but also to their beneficiaries, partners, and society at large. They need to
demonstrate how they are creating value for all these stakeholders, and how they are
contributing to the achievement of the Sustainable Development Goals (SDGs). To do
so, they are adopting various tools and frameworks, such as the Social Return on
Investment (SROI), the Impact Management Project (IMP), and the B Impact
Assessment (BIA).
4. Inclusive innovation
● A fourth trend that is driving social entrepreneurship is the shift from top-down to
bottom-up approaches to innovation. Social entrepreneurs are not only designing
solutions for social and environmental problems, but also with and by the people who
are affected by them. They are engaging and empowering their beneficiaries as
co-creators, co-owners, and co-beneficiaries of their solutions, ensuring that they are
relevant, appropriate, and sustainable. They are also fostering a culture of diversity,
equity, and inclusion within their organizations and ecosystems, recognizing the value of
different perspectives and experiences. For example, in South Africa, Harambee Youth
Employment Accelerator connects unemployed youth with employers through a
data-driven and demand-led platform, while in Brazil, Rede Asta empowers women
artisans through a network of social businesses that sell their products online and offline.
5. Systems change
 ● A fifth trend that is shaping social entrepreneurship is the ambition and aspiration to
achieve systems change. Social entrepreneurs are not only addressing the symptoms of
social and environmental problems, but also the root causes and the structural barriers
that perpetuate them. They are challenging the status quo and transforming the norms,
behaviors, policies, and institutions that govern society. They are also collaborating and
aligning with other actors who share their vision and mission, creating collective impact
and movements for change. For example, in the UK, Teach First recruits and trains
graduates to teach in low-income schools, while in the US, Kiva provides microloans to
entrepreneurs in developing countries through an online platform.
6. Future outlook
● A sixth trend that is influencing social entrepreneurship is the anticipation and
preparation for the future challenges and opportunities that lie ahead. Social
entrepreneurs are not only responding to the current needs and demands of society, but
also anticipating and influencing the future trends and scenarios that will shape it. They
are experimenting and innovating with new technologies, such as artificial intelligence,
blockchain, and biotechnology, to create solutions that are scalable, adaptable, and
resilient. They are also building and nurturing communities of practice and learning, to
share knowledge, insights, and best practices, and to inspire and support the next
generation of social entrepreneurs. For example, in Singapore, Impact Hub Singapore
provides a coworking space and a network for social entrepreneurs, while in France,
Ashoka supports and connects social entrepreneurs who are leading systemic change.

TRENDS TO FOLLOW IN SOCIAL ENTREPRENEURSHIP

1. Sustainable food system and short supply chains
● Social integration gardens, urban farming, organic food boxes, cooperative
supermarkets, bulk food stores, unique concepts like these drive change in farming and
food supply and are often spearheaded by social enterprises. Cocagne’s Gardens a
perfect example of a French social enterprise that promotes consuming local and
organic goods
2. Third places and revaluation of vacant spaces
● More often than not, vacant spaces are located in underprivileged urban areas and
brownfields, making them both a societal, economical and environmental challenge and
a great opportunity for entrepreneurs. For instance, the organisation Les Grands Voisins
has succeeded in converting an old Parisian hospital into an innovative and inclusive
solidarity space that houses budding businesses, people in rehabilitation
3. Circular economy
● Sustainable designs, consuming differently, giving things a second life… the circular
economy calls for us to rethink our production and consumption modes to reduce the
waste of natural resources. Take Kippit, who designs and markets sustainable,
repairable, and scalable appliances with ecodesign and an inclusive employment policy
as their core values. Among their products, you can find a multifunctional electric kettle
and a washing machine designed for easy repair, while their sought impacts include
increasing the lifespan of home appliances, reducing electronic and electrical equipment
waste, and taking part in spreading a repair culture
4. Social inclusion and integration
● Promoting employment among those who suffer from social and/or professional
difficulties, and providing lower-cost offerings for low income households are two
examples social enterprises use to contribute to social inclusion and cohesion. Here are
two concepts well worth your attention in the restaurant sector: Le Reflet is an “amazing”
gourmet restaurant employing people with Down syndrome, while Beyond Food plays
the card of inclusion for the homeless.
5. Ethical and responsible fashion
● Did you know that fashion is the second most polluting industry on the planet?
Upcycling, reusing, second-hand, renting and a return to local manufacturing are among
the alternatives to buying new and are some of the key elements for combatting the
effects of fast fashion. The brands Les Récupérables and Matandnat are two examples
that promote committed, circular and ecoresponsible fashion, whereas CareerGear aims
to fight look-based discrimination, with the belief that clothes don’t make the man, but
they help. The Social Outfit is a great example of a social enterprise that provides
training and employment in clothing production to people from refugee and migrant
communities.
6. Waste reduction and recycling
● Protecting the environment has become an absolute priority and is also a concern of
traditional businesses in regard to their CSR framework. Here are a couple green
initiatives: Moulinot and Phenix work to reduce waste. Companies in the social and
solidarity economy who are active on the waste reduction front often pursue objectives
such as insertion, socio-professional training and combatting exclusion, thus combining
social and environmental missions. This is the case of Green Connect, a permaculture
farm that employs young people and former refugees to grow fair food and reduce waste
to landfill

