SOCIAL ENTREPRENEURSHIP - UNTAG
SOCIAL ENTREPRENEURSHIP
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SOCIALENTREPRENEURSHIPNew Models of SustainableSocial ChangeEdited byAlex Nicholls1
3Great Clarendon Street, Oxford ox2 6dpOxford University Press is a department of the University of Oxford.It furthers the University’s objective of excellence in research, scholarship,and education by publishing worldwide inOxford New YorkAuckland Cape Town Dar es Salaam Hong Kong KarachiKuala Lumpur Madrid Melbourne Mexico City NairobiNew Delhi Shanghai Taipei TorontoWith offices inArgentina Austria Brazil Chile Czech Republic France GreeceGuatemala Hungary Italy Japan Poland PortugalSingapore South Korea Switzerland Thailand Turkey Ukraine VietnamOxford is a registered trade mark of Oxford University Pressin the UK and in certain other countriesPublished in the United Statesby Oxford University Press Inc., New Yorkß Oxford University Press 2006The moral rights of the authors have been assertedDatabase right Oxford University Press (maker)First published 2006All rights reserved. No part of this publication may be reproduced,stored in a retrieval system, or transmitted, in any form or by any means,without the prior permission in writing of Oxford University Press,or as expressly permitted by law, or under terms agreed with the appropriatereprographics rights organization. Enquiries concerning reproductionoutside the scope of the above should be sent to the Rights Department,Oxford University Press, at the address aboveYou must not circulate this book in any other binding or coverand you must impose this same condition on any acquirerA catalogue record for this title is available from the British LibraryLibrary of Congress Cataloging in Publication DataData availableTypeset by SPI Publisher Services, Pondicherry, IndiaPrinted in Great Britainon acid-free paper byBiddles Ltd., King’s Lynn, NorforkISBN 0–19–928387–7 978–0–19–928387–310 9 8 7 6 5 4 3 2 1
PrefaceJeff SkollThe rapid industrial and technological advancements of the last century haveled to many breakthroughs, but they have also left us to confront an uncertainfuture. With real threats of environmental and economic collapse, terriblediseases, over-population, war, terrorism and menacing new forms of weaponry, we have much to overcome. Efforts by our governments and institutionshave proven insufficient to reverse these destructive trends. Our best hope forthe future of humanity lies in the power and effectiveness of socially motivated, highly empowered, individuals to fight for changes in the way we live,think, and behave.Those four sentences perfectly capture the case for social entrepreneurship.But they are not unique to our time: the same could have been said 100 yearsago, 200 years ago, 300 years ago at the beginning of the Industrial Revolution.One of the great ironies of history is that the solutions to current challengesfrequently create new challenges even more menacing. Industries that haveimproved the quality of our lives have also created new problems that threatenour very existence. Technological innovations that were developed to increasethe efficiency of life have frequently been used to increase the efficiency oftaking life. We can split the atom, walk on the moon, communicate withanother person anywhere in the world in the blink of an eye, and yet poverty,violence, and illness in much of the world are as pervasive as they have everbeen.But the nature and the wonder of humanity is that while there are alwaystumultuous events and seemingly overwhelming challenges to face, people,exceptional individuals, and ideas and movements emerge to face and findsolutions to these challenges.Social entrepreneurs are those people—the practical dreamers who have thetalent and the skill and the vision to solve the problems, to change the worldfor the better. Social entrepreneurs have a unique approach that is bothevolutionary and revolutionary, operating in a free market where success ismeasured not just in financial profit but also in the improvement of thequality of people’s lives. Social entrepreneurs take workable value creationmodels and adapt them for the benefit of all our communities. They do notbuy into the notion that only governments and powerful individuals andcorporations are in a position to determine where and how resources areallocated. They believe that any individual has the potential to make positivev
