Lecture 6 Social Entrepreneurship

Social EntrepreneurshipSocial Entrepreneurship

Entrepreneurship & Small Firms: Lecture 6Entrepreneurship & Small Firms: Lecture 6

James CarrJames Carr

[email protected]@ed.ac.uk

Wednesday 25Wednesday 25thth February 2009 February 2009

Learning objectives and overviewLearning objectives and overview

To understand: To understand:

what social entrepreneurship is and what social what social entrepreneurship is and what social entrepreneurs doentrepreneurs do

key drivers of social entrepreneurshipkey drivers of social entrepreneurship

the complex challenges that social entrepreneurs the complex challenges that social entrepreneurs face and one social innovation model as a face and one social innovation model as a potential solution, illustrated through the use of a potential solution, illustrated through the use of a case example (REAL project, Inverness)case example (REAL project, Inverness)

Learning objectives and overviewLearning objectives and overview

To consider: To consider:

some critiques of social entrepreneurshipsome critiques of social entrepreneurship

some research implicationssome research implications

social entrepreneurship as a career optionsocial entrepreneurship as a career option

Course bookletCourse booklet

The growth of social enterprises. Small The growth of social enterprises. Small enterprises until recently were seen purely as enterprises until recently were seen purely as profit motivated organisations with an owner profit motivated organisations with an owner manager or owner managed team. It has been manager or owner managed team. It has been realised that realised that entrepreneurship can also be entrepreneurship can also be important in the public sector or non-profit charity important in the public sector or non-profit charity sectorsector. There are many small social enterprises . There are many small social enterprises emerging, encouraged by Government as emerging, encouraged by Government as a useful a useful complement to Government activities to improve complement to Government activities to improve social welfare and wellbeing.social welfare and wellbeing.

What is Social Entrepreneurship and What is Social Entrepreneurship and what do social entrepreneurs do?what do social entrepreneurs do?

In your groups In your groups discuss the discuss the examples of the examples of the Edinburgh-based Edinburgh-based social enterprises social enterprises you have discoveredyou have discovered

Some local examplesSome local examples Social Enterprise Edinburgh Social Enterprise Edinburgh http://www.go4see.info/

Social Entrepreneur Network Scotland (Senscot): Social Entrepreneur Network Scotland (Senscot): http://www.senscot.net

First Port: First Port: http://www.firstport.org.uk/

Forth Sector: Forth Sector: http://www.forthsector.org.uk/

Local People Leading: Local People Leading: http://www.localpeopleleading.co.uk/

Greener Leith: Greener Leith: http://www.greenerleith.org/

Some local examplesSome local examples

Melting Pot: Melting Pot: www.themeltingpotedinburgh.org.uk

Scottish Music Group: Scottish Music Group: http://www.scotsmusic.org/

Waste Innovations Portal: Waste Innovations Portal: http://www.wasteinnovations.com/portal.php

Real Education Active Lives (REAL):Real Education Active Lives (REAL): http://www.glinet.org/inspiredetail.asp?id=2887&CatID=321

Social entrepreneurship videosSocial entrepreneurship videos

http://video.google.co.uk/videoplay?http://video.google.co.uk/videoplay?docid=3436222252046327&hl=en docid=3436222252046327&hl=en

http://www.youtube.com/watch?v=wu_K9TBiMVQ

More examples of Social EntrepreneursMore examples of Social Entrepreneurs

Not new – many historical Not new – many historical examples of people who have examples of people who have acted to change economic and acted to change economic and social systems dramticallysocial systems dramtically

Also many modern examples:Also many modern examples:www.pbs.org/opb/thenewheroes/meet


Muhammed YunusMuhammed Yunus::Project: Grameen Bank (‘village’ Project: Grameen Bank (‘village’ bank: micro credit system)bank: micro credit system)Location: BangladeshLocation: Bangladesh

Dr. Govindappa Venkataswamy Dr. Govindappa Venkataswamy ("Dr. V.") & David Green("Dr. V.") & David Green Project: Aravind Eye Hospital Project: Aravind Eye Hospital and Aurolaband AurolabLocation: Madurai, India, Nepal Location: Madurai, India, Nepal and United Statesand United States


Dina Abdel Wahab:Dina Abdel Wahab:

Project: The Baby Academy Project: The Baby Academy (Early Childhood Education)(Early Childhood Education)

Location: Cairo, EgyptLocation: Cairo, Egypt

Albina Ruiz:Albina Ruiz:

Project: Ciudad Saludable Project: Ciudad Saludable (Community waste collection)(Community waste collection)

Location: PeruLocation: Peru

International organisational examples: International organisational examples: AshokaAshoka

http://www.ashoka.org/

Ashoka is the global association of Ashoka is the global association of the world’s leading social the world’s leading social entrepreneurs—entrepreneurs—men and women with men and women with system changing solutions for the system changing solutions for the world’s most urgent social problems world’s most urgent social problems

Since 1981, Ashoka has elected over Since 1981, Ashoka has elected over 1,800 leading social entrepreneurs as 1,800 leading social entrepreneurs as Ashoka FellowsAshoka Fellows, providing them with , providing them with living stipends, professional support, living stipends, professional support, and access to a global network of peers and access to a global network of peers in more than 60 countriesin more than 60 countries

International organisational examples: International organisational examples: Social Enterprise World ForumSocial Enterprise World Forum

Aim: ‘to advance social enterprise development throughout the world’

Delivered in Sept. 2008 in partnership with: The Scottish Government The Social Enterprise Alliance (USA), Highlands and

Islands Enterprise Social Ventures Australia Scottish Enterprise The Social Enterprise Coalition Office of the Third Sector (UK) Enterprising Non-Profits (Canada) Department for International Development, Social

Investment Scotland

http://www.ceis.org.uk/index.php?render&p=42

International organisational examples: International organisational examples: Net ImpactNet Impact

Net Impact is a global network of leaders who are changing the world through business

http://www.netimpact.org/

What is social entrepreneurship and What is social entrepreneurship and what do social entrepreneurs do?what do social entrepreneurs do?

Entrepreneurship is usually discussed in a business Entrepreneurship is usually discussed in a business contextcontext

Creative pursuit of private profit and gain underpins Creative pursuit of private profit and gain underpins entrepreneurshipentrepreneurship

Since early 1990s there has been recognition that Since early 1990s there has been recognition that entrepreneurs can operate for non private gainentrepreneurs can operate for non private gain

Such individuals are called Such individuals are called social entrepreneurs social entrepreneurs and and what they practice is calledwhat they practice is called social entrepreneurship social entrepreneurship


Not just philanthropy / good works / basic altruismNot just philanthropy / good works / basic altruism

Mobilisation of Mobilisation of sound entrepreneurial principlessound entrepreneurial principles

Targeted at making Targeted at making long-term sustainable changelong-term sustainable change

Double or triple bottom line objectivesDouble or triple bottom line objectives

(Carter & Jones-Evans, 2000)


Usual problems of definition ....Usual problems of definition ....

……there are many definitions of:there are many definitions of:- social entrepreneurshipsocial entrepreneurshipsocial entrepreneurssocial entrepreneurssocial enterprisessocial enterprises


‘‘Social entrepreneurs Social entrepreneurs are not content to just are not content to just give a fish or teach give a fish or teach how to fish. They will how to fish. They will not rest until they have not rest until they have revolutionised the revolutionised the fishing industry.’fishing industry.’

Bill Drayton, CEO, Chair Bill Drayton, CEO, Chair and founder of Ashokaand founder of Ashoka


‘‘Social entrepreneurs identify Social entrepreneurs identify resources where people only resources where people only see problemssee problems. They . They view the view the villagers as the solutionvillagers as the solution, not , not the passive beneficiary. They the passive beneficiary. They begin with the assumption of begin with the assumption of competence and unleash competence and unleash resources in the resources in the communitiescommunities they're they're servingserving.’.’

David Bornstein, author of David Bornstein, author of How to Change the World: How to Change the World: Social Entrepreneurs and the Social Entrepreneurs and the Power of New IdeasPower of New Ideas


“Social entrepreneurship is the process of recognizing and resourcefully pursuing opportunities to create social value. Social entrepreneurs are innovative, resourceful, and results oriented. They draw upon the best thinking in both the business and non-profit worlds to develop strategies that maximize their social impact.

