Prof sharmila Fernandes

SOCIAL
ENTREPRENEURSHIP
PROF SHARMILA FERNANDES
 INTRODUCTION

 Social entrepreneurship can be defined as the process of doing business for a philanthropic cause with a purpose to

maximize profits while extending the positive impact on a particular social issue. At the most fundamental level, social

entrepreneurship is simply doing business for a good cause. It might also be referred to as altruistic entrepreneurship.

 Social entrepreneurs merge business concerns and social problems in a way that benefits those who are involved in the

cause. In this, individuals or institutions don’t define success solely in terms of profit. For social entrepreneurs, success

means making the world a better place.

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 MEANING

 A social entrepreneur is a person who pursues novel applications that have the potential to solve community-
based problems. These individuals are willing to take on the risk and effort to create positive changes in society
through their initiatives.

 Social Entrepreneurs are individuals who are willing to create positive changes in society through
their innovative ideas and efforts. They run their business or organization to achieve their goals by
helping society. Their motto to start a business venture is primarily to help society and have no great
intention of making personal profits. Their success is not always measured in terms of profit alone.
A small change in the society out of their efforts is a success too. Social entrepreneurship is also
referred to as altruistic entrepreneurship –which translates to selfless concern for the well-being of
others.
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 Factors that Strengthen Social Entrepreneurship

 How the Project Contributes to the Economy: Having known social entrepreneurship is for the society
or environment, it also means there is or has been a demand for the product or service. Most
entrepreneurial initiatives contribute to the economy, by creating job opportunities and wealth. The social
enterprise thus established must aim at generating enough wealth that can contribute to society.

 Responsibility Towards Society and Environment: The primary intention of social enterprise is to
identify gaps in the environment and society that are not working efficiently and create a social value out
of those. Aimed at bringing in a change and something new to solve a certain problem, these objectives
can vary from industries, health services, education, energy-saving, etc. A lot of corporate entities form a
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small trust to implement these objects in the form of Customer Social Responsibility (CSR) projects.
 Effective Profit Utilization: As discussed, earlier social entrepreneurs are not aimed at making personal profits, their
profits are often re-invested in the business to achieve the goal, personal profits are hence supervised and are limited.
However, depending upon the status of the project, the entrepreneur can decide how much is to be reinvested to
achieve the goal.

 Efficiently Managed: Unlike the standard entrepreneurship framework, social entrepreneurship can involve a group
of people working together with the same intention of bringing a change to society. Hence, the decision-making,
execution of tasks, etc. are all shared and are done with the active participation of all experts at different levels. Here,
making use of participation efficiently is the key.
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 7 Essential Characteristics of Social
Entrepreneurs

1. Curiosity
 Social entrepreneurs must nurture a sense of curiosity about people and the problems they face. The best social entrepreneurs
seek to truly understand the needs and desires of the people they serve. Great social ventures often start through
immersive market research, an empathy-centric process through which social entrepreneurs gain knowledge in the field.
 Example: The founders of Shakti Apparel launched their venture after working with villagers in rural India and learning
about their lifestyles.
2. Inspiration
 In order to design effective solutions, social entrepreneurs must be inspired by the people and problems they encounter.
Inspiration motivates action and helps social entrepreneurs tackle challenges that others shy away from addressing.
 Example: When he learned that his blind friend had no way to tell time, the founder of Eone set out on a
mission to design an effective solution to his friend’s problem.

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Prof sharmila Fernandes
 3. Resourcefulness
 In the world of social entrepreneurship, key resources, such as human and financial capital, can often be scarce.
Successful social entrepreneurs know how to leverage the resources at their disposal and develop innovative methods
to overcome obstacles.
 4. Pragmatism
 Changing the world takes time, effort, and experimentation. While visions for massive social change may provide their
inspiration, experienced social entrepreneurs know that they need to take small steps in pursuit of their goals. Great
social ventures are not born overnight!
 Example: The founder of Be As You Wear is working to reform systems that put youth at risk by taking small steps,
such as performing small-group education interventions and selling hoodies to fund her work.

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5. Adaptability
 Social entrepreneurs must remain open to solutions. This includes knowing when to pivot and change their strategies if
their initial methods do not succeed. Adaptability and flexibility are integral in the development of early-stage social
enterprises.
6. Openness to Collaboration
 While embarking on a quest to change the world may feel lonely, it is important to remember that social entrepreneurship
is a team sport, and other people are willing to help. Social entrepreneurs need to stay open and attentive to potential
partnership and collaboration opportunities. In many cases, collaborative initiatives and joint-ventures can achieve
social/business goals much more effectively than solo endeavors.
 Example: Refugee Investment Network partnered with Village Capital to offer an investment-readiness tool designed for
refugee entrepreneurs.

