I. Social Innovation, Social Entrepreneurship and Social Enterprises/ Case study Cotopaxi Flashcards
1
Q
Entrepreneurial approach to social issues
A
- Drive a change
- Passion & Values of nonprofit + Efficiency & Innovation of profit organizations
2
Q
Hybridization of models
A
- Combination of Goals/ Identities/ Strategies/ Organizational forms that usually would not go together
- Profit Orga-> Mission = Economic/ Source of financial sustainability = Revenues/ Role in Society = Wealth generation
- Hybrid SE -> Mission = Social/ Source of financial sustainability = Revenues/ Role in Society = Social value creation & Wealth generation
- Nonprofit Orga -> Mission = Social/ Source of financial sustainability = Grants and Donations/ Role in Society = Social value creation
3
Q
Who is an Entrepreneur?
A
- An innovator who implements entrepreneurial change within markets -> Good, production method, new source of supply, opening new market (Schumpeter)
- Take initiative and organize some social and economic mechanisms (Shapero)
- Attempt to create value through recognition of business opportunities (Kao and Stevenson)
4
Q
Who is a Social Entrepreneur?
A
- Social Entrepreneur = Individual that implements the process to drive change in society
- Presents innovative solutions to most pressing social problems (Schumpeter)
- Carry out new forms of organization to address complex social problems (Shapero)
- Acts as change agent of society and seizes (ergreifen) opportunities to advance sustainable solutions that create social value (Kao and Stevenson)
5
Q
What is Social Entrepreneurship?
A
- Social Entrepreneurship = Process of creating value for society
- Identification of a stable but unjust equilibrium (Gleichgewicht) which causes suffering to a group who can’t transform the equilibrium
- Identification of an opportunity/ Developing social value proposition to challenge the Imbalance
- Forging (Build) a new stable equilibrium to alleviate the suffering of the targeted group through imitation
- Establish stable ecosystem around equilibrium to ensure a better future for group and society
6
Q
What is Social Innovation? (Output)
A
- Novel solution to a social problem
- More effective/ efficient/ sustainable than current solutions
- Value accrues (benefits) primarily to society than to private individuals
7
Q
What is Social Enterprise? (Organization)
A
- Combine aspects of nonprofits and forprofits
- Primarily pursuing a social mission
- Relying on commercial revenue to sustain operations
- Sometimes Social Enterprises and Customers can be the same actors in the market (e.g. Bangladesh)
8
Q
Social Enterprises Goals
A
- Social goal = Connected to mission/ Satisfaction of social needs of specific group of citizens
- Economic goal = Ability to maintain financial sustainability/ Long-term economic efficiency
- Socio-political goal = Connected to Involvement in socipolitical debate/ Promoting internally and externally the democratization of decision-making processes
9
Q
Social entrepreneurial models
A
- Social Bricoleurs
- Social Constructionists
- Social Engineers
10
Q
Social Bricoleurs
A
- Act upon opportunities to address a local social need for that they have Expertise/ Motivation/ Resources (e.g. Italian Mafia)/ Hard to replicate and not standardized
- Scale = Small scale/ Scale in depth/ Local in scope
- Impact = Quick response time due to scale
- Why they are needed = Social needs are misunderstood/non-discernable from afar -> Requires local agents
11
Q
Social Constructionists (Cotopaxi)
A
- Providing goods/ services through alternative structures to address social needs in institutional voids
- Scale = Small to large/ International in scope
- Impact = Tackle unaddressed needs
- Why they are needed = Governments/ businesses are not addressing important social needs effectively due to lack of governance regulatory (Laws/ Political acceptability/ Willing)
12
Q
Social Engineers
A
- Creation of effective social systems to 1. replace ill-suited existing systems 2. address social needs
- (Change mindstet and understanding of a problem/ Create awareness)
- Not about tackling institutional voids but about individualizing an institutional equilibrium (e.g. educational system in a country)
- Scale = Large scale/ National to international scope/ Seek to build lasting structures that challenge existing order
- Impact = Rip apart existing social structures and replace them
- Why they are needed = Some social needs cannot be improved within the existing social structures
13
Q
What is Cotopaxi?
A
- Cotopaxi: scaling up (standardized approach to address poverty) while scaling deep (partnership with NGOs)
- Social Engineers = Inspire People for Problem
- Social Constructionists = Sell products to reduce poverty with a sustainable supply chain
- Social Bricoleurs = Bridge gap between customers and local NGOs
- Solution = Social Constructionists because they are targeting the problem more than inspiring people to change their mindset/ Leave depth for NGOs/ Scale up and internationally instead
14
Q
B-Corp
A
- Legally required to consider impact of decisions on range of stakeholders (employees, customers, suppliers, community, environment)
- Balance purpose and profit (Not all are social enterprises)
- Senseful for Cotopaxi to become a B-Corp because of reliability, commitment and other benefits
- Important to include Customers and Target population in mission
- Signaling stakeholders market orientation but still socially focused
- But (!) Not all B-Corps are Social Enterprises!
15
Q
Main reasons to certify as B-Corp
A
- Differentiate
- Attract Talents/ Impact Investors
- Improve Impact
- Show Reliability
- Prove Commitment
- Increase Transparency
