05 - Chapter 1
05 - Chapter 1
INTRODUCTION
Chapter-1
INTRODUCTION
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expecting a profit basis, while social entrepreneurs will choose their markets on a
societal needs basis. This study is focused on the contribution of social
entrepreneurs to society through social value creation.
Social Entrepreneurship (SE) has become a research area of great importance for
companies and researchers (Kannampuzha & Hockerts 2019; ReyMarti et al., 2016).
Various issues, such as poverty and human well-being, have motivated different
companies to do business with an integrated social drive (Huda et al., 2019; Doherty
et al., 2014). The SE acts as a catalyst for social change, and social entrepreneurs do
not expect any direct monetary benefit from their social ventures (BarberáTomás et
al., 2019). Bygrave and Minniti (2000) found that all entrepreneurship has a social
function, but social entrepreneurship differs from traditional entrepreneurship in its
prime mission of creating social value rather than generating private economic
benefits (Bedi and Yadav 2019; Pless 2012; Santos 2012; Mair et al. 2012)
The terms social entrepreneurship and social entrepreneur were used first
by H. Bowen in 1953 in his book 'Social Responsibilities of the Businessman'. The
terms were used widely in the 1980s and 1990s, promoted by Bill Drayton of
Ashoka and others.
Author Mary (2016) says that social entrepreneurs are individuals or a group of
individuals who create innovative approaches to improve people's living standards
with their main goals to: eradicate poverty; Improve and promote education; Protect
and promote human health; Environmental Protection; Support for agricultural and
rural development; Waste management; Eliminate caste-based inequality and gender
inequality; Promote a safe environment for children and women to protect them
from human trafficking; Protection of the well-being of people with disabilities;
Guarantee a dignified life to the senior citizens, etc.
As per Bellad (2020), the Indian government also encourages such initiatives by
motivating them through grants similar to some private institutions that do the same.
Social entrepreneurship helps in impacting the unprivileged section of society
through various modes that include micro-financing, educational institutions,
medical institutions, etc. The basic purpose of social entrepreneurship is to make
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positive changes in society instead of making money for themselves. But they are
involved in finance raising activities and donors and investors to sustain their social
entrepreneurial activities.
The concept of social entrepreneurship emerged in the 1980s and, since then, has
been gaining more momentum. India is a young country that offers great
opportunities for social entrepreneurs. As per Devi (2016), an entrepreneur is
creative, a critical thinker and highly motivated, and when these attributes are used
to solve social problems, a social entrepreneur is born.
Social entrepreneurship can include many types of careers and professional paths,
from social work and community development to entrepreneurship and
environmental science. Therefore, it is difficult to define who is a social
entrepreneur. Due to the creative, non-traditional strategies used by many social
entrepreneurs, the term "social innovator" is used as a synonym for social
entrepreneurs (Entrepreneurship Campus, 2020). Some researchers have advocated
restricting this term to founders of organizations that depend primarily on earned
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income (i.e. income earned directly from paying consumers) rather than income
from donations and grants (Entrepreneurship Campus).
The social goals of a business are as significant as its commercial activities. Social
enterprises are companies that serve social undertakings, and like any enterprise, the
focus of a social enterprise is to create income by bringing goods and services to the
market, but they add value by the ways they use profits to maximize social,
community, or environmental benefits (SENScot, n.d.). They mainly focus on social
problems. According to (Pal et al., 2020), social entrepreneurs initiate innovation by
mobilizing the resources available to build social arrangements in response to social
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problems. The authors mention that some believe that social entrepreneurship works
as a strong catalyst in society and as a change agent in the social sector. Also, they
have a mission to create and sustain social value, recognizing and rigidly pursuing
new opportunities, engaging in a practice of continuous innovation, adaptation and
learning. Without being limited by resources in hand, they act boldly and exhibit
heightened accountability to the constituencies (Dees, 1998).
All communities and all individuals have strengths and capacities, but often these go
unrecognized. Sometimes people lose the ability to see their own strengths and
capacities when they are in difficult circumstances or have experienced a series of
setbacks. According to authors Terziev and Arabska (2017), a social entrepreneur
is someone who can see the strengths and resources within a community and the
opportunities to mobilize them, and in return, the social entrepreneur's ability to
create something new is greatly enhanced by the community. For example, a
community that attempts to make itself a learning community would be a fruitful
environment for a social entrepreneur. As per (Talbot et al., 2002), a social
enterprise is based upon the enterprising skills of individual people and enterprising
characteristics include using initiatives; carrying on responsibilities; generating
creative ideas; planning; seeking information; flexibility; managing resources;
negotiation and influence; dealing with tension; conflict resolution; monitoring and
evaluating performance; knowledge of key business processes, e.g. marketing.
