Chapter 4 Notes PDF

Preview

Summary

Mark Mondry Lecutre notes + textbook notes for Chapter 4...

Description

Chapter 4 - Supporting Social Entrepreneurship Learning Objectives: 4-1: Describe what role social entrepreneurship plays in society 4-2: Explain how social entrepreneurship can help resolve wicked problems around the world 4-3: Identify the different types of social entrepreneurship 4-4: Explain how social entrepreneurs can use capital markets to fund their ventures 4-5: Identify the primary attributes of stakeholders and how stakeholders can help or hinder a social entrepreneur 4-6: Distinguish between corporate social responsibility and social entrepreneurship 4-7: Assess the value of social inclusion globally within social entrepreneurship 4.1 - The Role of Social Entrepreneurship Social Entrepreneurship: The process of sourcing innovative solutions to social and environmental problems - Main difference between traditional and social entrepreneurship lies in its intended mission. - Creates ventures to tackle to social problems and bring about social change - Differs from other forms of entrepreneurship in that it gives higher priority to social value creation - by catalyzing social change and/or catering to social needs - than to value capture 4.2 - Social Entrepreneurship and Wicked Problems Wicked Problems: Large, complex, social problems where there is no clear solution, where there is limited confusing, or contradictory information available, and where a whole range of people with conflicting value engage in debate. Dr. G. Venkataswamy set out on a mission to eradicate avoidable blindness in India. Applied unconventional problem-solving techniques to these issues. - Provided transportation - Made patients pay nothing or subsidized by the wealthier patients - Created a factory to create cheaper glasses at $4 a pair 4.3 Types of Social Entrepreneurship 1. Social purpose ventures a. Aims to resolve a social problem and make a profit 2. Social consequence ventures a. A for-profit venture whose primary market impact is social 3. Enterprising nonprofits and their relationship to social entrepreneurship a. A form of social entrepreneurship where both the venture mission and the market impact are for social purposes. This means that any profits made must be channeled back into the organization. b. 2-Types (Can earn both) i. Earned-Income Activities: Such as selling products or services, are used

as a source of revenue generation. Venture Philanthropy Funding: Combines financial assistance such as grants with a high level of engagement by the funder. Venture philanthropists share their experience with non-profit entrepreneurs to help grow and scale the company to drive social change 1. Financial support is typically provided for 3 to 5 years with the goal of enabling the nonprofit to become financially independent by the end of this period Hybrid Model of Social Entrepreneurship: Describes an organization with a purpose that equally emphasizes both economic and social goals ii.

4.4 Capital Markets for Social Entrepreneurs - Blake Mycoskie. For profit operates a “Buy One Give One” business model - for every pair of shoes it sells, it donates a pair to people living in impoverished countries - Critics suggest that the one-for-one business model may have unintended consequences. It “Wreaks havoc” on local businesses as it stifles local industry and potentially increases local employment 4.5 Social Entrepreneurs and Their Stakeholders Stakeholders: The groups affected by or involved with the achievements of the social enterprise’s objectives - May include employees, volunteers, investors, customers, suppliers, and manufacturers, leaders in nonprofit orgs, etc. - When you create a social innovation it is unlikely that all your stakeholders will be in immediate agreement. Instead, it your responsibility to communicate to stakeholders not only the value derived but also the potential loss or consequences of your activities, and suggest alternative solutions - Three primary attributes of stakeholders to consider when you are trying to achieve your objectives: Power, legitimacy, and urgency (Not necessarily independent of one another) Types of Stakeholders 1. Dormant Stakeholders a. Hold power but do not tend to use that power unless they are given a reason to do so, may become significant when they begin to utilize their power 2. Discretionary Stakeholders a. Have no power to influence and no urgent claims, but they have legitimacy 3. Demanding Stakeholders a. Possess the urgency attribute. They have no power or legitimacy and may be the only dissenting voice in the room 4. Dominant Stakeholders a. Have both power and legitimacy 5. Dependent Stakeholders a. Have both urgency and legitimacy, but lack the power to influence. The most

passionate, their passion is likely to attract dominant stakeholders 6. Dangerous Stakeholders a. Posses both power and urgency, but may use this power to coerce or even resort to violence 7. Definitive Stakeholders a. Hold all three attributes of power, legitimacy, and urgency. Must be given priority when it comes to handling their claims Stakeholders are not static - they can evolve, and through that evolution, they may either gain or lose attributes. 4.6 - Differences Between Social Entrepreneurship and Corporate Social Responsibility Corporate Social Responsibility (CSR) - Describes the efforts taken by corporations to address the company’s effects on environmental and social well-being in order to promote positive change. - Basically adds social objectives while still pursuing the main goal of making a profit 4.7 - Social Entrepreneurship and Global Inclusion Work integration social enterprise (WISE): A social enterprise whose mission is to integrate people who have been socially enterprise whose mission is to integrate people who have been socially excluded into work and society through productive activity. - Becoming more commonplace...