Social Entrepreneurs critical to revolutionize economy

By Gopal Prasad Tiwari

Nepal is always in the midst of crisis in the operation of politics, business and social
advancement. Due to lack of social entrepreneurs, it has been a herculean task for the Nepalese
society to prosper. If social entrepreneurs are created, they can think of differently, and in an
innovative way, that will help to revolutionize the pattern of construction according to the
scientists and economists. Surveys done globally reiterates that social enterprises are very much
inevitable for low scale economies across the world that are more focused towards social service
rather than profit-driven.
Social enterprises have played a key role in advancing local economies worldwide who employ
creative and innovative hands involving the poor and disenfranchised and offer self-sustaining
means to make the social service invaluable. Twentieth century economist Joseph Schumpeter
has described those entrepreneurs as the innovators who are the drivers of "creative-destructive"
capitalism. In the words of Schumpeter, social entrepreneurs are the change agents in the
economy as they create new markets and create new way of doing things to move the economy
forward.
This is exactly what modern Nepal is looking for. She is looking for change agents, new
innovators and champions who can take risk to adopt new way of doing things that will
ultimately create new social values involving the participating the members in the
society/economy. Existing global markets modern Scientist and Professor Fil Dr Jan-U Sandal
(http://www.janusandal.no/no/om/fil-dr-jan-u-sandal-institute) who was in Kathmandu recently
all the way from Norway also thinks that social entrepreneurs are key agents for economic
wellbeing of people. Prof Sandal emphasized that change can only happen if there are new
innovators, and if there are people who can think of creative destruction to create more
opportunities. As there are three sectors in the economy, according to Prof Sandal, namely
government, market and social sector and there are innovators only in the second and third
sectors of economy that is market and social sector. The government and its employees can never
become innovators or agents of change, he reiterates.
While chatting to this columnist, Prof Sandal, opined that social entrepreneurship is not
outsourcing, privatization of public enterprises, and exposure to competition, voluntary work, job
market ventures, charity work, founding schemes or a form of exploitation of weaker groups in
the name of socio political objectives or private gain. "It is carried out by free man and women,
and linked with social change with innovative minds by creating opportunities in the society for
their wellbeing", Prof Sandal mentioned.
Now the question arises, are our political leaders or implementing agencies
or people in the large corporations/society are serious about innovation
management? It is a million dollar question, and this kind of approach applies
in every sector. It is widely expressed views that social entrepreneur is an
informed person, an innovator, adopts different approach, thinks in larger

perspectives with less personal interests and move towards achieving

sustainable social change with the network of members in the society. Social
Enterprises London, a non-profit advocacy group and think tank, defines
social enterprises as having three common characteristics such as enterprise
orientation, social aims and social ownership. It is commonly viewed that if
Nepal wants to revolutionize socio-economic reform/advancement,
promotion of social entrepreneurs, provision of suitable policies and
regulations from the government and the environment to start social
enterprises are key steps to move immediately by breeding youths in front.

When asked to Dr Rajendra KC, Nepal representative of Fil Dr Jan-U Sandal

Institute Norway and also the Campus Chief at the Southwestern State
College reiterated to think in an innovative way and change the working
style of every man in the society if we are serious to the change the lives of
the people for better living. Dr KC said that he wanted to modernize
education to create global citizens through the application of technical
knowledge/course like social entrepreneur and exploring the possibilities of
social entrepreneurs in the country. He wants to expand this sort of course in
Nepal bringing global Scientist and Professor like Dr Sandal.

Ashoka of India founded by Bill Drayton in 1980s is a perfect example as one

of the largest networks of social entrepreneurs worldwide, and it has 3000
Ashoka Fellows in 70 countries. It is driving the social sector and offering a
platform for people to change the world in the field of social
entrepreneurship through entrepreneurial talents and new ideas to solve
social problems.

Another example of social entrepreneur is the founder of Grameen Bank in Bangladesh, a Nobel
Prize winner, Professor Muhammad Yunus. This new concept supported for equitable society
through the removal of social difficulties rather than purely profit maximization. His support to
empower women is exemplary with the introduction and use of "money" a medium of
exchange for better living. Social enterprises can be considered as necessary positive force as
change agents by providing leading-edge innovation for unmet social needs. Though it is not a
panacea, it plays critical role for overall socio-economic framework which is more important for
the country like Nepal.

(The author is an Advisor at the Forum for Economics Studies (FECOST), an association of
young economists group. He can contacted at kajutiwari@gmail.com)