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CHAPTER 1
INTRODUCTION TO
SOCIAL
ENTREPRENEURSHI
P
Dr Anis Amira Ab Rahman 2015
What make you a (social) entrepreneur?
Dr Anis Amira Ab Rahman 2015
ORIGIN
STARTEDBY ASHOKA,FOUNDED IN 1980 BY
BILLDRAYTON
Dr Anis Amira Ab Rahman 2015
Entrepreneurs…
… are motivated
Dr Anis Amira Ab Rahman 2015
Entrepreneurs…
… are innovative
Dr Anis Amira Ab Rahman 2015
Entrepreneurs…
… are resourceful
Dr Anis Amira Ab Rahman 2015
Entrepreneurs…
… take chances
Dr Anis Amira Ab Rahman 2015
Then,
what is actually social
entrepreneurship?
Dr Anis Amira Ab Rahman 2015
How is social entrepreneurship different?
Dr Anis Amira Ab Rahman 2015
But,
Motivation are different
Dr Anis Amira Ab Rahman 2015
But,
Innovation is different
Dr Anis Amira Ab Rahman 2015
But,
Resourcefulness is different
Dr Anis Amira Ab Rahman 2015
But,
Risk taking is different
“The reasonable man adapts himself to his environment. The
unreasonable one persists in trying to adapt his environment
to himself. Therefore, all progress depends on the
unreasonable man (and woman)”
- George Bernard Shaw
Dr Anis Amira Ab Rahman 2015
Other Differences
Focus on “systems thinking”
and “system change”
Seek “profit” in traditionality
unprofitable pursuits
Possess a strong “ethical
impetus”
“social entrepreneurs are not content just to give a fish or how to
teach fish. They will not rest until they have revolutionized the fishing
industry”
-Bill Drayton
“ (social entrepreneurs) work in area where there is partial or total
market failure..what distinguishes them is that are prepared to strike
a very different balance when it comes to creating value for those
who would not normally be able to afford it”
-John Bkington
David Bornstein : “why do you work on the kinds of projects you
do? Why don’t you just want to make a lot of money?”
Fabia Rosa : “I am trying to build a little part of the world in which I
would like to live. A project only makes sense to me when it proves
useful to make people happier and the environment more
respected, and when it represents a hope for a better future. This is
the soul of my projects.”
Dr Anis Amira Ab Rahman 2015
Some Definitions
“ social entrepreneurs identify resources where people only se
problems. They view the villagers as the solution, not the
passive beneficiary. They begin with the assumption of
competence and unleash resources in the communities they
are serving”
- David Bornstein
“ A social entrepreneur is someone who recognizes a social
problems and uses entrepreneurial principles to organize,
create and manage a venture to make social change”
- Wikipedia
Dr Anis Amira Ab Rahman 2015
Social Entrepreneurship
“ Any creative and innovative solution
applied to solve social problems”
(Mohammad Yunus, 2007)
 it involves social mission
 profit and/or entrepreneurial processes
Dr Anis Amira Ab Rahman 2015
Social Activist
Dr Anis Amira Ab Rahman 2015
Social Activist
An eye for an eye only
ends up making the
whole world blind.
Dr Anis Amira Ab Rahman 2015
Its not Charity
 giving disadvantaged people chances
 finding innovative ways to market and sell
products in a competitive manner
 being profitable and sustainable
 being accountability to constituencies served
Dr Anis Amira Ab Rahman 2015
Key Ingredients of a Social Entrepreneur
Social Activist Business Pioneer Social Entrepreneur
Dr Anis Amira Ab Rahman 2015
From NGO, social business to PMB
NGO
(non-
profit)
NGO
(for-profit)
Social
enterprise
Social
business
Business
enterprise
CSR
Profit
maximizatio
n business
(PMB)
Business
enterprise
Dr Anis Amira Ab Rahman 2015
What is social enterprise?
 organizations (non-profit or for-profit) that
imbed both social purpose and business purpose
into their organization
 returns are both Social (i,.e. impact) & financial
(i.e. profit)
 key distinguishing factor : how deep social &
business purpose is imbedded
Dr Anis Amira Ab Rahman 2015
Components of business
A goal
A product/service
A transaction
A legal form
Dr Anis Amira Ab Rahman 2015
Social Enterprise has…
Dr Anis Amira Ab Rahman 2015
The SE Product / Service
But…
“social benefit” is added somewhere on the
value chain
It’s still…
Dr Anis Amira Ab Rahman 2015
What is Social Benefits?
 for our purpose, social benefit may arise when one
attempts to overcome an injustice or inequity in society
that market, on its own, cannot respond to
~ e.g. creating employment opportunities that may not
otherwise be employable in the marketplace
 a similar concept – “environmental benefit”
Dr Anis Amira Ab Rahman 2015
The SE Transaction
Traditional Business Social Enterprise
customers customers
clients
Dr Anis Amira Ab Rahman 2015
The SE Goal – Social vs. Financial
Purpose
Social Purpose
~ creating a “social return” by making positive change within an inequitable
social system
examples : reduced poverty, improved literacy
Financial Purpose
~ creating a “financial return”, usually through the sale of products/service
in the marketplace
Blended Purpose
~ effecting social change by combining social and financial return
~ also called “Blended Value”
Dr Anis Amira Ab Rahman 2015
The Legal Form
 no clearly defined legal form for social enterprise in
Canada
 “form follows function”
Dr Anis Amira Ab Rahman 2015
What does this mean?