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 7. Persistence

 Social entrepreneurs take on some of the most daunting challenges our society has to offer. This often creates a recipe for
early-stage failures. However, the successful social entrepreneurs are the ones who persist past initial setbacks and
persevere to deliver effective solutions. Experienced social entrepreneurs know how to learn from failures, adjust their
methods, and make continual strategic improvements. Don’t give up if at first you don’t succeed!

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Social entrepreneurs are characterized by the
following key attributes/Perspective of social
entrepreneurship
 (a) Ambitious:
 Having high ambition is one of the major characteristics of the social entrepreneurs. They are the
reformers and revolutionaries with a social mission. They are the ambitious people tackling major
social issues and offering new ideas and solutions for wide-scale change.
 Such entrepreneurs are found in all walks of life and all kinds of organizations: innovative non­
profits, social purpose ventures such as for-profit community development banks, and hybrid
organizations that mix elements of non-profit and for- profit organizations.
 (b) Missionaries:
 The life histories of successful social entrepreneurs reveal that their mission, i.e. the ultimate
purpose is not creating just wealth, but most importantly, generating as much as possible social
value. Yes, wealth creation may be the part of effort but is not an end in itself.

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(c) Strategic:

 Like successful business entrepreneurs, social entrepreneurs also search and identify the major social issues that
others miss. They use these as opportunities to improve the existing social systems, create solutions, and invent new
approaches that create social value.

(d) Resourceful:

 Social entrepreneurs function in a social framework, not within the business world. As such, they have limited
resources because of their limited access to capital and traditional market support systems. Given such conditions,
they need to be skilled enough to muster and mobilize human, financial, and political resources required to solve the
social problems.
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 e) Result Oriented:

 Ultimately, social entrepreneurs are driven to produce measurable results to make perceptible dent on the society. These
results change even transform the existing equilibriums, realities, and create new pathways for the benefits of the
disadvantaged and downtrodden people of the society. They have the skill to unlock and harness the potential society has
to effect social change.

 F) Business savvy
A successful social entrepreneur does not just have a good idea — they also have the practical business knowledge to turn
that idea into a reality. A social entrepreneur’s solution considers market demand and research, finances, resources, and
the restrictions and opportunities in their community and country.

 Successful social entrepreneurs also know the importance of data, and gather it at every step of the way, constantly
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 G) They know how to network

 Social entrepreneurs know they are not alone when creating their innovation. The success of projects depends not
just on a single strong leader, but the team working with that innovator.

 That can involve collaborating with other youth, finding a mentor, or knowing how to talk about an idea with
community leaders, local governments, and microfinance institutions. Social entrepreneurs are often global
citizens who connect with other aspiring and accomplished social entrepreneurs to share and improve their
solution

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 Difference between business entrepreneurship
and social entrepreneurship

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 Social entrepreneurship in practice

 Bangladesh Rural Advancement Committee (BRAC)

 The BRAC was established in 1972 by Fazle Abed, a Bangladeshi corporate executive, in the aftermath of the
Independence War. Over the past 30 years, BRAC has focused on breaking the cycle of poverty in Bangladesh. Starting
as a relief and resettlement organization, BRAC pioneered the development of comprehensive, locally organized
approaches to rural development and poverty alleviation. It provides a range of services- rural capacity-building,
education, health services, and micro-credit- to 2.6 million rural people, and it has been exceptionally successful in
developing projects that contribute to its own financial sustainability.
 • Essential Innovation: Focuses on local constituent needs and capacities through a systemic approach to poverty
alleviation that emphasizes systematic learning at many levels. Instituted rapid scaling up of the organization while
ensuring sustainability.
 Scope: Operates in 60,000 of the 86,000 villages in Bangladesh. Organizes the poor for self-help and builds local
capacities for economic development, healthcare, and education. Focuses on working with women and other oppressed
groups. Seeks to change local attitudes and culture for landless poor, and shift economic
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 The Grameen Bank (GB)

 The GB was established in 1976 by Muhammed Yunus, a Bangladeshi economics Professor, and his colleagues.
Convinced that poor borrowers might be worthwhile credit risks, they demonstrated that landless women in mutually
accountable borrower groups achieved very high repayment rates. The Grameen Bank forms small groups of five people
to provide mutual, morally binding group guarantees in lieu of collateral. Past participants have proven to be reliable
borrowers and astute entrepreneurs, as a result, they have raised their social status, lessened their dependency on their
husbands, improved their homes, and provided better nutrition for their children.

 These borrowers developed the social development guidelines known as the "Sixteen Decisions," which have formed the
basis of village group meetings throughout the Grameen system. Today, over 90% of the millions of micro-credit
borrowers around the world are women.