These entrepreneurial leaders operate in all kinds of organizations: large and small; new and old; religious and secular; non-profit, for-profit, and hybrid. These organizations comprise the ‘social sector’. ”

http://www.fuqua.duke.edu/centers/case/about/whatissocialentrepreneurship/


“Social entrepreneurs are unreasonable people. They are the mavericks who refuse to accept the status quo. They look at the world, are dissatisfied with what they see, and resolve to change it. They are both dreamers and doers; imagining a brighter future and setting about making that dream into a reality. They are true entrepreneurs; innovators who are passionate and resourceful, who are prepared to take risks and who apply their energy, drive and ambition to effecting social change in Ireland.”

http://www.socialentrepreneurs.ie/pages/social-entrepreneurs.php


““A social entrepreneur identifies and solves A social entrepreneur identifies and solves social problems on a large scalesocial problems on a large scale. Just as . Just as business entrepreneurs create and transform business entrepreneurs create and transform whole industries, social entrepreneurs act as the whole industries, social entrepreneurs act as the change agents for societychange agents for society, seizing opportunities , seizing opportunities others miss in order to improve systems, invent others miss in order to improve systems, invent and disseminate new approaches and advance and disseminate new approaches and advance sustainable solutionssustainable solutions that create that create social value.”social value.”

http://www.pbs.org/opb/thenewheroes/whatis/

DRIVERS OF SOCIAL DRIVERS OF SOCIAL ENTREPRENEURSHIPENTREPRENEURSHIP

Key social entrepreneurship driversKey social entrepreneurship drivers Social issuesSocial issues inadequately addressed by inadequately addressed by

governmentgovernment

Need to raiseNeed to raise funds for charities funds for charities

Changing public sectorChanging public sector- budget cuts require new revenue streamsbudget cuts require new revenue streams- change rather than good stewardship leads to change rather than good stewardship leads to

promotionpromotion

Growing demand for Growing demand for corporate social corporate social responsibilityresponsibility and and ethical entrepreneurshipethical entrepreneurship

SOCIAL ENTERPRENEURSHIP SOCIAL ENTERPRENEURSHIP CHALLENGESCHALLENGES

Case Example: REAL project Case Example: REAL project

Real Education Active Real Education Active LivesLives (REAL) (REAL)

Inverness High SchoolInverness High School

Real FoodReal Food

REAL PlaceREAL Place: : multi-purpose multi-purpose communitycommunity building with a focus on building with a focus on developing employment developing employment and life skills for young and life skills for young peoplepeople

REAL CommunityREAL Community

Case Example: REALCase Example: REALKey challengesKey challenges

strong encouragement of pupil, parent and wider strong encouragement of pupil, parent and wider community community ownershipownership

ongoing development and strengthening of REAL's position ongoing development and strengthening of REAL's position as an as an innovative organisationinnovative organisation within an innovative school that within an innovative school that can provide effective outreach to the wider communitycan provide effective outreach to the wider community

the formation of the formation of rich networksrich networks and strategic partnerships and strategic partnerships

strategic leadershipstrategic leadership, direction and deployment, direction and deployment

the further development and launch of an effective the further development and launch of an effective marketing marketing & communication strategy& communication strategy

A model for managing innovationA model for managing innovation(Bessant & Tidd, 2007, p.20)(Bessant & Tidd, 2007, p.20)

Social enterprise challengesSocial enterprise challenges(Bessant & Tidd, 2007)(Bessant & Tidd, 2007)

Search for opportunitiesSearch for opportunities Strategic selectionStrategic selection ImplementationImplementation Innovation strategyInnovation strategy Innovative organisationInnovative organisation Rich linkagesRich linkages

““How to” guide for Social EntrepreneursHow to” guide for Social Entrepreneurs (Bessant & Tidd, 2007) (Bessant & Tidd, 2007)

Spot a Spot a gap in the marketgap in the market and try to fill it and try to fill it

Be clearBe clear why you want to do it why you want to do it

Develop Develop networking abilitiesnetworking abilities


Be good at Be good at spotting and reusing resourcesspotting and reusing resources that are underused or abandoned (e.g. that are underused or abandoned (e.g. buildings and open spaces)buildings and open spaces)

