Lecture 1

Question 1

What is SE?

Answer 1

It’s entrepreneurship plus social mission

Question 2

Dichotomy of value (differences between TE and SE)?

Answer 2

Economic vs Social Value

Profit-seeking vs Social Mission

Question 3

Holistic Value

Answer 3

Generic concept of value
Increase in the utility of society’s members
Value Creation vs Value Capture

Question 4

Value creation in SE?

Answer 4

Adopting a mission to create and sustain social value

Question 5

Innovation and Change Agents - Schumpeter

Answer 5

Engaging in a process of continous innovation, adaptation, and learning

Reformers and Revolutionaries seeking systemic and sustaianble change

Question 6

Drucker - Pursuit of Opportunity

Answer 6

Recognizing and relentlessly pursuing new opportunities to serve that mission

Other’s problems = SE opportunities

Question 7

Stevenson - Resourcefulness

Answer 7

Acting boldly without being limited by resources currently in hand
Skilled at doing more with less - bootstrapping

Question 8

Exhibiting heightened accountability to the constituencies served and for the outcomes created

Answer 8

Sound understanding of the constituencies they are serving

Creating fit between investor values and community needs

Question 9

What are the problems with dealing with SE problems

Answer 9

Overlapping and unclear boundaries regarding definitions and who is responsible for solving social and environmental problems

Question 10

What are the main goals of SE?

Answer 10

Prioritizing social and environmental goals over financial goals

Trade off of Value Capture for Value CReation

Question 11

What is the spectrum of enterprises?

Answer 11

There are enterprises, which are hybrid and have differing levels of focus on social value.

With traditional for-profit and non-profit being at the two ends.

Question 12

Key diffferences between commercial and SE focus

Answer 12

Create social/environmental value
Achieve sustainable solutions
Make the enterprise redundant/dispensible
Logic of empowerement
Reinvest profits in enteprise goal
Regard for others

Question 13

PCDO model?

Answer 13

People, Context, Deal and Opportunity

Question 14

PCDO - People?

Answer 14

Human/FInancial Inputs
Internal/External
Skills, attitudes, knowledge

Question 15

PCDO - Context

Answer 15

External factors affecting the outcome of opportunity

Macroeconomy, tax, regulation

Question 16

PCDO - Deal

Answer 16

Exchange of value

Economic benefits, social recognition and personal satisfaciton

Question 17

PCDO - Opportunity

Answer 17

Desired future state

Requires investmetn and resources

Question 18

PCDO Opportunity - Investment of resources

Answer 18

TE - Breaktrhoughs and new needs

SE - Unmet needs and market failure

Question 19

PCDO - Macroeconomy, regulations and so on

Answer 19

TE - Might not pursue an opportunity because of tough regulations
SE - pursue opportunities “because of” inhospitable context

Question 20

PCDO - Human resources

Answer 20

TE - More financial capabilities and ability to attract top talent
SE - heavy relliance on volunteers, the 3F’s, more constraints and less flexibility

Question 21

PCDO - Deals

Answer 21

TE - focused on monetary performance, much easier to measure

SE - Social value is hard to be measured, consumers are usually with limited or no buying power.

Question 22

Case - Rotterzwam

Answer 22

Local sourcing of coffee grinds and local sales of mushrooms to minimize transportation.

Don’t expand so that they encorage entrepreneurs to copy and set up their own local hub

Question 23

Case - Greyston Bakery

Answer 23

P - collaborating with various partners, volunteers and cusotmers
C - addresing the socia context where unemployment problem is embedded
D - transformation of community, compassion and empowerment
O - meeting the needs for meaningful employment (open hiring)

Question 24

Key elements of SE

Answer 24

Market failure
Mission
Beneficiaries
Performance Measurement
REsource Mobilization
Strategy
Mission
Performance Measurement
Market Mechanism
Resource Mobilization