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 Essential Innovation: Provides group lending for poor people without collateral. Succeeded in expanding
organizational capacity to serve millions of small borrowers.•

 Scope: Provided small loans to 2.3 million very poor borrowers. Created 12 other businesses (e.g., fisheries,
handloom factories, renewable energy plants) to serve the poor. Expanded poor women's roles in income generation,
as well as in micro credit theory and practice around the

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 The self-employed women
association(SEWA)

 The SEWA founded in 1972 by Ela Bhatt, is a trade union of women who earn their livelihoods in three broad occupational

categories that, historically, have been very difficult to organize: Hawkers and vendors, home-based producers, and manual

laborer's and service providers. Their initial programs focused on members' working conditions by influencing the actions

of local police and policy makers. Later, SEWA provided a variety of services that were otherwise unavailable to their

members. With approximately 315,000 members, SEWA is the first and largest trade union of informal sector workers. In

addition to its unionizing activities, SEWA has several "sister" institutions, including a bank that provides financial

resources, an academy that provides teaching, training and research, and a housing trust that coordinates housing activities

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members. SEWA has become an international force, working with women's and labour movements worldwide
 Essential Innovation: Organizes groups of women that are atomized and have little reason to cooperate for political
change, or otherwise address economic, social, and health issues. Builds local leadership capacity to scale up
organization and movement.

 Scope: Organized 315,000 self-employed women as union members. Improved working conditions, access to health
care, credit, and savings for more than 90% of India's self-employed/unorganized, female laborers. Influenced the
creation of self-employment labour division in the Indian government. Influenced the International Labour
Organization to pass standards for home workers (including minimum wage and working conditions). Co-founded an
international network to support the work of women in the informal sector (Women in Informal Employment
Globalizing and Organizing, WIEGO
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 TYPES OF SOCIAL ENTREPRENEURS

 1. The Community Social Entrepreneur

 This entrepreneur seeks to serve the social needs of a community within a small geographical area. These entrepreneurial initiatives
could be anything from creating job opportunities for marginalized members to building a community center. Social entrepreneurs on
this scale are usually individuals or small organizations. Microfinance loans are one example - offering financial solutions to local
people with no access to banking.

 These entrepreneurs work directly with members of the community. This means more vested interests and a slower decision process,
but it comes with the advantage of long-term solutions. Both community members and local organizations are likely to sustainably carry
on with the project even without the entrepreneur's direct involvement.

 This is where most people start, as a change in your own community is instantly visible. You can see the results of such social
entrepreneurship almost immediately and talk to people you are helping directly. All you need to do to start this type of endeavor is find
a local isolated social problem and apply yourself to solving it.

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 2. The Non-Profit Social Entrepreneur
 These entrepreneurs are focused on social, not material gain, meaning they prioritize social well-being
over traditional business needs. They reinvest any profits into the business to facilitate the further
expansion of services
 Non-profit social entrepreneurs are usually companies and organizations that choose to use their power
for social good. The story of Goodwill Industries serves as a great example: In 1902, the company started
employing poor residents to work with donated goods, reinvesting all profits into job training programs.
 These entrepreneurs are usually more likely to meet their stated goals due to readily available funding.
However, they are also dependent on its successful generation for social good.
 This path is usually taken by more business-savvy entrepreneurs who want to use their skills for creating
change. While the results often take longer to manifest, they can take effect on a larger scale. Joining a
local non-profit or training program is usually a reliable way to star
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 3. The Transformational Social Entrepreneur
 These people are focused on creating a business that can meet the social needs that governments and
other businesses aren't currently meeting. The transformational category is often what non-profits evolve to
with sufficient time and growth. They become larger organizations with rules and regulations - sometimes
growing to the point of working with or getting integrated into governmental bodies.
 Accelerators like The Social Innovation Warehouse are great examples of this social entrepreneur type.
They specifically empower other impact-driven entrepreneurs to create positive change. This then creates
a system of interconnected businesses focused on social benefits.
 Transformational entrepreneurs have an easier time getting top talent for these efforts. However, they are
also bound by a web of rules and regulations that larger organizations have to create.
 Such organizations usually recruit and foster talent in-house. If you apply for a job opportunity or volunteer
position and show social entrepreneurship skills, they are likely to help you enroll in a mentorship program
and facilitate
Prof sharmila Fernandes your growth from there.
 4. The Global Social Entrepreneur

 These entrepreneurs seek to completely change social systems in order to meet major social needs globally. It's often where big

companies end up when they realize their social responsibility and begin concentrating on positive change as opposed to just

profits. It's also where the largest charity organizations, such as the Bill & Melinda Gates Foundation,

 The global need in question can be anything from free access to education to clean water. This is usually a lofty goal that spans

continents and links many organizations and interests together. However, the trade-off is in scrutiny - if global social entrepreneurs

fail to meet the needs and gather sufficient support, their failure has a bigger impact than those of smaller organizations.
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 These organizations are usually tied to a particular cause and work with other social entrepreneurs to make it
happen. As such, you are more likely to achieve these heights if you connect with other social entrepreneurs and
build a global community around solving social issues.

