File Name: rural and social entrepreneurship .zip
Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs , in which they develop, fund and implement solutions to social, cultural, or environmental issues. Social entrepreneurs, however, are either non-profits , or they blend for-profit goals with generating a positive "return to society".
Social Entrepreneurship: The Case for Definition
Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs , in which they develop, fund and implement solutions to social, cultural, or environmental issues.
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. At times, profit-making social enterprises may be established to support the social or cultural goals of the organization but not as an end in themselves.
For example, an organization that aims to provide housing and employment to the homeless may operate a restaurant , both to raise money and to provide employment for the homeless. In the social entrepreneurship was facilitated by the use of the Internet , particularly social networking and social media websites. These websites enable social entrepreneurs to reach numerous people who are not geographically close yet who share the same goals and encourage them to collaborate online, learn about the issues, disseminate information about the group's events and activities, and raise funds through crowdfunding.
In recent years, researchers are calling for a better understanding of the ecosystem in which social entrepreneurship exists, and social ventures operate. The concept of social entrepreneurship emerged in the s and since then, has only been gaining more momentum. Despite this fact, after decades of efforts to find a common ground to define the concept, no consensus has been reached.
These should be arranged in 5 clusters of meaning, according to the focus given and the conceptual framework assumed by the researcher. The first group of authors focuses on the person of the entrepreneur, being the mainstream definition. Dees argues that Social Entrepreneurship is the result and the creation of an especially creative and innovator leader .
Social entrepreneurs can include a range of career types and professional backgrounds, ranging from social work and community development to entrepreneurship and environmental science. For this reason, it is difficult to determine who is a social entrepreneur. David Bornstein has even used the term "social innovator" interchangeably with social entrepreneur, due to the creative, non-traditional strategies that many social entrepreneurs use. Others have extended this to include contracted work for public authorities, while still others include grants and donations.
Social entrepreneurship in modern society offers an altruistic form of entrepreneurship that focuses on the benefits that society may reap. Social entrepreneurs recognize immediate social problems, but also seek to understand the broader context of an issue that crosses disciplines, fields, and theories. Unlike traditional corporate businesses, social entrepreneurship ventures focus on maximizing gains in social satisfaction, rather than maximizing profit gains.
Prominent individuals associated with social entrepreneurship include Pakistani Akhter Hameed Khan and Bangladeshi Muhammad Yunus , a leader of social entrepreneurship in South Asia. Yunus was the founder of Grameen Bank , which pioneered the concept of microcredit for supporting innovators in multiple developing countries in Asia, Africa, and Latin America.
Others, such as former Indianapolis mayor Stephen Goldsmith addressed social efforts on a local level by using the private sector to provide city services.
Bill Drayton founded Ashoka in , an organization which supports local social entrepreneurs. Drayton tells his employees to look for four qualities: creativity, entrepreneurial quality, social impact of the idea, and ethical fiber.
Social entrepreneurs are creative enough to have a vision of what they want to happen and how to make that vision happen. They argue that these men and women seek profit in social output where others would not expect profit. They also ignore evidence suggesting that their enterprises will fail and attempt to measure results which no one is equipped to measure. Entrepreneurs have high standards, particularly in relation to their own organization's efforts and in response to the communities with which they engage.
Data, both quantitative and qualitative, are their key tools, guiding continuous feedback and improvement. Entrepreneurial quality builds from creativity. Not only do entrepreneurs have an idea that they must implement, they know how to implement it and are realistic in the vision of implementing it.
Drayton says that, "Entrepreneurs have in their heads the vision of how society will be different when their idea is at work, and they can't stop until that idea is not only at work in one place, but is at work across the whole society. Besides this, entrepreneurs are not happy with the status quo; they want healthy change. Social impact measures whether the idea itself will be able to cause change after the original founder is gone.
If an idea has intrinsic worth, once implemented it will cause change even without the charismatic leadership of the first entrepreneur. Most entrepreneurs have not studied the skills needed to implement their ideas. Instead, they bring a team of qualified people around themselves. Ethical fiber is important because leaders who are about to change the world must be trustworthy. Drayton described this to his employees by suggesting that they picture a situation that frightens them and then place the candidate in the situation with them.
If they feel comfortable in this scenario, the entrepreneur has ethical fiber. They insist that the change they have brought about is due to everyone around them. They also tend to be driven by emotion; they are not trying primarily to make a profit but to address suffering. This is the basic reason for being in the business.
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. The lack of eager investors leads to the second problem in social entrepreneurship: the pay gap.
Elkington and Hartigan note that "the salary gap between commercial and social enterprises… remains the elephant in the room, curtailing the capacity of [social enterprises] to achieve long-term success and viability. Thus, their enterprises struggle to maintain qualified, committed employees.
Though social entrepreneurs are tackling the world's most pressing issues, they must also confront skepticism and stinginess from the very society they seek to serve. 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.
Social entrepreneurship is distinct from the concept of entrepreneurship, yet still shares several similarities with its business cousin. Jean-Baptiste Say — , a French economist, defined an entrepreneur as a person who "undertakes" an idea and shifts perspectives in a way that it alters the effect that an idea has on society.
Social entrepreneurs seek to transform societies at large, rather than transforming their profit margin , as classic entrepreneurs typically seek to do. Social entrepreneurs use a variety of resources to bring societies into a better state of well-being.