Social Enterprise CSR
Social Enterprise Complexity
Dr Anis Amira Ab Rahman 2015
What Se is and is Not
Social Enterprise is Not… Social Enterprise is…
 a fundraising strategy (i.e. a “give”
mentality)
 a business line (i.e. a “sale” mentality)
 solely focused on either “customers” or
“clients”
 focused on either “customers” or
“clients”
 dependent on restricted funds for
operations (i.e. not sustainable)
 sustainable (ideally “self-sufficient”)
 an event or one-off activity (i.e.
conferences, bake sales)
 a continuous, market-driven activity
 providing value to clients only  providing value both “clients” and
“customers” (and distinguish between
both)
 quick  a venture that may take several years
to become profitable/sustainable
Dr Anis Amira Ab Rahman 2015
Some Definitions
Dr Anis Amira Ab Rahman 2015
SEs bring new approaches to social issues
Dr Anis Amira Ab Rahman 2015
Conclusion
Social Entrepreneurship = profit + social
purpose
Dr Anis Amira Ab Rahman 2015
REFERENCES
 http://www.slideshare.net/socialentrepreneurship/entr480
0-class-1-introduction-to-social-entrepreneurship-and-
social-enterprise-
14373141?v=default&b=&from_search=2
 http://www.slideshare.net/profjorge_entrep/social-
entrepreneurship-7996666?v=qf1&b=&from_search=14
 http://www.slideshare.net/ananiculaes/introduction-to-
social-entrepreneurship-
30987971?v=qf1&b=&from_search=1
 http://www.slideshare.net/robinlow/social-
entrepreneurship?v=qf1&b=&from_search=15
 http://www.slideshare.net/anupendra/raj-melville-social-
entrepreneurship?v=qf1&b=&from_search=16
Dr Anis Amira Ab Rahman 2015

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Social entrepreneurship topic 1

  • 2. What make you a (social) entrepreneur? Dr Anis Amira Ab Rahman 2015
  • 3. ORIGIN STARTEDBY ASHOKA,FOUNDED IN 1980 BY BILLDRAYTON Dr Anis Amira Ab Rahman 2015
  • 4. Entrepreneurs… … are motivated Dr Anis Amira Ab Rahman 2015
  • 5. Entrepreneurs… … are innovative Dr Anis Amira Ab Rahman 2015
  • 6. Entrepreneurs… … are resourceful Dr Anis Amira Ab Rahman 2015
  • 7. Entrepreneurs… … take chances Dr Anis Amira Ab Rahman 2015
  • 8. Then, what is actually social entrepreneurship? Dr Anis Amira Ab Rahman 2015
  • 9. How is social entrepreneurship different? Dr Anis Amira Ab Rahman 2015
  • 10. But, Motivation are different Dr Anis Amira Ab Rahman 2015
  • 11. But, Innovation is different Dr Anis Amira Ab Rahman 2015
  • 12. But, Resourcefulness is different Dr Anis Amira Ab Rahman 2015
  • 13. But, Risk taking is different “The reasonable man adapts himself to his environment. The unreasonable one persists in trying to adapt his environment to himself. Therefore, all progress depends on the unreasonable man (and woman)” - George Bernard Shaw Dr Anis Amira Ab Rahman 2015
  • 14. Other Differences Focus on “systems thinking” and “system change” Seek “profit” in traditionality unprofitable pursuits Possess a strong “ethical impetus” “social entrepreneurs are not content just to give a fish or how to teach fish. They will not rest until they have revolutionized the fishing industry” -Bill Drayton “ (social entrepreneurs) work in area where there is partial or total market failure..what distinguishes them is that are prepared to strike a very different balance when it comes to creating value for those who would not normally be able to afford it” -John Bkington David Bornstein : “why do you work on the kinds of projects you do? Why don’t you just want to make a lot of money?” Fabia Rosa : “I am trying to build a little part of the world in which I would like to live. A project only makes sense to me when it proves useful to make people happier and the environment more respected, and when it represents a hope for a better future. This is the soul of my projects.” Dr Anis Amira Ab Rahman 2015
  • 15. Some Definitions “ social entrepreneurs identify resources where people only se problems. They view the villagers as the solution, not the passive beneficiary. They begin with the assumption of competence and unleash resources in the communities they are serving” - David Bornstein “ A social entrepreneur is someone who recognizes a social problems and uses entrepreneurial principles to organize, create and manage a venture to make social change” - Wikipedia Dr Anis Amira Ab Rahman 2015