 Additionally, there is a growing number of organizations that blend the best for-profit practices with non-profit
missions. They fall under all types outlined above, being in different stages of growth and scalability. We suggest
finding a cause that works best for you and charting a way forward from there.

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 Challenges faced by social entrepreneur

 1.Raising funds in times of austerity

• Across the world, investors and donors are looking for rapid and larger impact growth. Not something that all social
entrepreneurs can promise to deliver. The overarching reason behind this trend may be a sluggish global economy, but its
ramification on the social sector is huge.
• Often, social enterprises work in areas where the gestation period for new product development or behaviour change is
high. In this situation, investor/donor focus on short term - higher yield situations makes fund raising difficult. As a
result, several social entrepreneurs end up vying for a slice of the same pie, and end up going to family and friends for
money or crowdsourcing.
• Successful social entrepreneurs are able to raise funds by clearly demonstrating how they are different from other players
and staying focused in a specific area.
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 They are also able to stay connected with the ecosystem using digital communication interspersed with one-on-one
interactions in key events. Moreover, their communication mirrors the needs of donors / investors in an explicit manner
with easy-to-relate metrics of performance.
 In other words, there is a science to fund raising, and needs to be a key focus area for the founders.
Successful social entrepreneurs are able to raise funds by clearly demonstrating how they are different from other players
and staying focused in a specific area. They are also able to stay connected with the ecosystem using digital
communication interspersed with one-on-one interactions in key events.
 Moreover, their communication mirrors the needs of donors / investors in an explicit manner with easy-to-relate metrics of
performance. In other words, there is a science to fund raising, and needs to be a key focus area for the founders

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 2. Building and following a ground-up
business plan

All enterprises need a strong ground-up business plan to help achieve milestones. The rigor of building and following a plan
that is based on market realities and customer insight is critical. It ensures adequate focus on both raising funds and meeting
operational targets. Founders also find themselves more in tune with the market and their end customer requirements as they
chase well-defined business targets and part of the scaling up process. Plus, an action-oriented team with a strong business
plan instills confidence in the investor community, as eventually the social enterprise will need to become profitable.

However, many social entrepreneurs are visionaries who do not have much experience in running a business. This aspect of
planning and evaluating performance vis-à-vis metrics in a systematic manner may be a new experience for them.

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 3.Investing in the right people

 Hiring the right people to compliment the skill set of founders is an essential part of scaling up for every enterprise. The social sector is
no different as the skills required to sell, brand, and manage financials are specialised. Many cash-strapped founders over-extend
themselves, multi-tasking product development, fund raising, and running the business. While this may work in the short run, it
eventually leads to sub-optimal performance. As without the right team – an organisation will not grow.

 A social entrepreneur in the environment sector once informed me that they were unable to afford the right people. Plus, expensive
resources don’t perform in the short run (as they don’t know the category) and leave because they don’t meet targets. This leads to churn
and re-hiring. So, founders prefer to do both operations and fund raising by themselves. Eventually, this company, which has great
products, ended up stagnating and becoming limited to specific geographies

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 4. Process Management & Planning for
Growth
 Firms that offer good products and services quickly grow and reach an inflexion point. In this situation, process management
comes into play and companies who have not planned for growth often end up missing the bus.
 Take for example a social enterprise that offers housekeeping services by differently-abled people. As their brand offering is
fulfilled by front-line staff with specific needs, they need to invest in training, monitoring processes, and equipment (if any).
Without planning for the above and ensuring a pipeline of staff across locations, they will not be able to grow.

Personally, I have learnt a lot from MNCs who invest in great processes to ensure profitable growth with fewer people. They also
heavily invest in technology to ensure process efficiency. So, while a startup / social entrepreneur may not be able to replicate
Unilever’s manufacturing processes – staying process oriented at the start of the entrepreneurship journey is extremely helpful.

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 5.Balancing the vision with business

A lot of social entrepreneurs start off as activists. And over a period of time, create a social enterprise that is in line with
their passion. These founders need to draw a line between volunteering for a cause and running a profitable business.
And it’s difficult. A social entrepreneur once told me she never gets paid her ‘market rate’ for consulting engagements
because as an activist, she often gives the knowledge away for free. This is a typical conundrum. Sharing knowledge is
necessary for change and creates credibility, but it should not be at the expense of growth.

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 On the other hand, once a social enterprise scales up and overcomes various hurdles, there is a lot of pressure on
the founders to stay profitable. This may lead them to dilute their vision and focus on RoI and compete with other
‘for profit’ businesses. A healthtech entrepreneur confided in me that it was so much easier to sell her company’s
innovative service to corporate hospitals rather than government ones. But she chose the difficult path as her
offering was designed to make the lives of the poor easier. Not just for easily accessible rich people. So, it is
important for social entrepreneurs to have a mission statement, which they review on a regular basis and stay true
to the same.

