Name: Bong Woan Huey

Student ID: 18589144

Unit Name: Environment issue in Business
Lecturer: Ms Reimara Valk
Tutorial Time: Monday 12-2pm
Assignment Title: TQ5 Describe social entrepreneurship and its
types using real-world examples

Social entrepreneurship can be defined as a mission-driven entrepreneur behaviour to

deliver a social value rather than profit seeking business activity (Saifan and Samer
2012). Social entrepreneurship is one of the sub types from entrepreneurship and it is
different from the conventional entrepreneurship. Social entrepreneurship is the
entrepreneurship comes along with social mission which are explicit and central.
Today, social entrepreneurship can be categorised into two category which are forprofit and non-for-profit social entrepreneurship. For-profit social entrepreneurship
engage in business activity in order to generate revenue to serves their social purposes
while non-for-profit social entrepreneurship would be more likely to donate their
revenue and strongly intended to organise activities towards social mission (Austin et
al. 2012).
Dr. Muhammad Yunus who was awarded the 2006 Nobel Peace Prize (Bornstein,
1996) is recognised as one of the well known as social entrepreneurship. His business
model of Grameen Bank is the best example of for-profit social entrepreneurship.
Grameen Bank had used profit generated by their main business activity to support
their social mission namely as offers micro-credit to poor communities. In 1976,
Yunuss decided to loan as little as $27 to 42 women for poor residents in Jobra, India,
so that the residents able to make items and start a small business without the burdens
of high interest under predatory lending (Grameen Bank 2016) . By doing this, they
able to repaid the loan to Yunus which also able to enable them continue support their
family financial. Thus micro-credit idea was born (Grove and Gary A. Berg 2014, 15).
Yunus start targeting on poor women and offering them with small loans. Even
thought is offer to poor women, the repayment rate is high as 98% (Grove and Gary
A. Berg 2014, 15). Today, the Grameen Bank model successful inspired others
globally and nationally. In addition, Yunus also launch a Grameen Phone project
which partnership with a Norwegian mobile phone to provide entrepreneur woman a
solar-powered cellular phone service in Bangladesh (Mair and Marti 2005).
However, the example of non-for-profit social entrepreneurship is pharmaceutical
company which located in San Francisco. Dr. Victoria Hale founded the world first
non-profit social entrepreneurship The Institute for One World Health (IOWH) in
2000. The institute mission is engaged in supply pharmaceuticals as much as possible
to poor residents of the communities which primarily in Africa. In order to achieve the
mission, One World Health collect unused drugs, such as medicines from United
States market through collaborated with major pharmaceutical companies and
redistribute it to useful medicine for sick residents. Also, One World Health meet
residents needs by giving some donations through charity donations and also Bill and
Melinda Gates Foundation (Germak and Karun 2010).
In conclusion, this means that some of the social entrepreneurship creates both
economic and social value (Acs et al. 2013). Social entrepreneurship can be say as the
second invisible hand. It creates our belief about the social entrepreneurship can
happen in different institutional in economy by own rules and logic as well as suited
to address social problems and improve capitalism (Santos 2009).

References Lists
Acs, Zoltan J, Boardman, Mcneely, McNeely. 2013. The social value of productive
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Austin, James, Howard Stevenson and Jane Wei-Skillern. 2012. Social and
Commercial Entrepreneurship: same, different, or both?. Revista de
Administracao (Sao Paulo) 47(3):370-384. Doi: 10.1590/S008021072012000300003.
Bornstein, D., 1996. The price of a dream: The idea of the Grameen Bank and the
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Germak, Andrew J and Karun K. Singh. 2010. Social Entrepreneurship: Changing
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