DISCOVERING AND CREATING SOCIAL ENTREPRENEURIAL OPPORTUNITIES by Dr Umar Haiyat Abdul Kohar

Session Objectives   At the end of the session, the students should be able to:   l  identify, evaluate and select a viable social business idea and opportunity l  undertake a preliminary study before preparing a social enterprise business plan  

What is a Business Opportunity?

BUSINESS IDEA AND OPPORTUNITY   A business idea starts with an opportunity. A business opportunity exists when there is demand for goods and services to meet the needs and wants of community

Definition of Social Entrepreneurial Opportunity A feasible situation that exploits market inefficiencies, and provides an innovative product or service that creates social values in less-than-saturated market. Clarkin, Deardufff and Gallagher (2012) A market opportunity that, when exploited, will allow the entrepreneurs to create enhance social value. Monllor (2010)

7 Types of Innovative Opportunities in Social Entrepreneurship Creating a new or improved product, service and program Introducing a new or improved strategy or methods of operating Reaching new market, serving an unmet need Tapping into a new source of supply or labor Establishing a new industrial or organizational structure Framing new terms of engagement Developing new funding structures

How are Social Entrepreneurial Opportunities Different ? Focus More on creating social values rather than making profit Context Deeping embedded in the local context The nature, depth, and extent of an individual’s ties to the environment Stakeholders Involves a wider array of stakeholders than that of a commercial entrepreneurial opportunity

The Opportunity Recognition Process Phase 1 : Idea Generation Pattern Recognition Social Needs Social Assets Phase 2: Opportunity Assessment Pervasiveness Relevance Urgency Accessibility Radicalness Phase 3: Selection and Implementation

Idea Generation: Social Needs The gaps between socially desirable conditions and the existing reality Changes in social needs can open up new possibilities and inspire the development of promising new ideas

Idea Generation: Social Assets A good understanding of the scope and level of tangible and intangible assets in a community The key to develop promising ideas that aim at addressing social needs

Idea Generation: Pattern Recognition The cognitive process through which individuals identify meaningful patterns in complex arrays of events and trends. The factors that contribute to pattern recognition: Active information search Alertness Prior experience Social Networks

Pattern Recognition: Prior Experience – Story of Anne Mahlum

Sources of Opportunities Technological Change Public Policy Changes Changes in Public Opinion Changes in Tastes Social and Demographic Changes

Changes in Public Opinion Witness, a New York City-based social venture dedicated to filming human right abuses around the world.

Phase 2: Opportunity Assessment In this phase, entrepreneur evaluates benefits and costs of exploiting the opportunity and decides whether or not to pursue it. Screen recognised opportunities to judge their attractiveness for exploitation.

Three Key Dimensions of Opportunity Assessment Social Value Potential – Does it have strategic alignment, achievable outcomes, partnership and/ or alliance, and organizational benefits? Market Potential – Does it tap user need and desire, generate funder interest, and have the ability to capture market share? Sustainability Potential – Can the idea be developed and implemented to have more benefits than costs, as well as adequate income potential, organization capacity, and funder interest?

5 Criteria for Assessing Opportunities in SE Pervasiveness – the social need that the opportunity aims to address is widely prevalent and important Relevance- the match between the opportunity’s salience to entrepreneurs and his/her surrounding and resources Urgency- An unpredictable event generates a sense of urgency Accessibility – the level of perceived difficulty in addressing a social need Radicalness- a major innovation and social innovation is necessary to address particular problem.