8 Flashcards
What is Social Entrepreneurship
- extended version of entrepreneurship
- brings together all areas of entrepreneurial activity, which aim to sustainably solve a social problem by usage of innovative means
- social change and innovative entrepreneurial activity AND profit maximization
characteristics of a social entrepreneur
- taking responsibility for own actions
- creating a social value for society
- enormous resource restrictions (high dependence on social capital)
- innovation pioneer of humanity
3 types of social entrepreneurs
1 Social Bricoleurs
- identify and local grievance
- solve a problem in hometown or area
2 Social Constructionists
- induce a long-term change to market failures
3 Social Engineers
- detect errors in system within existing social structures
- solution by revolutionary innovation
Social Venture
1 Profit orientation:
2 Social impact:
3 innovation:
1 Profit orientation: ++
2 Social impact: ++
3 innovation: ++
e.g. Lemoinaid, ChartiTea, social impact businesses
Coffee Circle, social busines
Nonprofit Organization
1 Profit orientation:
2 Social impact:
3 innovation:
1 Profit orientation: 0
2 Social impact: ++
3 innovation: 0
e.g. Unicef, traditional nonprofit organization
Business Ventures
1 Profit orientation:
2 Social impact:
3 innovation:
1 Profit orientation: +
2 Social impact: 0
3 innovation: ++
e.g. BMW, social responsible company
Traditional Company
1 Profit orientation:
2 Social impact:
3 innovation:
1 Profit orientation: ++
2 Social impact: 0
3 innovation: +
e.g. Nestle
Triple bottom line
1
2
3
1 Environment
- air/water quality
- energy consumption
- emissions
2 Social
- working conditions
- human rights
- product responsibility
3 Economic
- sales
- profit
- return on investment
Performance Measurements of social impacts
1-4
1 Impact Map
- process chain with impact
- where is process sustainable? what is the way of the product?
2 Social Balanced Scorecard
- includes finances, internal processes, organizational, stakeholders
- AND social impact
3 Social Auditing
- subjective impressions of stakeholders with other quantitative methods
4 Social Return on Investment
- SROI = Profit (social, ecologically, economic)/use of resources (social, ecologically, economic)
Forms of Funding for Social Entrepreneurship
1-3
1 without financial return
- donation (Wikipedia)
- convertible donations
2 below the market level
- programme-based funding (ilaap, worlds first micro lending platform for social purposes)
3 market level
- social responsible investment (Greyson bakery: generated profits are invested for social projects)
- conventional investment
Forms of Funding for Social Entrepreneurship
1-3
1 Conventional Investment: IPO, „Facebook“
2 Social responsible investment: follow money but think about social responsibility
- Social Investment = provision of loans to or subscription for shares in not-for-profit organizations
3 Programme-based funding: returns below market level, mostly for a very specific goal
Additional question regarding funding a social company
1-6
1 increased need of explanation (customers do not see benefit on their own)
2 methodological constraints (lack of methods to prove sustainability)
3 innovations with a need in behavioral change
4 no specific funding for founding of sustainability oriented new ventures
5 environmentally/socially friendly innovations are often just profitable in long term
6 overcoming of prejudice („What is 100% socially responsible?“)
Variants of Entrepreneurship
1-4
1 Conventional Entrepreneurship = economic value creation
2 Environmental Entrepreneurship = economic + environmental value creation
3 Social Entrepreneurship = economic + social value creation
4 Sustainable Entrerpreneurship = economic + environmental + social
