Lecture 3

Question 1

What is the defining characteristic of a social enterprise?

Answer 1

It is focused on creating social value over economic value

Question 2

What is the main objective of SE?

Answer 2

To bring desired social change or social impact, usually basic needs of individuals

Question 3

What are the micro and macro ways to realize social value?

Answer 3

Macro - SE’s as a change agent and/or providing social innovation
Micro - Integrating social value in BM’s and operating strategies

Question 4

What questions should the value proposition of SE answer?

Answer 4

Who is being server and how are they being served?

Question 5

What is social value creation?

Answer 5

It generates improvements through a resolution of social problems

Question 6

Some paths to create and deliver social values?

Answer 6

Indirect Model: Funding –> Enterprise –> Value –> Intermediaries —> Beneficiaries

For example, Education

Direct Model: Funding –> Enterprise –> Value –> Beneficiaries

For example, food for poor

Question 7

3 Key aspects of social value creation?

Answer 7

Total Wealth - Social value + Economic Value. Benefits to society

Efficiency - Market failure, government failure, institutional voids

Logic - Equity, capacity, empowerment, sustainable solutions

Question 8

Causes of poverty and what are their solutions?:

Resource Scarcity
Social Exclusion
Broken System

Answer 8

Remediation
Reform
Revolution

Question 9

What is remediation?

And what is the case about?

Answer 9

Scarce resources as the main cause of poverty
• Providing resources will allow entrepreneurship to flourish and alleviate poverty

Mitticool refrigerator - Created by a man from a small village, local potter. USed easily available resources - bricolage

Experience and knowledge “In old times in India, terracotta pots were used to keep water cool”

Took him many years to find the right mix of materials

Question 10

What is the reform perspective?

Answer 10

Social exclusion as the main cause of poverty
• Social and institutional change to alleviate poverty
• Highlights the role of institutions in entrepreneurial
process (institutional entrepreneurship)

Kiva - Mission to expand financial access to help
underserved communities thrive. Provides crowdfunding loans

Question 11

What is the revolution perspective?

Answer 11

The most radical view
Critique of capitalism, offering alternative models of
economic organization
• (Potential) alternatives to individualistic, self-interested
approaches to entrepreneurship

Grameen Bank
evolutionary/radical/resistant “Grameen Bank is turning
upside down the prevailing lending principle…”

new social systems Gender inequality,
cognitive/normative institutional change (on women’s
position, trust, legal system, self-support…) Distributive
justice

Question 12

Key resources - Remediation

Answer 12

• Local, easily available resources
• Knowledge on local issues
• Partnership as a key source of 
resources
• Local social network, relationship 
among the poor

Question 13

Key resources - Reform

Answer 13

• Leverage social and
institutional context to
acquire resources

Question 14

Key resources - Revolution

Answer 14

• Motivation, compassion, 
ideas
• Need for sufficient 
political capital 
• Legitimacy

Question 15

Beneficiaries and stakeholders - Remediaton

Answer 15

• Local communities and 
the poor as potential 
entrepreneurs
• Direct, immediate 
beneficiaries

Question 16

Beneficiaries and stakeholders - Reform

Answer 16

• Attention to excluded 
groups
• Effective stakeholder 
/network management 
required:
• To match the scale and 
scope of the needs
• To develop systemic and 
sustainable solutions

Question 17

Beneficiaries and stakeholders - Revolution

Answer 17

• Attention to large groups 
-direct targeting
• Need to engage broader 
stakeholders 
• Distributive justice 
• New mindsets of 
stakeholders needed