SOCIAL

ENTREPRENEURS
HIP
PREPARED BY: HELEN A. BAESA
ENTREPRENEURSHIP
 The capacity and willingness to develop,
organize and manage a business venture
along with any of its risks in order to make a
profit.
 The most obvious example of
entrepreneurship is the starting of new
businesses. [Source:BusinessDictionary] •
Green Entrepreneurship
 It is the activity of consciously addressing
an environmental and/or social
problem/need through the realization of
entrepreneurial ideas with a high level of
risk, which has a net positive effect on the
natural environment and at the same time is
financially sustainable.
Green Entrepreneur
It is someone who starts and runs an
entrepreneurial venture that is
designed to be green in its products
and processes from the very moment
it is set up.
How is green
entrepreneurship different
form common business
entrepreneurship?
DIFFERENCES
 The green entrepreneurs have environmental and social goals into
their core business, these goals are the reason their business exists,
not just a side effect
• Education of the consumer towards the specifics of the green
products/services
• Environmental values are part of the company values
• Green entrepreneurship can be (sometimes) associated
with higher costs
• Financial profit is a goal insofar as it helps sustain the business
so that it can go on fulfilling its environmental goals and bringing
benefits to the environment Rese
Resemblances:

• Both have business goals,

business plans, etc.
• Both are looking for profit
Social entrepreneurship is the use of the techniques by
start-up companies and other entrepreneurs to
develop, fund and implement solutions to social,
cultural, or environmental issues. It is the process of
starting and growing a for-profit businesstoimpact
social issues positively.
If you compare this definition
to the definition of green
entrepreneurship, what do you
notice? •
ANSWER
both are talking about solving
environmental AND social problems
both are very new domains and
definitions are still being debated.
Social entrepreneurship is all about
recognizing the social problems and
achieving a social change by employing
entrepreneurial principles, processes and
operations.
It is all about making a research to completely define a
particular social problem and then organizing, creating
and managing asocial venture to attain the desired
change.
The change may or may not include a thorough
elimination of a social problem.
It may be a lifetime process focusing on the
improvement of the existing circumstances.
The difference between social and common business
entrepreneurship
•While a general and common business entrepreneurship means taking a
lead to open up a new business or diversifying the existing business,
social entrepreneurship mainly focuses on creating social capital without
measuring the performance in profit or return in monetary terms.
The entrepreneurs in this field are associated with non-profit •sectors
and organizations.
But this does not eliminate the need of making profit. After all
entrepreneurs need capital to carry on with the process and bring a
positive change in the society.
It is someone who starts a business as a way to create a
positive impact on a social issue. •The person who
coined the term “social
entrepreneur, "Bill Drayton, said, “The life purpose of the true
social entrepreneur is to change the world.”
However, social entrepreneurs often measure their success
based on a triple-bottom-line: social, environmental, and
economical.
* Social: The business’s ability to create positive
change, and its impact on social issues.
* Environmental: The business’s
environmental impact and carbon
footprint.
* Economic: Social enterprises need to turn a profit
to continue to operate and grow.
The Process of Social Entrepreneurship
1.Find an opportunity
2.Develop a business concept
3.Figure out what success means and how to measure
it
4. Acquire the right resources 5.
Launch and grow
6. Attain goals
What challenge do
you badly want to
solve?
Business concept (business model) A
business model is an outline of how a company
plans to make money with its product and customer base in a
specific market.
At its core, a business model explains four things: •What
product or service a company will sell •How it intends to
market that product or service •What kind of expenses it
will face
•How it expects to turn a profit
Subscription model 2.
Bundling model 3.
Freemium model
4. Product to service model 5.
Leasing model
6. Crowdsourcing model 7.
Retailer model
8. One-for-one model 9.
Franchise model
10. Distribution model
POINTS TO PONDER
•The profit of social enterprises is its level of social impact. •Good business
now is all about being in the business of doing good.
•What do you see happening in your community in the future?
•What is your big idea? What do you specifically offer? •How will
your business earn? •What makes you unique?
•What is your target market?
Why does social entrepreneurship
matter?
 Employment development:
 The first major economic value that social
entrepreneurship creates is the job and
employment.
 Estimates ranges from one to seven
