Chapter 3: Social Entrepreneurship

Question 1

Define social entrepreneurship.

Answer 1

The process of identifying pressing social and environmental problems in society and creating sustainable solutions for positive and long-term impact. Measure success through 3 Ps (people, planet, profit).

Question 2

What are the two elements of social entrepreneurship?

Answer 2

Social innovation: a novel solution to a social problem that is more effective, efficient, than existing solutions and for which the value created accrues primarily to society as a whole rather than private individuals.

Social value creation: Social value is created when people place value on the changes they are experiencing in their lives.

Question 3

What are the 5 elements of social innovation?

Answer 3

1. Social need: Classify according to UN SDGs.
2. Innovative element: new and novel.
3. Implementation and execution: must be able to launch it.
4. Improvements: must be better without adding harm.
5. Relationship and collaboration: stakeholders must be involved.

Question 4

Define wicked problem.

Answer 4

Problems that are large, complex social problems for which there is no clear or obvious solution, where there is limited, confusing, or contradictory information available; and where a whole range of people with conflicting interests engage in debate or solution generation.

Question 5

What are the 3 types of social entrepreneurship?

Answer 5

1. For profit social venture: has a dual mission, aiming to achieve both social or environmental objectives and financial sustainability.
2. Enterprising non-profits: non-profits that act for-profit in their revenue generation Don’t rely solely on grants and donations.

a) Customer model: customer pays.

b) Employee model: hire people with particular needs.

c) Product model: monetizing a product or service to make a social impact.

d) Combined model: combine more than one.

3. Hybrid social venture: engage in revenue-generating activities while also having a philanthropic strategy to help deliver social value.

Question 6

What are the 2 funding sources?

Answer 6

1. Social venture capital: a form of investment funding that focuses on for-profit social ventures with a social or environmental mission.
2. Venture Philanthropy: type of impact investment in which investors support social ventures by applying some principles of venture capital funding (enterprising nonprofits).

Question 7

What are the 7 types of stakeholders?

Answer 7

1. Dormant: Have power, but not urgent or legitimate.
2. Discretionary: Have legitimacy, not no power or urgency.
3. Demanding: Have urgency, but no power or legitimacy.
4. Dominant: Has power and legitimacy, but no urgency.
5. Dependent: Has urgency and legitimacy, but no power.
6. Dangerous: Has power and urgency, but no legitimacy.
7. Definitive: Has power, legitimacy, and urgency.