Abu-Saifan (2012) mentions that a social entrepreneur combines a passion for social
mission with the image of discipline, innovation, and professional determination
often associated with it. Also, in this field, entrepreneurs adjust their activities to
directly relate to the ultimate goal of creating social value. The author says that in
doing so, they usually act with little or no personal benefit intentions.
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There are several problems in our society, and a social entrepreneur is a person who
actively develops innovative ideas and solutions for existing social problems
(Shethna, 2020). The author further states that social entrepreneurs strive to solve
these problems by changing working systems and thinkings, raising awareness on
how to solve these problems, and developing social entrepreneurship resources to
empower people and the community. Also, they try to convince the whole society to
think about different aspects and directions. They develop simple and
straightforward ideas that everyone can understand and can use to grow and improve
society. They aim to identify and create effective agents or models of change to
motivate the masses to develop their own ideas, strategies, and solutions to solve
social problems (Shethna, 2020).
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i) Promoting Social Cohesion: As per Thake and Zadek (1997), social
entrepreneurs promote social cohesion in the welfare state. As Leadbeater
(1997) claimed, the current welfare state is unable to solve many of the
social problems it must solve because of its lack of flexibility, bureaucracy,
and slowness. To overcome exclusion and to provide benefits
simultaneously, society urgently needs social progress, and social progress is
what social enterprises support. In other words, social entrepreneurs are
creating a new way of providing benefits so that society can unite to a certain
extent.
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Dees, J. G. 1998 Social entrepreneurs play the role of change
agents in the social sector, by: Adopting a
mission to create and sustain social value (not
just private value); Recognizing and relentlessly
pursuing new opportunities to serve that mission;
Engaging in a process of continuous innovation,
adaptation, and learning Acting boldly without
being limited by resources currently in hand;
Exhibiting heightened accountability to the
constituencies served and for the outcomes
created.
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Mair, J. & Marti, I. 2006 Social entrepreneurship: Innovative models of
providing products and services that cater to
basic needs (rights) that remain unsatisfied by
political or economic institutions.
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Certo, S. T., & 2008 The fulfillment of basic and long-standing needs
Miller, T. such as providing food, water, shelter, education,
and medical services to those members of
society who are in need.
For the purpose of this study, the operational definitions of the various terms used
are as follows:
Social Entrepreneurs: Social Entrepreneurs are those change agents who improve
societal well-being through innovative-value-adding activities that can occur within
or across non-profit, business or government sectors.
Social Value: Social Value means that which improves the quality of life of the
masses.
Society: Society is the whole complex of social behavior and the network of social
relationships.
Social entrepreneurs are visionaries who try to solve social problems that are wide
and varied in nature and by applying their social entrepreneurs' ideas and strategies,
thereby bringing positive changes to society (Shethna, 2020). Many social
entrepreneurship studies have focused on a unified definition of the concept (e.g.,
Dacin et al., 2010; Mair & Marti, 2006; Nicholls, 2010). Other researchers have
differentiated between social entrepreneurship and commercial or business
entrepreneurship (e.g., Austin et al., 2006; Dees, 1998; Shaw & Carter, 2007). While
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social value creation has been identified as central to social entrepreneurship (Austin
et al., 2006; Dees, 1998; Drayton, 2006; Tracey & Phillips, 2007), researchers are
yet to fully explore social value creation from the social entrepreneur's perspective.
According to Guclu et al. (2002), no empirical research exists on how social
entrepreneurs create social value. The research problem was that the research on the
creation of social value is limited, especially from the perspective of social
entrepreneurs in India. The present study focused on the creation of social value,
especially from the perspective of social entrepreneurs in India and their
contribution to Indian society through social value creation.
1. What are the contributions of Indian social entrepreneurs to the society they
live in through social value creation?
2. What are the facilitating factors to become a social entrepreneur in the Indian
context?
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1.8 Objectives of the Study
General Objective:
Specific Objectives
To study the impact created by the social entrepreneurs in the society they
live in.
