Chapter 14

Question 1

what is social entrepreneurship

Answer 1

social entrepreneurship is the use of innovative ideas and organizations they create to solve problems whereas classic entrepreneurs are strictly looking to make money.

Question 2

Trends

Answer 2

more and more companies are looking to solve social problems as more and more investors are investing in companies willing to solve complex social issues

Question 3

Definitions

Answer 3

There are two main definitions of social entrepreneurship and these are process oriented entrepreneurship

Question 4

Types

Answer 4

1. Traditional: The only motive for pursuing an opportunity and starting a business is to make money
2. Social consequence: The main motive is to make money but some of the profits are used to help social causes.
3. Social purpose: The main motive is to help a social cause but in the process of developing an organization to do so profits are made
4. Non profit enterprise: The main motive is to help a social cause but money is made to help the organizations grow. Profits (Excess money left over after selling buying and selling products) are not used to compensate owners or employees and are instead used to fuel the organization.

Question 5

hybrid social and profit companies

Answer 5

These companies pursue social and economic goals equally because consumers around the world prefer products from companies with positive impacts on social causes and they are beocming more and more aware of the things companies are doing to society and the world industrially.

Question 6

How to choose your type of venture

Answer 6

Be mindful of your buisness strageties, opportunities, managment team and resources and how they will be impacted by your venture. Observe the outcomes of each of the 4 ventures, consider the facts associated with each venture and see if they align with your buisness plans.

Question 7

Measuring impact

Answer 7

The best way to measure the impact a buisness has on society is by seeing how it’s objectives are fullfilled by it’s activities, and if they take into account profits, people and the planet. It’s also important to check if the company is expanding, data is being collected on same respondants with knowledge of social impacts and the degree of impact the buisness has on society is repeatedly tested. Social problems are often complicated, have multiple ways of approaching a solution and as a result the contributions from a buisness many not always be effective. This is why it is important to measure the degree of impact a company is having on society to see if they are going in the right direction.