What is Social Entrepreneurship?

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Transcript What is Social Entrepreneurship?

Manu Mayank
What is Social Entrepreneurship?
n. 1. Recognizing and resourcefully pursuing opportunities to create
social value
2. Crafting innovative approaches to addressing critical social
needs Social entrepreneurship is the process of recognizing and
resourcefully pursuing opportunities to create social value. Social
entrepreneurs are innovative, resourceful, and results oriented.
"What business entrepreneurs are to
the economy, social entrepreneurs
are to social change.”
-being a social entrepreneur is doing business with a conscience.
Manu Mayank
What solutions do we have today?
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Government – Alone is not the answer
[Inefficiencies, slow, bureaucratic, prone to corruption]
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Non Profit Orgs – Inadequate
Dependant on grants [uncertain, demand>supply]
“Compassion Fatigue”
Fundraising takes time & energy, which can be spent planning growth/expansion
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Multilateral Institutions like World bank – Ineffective
Conservative, slow, under-funded, unreliable
Success is measured by
(a) GDP [might not be helping poor]
(b) Volume of loans negotiated [not measuring impact]
Exclusively work with the government
•
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Corporate Social Responsibility – Fundamentally Flawed
“As long as it can be done without sacrificing PROFITS”
Manu Mayank
SE Quadrant
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Quadrant I: traditional NPO;
Foundations, trusts, charities;
dependant on grants. Birthplace of
modern SE
Quadrant II: Tipping point; forprofit; promise of economic
transformation
Quadrant III: Transient Org; market
driven but not profit oriented; defined
path towards solution of complex
social problems, but may not have a
defined path for growth
Quadrant IV: Conventional
Business; Profit oriented and market
driven; Socially responsible business
models
Manu Mayank
Forms of SEs
• Cooperatives: associations to meet common economic
and social needs through jointly owned enterprises
• Trusts: actors in community-based regeneration
• Social Firms: mainly focus on creating employment &
training for the disadvantaged
• Community Enterprises: strong geographical
definition with a focus on local markets & services
• Nonprofit Trading arms: enabling nonprofits to meet
their objectives in innovative ways, like fair trade
companies
• Credit Unions: providing access to finance
• New age SEs: For profit companies with a focus on
creating socio-economic and/or environmental benefits
Manu Mayank
Characteristics of SEs
• Enterprise Oriented: directly involved in
production of goods and services to a market
• Social Aims: explicit social aims such as job
creation, capacity building, provision of local
services, etc. Accountability towards social,
economic and environmental impacts
• Social Ownership: autonomous organizations
with a governance and ownership structure
based on participation by wide stakeholders.
Profits shared or used for the benefits of the
community
Manu Mayank
SEs Vs. Conventional Business
S.No
.
Parameters
1
Management
2
Marketing
3
Similarity
Difference
Requires similar mgmt. practices; SE
managers need to be skilled in more than
one mgmt function
BoD is structured differently and
usually includes non executive members
as well; lack of well defined roles for
managers [jack of all, master of few]
Like CBs, SEs too sell their products &
services in the market, and thus need to
develop good marketing skills
Community loyalty & trust helps SEs in
difficult times. Such loyalty and trust
does not substitute for providing good
products at good prices
Finance
Balance sheets looks similar in most of the
ways as any CB
Investment instruments are different.
Profits in full or parts may be used for
community benefits. Access to finance
is difficult.
4
Organizational
Structure
Operational structures are similar, with a
emphasis on teamwork
More focus on capacity building, team
work, and participatory structures
5
Legal
Framework
All the same regulatory frameworks, esp. for
a profit-oriented SE. Common regulatory
framework for SEs & CBs in countries like
USA, UK, Australia, etc.
Incorporation may be different, and
thus taxation.
Manu Mayank
Social Innovation & Enterprise
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Innovation is invariably a
cumulative, collaborative activity
in which ideas are shared, tested,
refined, developed and applied.
Social innovation applies this
thinking to social issues:
education and health, issues of
inequality and inclusion.
• Be You. Be New.
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Innovation rocks. Improvisation
doesn’t always suck.
More social entrepreneurs = more
social enterprises + well managed
growth of social enterprises =
more social impact
Manu Mayank
Cheap Imitations
Innovative Biz
Improvised Biz
Biz Ecosystem
Case Discussion
• Green Livelihoods, Hyderabad
[http://greenlivelihoods.org]
• Acumen Fund [http://acumenfund.org]
• Husk Power Systems
[http://huskpowersystems.com]
Manu Mayank
Lets plan our own SE
1. Lets list top 10 ideas
2. Discuss their merits/demerits
3. Select best 3 SMART ideas based on
feasibility, impacts, and sustainability
4. Lets VOTE to choose the winner idea!
5. SE Planning & Strategy: Next session 
Manu Mayank
Thank you for your enthusiasm
Connect me at:
Blog: http://manumayank.wordpress.com
Twitter: manumayank
E-mail: [email protected]
Manu Mayank