SOCIAL INNOVATION TRENDS 2020-2030

• Urbanization
● enhance the development of innovative labs and spaces for experimentation; This
involves creating innovative spaces within cities to address the challenges associated
with rapid urban growth. For example, implementing vertical farming systems in urban
areas to promote sustainable food production and reduce pressure on traditional
agricultural land.
• Migration
● encouraging the design of efficient cultural and social integration; Encouraging
cultural and social integration among migrants and host communities through
initiatives like language exchange programs, community events, and job placement
services tailored to the needs of migrants.
• Education
● facilitating social innovation participatory learning among experts in education,
practitioners, researchers and policy-makers; Promoting participatory learning in
 education through collaborative platforms and experiential learning opportunities. For
instance, creating online platforms where educators, researchers, and policymakers can
share best practices and collaborate on innovative teaching methods.
• Climate change
● combating negative effects of fossil fuels and plastic pollution; Combating the
negative effects of climate change by implementing renewable energy solutions,
reducing carbon emissions, and promoting sustainable practices. For example, investing
in solar energy infrastructure to reduce reliance on fossil fuels and mitigate climate
change impacts.
• Technological development
● exploring the ways to strengthen open and collaborative societies; Exploring ways
to use technology to foster collaboration and openness in society. This could
involve initiatives like open-source software development, online platforms for knowledge
sharing, and digital tools for citizen engagement in decision-making processes.
• Circular economy
● looking for new ways to minimize the pressure on ecosystems; Promoting a circular
economy by finding new ways to minimize waste and maximize resource efficiency. For
instance, implementing recycling programs, encouraging product redesign to reduce
waste generation, and promoting the use of reusable materials.
• Future of work,
● exploring new needs and abilities of societies to adapt to them; Addressing the
changing needs and skills required for future employment through initiatives like
vocational training programs, job retraining schemes, and flexible work arrangements
that accommodate diverse workforce needs.
• Social Impact
● fostering social value and facilitating new ways of impact measurement; Fostering
social value and facilitating new ways of measuring impact through initiatives like social
impact bonds, impact investing, and outcome-based funding models that prioritize
measurable outcomes over outputs.
• Democracy
● improving institutional trust, civic participation and inclusion; Improving
institutional trust, civic participation, and inclusion through initiatives like electoral
reforms, citizen assemblies, and participatory budgeting processes that give citizens a
greater voice in decision-making.
• Gender
● working on awareness-raising, coalition building and advocacy for poverty reduction
and human development; Promoting gender equality and empowerment through
awareness-raising campaigns, advocacy for policy reforms, and support for women's
entrepreneurship and leadership development programs.
• Health
● looking for efficient ways to tackle global pandemics and other challenges.
Tackling global health challenges, including pandemics, through initiatives like vaccine
development, public health education campaigns, and investments in healthcare
infrastructure and access to essential services
 State of Social Enterprises in the Philippines
• There may be as many as 164, 473 social enterprises in the country constituting 17% of the
registered companies
• 71% of these social enterprises operate as MSMEs, 23% as NGOs and 6% as cooperatives.
• The state of social enterprises in the Philippines is vibrant and rapidly evolving, with numerous
organizations emerging to address various social and environmental challenges. These
enterprises play a crucial role in achieving national and sustainable development goals by
combining business strategies with social impact objectives.

Critical Gaps for Social Enterprises

• Access to capital
• Innovative financial mechanisms to unlock additional capital
• Ecosystem knowledge of social enterprises
• Data on social enterprise impact