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 Seven C-Strategies for Successful Social
Entrepreneurship
 1. Collaborations:

 As an entrepreneur, it sometimes gets difficult to instantly hire people and get them on board. At such time, an easy
way out is to collaborate with those who do not mind working on a project basis. But since it is necessary to ensure a
certain quality of work, it is necessary to double check their credentials and past work experience. Those who co-
create with should also share your vision and core values. The same level of commitment and sincerity always helps
lay a stronger foundation for any enterprise. Wherever, possible it is better to avail of the many freelance illustrators,
developers and printers available, and outsource whatever functions one can. This not only helps to focus on core
competence and gives more time to manage customers and clients, but also ensures quality, a new perspective and a
better product.

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 2 Connections: Just about everyone you have met in the past, who knows you and your work reasonably well, will
comprise your network. My past years of experience in the industry helped me with a ready and existing network.
But I did create a whole new network as well, as this time the gamut of services being provided were a little different
and catered to a whole new set of people. Since you are not backed by an organization, credibility also takes a little
longer to build, but if you focus on delivery then that should not be an issue for long. As you grow as an entrepreneur
and get more confident about what you are doing, you will realize that talking about your venture and building
connections will become second nature. You will also figure out how to join the dots and leverage your connections

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 3 Competitive advantage:

 It is literally a sea out there and no longer a pond. There are too many players and not that many clients, but we all
still have to survive. If you have a novel idea, great. If not, find something that makes you stand apart from the
crowd. What is it that you have which can be offered differently? What are the three things you will do to ensure that
your client does not call someone else? Moreover, what will you always want to be remembered for? What helps is
the fact that in all cases providing end-to-end solutions, customizing them for each client, taking few selective
projects, but giving them full attention, both in terms of creativity and scope is crucial.

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  4. Communications: When you are clear about your edge, state it in the simplest and best way possible.
Right from the time you promote your company to your everyday interactions with clients and service
providers, communication will form the cornerstone of your enterprise. From stating your vision/mission, to
explaining terms of association or simply ensuring the client is in the loop, communicate with clarity,
precision and flair. With business, add humour, warmth and creativity to your communications. My own
mantra is “Engage as you entertain, inform as you interact”. Since social entrepreneurship is essentially into
the business of societal aspects, words almost become the competitive advantage. Keeping the dialogue open,
following up with clients and sending that occasional note on new projects all help in building brand identity
and recall.

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 5. Creativity: No enterprise can breathe without it. In my view, creativity is the very oxygen for survival, both personally
and professionally. Creativity is, in my opinion, a reflection of yourself in your work. The freedom to experiment, take
license and add something that is “you” to your work. It’s the ability to fly with a project, to give it a new dimension and
make a statement all your own. Creativity should be a part of every enterprise and encouraged at every level. Creativity
allows people to be their best versions. It allows them to take ownership of what they are doing, and when they get
appreciated for a job well done, they will probably bring newer and more effective processes into your organization.

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 6. Courage: It takes courage to go it alone, and even more courage to stay the course. At every point of your journey, it
is only the courage of your conviction that will take you further. The courage to stand by your vision, tide over the lull
periods and rise again to meet new challenges, and very often, reinvent yourself. In my experience, courage can be
built with the help of support systems: by participating in various social and cultural initiatives; taking up short courses
to grow your skill set; by attending networking forums to spread the word about you and your enterprise, or interacting
with other entrepreneurs and start-ups.
 7. Customer Satisfaction: A broad term, but one which is at the heart of every enterprise, customer or client
satisfaction is really the number one rule for survival. It ensures longevity and reaps rewards. A happy customer will
refer you to more people and almost always give you the first opportunity to work on new projects. Testimonials go a
long way in building goodwill. A gauge of customer satisfaction is whether your enterprise has managed to create
repeat value for them and made a holistic impact.

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 GLOBAL EXAMPLES OF SUCCESSFUL
SOCIAL ENTREPRENEURS
 AMUL (Anand Milk Union Limited): Dr. Verghese Kurien started a Co-operative organization AMUL. Amul has been
a sterling example of a co-operative organization‘s success in the long term. Amul is collecting milk door to door from
small farmers and ensuring the timely distribution part from quality control. It is one of the best examples of co-
operative achievement in the developing economy. The Amul pattern has established itself as a uniquely appropriate
model for rural development. Amul has spurred the White Revolution of India, which has made India the largest
producer of milk and milk products in the world.
 • Aravind Eye Hospital & Aurolab: Dr. Govindappa Venkataswamy (Dr. V) & David Green started trust at Madurai,
India with a mission of making medical technology and health care services accessible, affordable and financially self-
sustaining. Founded in 1976 by Dr. G. Venkataswamy, Aravind Eye Care System today is the largest and most productive
eye care facility in the world. From April 2007 to March 2008, about 2.4 million persons have received outpatient eye
care and over 285,000 have undergone eye surgeries at the Aravind Eye Hospitals at Madurai, Theni, Tirunelveli,
Coimbatore and Puducherry. Blending traditional hospitality with state-of-the-art ophthalmic care, Aravind offers
comprehensive eye care in the most systematic way attracting patients from all around the world (Short, Moss, &
Lumpkin 2009)
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 Ashoka: Innovators for the Public: Bill Drayton is not just a great example of a social entrepreneur, he actually
helped to define and promote the term itself. Drayton is the founder and current chair of Ashoka: Innovators for
the Public, an organization that is dedicated to finding and helping social entrepreneurs around the world.
Drayton spreads out his social entrepreneurship expertise in other organizations as well, working as a chairman at
Community Greens, Youth Venture, and Get America Working! In addition, as of 2010, Ashoka Foundation has
sponsored 2,145 fellows in 73 countries, some of which have gone on to develop leading social businesses that
have made a huge impact on communities around the world (Ashoka, 2007).