Howorth et al. (2012) focused on social entrepreneurs as their unit of analysis for
social entrepreneurship because social entrepreneurs generate promising ideas that
develop into attractive opportunities. According to Drayton (2006), as social
entrepreneurs increase numerically globally, and the topographical range of their
ideas grows, so do the number of support institutions funding and partnering with
these entrepreneurs; the whole process is enormously contagious. Social
entrepreneurs work intending to change the face of society. They operate in areas
such as health, hygiene, education or other areas that require growth. Social
entrepreneurs strive to improve systems, find new solutions and establish fair
practices. It is important to support social entrepreneurship and encourage those with
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ideas to innovate. People with a creative mind or a desire to provide services for the
greater good without being manipulated or deceived will change the way we live.
Authors Noruzi and Westover (2011), social entrepreneurship is more and more
connected with everyday life and practices; it is clear that social entrepreneurship
and social entrepreneurs are becoming more inclusive and can be observed in less
obvious contexts than people normally expect. However, according to these authors,
this penetration is different from the increasingly homogenized criticism of
entrepreneurial identity as it is assumed to be entrepreneurship because it
significantly changes lifestyles, constantly questioning and changing the
organization of life.
Ultimately, when entrepreneurs shape the future of society, and when the task of
entrepreneurs is to transform the society that people must live into the society that
people want to live in, entrepreneurship brings diversity and creativity into social
organizations (Steyaert, 2007).
Assumptions:
The researcher made the following assumptions associated with this study:
Limitations:
The study was an attempt to gain a perspective on the selective social entrepreneurs
of India and their contribution to society through social value creation. The present
study was undertaken after carefully considering the models and the designs for
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analysis. It was hoped that the model selected as appropriate. It was also felt that a
quantitative analysis of the data would lead to accretion to the findings.
No research is perfect, and even this research work has certain limitations which
pave a path for further study. Although much strength is associated with the
research, its limitations are noted as follows:
1. The study covered 12 states and one Union Territory (UT) of India. More
social entrepreneurs from other states/UTs could have been included.
3. The primary data study was only from the social entrepreneur's perspective
and did not include the beneficiaries' or stakeholders' perspective.
There is no time like the present. India finds itself in a situation with multiple
challenges. The nation is ageing; there is a high incidence of immigration and
shifting ethnicity within the country. India continues its transition from a
manufacturing-based economy to a knowledge- and information-based economy.
There are ongoing environmental concerns, and terrorism continues to be a threat.
Identifying solutions to these and the many other issues facing the country will
require creative thought and action, and in many cases, the ability to think
entrepreneurially. This is no surprise because the current administration sees the role
of social entrepreneurship as key to building a secure and fruitful future and has
policy initiatives in place to facilitate this.
This study helps to understand different Indian social entrepreneurs and their
contributions to society. It is hoped that this exploration, the examination of the
lived experiences of social entrepreneurs, will bring a deeper understanding of what
is already known about them, ultimately helping to facilitate and encourage more
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social entrepreneurial vision and successful application. With the emphasis on social
entrepreneurial activities in communities and in organizations, a deeper
understanding of social entrepreneurs can go a long way towards encouraging more
social entrepreneurial activities in all areas and walks of life.
The study findings may be useful to many different audiences, including nascent
social entrepreneurs, potential and existing social entrepreneurs, those oriented to be
social entrepreneurs, programs, and curricula that support and encourage social
entrepreneurs, and those in a leadership role regarding social entrepreneurial and
policy actions.
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1.12 The Scheme of Chapterization
The chapter scheme of this study consists of six chapters. Chapter 1 provides the
background of the study, operational definitions of the terms, statement of the
problem, objectives, research questions, significance of the study and of the social
entrepreneurs, as well as assumptions and limitations of the study.
Data concerning the research methodology and design used in the study are
discussed in Chapter 3. Justification for the sample selection, instruments used, data
collection and analysis methods are also provided. Moreover, the reliability and
validity of the research are also discussed.
Chapter 4 provides details of the analysis of the research findings. The chapter
starts with the demographic analysis and eventually addresses research questions. It
also includes a detailed description of the themes that emerged from the data
analysis.
Chapter 6 provides a discussion of the study's results and the contribution of this
research to the limited existing literature on social value creation. The study also
proposed a 'Social Value Pyramid' and a conceptual model for the contribution of
social entrepreneurs to society through social value creation. The research also tried
to redefine social entrepreneurs. Finally, it includes recommendations for future
research.
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