Challenges Faced by Social Enterprises in the Philippines

1. Obtaining capital and managing their finances, to finding markets for their products
and services.
● While attempting to achieve the above-mentioned objectives, social enterprises in the
Philippines, especially start-ups, face a multitude of challenges. These range from
obtaining capital and managing their finances, to finding markets for their products and
services. Just like traditional business enterprises, they also deal with problems related
to taxation and business rates, regulations/red tape/corruption in the government, lack of
access to business advice and support services, and extreme weather conditions (British
Council 2017).
2. Quality of their workforce, who are lacking in certain skills such as accounting, legal,
tax, business development and management, marketing, logistics, and distribution.
● Another major challenge that hampers the growth of social enterprises in the Philippines
is the quality of their workforce, who are lacking in certain skills such as accounting,
legal, tax, business development and management, marketing, logistics, and distribution
(Darko and Quijano 2015). Given that social enterprises typically have limited financial
resources, they find it difficult to match the compensation packages offered by large
corporations, especially for managerial talent.
3. Challenge of measuring social benefits, which are often intangible, hard to quantify,
and open to dispute.
● Social enterprises, however, carry the self-imposed burden of addressing the needs of
those belonging to the bottom-of-the-pyramid, at the risk of putting a strain on their
already limited resources (Habaradas and Aure 2016). Compounding this situation is the
challenge measuring social benefits, which are often intangible, hard to quantify, and
open to dispute. Social enterprise owners and managers “soon realize how hard it is to
make strategic decisions on allocating resources or to assess how much to invest in
 pursuing a particular means of creating social value” (Habaradas and Aure 2014, p. 2).
When a conflict between the economic and social goals arises, therefore, some social
entrepreneurs favor the economic bottom line just so they will not be driven out of
business.
4. Managing cultural differences.
● It is also not easy to attract talents who can function well in a setting that combines the
worlds of business and of the social sector because there is a limited pool of individuals
with nonprofit backgrounds who also happen to have a master’s degree in business
administration or some business experience. For social enterprises that succeed in
assembling a mixed team of business managers and nonprofit workers, the next
challenge is managing cultural differences. While business-oriented employees “are
generally more used to taking risks, working in fastpaced environments, and setting
clear, measurable goals and objectives,” employees coming from the

Current State of Public Sector Support

• Social enterprises do not receive targeted support from the public sector beyond what is
available to regular businesses or MSMEs.
• Various government agencies have implemented MSME programs and policies that indirectly
affect social enterprises
• In 2016, there was an attempt to pass the Senate Bill No.176 or the Poverty Reduction
through Social Entrepreneurship. The said bill did not receive the appropriate approvals due to
lack of alignment on the definition and the lack of clarity on how the proposed benefits should
differ from those for MSMEs.
• In the Philippines, social enterprises are actively involved in addressing pressing issues
such as poverty alleviation, access to education and healthcare, environmental
conservation, and inclusive economic growth. They create employment opportunities,
especially for marginalized communities, and promote economic empowerment by providing
skills training and livelihood support. Addressing these critical gaps requires collaboration
between government, civil society, financial institutions, and other stakeholders. By
strengthening support mechanisms, improving policies, and enhancing access to resources,
social enterprises can play a more effective role in achieving national and sustainable
development objectives

SOCIAL PROBLEM
● A social problem is an issue within the society that makes it difficult for people to
achieve their full potential. Poverty, unemployment, unequal opportunity, racism, and
malnutrition are examples of social problems. So are substandard housing, employment
discrimination, and child abuse and neglect.
● A social problem is any condition or behavior that has negative consequences for
large numbers of people and that is generally recognized as a condition or behavior
that needs to be addressed.
Objectives and subjective component of definition
● The objective component is this: For any condition or behavior to be considered a
social problem, it must have negative consequences for large numbers of people.
 ● The subjective component of the definition of social problems: There must be a
perception that a condition or behavior needs to be addressed for it to be
considered a social problem.

Social Issues and Problems

Gender Discrimination-
● These days, gender discrimination remains an unresolved social issue. It involves
unfair treatment based on an individual's gender. This issue is often encountered in the
workplace, affecting salaries and limiting opportunities for those experiencing it.
Nowadays, gender discrimination isn't just about the discrimination women face as it was
before; the LGBTQIA+ community is also significantly affected. Women and LGBTQIA+
individuals are often victims of physical, sexual, and emotional abuse due to gender
discrimination. This happens because some people perceive women or members of the
LGBTQIA+ community as weak and undeserving of rights. To combat this issue, it's
crucial to continually raise public awareness, implement fair policies and regulations, and
collaborate across all sectors of society to achieve equal treatment and opportunities for
everyone.
Delinquency
● is defined as criminal behavior, especially among youth or minors, resulting in
violations of the law. It is imperative for society to address this issue because it has
negative effects on individuals, families, and communities. There are several reasons
why delinquency is a social issue. Firstly, it involves the violation of laws. Secondly, it
has an impact on the community; if many young people are involved in delinquency, it
can cause fear and a sense of insecurity within the community. Lastly, there are social
implications; youths involved in delinquency may find it difficult to obtain proper
education and employment opportunities in the future, potentially leading to poverty and
a lack of productivity in society.
Poverty
● is an unfortunate situation where people lack the basic necessities to meet their daily
needs, such as food, shelter, and safety. It also reflects inequality in the distribution of
wealth and access to basic needs. Poverty results from a severe lack of financial
resources. There are some key aspects to consider when understanding poverty as a
social issue like, lack of resources: poverty often stems from a lack of income or sources
to meet needs. This can lead to inadequate housing, limited access to healthcare, and
the inability to afford education.
Unemployment
● is the situation where an individual capable of working does not have a regular job
or is unable to find employment that matches their skills and preferences. This
results in a lack of income and other social problems. It is a social problem because it
affects not only the individuals who are unable to find work but also their families and
communities.
Violence and criminal behavior
 ● are significant social problems that have detrimental effects on individuals, families,
communities, and society as a whole. There are different types of violence and criminal
behavior, including:

The institutional environment can shape the entrepreneur’s pursuit of social

influence.
1. The traditional view is that the threat of legal expropriation reduces the expected
entrepreneurial returns of new organizations and leads to the reduction of entrepreneurial
activities. Moreover, the imperfection of law promotes
the formation of social entrepreneurial opportunities.
2. The irrational economic system has led to an endless stream of environmental problems, but
it has awakened the environmental awareness of some members of society. Giving birth to the
idea of changing the status quo of society and actively seeking to achieve an environmentally
sustainable business model, becoming a special social entrepreneur—environmental
entrepreneurs.
3. Informal systems affect the overall values of society and have an indirect impact on
entrepreneurship through demand and motivation. Macroeconomic factors such as politics,
social culture and taxation can affect their social value proposition and value creation concept.
The social support culture (SSC), as an informal cultural norm based on friendship and support,
realizes this requirement under weak social capital.

Opportunity Identification of Social Entrepreneurship

1. Opportunity identification
• opportunity discovery perspective
● entrepreneurial opportunities exist objectively in the existing market and are independent
of entrepreneurs’ will, influenced by the external environment.
● opportunity creation perspective - opportunities are formed endogenously by
entrepreneurs through creative actions, reflecting their own perception of changes in the
external environment.
2. Opportunity co-creation -
● way for stakeholders to choose and construct each other. Some stakeholders are
committed to rescuing the poor in remote communities, while other interest groups may
be more eager to provide opportunities for female entrepreneurs

Social Change
According to sociologists, they define social change as a transformation of cultures, institutions,
and functions. Most change isn’t instantaneous or instant. In society, change is often very slow.
There are a lot of different parts of society and things that make change slow. These parts and
things often don't like when things are different from how they've always been. So, change
happens gradually, with different parts of society resisting it along the way.

There are main theories of social change:

• Evolutionary Theory:
● This theory says that societies always keep improving and becoming more advanced,
just like how animals evolve into more complex forms over time. If a society doesn't
change and adapt quickly enough, it will fall behind compared to others that do.
• Functionalist Theory:
● Imagine society as a human body. Each part of society, like families, schools, and
governments, plays a specific role, similar to how organs like the heart and lungs work
together in our bodies. If one party doesn't do its job properly, it affects how the whole
society functions.
• Conflict Theory:
● This theory sees society as a place where there's always a struggle for power and
resources. Some groups have more power and wealth than others, and they often try to
keep it that way. This leads to conflicts and tensions between different groups in society.

What triggers social change?

1. Conflict
● It is clear from a glance at our global history that conflict provokes social change.
Inequalities based on class, race, gender, religion, and more foster dissatisfaction and
anger. To address their situation, groups come together to fight for change.
2. Demographic Change
● When the demographic makeup of a society changes, social change is inevitable.
Society’s demographics often change when births increase and/or people start living
longer. A bigger population affects the dispersal and availability of resources.
3. Cultural Change
● New inventions, discoveries, and the spread of ideas contribute to cultural changes.
Consider the effect of the internet. It’s not only changed the culture of individual
countries but the entire world. It’s transformed how we communicate, as well as the
structure of countless industries. Discoveries also impact a society’s culture.

SOCIAL ENTERPRISE BUSINESS MODEL AND REVENUE MODEL

Social Enterprise
● is a business entity that prioritizes the achievement of social or environmental
objectives alongside financial goals. Unlike traditional for-profit businesses solely
focused on maximizing profits, social enterprises aim to generate revenue while
addressing pressing societal issues.
● By embedding their mission into their business model, social enterprises contribute to
positive social change while operating sustainably. They may employ marginalized
groups, source ethically, or reinvest profits into community development projects.
Through their dual focus on profitability and social impact, social enterprises serve as
catalysts for transformative change, demonstrating that business can be a force for good
and offering sustainable solutions to pressing global issues.