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 Shri Mahila Griha Udyog Lijjat Papad: Shri Mahila Griha Udyog Lijjat Papad is a Women‘s organization
manufacturing various products from Papad, Khakhra, Appalam, Masala, Vadi, Gehu Atta, Bakery Products, Chapati,
SASA Detergent Powder, SASA Detergent Cake (Tikia), SASA Nilam Detergent Powder, SASA Liquid Detergent. The
organization is wide-spread, with its Central Office in Mumbai and its 67 Branches and 35 Divisions in different states
all over India. The organization started off with a paltry sum of $2 and has achieved sales of over $ 0.5 million with
exports itself exceeding $0.2 million. Membership has also expanded from an initial number of 7 sisters from one
building to over 40,000 sisters throughout India. The success of the organization stems from the efforts of its member
sisters who have withstood several hardships with unshakable belief in “the strength of a woman” (Johnson, 2000).

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 Barriers of social entrepreneurship

 1. Managing Finances
 A great barrier that arises while starting a new business is managing the finances that can make things difficult for the
entrepreneurs. There are lots of ideas that come to the entrepreneurs' minds but converting those ideas into the
business needs enough amount of finance. There should be a stable and regular source of finance to keep the
production process smooth. If this first and the most critical barrier can be solved easily then the future barriers can
also be tackled.
 2. Inadequate Market Experience
 One of the most common barriers that are faced by many entrepreneurs is not having adequate knowledge about the
respective field of their business. An entrepreneur must have enough experience related to the industry by working in
the required sector. So, before starting a new venture, it is required to collect enough knowledge about the market
conditions, nature of the business firm, demand and supply of that particular good or service, etc., instead of rushing
into the business by seeing the success of others.

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 3. Human Resource Problem
 A person can't perform all the tasks by himself/herself even if he/she has enough knowledge. In the same manner, an
entrepreneur can't do all the jobs alone to run the organization. A business needs to have a strong base of skilled and
knowledgeable human resources or employees. Employees are the most important assets for an organization. They help in
the growth of the business. The organizations may have similar fixed and current assets but these are the human assets that
make the organization different from its competitors. But for this purpose, the employees must be enough experienced and
dedicated to the organization so that top-level productivity and efficiency can be achieved.
 4. Non-strategic Planning
 Having inadequate planning regarding strategies can also create a great barrier in the path of success of entrepreneurship.
There are lots of entrepreneurs who started a business just as a hobby without having a long-term vision and plan. Bad
strategies and planning may lead to the failure of the business or can cause a huge loss to the business. It is the prime
reason why most entrepreneurs give up in the first year of business operation

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 5. Lack of Capacity

 Many entrepreneurs can't use the opportunities perfectly because of their limited capacity. It can be a major hurdle in
the success of entrepreneurship. This hurdle can be arising due to the lack of education, knowledge, willingness, and
other important aspects. In simple terms, the absence of zeal and motivation may lead to the failure of most of the new
ventures.

 Apart from knowing the issues related to market risks and competitions, tons of hard work and passion is also what a
business demands to deal with different problems and circumstances that arise in the organization. This is very useful in
the growth and development of the business and in increasing the company's turnover and goodwill.

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 6. Political Barriers

 The politics of a country or region can also become a barrier to the success of entrepreneurship. So an entrepreneur
should check out the policies of the government and the incentives offered by the government to the entrepreneurs.
This is because every government does not provide socio-economic facilities to entrepreneurs. Other than this, it is
also required to take the interest in economic development seriously.

 Some governments provide special security to the new ventures to protect them from the market competition and so
that they can survive in the market. Hence, an entrepreneur must evaluate the political factors carefully before set-up
the business firm. It is very helpful in the long-term survival and growth of the business.