Prefacechanges not just in our communities, but also in society as a whole. And theyput that belief into action, in creative ways that are described throughout thisbook.At the world’s great foundations, universities and charitable institutions,social entrepreneurship has rapidly become the most influential idea of ourtime. For these institutions, theories of social entrepreneurship offers a powerful tool to identify, train and support individuals with the potential to createmajor social change. For the entrepreneurs themselves, it presents a roadmapto realize their dreams.Yet, for all of this, social entrepreneurship remains as much an idea as amovement. There is a great need for ongoing scholarship and publicationsthat serve as a call to arms to current social entrepreneurs, as an inspiration tobudding social entrepreneurs, and to document the field for institutions,academics, and legislators.The Skoll Foundation has supported the Skoll Centre for Social Entrepreneurship to contribute to meeting this need, and to promote the advancementof social entrepreneurship worldwide. This volume, synthesizing research andlessons from practice by leading social entrepreneurs and scholars in the fieldwho gathered for the first Skoll World Forum on Social Entrepreneurship inMarch 2004, exemplifies the Centre’s aim to produce work that both engageswith theory and is also valuable to practitioners in the field.Social entrepreneurs have a vision of the future and will stop at nothing tosee that future come true. It is up to us to help them succeed in order to ensurethat the failures of the past do not become the failures of the future, and tobuild a world where all people, regardless of geography, background, or economic status, enjoy and employ the full range of their talents and abilities.vi
ContentsAcknowledgementsxList of FiguresxiList of TablesxivAbbreviationsxvAbout the AuthorsIntroductionAlex Nichollsxix1Part I. New Perspectives371. Social Business Entrepreneurs Are the SolutionMuhammad Yunus392. The Citizen Sector TransformedBill Drayton453. For What It Is Worth: Social Value and the Future of SocialEntrepreneurshipRowena Young4. Cultivating the Other Invisible Hand of SocialEntrepreneurship: Comparative Advantage, Public Policy,and Future Research PrioritiesGeoff Mulgan5674Part II. New Theories975. Social Entrepreneurship: The Structuration of a FieldAlex Nicholls and Albert Hyunbae Cho996. Social Entrepreneurship: Agency in a Globalizing WorldPaola Grenier119vii
Contents7. Rhetoric, Reality, and Research: Building a Solid Foundation forthe Practice of Social EntrepreneurshipBeth Battle Anderson and J. Gregory Dees8. Social Entrepreneurship: It Is for Corporations, TooJames E. Austin, Herman B. Leonard, Ezequiel Reficco,and Jane Wei-Skillern9. Social Entrepreneurship: Exploring a Cultural Mode AmidstOthers in the Church of EnglandDoug Foster144169181Part III. New Models20310. Social Enterprise Models and Their Mission and MoneyRelationshipsSutia Kim Alter20511. The Socially Entrepreneurial CityCharles Leadbeater23312. Helping People Is Difficult: Growth and Performance in SocialEnterprises Working for International Relief and DevelopmentAlex Jacobs24713. The Social Entrepreneurship Collaboratory (SE Lab): A UniversityIncubator for a Rising Generation of Social EntrepreneursGordon M. Bloom270Part IV. New Directions30714. Wayfinding Without a Compass: Philanthropy’s ChangingLandscape and Its Implications for Social EntrepreneursSally Osberg30915. Delivering on the Promise of Social Entrepreneurship:Challenges Faced in Launching a Global Social Capital MarketPamela Hartigan32916. Social Entrepreneurship: The Promise and the PerilsJerr Boschee17. Moving Ahead Together: Implications of a Blended ValueFramework for the Future of Social EntrepreneurshipJed Emersonviii356391
ContentsEndnoteAlex Nicholls407Bibliography413Index431ix
AcknowledgementsFirst, I should like to thank all the outstanding contributors to this collectionwho so generously gave their time, thinking, and research. Their patience withme throughout the—sometimes tortuous—process of editing this historicvolume has been exemplary and is much appreciated.Second, I owe a considerable debt of gratitude to my academic ‘patrons’—Jeff Skoll and Prof. Anthony Hopwood—without whose material support thisbook could never have been written.Third, I want to single out for thanks my mother Catherine Nicholls, whohas been tireless and fearless in her support of my work over the years. She istruly an extraordinary woman. Sam and Harriet have also been vital to me asthis book has come together and are always in my thoughts.I want to praise the Skoll Centre for Social Entrepreneurship support team—Kathryn Smyth and Mona Turnbull—for their good humour and skill whilstmaking considerable contributions to the Skoll World Forum in Social Entrepreneurship and the running of the Centre in general. Finally, I also need toexpress my most affectionate thanks to my extraordinary colleague at the SkollCentre, Rowena Young, who helped me frame my arguments and structure thebook throughout its production.This book is dedicated to Isabel, my guiding star.‘Social Entrepreneurs need always to be ten years ahead of their time and to be preparedto be ridiculed. This is the only way to bring about real change.’Bunker Roy, Barefoot College (Campinas, Brazil, 2004)x
