Social and Commercial Eship Flashcards
How is social eship connected to market failure?
One theory behind the existence of social-purpose orgs is that they emerge as a result of market failure. Often due to inability of those needing the services to pay for them
What is the mission of SE?
Creating social value for the public good
Main difference between SE and Traditional Eship?
social eship is creating social value for the public good, whereas commerce eship aims at creating profitable transactions resulting in private gain
How do resources for SE and Traditional eship differ?
– Social entrepreneurs cannot tap into the same investment markets as commercial entrepreneurs. Economics of social enterprises also make it hard to compensate employees competitively
How does performance measurement differ between SE and traditional eship?
Social impact is measured much harder than commercial one. Additionally social enterprises have more stakeholders that they area accountable to
How does the opportunity focus between SE and TE differ?
TE - focuses on new breaktrhoughs and needs. Looking for growing market or big TAM
SE - focuses on serving basic needs, through innovative approaches. Unmet basic/social needs guarantees the needed market size
How does context/environment impact SE and TE?
Significant overlap. Include macroeconomy, tax, regulations and so on.
How do people an resources differer between SE and TE?
SE have less resources and cannot afford to hire top talent. Have access to less capital
How do deals differ between SE and TE?
Much harder for SE as there are no concrete measurements, and also way less economic value than TE
Problem with centrality of the SVP?
The entrepreneur shouldn’t get too carried away with the organizational interests as they may become too internally focused on getting resources that the paths to creating social value may become blurred.