Make mistakes and learn from themMake mistakes and learn from them

Manage the cash flowManage the cash flow


Use Use ‘viral’ marketing‘viral’ marketing i.e. word of mouth via the i.e. word of mouth via the Internet and mobile technologiesInternet and mobile technologies

Identify your Identify your skill needsskill needs and and map your existing and map your existing and required networkrequired network::

- ManagementManagement- FinancialFinancial- Sales and marketingSales and marketing- ProductionProduction- DistributionDistribution- Service Service

Get an Get an expertexpert to review your plan to review your plan

CRITIQUES OF SOCIAL CRITIQUES OF SOCIAL ENTREPRENEURSHIPENTREPRENEURSHIP

Critiques of social entrepreneurshipCritiques of social entrepreneurship

The idea of people spotting and pursuing opportunities The idea of people spotting and pursuing opportunities within public and social contexts, and making a significant within public and social contexts, and making a significant impact on society, is a powerful one, but impact on society, is a powerful one, but how useful is it?how useful is it?

AlmostAlmost any form of human achievementany form of human achievement could be labelled could be labelled as as social entrepreneurshipsocial entrepreneurship

Social entrepreneurship and Social entrepreneurship and social engineeringsocial engineering are closely are closely related?related?

Sinister motivesSinister motives can underlie apparent philanthropy can underlie apparent philanthropy

(Professor Peter Rosa lecture notes, The University of (Professor Peter Rosa lecture notes, The University of Edinburgh, 2008)Edinburgh, 2008)

Critiques of social entrepreneurshipCritiques of social entrepreneurship Inherent tensionsInherent tensions within the social entrepreneurship within the social entrepreneurship

model:model:

- Social entrepreneur as hero can ignore vital community Social entrepreneur as hero can ignore vital community involvementinvolvement

- Depoliticalisation of social problemsDepoliticalisation of social problems – effective social – effective social entrepreneurs can let governments ‘off the hook’entrepreneurs can let governments ‘off the hook’

- ‘‘Selling out’Selling out’ if social action = business processes if social action = business processes

- Constant strategic focus on innovation and change can lead to Constant strategic focus on innovation and change can lead to overvaluation of potentially short-term objectivesovervaluation of potentially short-term objectives

- Tendency to seek high-impact interventions can lead to Tendency to seek high-impact interventions can lead to unsustainable project-based approachunsustainable project-based approach

(Carter & Jones-Evans, 2006)(Carter & Jones-Evans, 2006)

SOME RESEARCH SOME RESEARCH IMPLICATIONSIMPLICATIONS

Some research implicationsSome research implications New organisational modelsNew organisational models and ways of working are and ways of working are

developing developing

Thus, potential contribution of social entrepreneurship to Thus, potential contribution of social entrepreneurship to organizational theory and practiceorganizational theory and practice

Scope for interdisciplinary researchScope for interdisciplinary research e.g. e.g. Entrepreneurship, Innovation, Community Development, Entrepreneurship, Innovation, Community Development, Urban and Rural Regeneration, Regional Development, Urban and Rural Regeneration, Regional Development, Leadership, Change Management etc.Leadership, Change Management etc.

Future career path?Future career path?

Future career path?Future career path?

“The idea of social entrepreneurship has struck a responsive chord. It is a phrase well suited to our times. It combines the passion of a social mission with an image of business-like discipline, innovation, and determination commonly associated with, for instance, the high-tech pioneers of Silicon Valley. The time is certainly ripe for entrepreneurial approaches to social problems. Many governmental and philanthropic efforts have fallen far short of our expectations. Major social sector institutions are often viewed as inefficient, ineffective, and unresponsive. Social entrepreneurs are needed to develop new models for a new century.”http://www.fuqua.duke.edu/centers/case/about/whatissocialentrepreneurship/

SUMMARYSUMMARY

SummarySummary Social entrepreneurship =Social entrepreneurship =

- New paradigm of social value creationNew paradigm of social value creation- Reflects a Reflects a dynamic revolutiondynamic revolution in the social sector in the social sector

and its importance is being increasingly recognised and its importance is being increasingly recognised in the corporate sectorin the corporate sector

‘‘Social entrepreneurs’ Social entrepreneurs’ recognise social recognise social problemsproblems andand use traditional entrepreneurial use traditional entrepreneurial principlesprinciples

