Social

Entrepreneurship
Lecture 1: Nature and concept of social
entrepreneurship

By:
Amrit Bista
BE, MBPM

Date: 1/10/2018
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 Entrepreneurship

Entrepreneurship brings dynamism to the economy by revitalizing

and renewing markets through innovation.

Entrepreneurs are largely seen as those who break patterns and

change the industries.

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 Social Entrepreneurship

• Nature and Concept

Process of creating value through the combination of
unique package of resources
To capitalize on an opportunity,
All of this is in the pursuit of Social returns

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 Social Entrepreneurship: Nature and
Concept

Social entrepreneurs don't just give a fish or teach how to fish, but
see it through until they have "revolutionized the fishing industry".

Five reasons why social Entrepreneurship is the new business

model

1. It connects you to the life purposes

2. It keeps you motivated
3. It brings you lasting happiness
4. It helps you to help other discover their life purposes
5. Its what todays consumers want

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Social Entrepreneurship

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 Myths about social entrepreneurship

Social Enterprises are not for Profit

Most social enterprises we see are ‘for

profit’ but they dedicate their profits to
achieving a good cause.

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Myths about social entrepreneurship

 They develop their business ideas

for the least developed markets,
 deploy their solutions with the
worst infrastructure support and
 service people on the lowest rung of
the ladder
 still have a sustainable or profitable
venture.

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 Myths about social entrepreneurship

Social Enterprises can’t pay salaries

Pay salaries to CEOs and other staffs

Depending on the legal structure chosen,

directors of social enterprise also get
remuneration
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 Myths about social entrepreneurship

Social Entrepreneurs don’t understand business

Many social entrepreneurs come from successful business

backgrounds.

Their journeys of success or failure are in all ways similar to

any other entrepreneur.

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 Myths about social entrepreneurship

Social Enterprises are not scalable

Social enterprises are no different to ‘standard’ businesses

in this regard.

If you have a great product or service, a great team, the

ambition, the drive, resolve and a clear plan for scaling
there is no reason why you cannot significantly scale your
business.

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 Myths about social entrepreneurship

Social Enterprises only operate in health and

social care

Social enterprises operate in many sections of the economy.

There are social enterprises in banking and finance, media,

creative industries, business services, agriculture, tourism,
fashion, education, entertainment, energy, heritage,
housing, sports and more.

Pretty much any business could be a social enterprise

(maybe not selling cigarettes?).
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 Emergence of social entrepreneurship
as global movement
• End of 18th century  ¾ the people living in slavery
submit to the rule of kings or dictators

• Since 1970s, the world has witnessed the collapse of many communist
and authoritarian regimes.
• Decades before the advent of the Internet, radio, television made it
difficult to contain ideas within borders and suppress human
aspirations.

• Until recently  even in developed countries

women, dark- skinned people, the disabled
 Denied the vote, discrimination
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 Emergence of social entrepreneurship
as global movement
• Between 1970 and 1985, adult literacy in the developing world
increased from 43 to 60%

• During 1970s alone, the number of universities in the world doubled

• Two or 3 generations ago, communication to the outside world limited

• Tend to live whole life in one place all their lives and learn from their
parents.

• This world has disappeared overnight

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 Emergence of social entrepreneurship
as global movement
Over the past 40 years

• Millions of new organizations aimed at addressing problems from every

conceivable angle

• Hundreds of new movements to protect the environment and rights of

consumers

• Expand access to microcredit

• Build and finance an array of social-purpose businesses

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 Pioneers of Social Entrepreneurs

• Before the term social entrepreneurship was coined, there were already
many entrepreneurs who worked for children's rights, women's
empowerment, socio-economic development, environmental issues and
more.
• Two noteworthy entrepreneurs who established social ventures as early
as 19th century are
Robert Owen (1771-1858), the founder of cooperative movement and
Florence Nightingale (1820-1910), who founded the first nursing
school and developed various modern nursing practices.

• The term social entrepreneurship was tossed around 1960s but came to
spotlight due to 2006 Novel Prize winner Muhammad Yunus who
founded grameen bank in 1976
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 Pioneers of Social Entrepreneurs

• Social Entrepreneurship is without doubt a global affair.

• With 260 social entrepreneurs in its community, the Schwab

Foundation, which is under legal supervision of the Swiss government,
has representatives all around the globe.

• The nearly 3000 Ashoka Fellows work in over 70 countries in every area
of human need.

• The US-based Skoll Foundation has invested approximately 400 million

USD in social entrepreneurship on all five continents.

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 Process of social entrepreneurship

1. Find an opportunity

2. Develop a business concept

3. Figure out what success means and how to measure it

4. Acquire the right resources

5. Launch and grow

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Questions

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