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 7. Lack of Practical knowledge

 Many youngsters believe that an entrepreneur must have an adequate educational background to make the business

successful, but the reality is completely different. Most of the schools and colleges focus on bookish knowledge instead

of providing practical knowledge to the students. Every entrepreneur may have the same bookish knowledge but it is

their practical knowledge that makes them unique in this highly competitive market. Lack of this practical knowledge

can also become a barrier in the path to the success of a business

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 8. Not Having the Right Team

 Business is not the work of an individual. It is teamwork in which every person has different skills and jobs which
are based on those skills. So, it can be said that a business is run by the contribution of all the individuals. The right
team or teammates or can say employees are the most important aspect for the success of a business. It is one of the
biggest barriers for a start-up to find good employees. It is often seen that most of the new ventures work on a small
scale which makes it more difficult for them to get experienced, skilled, and good employees. To solve this problem,
an entrepreneur should make the required measures so that he/she can assign the jobs to those employees who can
boost the business by their effective and efficient performance

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 9. Corrupt Business Problems
 One of the most common problems with a business especially with new ventures is the corrupt environment. If the
environment of the country is corrupt then it does not inspire the young employees and entrepreneurs. In many
countries or regions, the unhealthy and non-supportive government creates lots of issues. That's why it is suggested to
check out the regulations and stringent compliance before starting a new venture. This corruption of the government
can become a major hurdle in the success of a business on a pretty higher level. So, an entrepreneur needs to take
things seriously.
 10. Difficulty in Reaching to More People
 One more barrier that an entrepreneur can face is the difficulty in reaching more people or attracting more
customers to inform them about the products or services in which the firm is dealing. A business can lose its path of
success if it will not be able to advertise its products and reach the required community in the target market. A
successful foundation can only be set up if there will be no barrier between the audience and experts. So, there is the
need of having a strong foundation to achieve the planned goals. This problem can be solved by developing effective
jobs so that good marketing and advertising strategies can be formed. This will be further helpful in providing
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information to a large number of people about the organization and its products
 11. Fear of Failure
 To get the profit, an entrepreneur has to bear some sort of risk also and it is the entrepreneurs' capacity of bearing
the risk which decides the amount of profit that the business can earn. So, it can be said that it is the state of mind
which helps an entrepreneur in getting a clear vision so that the risk can be faced without fear. But when a new
venture is set up then there is always a fear about the arrangement of initial funds, investors, and many other
things. This fear creates pressure on the minds of the entrepreneurs and increases their tension of being failed.
The fear of failure can become a huge barrier in starting a new business or running it smoothly. So it's all up to
the attitude of the entrepreneurs how they deal with their fear and overcome it to become successful

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 12. Few Opportunities
 When a new business is started, there are very fewer opportunities available for the entrepreneur. It is also not easy
for an entrepreneur to figure out these limited opportunities in the beginning. To get more opportunities, a business
must start growing. Limited opportunities can be a hurdle to entrepreneurship. There is almost zero possibility of
being successful without having opportunities. Opportunity is also one of the major factors of SWOT analysis.
 13. No Training
 There is always a great demand in the market for a trained employee. A company always searches for such
employees who are trained in their particular job. But for an entrepreneur, it is not enough to have the knowledge or
training of a particular field. He/she must be the package of knowledge in all the fields. However, it does not mean
that the entrepreneur should be a jack of all trades, master of none because it can also create a barrier in starting
entrepreneurship. If the entrepreneurs will not have perfection in a particular field then they will not be able to
decide what business they should start. So in this way, it can be said that an entrepreneur should be trained in all
works related to the business environment but must have mastery in a particular field also.
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 14. No Backup Plan
 Before starting a new thing, we must have a backup plan in the case of the failure of our main plan otherwise it can
create huge trouble for us. In the same manner, when an entrepreneur starts a new venture then he/she must be
ready to face the failure, and to deal with them the entrepreneur must have a backup plan or can say plan B. But
most entrepreneurs start their business without having a backup plan which can create a barrier for them as they
are always at a high risk of failure. Plan B is not only required for the failure of a project but also for the failure of
the whole business plan.
 15. Limited Technical Skills
 Nowadays, most business ideas are based on technology. In such an era, it is easy to start a business for a technical
guy but if you have a lack of technical knowledge or skills then it can be a great barrier to you. Limited technical
skills can cause a loss to the business. The entrepreneur may hire a particular person to get advice on the issues
related to the technical field but it is not always beneficial for the business. Also, it demands additional costs to the
organization.
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  16. Lack of Motivation
 The biggest motivation for any business is Money. When an entrepreneur starts a business
then it takes some time to make the market value of the business. During this period the
profit earned by the business is not so high which may reduce the motivation of the
entrepreneur as well as of the employees of the organization.

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 Growth of entrepreneur communities

 Community-based enterprises use business to improve the life of a community in general. They are different from
private enterprises; their business activity is undertaken as a means of achieving the benefit for the community, not for
private gain.