Complex challenges Complex challenges e.g. triple bottom line e.g. triple bottom line objectivesobjectives

SummarySummary

Requires learning and absorbing a Requires learning and absorbing a new new set of skills for managing innovationset of skills for managing innovation along along with current management thinking:with current management thinking:- Identify and engage a wide range of Identify and engage a wide range of

stakeholdersstakeholders- Understand and meet their very diverse Understand and meet their very diverse

expectationsexpectations- Mobilise resources across networksMobilise resources across networks- Build coalition of support for socially valuable Build coalition of support for socially valuable

ideasideas

SummarySummary Various critiques of social entrepreneurship Various critiques of social entrepreneurship

Nevertheless, social entrepreneurship appears Nevertheless, social entrepreneurship appears to be pioneering to be pioneering extraordinary changes in the extraordinary changes in the social fabric of many communities worldwidesocial fabric of many communities worldwide

Generates benefitsGenerates benefits through the creation of through the creation of - social capitalsocial capital- improved and more improved and more efficient provision of public goodsefficient provision of public goods- Establishment of Establishment of new ‘hybrid’ business formsnew ‘hybrid’ business forms

ReadingReading

Key ReadingKey Reading

Bessant, J. and Tidd, J. (2007) Bessant, J. and Tidd, J. (2007) Innovation Innovation and Entrepreneurshipand Entrepreneurship, , Chapter 9Chapter 9, Wiley, Wiley

Carter, S. and Jones-Evans, D. (2006) Carter, S. and Jones-Evans, D. (2006) Enterprise and Small Business: PrinciplesEnterprise and Small Business: Principles, , Practice and Policy, 2Practice and Policy, 2ndnd edition, edition, Chapter Chapter 1212, FT Prentice Hall , FT Prentice Hall

Further readingFurther reading Andresen, K. (2006) Robin Hood Marketing: Stealing Corporate Andresen, K. (2006) Robin Hood Marketing: Stealing Corporate

Savvy to Sell Just Causes, Jossey-BassSavvy to Sell Just Causes, Jossey-Bass

Bornstein, D. (2004) Bornstein, D. (2004) How to Change the World: Social Entrepreneurs How to Change the World: Social Entrepreneurs and the Power of New Ideasand the Power of New Ideas. Oxford University Press. Oxford University Press

DH (2006) Welcoming social enterprise into health and social care – a DH (2006) Welcoming social enterprise into health and social care – a resource pack for social enterprise providers and commissionersresource pack for social enterprise providers and commissioners

http://www.library.nhs.uk/healthmanagement/ViewResource.aspx?resID=236145&tabID=290&catID=4031

Mair, J., Robinson, J. & Hockerts, K. (eds.) (2006) Mair, J., Robinson, J. & Hockerts, K. (eds.) (2006) Social Social Entrepreneurship,Entrepreneurship, Palgrave Palgrave

McLaughlin, K. McLaughlin, K. et al. et al. (eds.) (2006) (eds.) (2006) New Public ManagementNew Public Management, , RoutledgeRoutledge

Further readingFurther reading

Sachs, J. (2005) Sachs, J. (2005) The End of Poverty: How we can make it happen The End of Poverty: How we can make it happen in our lifetimein our lifetime. Penguin. Penguin

Schumacher, E.F. (1993) Schumacher, E.F. (1993) Small is BeautifulSmall is Beautiful, Vintage, Vintage

Schumpeter, J. (1950) Schumpeter, J. (1950) Capitalism, Socialism and DemocracyCapitalism, Socialism and Democracy. . Harper & Row, New YorkHarper & Row, New York

Sirolli, E. (2006) Sirolli, E. (2006) Ripples from the ZambeziRipples from the Zambezi, New Society Publishers, New Society Publishers

Thake, S. (1995) Thake, S. (1995) Staying the Course: The Role and Structures of Staying the Course: The Role and Structures of Community Regeneration OrganisationsCommunity Regeneration Organisations, Joseph Rowntree , Joseph Rowntree Foundation, YorkFoundation, York

