PROJECT MANAGEMENT & ENTREPRENEURSHIP (KHU-802)

UNIT-V SOCIAL ENTREPRENEURSHIP

SOCIAL ENTREPRENEURSHIP:
Social entrepreneurship is the process of developing and funding solutions to social,
cultural, or environmental issues. Social entrepreneurs are business owners who can make
profits, share dividends, and attract investors. They explore business opportunities that have
a positive impact on their community, society, or the world.
Social entrepreneurship is a new, innovation business venture that influences change.
Social entrepreneurs have a specific cause they care about, and they develop a business
model around making a positive impact. The main goal is to create lasting social change
through business.
Some examples of social entrepreneurship include:
• Educational programs
• Providing banking services in underserved areas
• Helping children orphaned by epidemic disease
• Crowd funding
• Baking for a cause
• Educational travel
Social entrepreneurship is important because it can offer new ways to solve some of
the most pressing challenges of our time, such as:
Poverty, Inequality, Climate change, Health, Education, Human rights.

Difference Between Entrepreneurship vs. social entrepreneurship:

Like entrepreneurs, social entrepreneurs aim to create a sustainable business with staying
power. However, whereas an entrepreneur’s goal is to maximize profits, a social
entrepreneur’s main concern is impact. Most other differences between the two types of
entrepreneurships derive from that focal point.

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CHALLENGES OF SOCIAL ENTREPRENEURSHIP IN INDIA
Future Issues and Hypothetical Concerns: Social entrepreneurs tackle possible future issues
such as overpopulation and sustainable energy sources, which makes it harder to attract
investors who are more inclined towards safer, profit-driven projects.

Business Strategy: Social entrepreneurs also face the challenge of developing a strong
business strategy. They need support from professionals like attorneys, accountants, and
experienced entrepreneurs to create a solid business plan that aligns with market realities and
customer needs.

Lack of Funding: Unlike traditional businesses, social enterprises often have to balance
financial returns with social outcomes, which can make them less attractive to investors or
donors. Moreover, they may face higher costs, risks, and uncertainties due to the complex and
dynamic nature of the social problems they address.

Lack of Balance: Social entrepreneurship can be very demanding and stressful, as it involves
dealing with complex and urgent issues, facing multiple pressures and expectations, and
making sacrifices and trade-offs. This can lead to burnout, exhaustion, or loss of motivation,
which can affect their well-being and effectiveness.

Way Forward: Social entrepreneurship has evolved over the years and has given innovative
and profitable ideas that address social problems. The social entrepreneurship ecosystem in
India is among the most developed in the world. It provides numerous opportunities to
collaborate with local partners, learn from their experiences, and pursue creative solutions to
some of the country’s many social problems in the areas of education, agriculture, healthcare,
renewable energy, manufacturing, and skill development. The need of the hour is a nourishing
ecosystem for social entrepreneurs to take up programmes, bridge pandemic-induced gaps,
scale-up existing initiatives, and be part of the mainstream response system.

SOCIAL SECTOR PERSPECTIVES

Economic development: The social sector is usually defined as dealing with social and
economic activities carried out for the purposes of benefiting society, and in the main nonprofit,
not-for-profit, philanthropic and mission based and nongovernmental organizations are
associated with this sector.
Education: Education is a process which helps in the achievement of determined living for
every individual in society. Educational arrangement acquires intricacy through a process of
social change.

Gender equality: Gender equality requires equal enjoyment by women and men of socially-
valued goods, opportunities, resources and rewards.

Healthcare: Social workers in healthcare help to address this by referring patients to

community resources, financial assistance plans and legal aid as need.

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Agriculture: Social agriculture is a generative approach that, through networking, food
production, and the practice of local welfare, generates bonds and restores lifeblood to urban
and rural communities.

Environmental sustainability: It encompasses the protection of people’s lives and health, the
economic basis of their livelihood and their ecological, social and cultural environments as
well as the sustainable use of natural resources.

Renewable energy: It can be used for electricity generation, space and water heating, cooling
and transportation.

Community development: It can be defined as a process that seeks to strengthen and empower
communities to develop their full potential. It seeks to equip individuals and groups of people
with the skills they need to bring about progressive change in their own communities.

