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Defining Social Entrepreneurship
Transcript of Defining Social Entrepreneurship
Definition Social entrepreneurship is: the use of business methods to solve social problems. BRIEF DEFINITION entre-preneur: from French, "entreprende-eur," literally "one who undertakes." Jean Baptiste Say: "The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield." Joseph Schumpeter "the function of entrepreneurs is to reform or revolutionize the pattern of production." social used in the same sense as in society, social good, social value, and social issues. J. Gregory Dees "For social entrepreneurs, the social mission is explicit and central. . . . Mission-related impact becomes the central criterion, not wealth creation. Wealth is just a means to an end for social entrepreneurs." Social entrepreneurs address social issues,
such as: energy water poverty education crime drugs hunger healthcare environment rights Four components: high social impact
scalability Joseph Schumpeter's "creative destruction" uses self-supporting finance methods for long-term impact adoptable beyond the local context to catalyze and create systemic change social mission with goal of fundamental change in the system Bill Drayton,
Founder and CEO of Ashoka: ‘‘Social entrepreneurs are not content just to give a
fish, or teach how to fish. They will not rest until they
have revolutionized the fishing industry.’’ Models: NON-PROFIT - portfolio of funding, grants
ENTERPRISING NPO - meets their bottom line
HYBRIDS - NPO leans on for-profit for support
FOR-PROFIT SOCIAL BUSINESSES - sustained by profit; equal weight given to social and business impact
Over the past 30 years, this sector and the study of it has grown tremendously. Duke Center for the Advancement of Social Entrepreneurship Social Enterprise Initiative at Harvard Business College Skoll Foundation Ashoka Schwab Foundation for Social Entrepreneurship Kennedy School of Government at Harvard University Stanford Center for Social Innovation World Bank Institute Global Entrepreneurship Program at State Dept. White House Office on Social Innovation and Civic Participation Social Innovation Funds, Serve America Act USAID Examples Big Belly Solar, Jim Poss Problem: 180,000 garbage trucks in US burning over a billion gallons of diesel fuel each year.
Those garbage trucks cost about $50 billion a year
Trash pick up frequency driven by the container -- when full, pick up time.
Solution: Use solar and bio technology to reduce pick up frequency by a factor of about five. Vision Spring Problem Lack of affordable eye care for the elderly in undeveloped or rural areas of the world
Lack of employment among the same groups Solution Provide vision screenings and eye glasses for extremely low cost
Train "Vision Entrepreneurs" to travel to underserved villages and perform vision screenings and fit/sell eye glasses to the poor. Project Light Problem Solution Rural Brazilians too poor to afford electricity.
No electricity means no refrigeration, no irrigation pumps, no water pumps.
Farmers were leaving the rural areas to enter the cities for work; cities crowded, fields empty. Provide low cost electricity to rural areas through low-amp transformers
Use monophase pumps to pump water from underground
Shift agricultural methods to produce higher crop yields. Fabio Rosa Structure