The concept of "social entrepreneurship" is not a novel idea, but in the s, it has become more popular among society and academic research, notably after the publication of "The Rise of the Social Entrepreneur" by Charles Leadbeater. Despite the established definition nowadays, social entrepreneurship remains a difficult concept to define, since it may be manifested in multiple forms. No matter in which sector of society certain organizations are i.
The terms social entrepreneur and social entrepreneurship were used first in the literature in by H. Bowen in his book Social Responsibilities of the Businessman. Young created more than sixty new organizations worldwide, including the School for Social Entrepreneurs SSE which exists in the UK, Australia, and Canada and which supports individuals to realize their potential and to establish, scale, and sustain, social enterprises and social businesses.
Although the terms are relatively new, social entrepreneurs and social entrepreneurship may be found throughout history. A list of a few noteworthy people whose work exemplifies the modern definition of "social entrepreneurship" includes Florence Nightingale , founder of the first nursing school and developer of modern nursing practices; Robert Owen , founder of the cooperative movement; and Vinoba Bhave , founder of India's Land Gift Movement.
During the nineteenth and twentieth centuries some of the most successful social entrepreneurs straddled the civic, governmental and business worlds. These pioneers promoted new ideas that were taken up by mainstream public services in welfare, schools and health care.
The ecosystem framework can be very useful for social entrepreneurs in formulating their strategy. Many researchers such as P. Bloom and J. Dees attempted to develop an ecosystem model for social entrepreneurs.
The ecosystem model proposed by them comprises all the actors operating in the ecosystem, as well as the larger environment the laws, policies, social norms, demographic trends, and cultural institutions within which the actors play. More recently in , Debapratim Purkayastha , T. Tripathy and B. Das extended the business ecosystem literature to the social policy and social entrepreneurship arena.
They developed a comprehensive ecosystem model in the context of the Indian microfinance sector that can be also used by other social enterprises as a framework to understand their own ecosystem and formulate their strategy. The researchers define the ecosystem as consisting of "the complex and evolving network of the focal organization social enterprise and all other individuals and organizations that the focal organization interact with including competitors, suppliers, complementors, customers, beneficiaries, regulators, resource providers, etc.
Groups focused on social entrepreneurship may be divided into several categories: community-based enterprises, socially responsible enterprises, social services industry professionals, and socio-economic enterprises. These enterprises build on the community's culture and capital e. They aim to expand social capital for individuals, communities, and organizations. Socio-economic enterprises include corporations that balance earning profits with nonprofit goals, such as seeking social change for communities.
Some social entrepreneurship organizations are not enterprises in a business sense; instead, they may be charities, non-profit organizations or voluntary sector organizations. In addition, there are support organizations dedicated to empowering social entrepreneurs, connecting them with mentors , strengthening their enterprise models, and preparing them for capital investments.
These incubators and accelerator organizations provide office and meeting space often free , mentoring and coaching for social enterprise founders and leaders to help them develop their enterprises by improving the effectiveness of their business model, marketing, and strategy.
Some accelerator organizations help social entrepreneur leaders to scale up their organization, either by taking it from a local scale to a national scale or from a national scale to a global scale. Some entrepreneurship support organizations also provide mentoring and coaching to social entrepreneurs.
He is known as the "father of microcredit ," and established the microfinance movement, which aims to help millions of people rural communities to access small loans. In The Power of Unreasonable People , John Elkington and Pamela Hartigan describe social entrepreneurs' business structures as falling under three different models, applicable in different situations and economic climates:. There are also a broader range of hybrid profit models, where a conventional business invests some portion of its profits on socially, culturally or environmentally beneficial activities.
The term " Philanthropreneurship " has been applied to this type of activity. This has been described as corporate social entrepreneurship. One private foundation has staked the ground of more precise lexicon following the Newman's Own  model having coined the phrase "Commercial Philanthropy" where commercial businesses are held and operated with all net proceeds going to serve social service needs. For example, The Skoll Foundation, created by eBay 's first president, Jeff Skoll , makes capacity-building " mezzanine level " grants to social entrepreneurial organizations that already have reached a certain level of effectiveness.
The Internet, social networking websites and social media have been pivotal resources for the success and collaboration of many social entrepreneurs. In addition, the Internet allows for the pooling of design resources using open source principles.
Using wiki models or crowdsourcing approaches, for example, a social entrepreneur organization can get hundreds of people from across a country or from multiple countries to collaborate on joint online projects e. These websites help social entrepreneurs to disseminate their ideas to broader audiences, help with the formation and maintenance of networks of like-minded people and help to link up potential investors, donors or volunteers with the organization.
This enables social entrepreneurs to achieve their goals with little or no start-up capital and little or no " brick and mortar " facilities e.
Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. DOI: The aim of the paper is to develop a more nuanced and multilevel understanding of the social network arena in which the rural social entrepreneur operates. We introduce and empirically assess a conceptual framework for systematic investigation of rural social entrepreneurship that is informed by both social capital theory and place-based entrepreneurship literature and also suggest a methodology.
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What is social enterprise and how can it work in the rural context? This resource will explain the basics of social enterprise, including how it can work in the rural context, and the features of rural communities which help social enterprise to thrive.
Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs , in which they develop, fund and implement solutions to social, cultural, or environmental issues. 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.
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A starter kit for leaders of social change. The nascent field of social entrepreneurship is growing rapidly and attracting increased attention from many sectors.