 An entrepreneurial community is a community that intentionally acts to cultivate and support entrepreneurs. Focusing
on building business and economic development from within is a key alternative strategy to industrial recruitment,
which seeks to draw enterprise from outside of the community. In fact, it has proven to be more effective at job creation
in more rural places that do not have the infrastructure to draw business and industry.

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 Characteristics of Entrepreneurial
Communities

• Capacity and willingness to work together on community goals

• Leadership that can be mobilized for organizing community efforts

• Agreement that a difference can be made in the community that will impact its economic future

• Existence of entrepreneurs and potential entrepreneurs in the community

• Business friendly environment that encourages new business starts and that allows business expansion with a
minimum of red tape and bureaucracy

• Nourishment of entrepreneurial activity through civic recognition and support

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• Business and entrepreneurial development including training, mentors, networks, and other resources available
for existing and potential entrepreneurs

• Financing support through community, regional and local investor resources

• Local and regional networks for business growth and expansion and for specialized assistance in such areas as
marketing and international trade

• Civic entrepreneurship that redefines and transforms the community’s business culture

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 Fourteen Ways Communities Can Foster
Entrepreneurship

1. Create a vested public: By working together, communities can engage a broader public that is vested in
entrepreneurship. Community leaders can start by engaging businesses, institutions, and residents in discussion about
key needs and opportunities for supporting entrepreneurial growth.
2. Compile information about complimentary regional assets: If well marketed and coordinated, complimentary
regional assets—natural amenities like trails and waterways, as well as historic and cultural amenities—can be used to
draw more visitors, customers, and/or clients to a place to support local enterprises. Communities can start by
inventorying assets.
3. Expand the pool of human capital that can be leveraged: Every community maintains a pool individuals,
associations, organizations, and institution that maintain a wealth of skills, resources, hopes, dreams, desires, etc.
Through collaboration and cooperation, communities can work together to share these resources instead of duplicating
activities and functions.

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4. Develop Information Directories: Universities, agencies, industry, and non-profits often maintain listings of business
and economic development resources available throughout their respective region or state.

5. Share resources: Look for new ways for institutions, as well as businesses, to share resources. This can greatly reduce
the costs for facilities, infrastructures, coordinating staff, technical expertise, etc.

6. Provide opportunities for entrepreneurs to build off each other’s business ideas/ventures. Businesses that perform
complimentary functions invariably add to each other’s productivity. As an example, a recreational fishing outfitter can
help to draw tourists who might also purchase dried foods from a local grocery store. Communities can help to foster
linkages between entrepreneurs to help them to capitalize on each other’s assets.

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7. Get the political powers-to-be to notice: Projects and activities that demonstrate multi-community collaboration
are more likely to catch the eye of legislators, state and federal agencies, and other policy-makers, thus providing
enhanced opportunities to leverage public support for entrepreneurial ventures.

8. Catch the eye of grantors and supporting organizations/agencies: Many granting agencies/organizations give
preference to projects that demonstrate community and regional collaboration – this enables grantors to show broader
impact for their dollars spent.

9. Utilize the media: Newspapers, circulars, community newsletters, public access cable, and public radio can be
effective vehicles for raising awareness of entrepreneurship challenges and opportunities, as well as for sharing of
stories of what community-entrepreneurial ventures have worked in other communities/regions.
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10. Provide of hands-on trainings and workshops to entrepreneurs and to community leaders: Cooperative
Extension, Manufacturing Extension Programs, Business Incubators, Small Business Development Centers, and other
entities, are often willing to sponsor and implement workshops to provide community leaders, as well as entrepreneurs,
with the skills and tools for strengthening business and economic opportunities at the community level.
11. Incorporate community entrepreneurship principles into K-12 curriculum: While adults are often set in their
ways, youth tend to be more impressionable with new ideas and concepts. By introducing youth to entrepreneurship
skills at an early age—skills such as problem solving, customer inquiry, and iterative idea development—they well
develop stronger skills and understanding that may help them to start new ventures later in life.
12. Invest in existing entrepreneurs: The best messengers to convey the importance of entrepreneurship as a strategy
for building community wealth are the entrepreneurs themselves. By providing them with resources to be successfully,
communities are actually creating good messengers who can draw from real-life experiences to convey to build the case
for entrepreneurship.

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13. Support the Arts: New research suggests that not only do the arts contribute directly to the economy, but there is
a spillover effect that may be even more important. The design orientation that artists exhibit trickles out to benefit
other sectors of the economy, thereby improving the products and services of all businesses.

14. Invest in Broadband Infrastructure: Broadband is one of the biggest factors in determining how well
communities are able to capitalize on transformations taking place in the global economy. Without high speed
internet access, communities will not be able to attract key economic sectors such as legal and financial services,
technology, marketing, technology, manufacturing, etc., let alone have success at retaining the enterprises that they
currently maintain.

Prof sharmila Fernandes