Thompson & Doherty (2006) The diverse world of social enterprise: Thompson & Doherty (2006) The diverse world of social enterprise: A collection of social enterprise stories, A collection of social enterprise stories, International Journal of International Journal of Social EconomicsSocial Economics, 33(5/6):361-375, 33(5/6):361-375

Online resources Online resources Centre for Social Innovation: Centre for Social Innovation: http://socialinnovation.ca/ Community Action Network: Community Action Network: www.can-online.org.uk/ Dublin City Enterprise Board: Dublin City Enterprise Board:

http://www.dceb.ie/knowledge-centre/general-business-issues/entrepreneurship-&-not-for-profit

How to change the world: How to change the world: www.howtochangetheworld.org Grameen Bank: Grameen Bank: www.grameen-info.org Harvard University Social Enterprise Initiative: Harvard University Social Enterprise Initiative: http://www.hbs.edu/socialenterprise/ Institute for Social Entrepreneurs: Institute for Social Entrepreneurs: www.socialent.org Net Impact: http://www.netimpact.org/ Net Impact: http://www.netimpact.org/ REAL: http://real-ihs.blogspot.com/ REAL: http://real-ihs.blogspot.com/ Rural Social Enterprise: Rural Social Enterprise:

http://www.socialenterprisemag.co.uk/upload/documents/document11.pdf http://www.socialenterprisemag.co.uk/upload/documents/document11.pdf Said Business School Skoll Centre for Social Entrepreneurship: Said Business School Skoll Centre for Social Entrepreneurship:

http://www.sbs.ox.ac.uk/skoll/ http://www.sbs.ox.ac.uk/skoll/ School for Social Entrepreneurs: http://www.sse.org.uk/ School for Social Entrepreneurs: http://www.sse.org.uk/ Skoll Fountation: www.skollfoundation.comSkoll Fountation: www.skollfoundation.com Social Enterprise Coalition: www.socialenterprise.org.uk Social Enterprise Coalition: www.socialenterprise.org.uk

Online resources Online resources Social Entrepreneurs Ireland: http://www.socialentrepreneurs.ie Social Entrepreneurs Ireland: http://www.socialentrepreneurs.ie Social Enterprise Magazine: http://www.socialenterprisemag.co.ukSocial Enterprise Magazine: http://www.socialenterprisemag.co.uk Social Enterprise Magazine (2008) Corporate leaders make waves with social Social Enterprise Magazine (2008) Corporate leaders make waves with social

entrepreneurs. Retrieved November 2008 from: entrepreneurs. Retrieved November 2008 from: http://www.socialenterprisemag.co.uk/sem/news/detail/index.asp?id=697 http://www.socialenterprisemag.co.uk/sem/news/detail/index.asp?id=697

Social Entrepreneur Network Scotland (Senscot): http://www.senscot.netSocial Entrepreneur Network Scotland (Senscot): http://www.senscot.net Stanford University Centre for Social Innovation: http://www.gsb.stanford.edu/csi/ Stanford University Centre for Social Innovation: http://www.gsb.stanford.edu/csi/ Stanford University’s Entrepreneurs website: http://edcorner.stanford.eduStanford University’s Entrepreneurs website: http://edcorner.stanford.edu Stanford Social Innovation Review: www.ssireview.org/ Stanford Social Innovation Review: www.ssireview.org/ Stanford University’s Entrepreneurs website: http://edcorner.stanford.edu (has Stanford University’s Entrepreneurs website: http://edcorner.stanford.edu (has

video links of social entrepreneurs discussing their projects)video links of social entrepreneurs discussing their projects) Times Online article: Times Online article:

http://business.timesonline.co.uk/tol/business/related_reports/social_entrepreneuhttp://business.timesonline.co.uk/tol/business/related_reports/social_entrepreneurs/rs/

The New Heroes: http://www.pbs.org/opb/thenewheroesThe New Heroes: http://www.pbs.org/opb/thenewheroes The Trinity College Dublin Centre for Nonprofit Management: The Trinity College Dublin Centre for Nonprofit Management:

http://www.cnm.tcd.ie/ http://www.cnm.tcd.ie/ UnLtd: http://www.unltd.org.uk/ UnLtd: http://www.unltd.org.uk/ Wind up radio: www.freeplayenergy.comWind up radio: www.freeplayenergy.com

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