Social Entrepreneurship in the Dominican Republic.

What is Social Entrepreneurship Stanford Social Innovation Review cites “Although the potential benefits offered by social entrepreneurship are clear to many of those promoting and funding these activities, the actual definition of what social entrepreneurs do to produce this order of magnitude return is less clear. In fact, we would argue that the definition of social entrepreneurship today is anything but clear. As a result, social entrepreneurship has become so inclusive that it now has an immense tent into which all manner of socially beneficial activities fit.” Social entrepreneurship is the use of the techniques by start up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues. This concept may be applied to a variety of organizations with different sizes, aims, and beliefs.

Entrepreneurship and Innovation Entrepreneurship is the means to recognize and detect an opportunity. Then how to apply good management practices to take advantage of the opportunity thru application of innovation. Innovation is the source that allows the entrepreneur to take advantage of the opportunity.   Not all innovation relates to something no one has ever done before.  It could be applying an existing approach(s) better than anyone else or applying a non traditional way of doing something. Systematic Entrepreneurship shifts economic resources out of an area of lower and into an area of higher productivity and greater yield,” ? J.B. Say, 1800

Why Innovation is more than a Bright Idea. Is entrepreneurship and innovation restricted to small startup businesses? Do entrepreneurs make more risky decisions than traditional decision makers? Is the French form of health care an Innovation?

What is an Entrepreneur? Joseph Schumpeter – “Entrepreneurs perform a creative destruction.” Old out - New in Entrepreneur is and agent of change Peter Drucker – Entrepreneurs are opportunists Supports that innovation follows a methodology

Sources of Innovative Opportunity Systematic innovation is monitoring seven sources for innovative opportunities. The first 4 sources lie within the enterprise 1.  The unexpected - unexpected success/failure, & unexpected outside event 2.  The incongruity- difference of actual reality and reality as it ought to be. 3.  Innovation based on the process need 4.  Changes in industry structure or market structure that catch everyone unaware. The next set involves changes outside of the enterprise 5.  Demographic changes 6.  Changes in perception, mood and meaning 7.  New knowledge, both scientific and non scientific

Source 1: The Unexpected The Unexpected Success The Unexpected Failure The Unexpected Outside Event

Source 2: Incongruities Incongruity: the difference between “what is” and “what ought to be” 1. Between the economic realities of an industry 2. Between the reality of an industry and the assumption about it. 3. Between the efforts of an industry and the values and expectations of its customers 4. Internal within the rhythm or the logic of a process

Source 3: Process Need Caveats? Focus is on improvement of existing processes A successful innovation requires 5 basic criteria 1.  A self-contained process 2. One weak or missing link 3. A clear definition of the objective 4. That the specifications of the solution can be defined clearly 5.  Widespread realization that there ought to be a better way Caveats?

Source 4: Industry and Market Structures If a change in the industry is significant then all must change or those who do not will lose. Market Structure Impacts Industry Structure Impacts Four indicators of structural change 1.  Rapid growth in the industry. 2.  The way the company perceives and services the industry is likely to have become inappropriate, typically when sales volume has doubled 3. The convergence of technology 4. The way it does business is changing rapidly.

Source 5: Demographics First four sources are primarily measured thru internal means. Remaining three sources are external. - Changes in social, philosophical, political and intellectual environment. Why do decision makers overlook changes in demographics? Based on historical assumptions Do not recognize the immediate impact, lots of time. Indicators are insufficient Is the demographics segmented correctly

Source 6: Changes in Perception How people perceive a statistic or result Though the statistic or result is increasing it may not be considered to be increasing sufficiently Desire to move up the socioeconomic scale. Half full vs Half Empty A Resource or customer changes their perception of themselves Changes in perception is the change in meaning towards a group

Source 7: New Knowledge Timing Convergences What knowledge-based innovation requires Careful analysis of what factors are necessary and what factors are not yet available and whether the missing factors can be attained. whether knowledge itself or social economic or perceptual factors. A clear focus on the strategic position. Develop a complete system Have a market focus. - identify or create the need. (don't sell the product) Occupy a strategic position, creation of a core competency Innovator needs to learn and practice entrepreneurial management. Risks Shakeout Receptive Gamble

Principles of Innovation: The Do’s Analysis of opportunities: sources of innovative opportunities review. Innovation is both conceptual and perceptual - Go out to look, to ask, to listen - Analyze the numbers This innovation should reflect why the user should want to use it and how it provides them an opportunity. Innovation, to successful, has to be simply and it has to be focused. - Complicated innovations leads people to not see how it helps them - It needs to be obvious in how to use it. Effective innovations start small Innovation should need little money, few people and small, limited market A successful innovation aims at being a leader in the market This could be a leader in a niche

Principles of Innovation: 3 Conditions Innovation is work Requires knowledge Requires ingenuity To succeed, innovators must build on their strengths Look at opportunities over a wide range Which of these opportunities fits me, my company, requires what we are good at Innovation is an effect in economy and society It is a change in customers, teachers, farmers, eye surgeons, etc Are Entrepreneurs Risk Takers?

Are Entrepreneurs and Social Entrepreneurs different Species? Do they have different focuses? Can the tools be used for both? Is the desire for profit the differing factor? If you make a profit are you not a Social Entrepreneur? Is the level of impact on the society as a whole? Utilitarianism? (John Stuart Mills, 1861) Is it based on initial intent or outcome?

What do you think?