List of FiguresI.1. Positioning of social entrepreneurship internationallyI.2. Funding dimensions of social entrepreneurship2.1. The same historical forces are at work even in the Germanheart of Europe512485.1. Dimensions of Social Entrepreneurship1037.1. A perspective on financial strategies: Dependency vs.self-sufficiency1468.1. Changing expectations: Should large companies be heldresponsible for helping solve social problems like crime,poverty, and lack of education?1718.2. Changing expectations: Should large companies be heldresponsible for improving education and skills in communitieswhere they operate?1728.3. Changing expectations: Should large companies be heldresponsible for ensuring that its supplies have been producedin a socially and environmentally responsible manner?1728.4. Ignore at your own peril: In the past year, have youconsidered punishing a company you see as not socially?1738.5. Ignore at your own peril1738.6. Buying preferences: I would be likely to switch brands to oneassociated with a good cause, if price and quality are similar1748.7. Price premium: ‘I would pay 10 per cent more for a productthat was produced in a socially and environmentallyresponsible way. . . ’1748.8. Competitive advantage: ‘A company’s commitment to socialissues is important when I decide . . . ’1758.9. Motivational spectrum17510.1. Social enterprise type by mission orientation20910.2. Embedded social enterprise21210.3. Integrated social enterprise21310.4. External social enterprise213xi
List of Figures10.5.Legend for figures21410.6.Entrepreneur support model21510.7.Market intermediary model21710.8.Employment model21810.9.Fee-for-service model21910.10. Service subsidization model22110.11. Market linkage model22210.12. Organizational support model22410.13. Complex model22610.14. Mixed model22610.15. Franchise model22810.16. Private-not-for-profit model22913.1.Key characteristics of the SE Lab27313.2.Defining social entrepreneurship27913.3.Sources of social entrepreneurship28013.4.The Social Enterprise Spectrum28013.5.Sudan child28213.6.The Vision Framework28313.7.The Opportunity Creation Process28413.8.Value, Capacity, Support Framework derived fromthe Strategic Triangle286Six-force chart for nonprofit industry analysis28713.9.13.10. The Basic Logic Model28813.11. The Performance Management Framework29013.12. Intended impact and theory of change29013.13. Selected teaching tools of the social entrepreneurshipcollaboratory29213.14. Selected guest lecturers in the SE Lab29614.1.The rise in US not-for profits vs. grant making foundations31314.2.Three points of orientation for market-conscious,knowledge-driven philanthropists31614.3.Traditional vs. market-based grant giving31715.1.Accreditation considers three main aspects33315.2.Management and monitoring: The organizationmanages selected initiatives according to its qualitystandards and mission337xii
List of Figures15.3.15.4.Organizational set-up: The organization has a cleargovernance structure fostering its mission, institutionalstrengths, and accountability338Building a social infrastructure of entrepreneurshipand innovation34616.1.The Organized Abandonment Grid36416.2.Crossing the cultural divide37117.1.Blended Value39217.2.The Blended Value process403xiii
List of TablesI.1. Drivers behind the growth of social entrepreneurship2I.2. University centres for social entrepreneurship8I.3. Universities (without a dedicated social entrepreneurshipcentre) offering research and/or teaching in socialentrepreneurship9I.4. Network support organizations for social entrepreneurs10I.5. Defining the ‘social’ in social entrepreneurship14I.6. Social market failures addressed by social entrepreneurs165.1. Relationship between organizational isomorphism andlegitimacy1139.1. Examples of parish profile variation within ‘Seagull diocese’187xiv