percent of people employed in
 The social entrepreneurship sector. •
Innovation/New Goods and Services:
Social entrepreneurs develop and apply innovation important to
social and economic development and develop new goods and
services. Issues addressed include some of the biggest societal
problems such as HIV ,mental ill-health, illiteracy, crime and
drug abuse which, importantly are confronted in innovative ways.
•Equity Promotion:
Social entrepreneurship fosters a more equitable society by
addressing social issues and trying to achieve ongoing sustainable
impact through their social mission rather than purely profit-
maximization.
How to measure the success?
•For-profit entrepreneurs typically measure performance using
business metrics like profit, revenues and increases in stock prices.
Social entrepreneurs, however, are either 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 in areas such as poverty
alleviation, health care and community development. •What is profit?
•How do we count it? •What is “social return on investment” for
venture philanthropists? •Can we compare investments?
Main Challenges at Present: •
Money
• Competition
• Demonstrating effectiveness •
Technology
• Trust
• Human resources
• Public-sector relations
Main Opportunities at Present: •
Demographic shifts
• New philanthropy
• Heightened awareness of sector •
Increased social welfare spending
through sector (entitlement expansion, welfare
reform)
Main Trends at Present: •
Explosive growth
• Attention to marketing and management
movements
• Commercial ventures
• Development of umbrella organizations and formal education
• Effectiveness in competing economically and politically
Main Risks at Present:
• Identity loss, “mission creep” •
Industry concentration
• Pressure on managers for results • Loss
of public trust Three main challenges of
social entrepreneurs
Three main challenges of social entrepreneurs
• 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. 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.
Founding successful social businesses on merely potential solutions
can be nearly impossible as investors are much less willing to support
risky ventures.
The lack of eager investors leads to these cons 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. "Social entrepreneurs and their
employees are often given diminutive or non-existent
salaries, especially at the on set 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
skeptic is man stinginess from the very society they seek to serve.
• Another reason social entrepreneurs are often unsuccessful is because
they typically offer help to those least able to pay for it.
Capitalism is founded upon the exchange of capital(most obviously,
money) for goods and services.
However, social entrepreneurs must find new business models that do not
rely on standard exchange of capital in order to make their organizations
sustainable.
This self-sustainability is what distinguishes social businesses from
charities, who rely almost entirely on donations and outside funding.
Another reason social entrepreneurs are often unsuccessful is
because they typically offer help to those least able to pay for it.
Capitalist mis founded upon the exchange of capital(most
obviously, money)for goods and services. However, social
entrepreneurs must find new business models that do not rely on
standard exchange of capital in order to make their organizations
sustainable. This self-sustainability is what distinguishes social
businesses from charities, who rely almost entirely on donations
and outside funding.
Discussion point: •What
are the main differences
between social
entrepreneurship and
corporate social
responsibility.
Social Entrepreneurship Examples •Some contemporary well-known and
lesser-known social entrepreneurs include: •TOMS: When the company
was founded, it applied its “one for one” concept to shoes.
For every pair of TOMS shoes purchased, the company donated a pair to a
needy child. The company has since expanded the one for one concept to
eye wear, coffee, and tote bags.
•Grameen Bank : Founder Muhammad Yunus provides micro -loans to
those in need to help them develop financial self-sufficiency.
Yunus received a Nobel Prize for his work in 2006. •Badala.org: Founded
by Joelle Mc Namara while she was still in high school, Badala.org isane-
commerce site that creates jobs for African women by selling the products
they make. Products range from jewelry to wooden kitchen utensils.
Discussion points:
1. Is there a local green entrepreneur that you know of and
like? If yes, what do you like about him/her?
2. What about a national or international one?
3. How do you apply the “think green” principles in your
daily life?
Conclusion The field of social entrepreneurship is rapidly
growing and attracting the attention of numerous
volunteers. It has now become a common term in
university campuses. The reason behind the increasing
popularity of this product is that individuals get to do what
they have been thinking for long.
The extraordinary people put their brilliant ideas and
bring a change in society against all odds.