Positive Theory of SE

Question 1

How is value defined in this paper?

Answer 1

The increase in the utility of society’s members

Question 2

When does value creation occur?

Answer 2

Creation happens when the aggregate utility of society’s members increases after accounting for the opportunity cost of all resources used in the activity

Question 3

When does value capture occur?

Answer 3

Capture happens when the focal actor is able to appropriate a portion of the value created by the activity after accounting for the cost of resources that he/she mobilized

Question 4

Difference in focus between SE and TE

Answer 4

SE - focused on value creation

TE - focused on value capture

Question 5

What is the distinctive domain of SE?

Answer 5

Social entrepreneurs play a role in situations where there are strong externalities, particularly positive externalities, where the potential for value capture is lower than the potential for value creation because the benefits for society are much more than these for the entrepreneur.

Question 6

What is the distinctive approach of SE?

Answer 6

Social entrepreneurs aim to achieve a sustainable solution as opposed to achieving a sustainable advantage (what commercial entrepreneurs aim for) . Second they adopt a logic of empowerment of others as opposed to the more traditional commercial logic of control. While true commercial entrepreneurs who care for value capture try to become indispensable, true social entrepreneurs who care for value creation try to make themselves dispensable