AbbreviationsList of AbbreviationsAIMSAid Information Mapping ServicesALMOArm’s-Length Management OrganizationALNAPActive Learning Network for Accountability and PracticeALPSAccountability, Learning, and Planning SystemAMAAmerican Medical AssociationANCAAssociacao Nacional de Cooperacao AgricolaBRACBangladesh Rural Advancement CommitteeCAFCharities Aid FoundationCEPCenter for Effective PhilanthropyCFOChief Finance OfficerCICCommunity Interest CompanyCNFACitizens Network for Foreign AffairsCOOChief Operating OfficeCSECorporate Social EntrepreneurshipCSICenter for Social Innovation (Stanford)CSRCorporate social responsibilityDdGDiálogo de GestionesDfIDDepartment for International DevelopmentDTIDepartment for Trade and IndustryEUEuropean UnionFUSIONFuture Social Innovators Network (Stanford)GSBGraduate School of Business (Stanford)GDPGross Domestic ProductGEMGlobal Entrepreneurship MonitorGEXSIGlobal Exchange for Social InvestmentGMAGlobal Micro-Entrepreneurship AwardsGTZGerman Development Agencyxv
AbbreviationsHBSHarvard Business SchoolICGInternational Crisis GroupIEAInstitute for Economic AffairsINGOInternational Non-Governmental OrganizationIOWHInstitute for One World HealthIPPInstitute of Public PolicyISERCInternational Social Entrepreneurship ConferenceKSGKennedy School of Government (Harvard)LLCsLimited Liability CorporationsLPsLimited PartnershipsMISManagement Information SystemsMITMassachusetts Institute of TechnologyMNCMultinational CorporationMS&EManagement Science and Engineering (Stanford)NEPADNew Partnership for Africa’s DevelopmentNESsTNon-Profit Enterprise and Self-Sustainability TeamNFFNonprofit Finance FundNGOsNon-Governmental OrganizationsNHSNational Health ServiceNPOsNot-For-Profit OrganizationsNPVNet Present ValueODIOverseas Development InstituteOEDOxford English DictionaryPMPPublic Management Program (Stanford)RISEResearch Initiative in Social EntrepreneurshipROIReturn on InvestmentSAMOPNSouthern African Marula Oil Producers NetworkSE LabSocial Entrepreneurship Collaboratory (Stanford, Harvard)SEKNSocial Enterprise Knowledge NetworkSEPSocial Entrepreneurship ProgrammeSIISStanford Institute for International StudiesSocial E-ChallengeSocial Entrepreneurs Challenge (Stanford)SROISocial Return on InvestmentUKUnited KingdomUPAsUrban Priority AreasUSAUnited States of Americaxvi
AbbreviationsVESCVirginia Eastern Shore CorporationWEFWorld Economic ForumA Note on Currency ConversionsThis book includes figures in US dollars ( ) and UK pounds ( ). The exchangerates calculations used are correct at the time of going to press (December2005) and are as follows:CurrencyConversion rateEuro1 1.18Euro1 0.69 1 0.58 1 1.72A Note on the Meaning of ‘Not-for-Profit’There appears to be a degree of substitution of the terms ‘nonprofit’ and ‘notfor-profit’ across international scholarship. Both are used to describe socialpurpose ventures that often—but not always—have special tax advantages.However, there is some confusion over whether these terms describe thestrategic function of the organization (i.e. that its mission is not to make aprofit) or the process of what it actually does (i.e. its activities are not profitable). There is a further complexity in that both terms can be extended at timesto the sense of ‘profitable, but not profit distributing’ (i.e. without externalshareholders). Indeed, in the USA, legally a nonprofit organization is one thatdoes not declare a profit and instead utilizes all revenue available after normaloperating expenses in service to the public interest. This sense may be appliedparticularly to successful social enterprises, but also allows large corporationssuch as the John Lewis Partnership (which is owned by its workforce) to betechnically classed as ‘nonprofits’, even though such a large and profitableorganization would not be typically thought of by many as a not-for-profit.Nonprofit is typically used in the USA to describe social purpose organizations that serve the public interest and are registered as 501(c)(3) tax-exemptorganizations. These would often be recognized as charities in the UK. Not-forprofit is used more commonly in the UK for a range of social purpose organizations including charities, co-operatives, and voluntary organizations.It is also possible to include under this heading a distinct category of socialenterprises that uses equity, or equity-like, finance and which may distributexvii
