Chapter 2 The Core of Social Entrepreneurship Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Objectives To understand concept of social entrepreneur and its growing importance To develop comprehensive understanding of social entrepreneur and social entrepreneurship To understanding motivation & vision of social entrepreneur Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Introduction Doing a business and contributing to a social cause simultaneously is a real win-win situation for all stakeholders. The significant differentiation point of social entrepreneurs is their relatively high social conscience. Social entrepreneurs look at any social problem as a challenge and opportunity to serve a social cause. Money is not a bigger motivation than getting to address a social need. Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Different Views on Social Entrepreneur Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems. (Ashoka) A person who pursues an innovative idea with the potential to solve a community problem. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives.( Adam Smith) Social entrepreneur is a leader or pragmatic visionary who: Achieves large scale, systemic and sustainable social change through a new invention, a different approach, a more rigorous application of known technologies or strategies, or a combination of these. ( Schwab Foundation) Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Ten Characteristic of Social Entrepreneur 1.Try to shrug off the constraints of ideology or discipline. 2.Identify and apply practical solutions to problems, combining innovation, resourcefulness and opportunity. 3.Innovate by finding a new product, service or approach to a social problem. 4.Focus first and foremost on social value creation and, in that spirit, are willing to share their innovations and insights for others to replicate. 5.Jump in before ensuring that they are fully resourced. Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Ten Characteristic of Social Entrepreneur 6.Have an unwavering belief in everyone's innate capacity, often regardless of education, to contribute meaningfully to economic and social development. 7.Show a dogged determination that pushes them to take risks that others wouldn't dare. 8.Balance their passion for change with the zeal to measure and monitor impact. 9.Have a great deal to teach change-makers in other sectors. 10.Display a healthy impatience. Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Social Entrepreneurship Is about applying practical, innovative and sustainable approaches to benefit society in general, with an emphasis on those who are marginalized and poor. A term that captures a unique approach to economic and social problems, an approach that cuts across sectors and disciplines grounded in certain values and processes that are common to each social entrepreneur, independent of whether his/ her area of focus has been education, health, welfare reform, human rights, workers' rights, environment, economic development, agriculture, etc., or whether the organizations they set up are non-profit or for-profit entities. Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Social Entrepreneurship It is this approach that sets the social entrepreneur apart from the rest of the crowd of well-meaning people and organizations who dedicate their lives to social improvement. Definition of social entrepreneurship should reflect the need for a substitute for the market discipline that works for business entrepreneurs. Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Charity Vs. Social Entrepreneurship CriteriaCharitySocial Entrepreneurship Role of Social Value Creation To redistribute income from the haves to the have-nots To be a change agent through innovative mutually beneficial exchanges and create social values Social Structure Works within given structures in society social entrepreneurship creates opportunities and enables social structural change Purposethe purpose of charity is to alleviate immediate suffering rather than deep social change social entrepreneurship’s purpose is to improve social conditions Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Charity Vs. Social Entrepreneurship CriteriaCharitySocial Entrepreneurship Financing Primary source of finance is donation A self-sufficient working business model Sustainability Sustainability depends on funding by donors entrepreneurship is sustainable as it uses a self-sufficient business model Time Framecharity is designed to relieve immediate distress, the response is quick and the impact is short lived social entrepreneurship can be short-lived or run for decades just like any enterprise Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Need of Social Entrepreneurship in India It’s beyond reach of Indian government to bring upon positive sustainable change in lives of these many citizens with limited financial and human resources at disposal. The main players namely government and NGOs who can contribute significantly towards social causes have not performed up to expectations.. Social entrepreneurship can be useful to balance economic growth as well well-being of down trodden of society. The CSR bill proposed by the government where 2 per cent of profits for big companies will be used for social programmes that includes investment in social business ventures. Government subsidies and charity initiatives are not sustainable in long run, but social enterprises are. Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Motivation for Social Entrepreneur 1. More than good intentions 2. Look outward, not inward, for motivation 3. Efficient compassion is the best kind 4. Listening to voices other than your own 5. Beware of branding at someone else’s expense Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Motivation for Social Entrepreneur 6. Bottom-up solutions, not top-down 7. Results matter, not mission or programs 8. There’s plenty of room for genuinely new ideas 9. Drawing the line between good and evil 10. Government’s Imperative towards Social Cause Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship

Summary Social entrepreneurship means different things to different people. Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems Social entrepreneurs are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change. Charity & social entrepreneurship differs significantly in its processes and goals. Country like India requires growth of social entrepreneurship as limited natural and financial resources in the country capitalism cannot be the answer of all sorts of problems. Government subsidies and charity initiatives are not sustainable in long run, but social enterprises are. Social entrepreneur’s motivation goes beyond philanthropy and leans towards innovation and meeting challenges. Social Entrepreneurship Chapter 2: The Core of Social Entrepreneurship