social entrepreneurship Flashcards
social entrepreneurship
-form of entrepreneurship with the purpose of social problem solving
-private-sector focus on innovation, risk-taking, and large-scale transformation used to pursue solutions to social problems
-sale of products or services to drive an explicit or central social mission
social entrepreneur
-a person to small group who founds or leads an organization or initiative engaged in social entrepreneurship
-sometimes also referred to as “public entrepreneurs”, “civic entrepreneurs,” or “social entrepreneurs”
social entrepreneurship process
begins and ends with desire for social change
-desire for social change
-translation into business opportunity
-creative acquisition of utilization of resources
-achievement of social impact
social purpose ventures
aim is to resolve a social problem and make a profit
social consequence entrepreneurship
describes a for-profit venture whose primary market impact is social
enterprising nonprofits
both the venture mission and the market impact are for social purposes
any profits made must be channeled back into the organization
enterprising nonprofits include earned income activities, and venture philanthropy
hybrid models of social entrepreneurship
emphasizes economic and social goals
hybrid models exploit the advantages of both for profit and nonprofit models
impact investment funds
look for a return on investment and to make a social/environmental impact
community fund
invest in economic development
Microfinance as a source of social financing
describes financial serves to people ineligible to receive banking services
-loans
-insurance
-savings
unintended consequences of social entrepreneurship: Toms Shoes
“buy one give one”
founded in 2006 by Blake Mycoskie
Has given away 35 million pairs of shoes in over 60 countries
critics believe this model could stifle local business
triple bottom line
an accounting framework that goes beyond the traditional measures for profit, return on investment, and shareholder value to include environmental and social dimensions
profits (sales)
people (put people first in everything)
planet (climate conscious)
economic performance / profits (triple bottom line)
-personal income
-cost of underemployment
-establishment sizes
-job growth
-employment distribution by sector
-percentage of firms in each sector
-revenue by sector contributing to gross state product
social performance / people (triple bottom line)
-unemployment rate
-median household income
-relative poverty
-percentage of population with a post secondary degree or certificate
-average commute time
-violent crimes per capita
-health adjusted life expectancy
environmental performance / planet (triple bottom line)
-hazardous chemical concentrations
-selected priority pollutants
-electricity consumption
-fossil fuel consumption
-solid waste management
-hazardous waste management
-change in land use/land cover
certified B corporation (“B corp”)
purpose: to create a material positive impact on society and the environment
accountability: to have a fiduciary duty to consider the interests of workers, the community, and the environment
transparency: to report annually to the public on overall social and environmental performance with credible and transparent 3rd party standard
over ___ companies globally spanning ___ countries and ___ industries
4,000
77
153
Unilever has acquired ___ B corps including Ben & Jerry’s and Sevenths Generation
8
there are ___ B corps that are now publicly traded firms
30
there is a __% greater likelihood that a B corp survived the great recession
63%
ethics of social entrepreneurs
-could a social entrepreneurial venture be unethical in its business practices? can the ends justify the means?
-is it fair to pay employees of a non-profit less money than they could be making elsewhere?
-how important should finances be to a social entrepreneur?
wicked problems
complex social problems with no clear solution, pose challenges and opportunities to social entrepreneurs
ex: environment, poverty, sustainability, equality, education, child mortality, sanitation, terrorism, health
Conklin’s defining characteristics of wicked problems
- the problem is not understood until after the formulation of a solution
- wicked problems have no stopping rule
- solutions to wicked problems are not right or wrong
- every wicked problem is essentially novel and unique
- every solution to a wicked problem is a one shot operation
- wicked problems have no given alternative solutions
millennials expected to outnumber baby boomers
this year