Abbreviationssome profits, but is mission driven and not set up for private gain. In such casesequity will have been offered as a strategy for accessing new finance and will bemade available under terms that cannot jeopardize the ‘social’ or communityownership of the venture. In 2005, the UK government acknowledged thisinnovative type of social enterprise by introducing a new legal form for suchorganizations—the Community Interest Company (CIC). The CIC features an‘asset lock’ and limits the amount of dividend distribution to encourage awider range of finance into social ventures without risking mission drift.To achieve clarity for the reader of this book, the term not-for-profit is usedexclusively throughout. As used here, the term describes any venture that has,as its prime strategic aim, a social purpose and is either not profit distributingor offers only limited dividends in accord with its social mission, whether it istax paying or not and irrespective of its income mix.xviii
About the AuthorsAlex NichollsDr Nicholls is the first lecturer in social entrepreneurship appointed in the UK.His research and teaching experience fall across a range of subjects centred onsocial and ethical issues. Nicholls has a background in retail marketing and,before that, medieval lexicography, but in recent years has developed particularinterests in Fair Trade, business ethics, and the interface between marketingand society. He has been working in the specific area of social entrepreneurshipfor some time and acted as the external consultant for the establishment of theSkoll Centre for Social Entrepreneurship at the Saı̈d Business School.Nicholls has published in a range of refereed journals, including the European Journal of Marketing and Service Industries Journal, and has presented papersat many international conferences. He has also co-authored a major resea
15. Delivering on the Promise of Social Entrepreneurship: Challenges Faced in Launching a Global Social Capital Market 329 Pamela Hartigan 16. Social Entrepreneurship: The Promise and the Perils 356 Jerr Boschee 17. Moving Ahead Together: Implications of a Blended Value Framework for the Future of Social Entrepreneurship 391 Jed Emerson .
Entrepreneurship as social change : a third new movements in entrepreneurship book / edited by Chris Steyaert, Daniel Hjorth. p. cm. Includes bibliographical references and index. 1. Social entrepreneurship. 2. Social change. I. Steyaert, Chris. II. Hjorth, Daniel. HD60.E587 2006 338′.04—dc22 2006011134 ISBN-13: 978 1 84542 366 7 ISBN-10: 1 .
To define the entrepreneurship. To explain the significance of Entrepreneurship. To explain the Entrepreneurship Development. To describe the Dynamics of Entrepreneurship Development. 1.1 Need and significance of Entrepreneurship Development in Global contexts It is said that an economy is an effect for which entrepreneurship is the cause.
or promoted policy entrepreneurship (for example, during the War on Poverty and the New Deal era). In our opinion, social workers are important stewards of social entrepreneurship—as promoters, pioneers, and partners. Social entrepreneurship and social work are compatible in terms of both skills and values and complement each other (Neal, 2015).
entrepreneurship orientation. This paper seeks to address this research gap by proposing an initial social entrepreneurship orientation (SEO) scale based on input from scholars in the fields of entrepreneurship and social entrepreneurship. Design/methodology/approach - This study presented employed mixed-methods and a two stage design.
Paul Miesing, "Introduction to Social Entrepreneurship" Summarize key principles of social entrepreneurship Identify the challenges and opportunities of social entrepreneurship Use evidence to analyze, evaluate, and exploit a social opportunity for an entrepreneurial venture Apply business functions to create and sustain a social
boost social entrepreneurship, it needs a specific environment where such ideas can emerge and develop into an active business models. This paper aims to provide a comprehensive literature review of terms social responsibility and social entrepreneurship. It also examines the current social entrepreneurship activities in India.
entrepreneurship, blurring sector boundaries, for-profit social enterprise, scaling social innovations, developing earned-income strategies, and the process of social entrepreneurship. She has also supervised, researched, written and edited several cases on social entrepreneurship and philanthropy. She received her M.B.A from Stanford
bachelor’s degree in Mechanical Engineering from Cooper Union School of Engineering in New York. He is the author of more than 100 books in engineering and related fields. CIVIL ENGINEERING FORMULAS Tyler G. Hicks, P.E. International Engineering Associates Member: American Society of Mechanical Engineers United States Naval Institute Second Edition New York Chicago San Francisco Lisbon .