  • 16. Social Entrepreneurship “ Any creative and innovative solution applied to solve social problems” (Mohammad Yunus, 2007)  it involves social mission  profit and/or entrepreneurial processes Dr Anis Amira Ab Rahman 2015
  • 17. Social Activist Dr Anis Amira Ab Rahman 2015
  • 18. Social Activist An eye for an eye only ends up making the whole world blind. Dr Anis Amira Ab Rahman 2015
  • 19. Its not Charity  giving disadvantaged people chances  finding innovative ways to market and sell products in a competitive manner  being profitable and sustainable  being accountability to constituencies served Dr Anis Amira Ab Rahman 2015
  • 20. Key Ingredients of a Social Entrepreneur Social Activist Business Pioneer Social Entrepreneur Dr Anis Amira Ab Rahman 2015
  • 21. From NGO, social business to PMB NGO (non- profit) NGO (for-profit) Social enterprise Social business Business enterprise CSR Profit maximizatio n business (PMB) Business enterprise Dr Anis Amira Ab Rahman 2015
  • 22. What is social enterprise?  organizations (non-profit or for-profit) that imbed both social purpose and business purpose into their organization  returns are both Social (i,.e. impact) & financial (i.e. profit)  key distinguishing factor : how deep social & business purpose is imbedded Dr Anis Amira Ab Rahman 2015
  • 23. Components of business A goal A product/service A transaction A legal form Dr Anis Amira Ab Rahman 2015
  • 24. Social Enterprise has… Dr Anis Amira Ab Rahman 2015
  • 25. The SE Product / Service But… “social benefit” is added somewhere on the value chain It’s still… Dr Anis Amira Ab Rahman 2015
  • 26. What is Social Benefits?  for our purpose, social benefit may arise when one attempts to overcome an injustice or inequity in society that market, on its own, cannot respond to ~ e.g. creating employment opportunities that may not otherwise be employable in the marketplace  a similar concept – “environmental benefit” Dr Anis Amira Ab Rahman 2015
  • 27. The SE Transaction Traditional Business Social Enterprise customers customers clients Dr Anis Amira Ab Rahman 2015
  • 28. The SE Goal – Social vs. Financial Purpose Social Purpose ~ creating a “social return” by making positive change within an inequitable social system examples : reduced poverty, improved literacy Financial Purpose ~ creating a “financial return”, usually through the sale of products/service in the marketplace Blended Purpose ~ effecting social change by combining social and financial return ~ also called “Blended Value” Dr Anis Amira Ab Rahman 2015
  • 29. The Legal Form  no clearly defined legal form for social enterprise in Canada  “form follows function” Dr Anis Amira Ab Rahman 2015
  • 30. What does this mean? Social Enterprise CSR Social Enterprise Complexity Dr Anis Amira Ab Rahman 2015
  • 31. What Se is and is Not Social Enterprise is Not… Social Enterprise is…  a fundraising strategy (i.e. a “give” mentality)  a business line (i.e. a “sale” mentality)  solely focused on either “customers” or “clients”  focused on either “customers” or “clients”  dependent on restricted funds for operations (i.e. not sustainable)  sustainable (ideally “self-sufficient”)  an event or one-off activity (i.e. conferences, bake sales)  a continuous, market-driven activity  providing value to clients only  providing value both “clients” and “customers” (and distinguish between both)  quick  a venture that may take several years to become profitable/sustainable Dr Anis Amira Ab Rahman 2015
  • 32. Some Definitions Dr Anis Amira Ab Rahman 2015
  • 33. SEs bring new approaches to social issues Dr Anis Amira Ab Rahman 2015
  • 34. Conclusion Social Entrepreneurship = profit + social purpose Dr Anis Amira Ab Rahman 2015
  • 35. REFERENCES  http://www.slideshare.net/socialentrepreneurship/entr480 0-class-1-introduction-to-social-entrepreneurship-and- social-enterprise- 14373141?v=default&b=&from_search=2  http://www.slideshare.net/profjorge_entrep/social- entrepreneurship-7996666?v=qf1&b=&from_search=14  http://www.slideshare.net/ananiculaes/introduction-to- social-entrepreneurship- 30987971?v=qf1&b=&from_search=1  http://www.slideshare.net/robinlow/social- entrepreneurship?v=qf1&b=&from_search=15  http://www.slideshare.net/anupendra/raj-melville-social- entrepreneurship?v=qf1&b=&from_search=16 Dr Anis Amira Ab Rahman 2015