Chapter 3: Social Entrepreneurship

Question 1

Five Elements of Social Innovation

Answer 1

1. Social Need (UN goals)
2. Innovative Element (new
   way of doing things)
3. Implementation
4. Improvements
5. Relationships and
   Collaboration

Question 2

Social Value Creation

Answer 2

Created when people place value on things they’re experiencing = SUBJECTIVE

Question 3

Wicked Problems

Answer 3

Large, complex social problems with no clear solution. Provides huge opportunities.

Climate change, health, homelessness

Question 4

UN Sustainable Development Goals

Answer 4

Blueprint for achieving a thriving, inclusive, and sustainable society by 2030.

Addresses major universal issues, generates money and jobs

Question 5

What are the 3 types of social entrepreneurship?

Answer 5

1. For-Profit Social Ventures
2. Enterprising Nonprofits
3. Hybrid Social Venture

Question 6

For-Profit Social Ventures

Answer 6

Dual mission: Social objectives + financial stability. You sell something and donate some but keep some to grow your business.

Example: TOMS shoes - sells shoes but gives a free pair to someone in need

Question 7

Enterprising Nonprofits

Answer 7

Selling something but all money goes to help others, you don’t keep any profit for yourself.

Example: Goodwill - Selling donated clothes and use the money to help people get jobs

Question 8

Hybrid Social Venture

Answer 8

Makes money like a regular business but uses a big part of its profits to support a social or environmental cause.

Example: Patagonia, BOGO model

Question 9

What are the four models of revenue generation for nonprofits?

Answer 9

1. Customer Model: Selling
   products or services
   directly to customers
2. Employee Model:
   Employing marginalized
   individuals
3. Product Model: Creating +
   commercializing product
   that directly addresses a
   social or environmental
   problem
4. Combined Model: 2+
   models

Question 10

Types of Stakeholders

Answer 10

1. Dominant Stakeholders:
   Power legitimacy + strong
   influence
2. Dependent Stakeholders:
   Urgency + legitimacy but
   lack of power
3. Dangerous Stakeholders:
   Power + urgency but may
   use power or resort to
   violence
4. Definitive Stakeholders:
   Significant roles, only ones
   who possess all 3 attributes

Question 11

What are the 2 ways of funding social ventures?

Answer 11

1. Social Venture Capital (for-
   profit)
2. Venture Philanthropy:
   Investors supporting social
   ventures

Question 12

What are 2 ways of measuring impact?

Answer 12

1. Developing a Theory of
   Change: Roadmap of how
   to make a big goal happen
2. Calculating Social Return on
   Investment (SROI)
   Social value / financial costs
   The bigger the number the
   better