Entrepreneurship Canadian Edition William D Entrepreneurship Canadian Edition William D. Bygrave, Andrew Zacharakis, Sean Wise

SOCIAL ENTREPRENEURSHIP Chapter 15

Learning Objectives The Rise in Social Entrepreneurship Learning Objective 15.1 Explain the rise in social entrepreneurship. Social Entrepreneurship Defined Learning Objective 15.2 Discuss the different definitions of social entrepreneurship. A Social Entrepreneurship Typology Learning Objective 15.3 Differentiate among the various social entrepreneurial ventures. Measuring Impact Learning Objective 15.4 Explain how social entrepreneurs measure their impact or outcomes.

Key Concepts Social entrepreneurship Social entrepreneurship vs entrepreneurship Social entrepreneurship vs CSR Social entrepreneurship vs charity Dees’ Defining Actions

What Is Social Entrepreneurship? Classical entrepreneurs seek financial gain Social entrepreneurs start with a social mission All Social Entrepreneurs are Entrepreneurs

Why Mission Matters

Non-Profit vs. For-Profit

Definition of Social Entrepreneurship To create or apply economically viable models to achieve social or environmental value or change Dees: “Social entrepreneurs play the role of change agents in the social sector” by engaging in certain actions: Social Entrepreneurship vs Corporate Social Responsibility (CSR)? Social Entrepreneurship vs Charities?

Gregory Dees’ Actions that Define Social Entrepreneurship Creating and sustaining social value Relentlessly pursuing new opportunities Acting without being limited by resources Exhibiting accountability

Taxonomy of Categories Imitative nonprofit organizations Innovative nonprofit organizations Hybrid nonprofit organizations For-profit organizations (Corporate social responsibility does not count)

Nonprofit Organizations Designated by Canada Revenue Agency Serve the social interest Examples: charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports, preventing animal cruelty

Imitative Nonprofits Promote social value as a nonprofit Are easily replicated without modification Examples: Churches, schools, scientific research centers, sporting clubs Typically introduced to a new geographic area

Innovative Nonprofits Introduce an element of innovation or change New Profit, founded by Vanessa Kirsch Inspired by venture capital model Provides funding and expertise to help scale social ventures E.g., Skoll Foundation, www.skollfoundation.org

For-Profits For-profit companies that achieve social value at least as great as economic value Muhammad Yunus’ social businesses, such as Grameen Bank, www.grameen.com Profits, after initial payback to investors, are reinvested into the social mission

New Organizational Models Schumpeter acknowledges that creating new forms of organization is an entrepreneurial act Cooperatives as a form of organization create both economic and social value Selecting the cooperative model is a social entrepreneurial act Kiva, www.kiva.org

Getting Started Identifying opportunities: Accidental Deliberate Forming an organization: Nonprofit For-profit

Getting Started Securing resources: Theory of change Logic model Evaluating results: Need for referent Formative, summative, and longitudinal options

Going to Scale Increasing the effect of the venture through expansion Not all ventures should be scaled Finding social entrepreneurs to replicate can be difficult

Case Study: G Adventures 1. What do you think Poon Tip used to maintain his delusional optimism—why did he keep fighting for this business instead of giving up? 2. If you were Poon Tip and your company had gone bankrupt and the market was evolving with new technologies and processes for booking flights, describe the thought process and market indicators you would use to evaluate whether to continue or exit the company. 3. If you were faced with disapproval and criticism from your company’s advisors and other industry professionals, what steps would you take to prove your vision could be successful?

Recap Until government and business meet social needs, there will be demand for social entrepreneurs Many have created systemic change Imitative and innovative entrepreneurs can be equally rewarded

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