IMPACT OF SOCIAL ENTREPRENEURSHIP ON SOCIETY:

• Social entrepreneurship plays a vital role in keeping the society together and in
place.
• Social entrepreneurship contributes to sustainable development, creating a positive
feedback loop that enhances the well-being of the people they serve.
• It uses business to offer new ideas for wide-scale social and environmental impact.
• It unites the passion of a social mission with an image of business-like discipline,
innovation, and determination.
• It helps in economic development, healthcare, and empowers communities.
• It provides new job opportunities in the short and long term.
• The solution of social problems such as poverty, hunger, natural disaster, war, drugs,
people with disabilities, youth, women, pollution and so on can be solved as well
as adding value to society.
• Even though most business directly or indirectly serve the people ultimately, social
entrepreneurship concentrates on developing, financially backing and executing
ideas that contributes to find solutions for social, cultural, and environmental
concerns.
• Social entrepreneurship could help the environment in the optimum utilization of
natural resources.
• Social entrepreneurship is dedicated to addressing some of the world’s most
pressing issues – while still succeeding as thriving businesses.
• Social entrepreneurship is a source of inspiration and meaningful impact for society.
Most of these entrepreneurs no longer rank money as the number one criteria but
rather go for meaning, purpose and fulfilment.

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 OPPORTUNITIES IN THE FIELD OF SOCIAL
ENTREPRENEURSHIP AND SUCCESSFUL MODELS:
Waste management: In a country like India, solid and liquid waste management are
undoubtedly the corner stone for a clean and green India. It is clearly an area of focus. The
current solutions are infrastructure based, require large investments and are always on a
catch-up mode. But you as an entrepreneur you can tap this unexploited space with you
innovate idea and can churn out money from here.
Deep cleaning services: To keep India clean and green PM Narendra Modi has initiated
the Swatch Bharat Abhiyan. We need to work together towards this ambition to make our
country tidy. Cleaning industry is still untapped and it needs young blood to step in and
change the face of the sector by using their innovative skills and techniques.
Green infrastructure: It is vital in providing and connecting life support systems for urban
environments. Parks and reserves, gardens, waterways and wetlands, streets and transport
corridors, pathways and greenways, squares and plazas, roof garden and living walls
provide huge opportunities for entrepreneurs to meet India’s green infrastructure needs in
2024 and beyond.
Water management: In today’s time, access to clean water is the biggest achievement for
any family living in remote areas of the country. You, being an entrepreneur, can look into
this matter and figure out the best way to solve this problem with the help of your
entrepreneurial skills.
So, if you are planning to become a social entrepreneur, renewable energy or recycling
space is not only option that you can opt for. There are major issues and areas which you
can tap and churn out money by helping society to live better life.

CONCEPT OF SUSTAINABILITY IN SOCIAL INNOVATION:

• Sustainable development could be defined as a new paradigm of development that
introduces sustainable ways of conducting activities that respect environment limits
and at the same time result in social and economic development.
• Sustainable innovation is the act of continuously improving your products,
processes, and workforce to create a brighter, more sustainable future—for your
customers, your employees, and the environment.
• Social innovation has been the anonymous bedrock of global sustainable
development for many years, but mainly disguised by a plethora of other labels.
• Sustainability in social innovation refers to the development and implementation of
innovative solutions that address social, environmental, and economic challenges
in a way that is enduring and impactful over the long term.
• Sustainability in social innovation involves considering the triple bottom line—
people, planet, and profit—ensuring that solutions benefits society, minimize harm
to the environment, and are economically viable.

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 • Overall, sustainability in social innovation is about creating positive and lasting
change that improves the well-being of current and future generations while
safeguarding the planet’s resources for future use.
• Some examples of sustainable innovation are :- the development of energy efficient
technology, implementation of waste reduction strategies, the promotion of
sustainable agriculture practices, and the integration of social responsibility into
innovative business models.

METHODS OF MARKETING MANAGEMENT FOR SOCIAL

VENTURES:
Marketing management for social ventures requires a unique approach that balances
financial sustainability with social impact. Here are various methods tailored for social
ventures:
Storytelling and Branding: Craft compelling narratives around the mission and impact of
the social venture. Use storytelling to connect emotionally with the audience and build a
strong brand identity that reflects the values and objectives of the organization.
Content marketing: Produce high-quality content such as blog posts, videos, infographics,
and podcasts that educate, inspire, and engage the target audience. Content should align
with the social mission, and provide valuable insights related to the cause.
Social media marketing: Leverage social media platforms to amplify the message, reach
a wider audience, and foster community engagement. Utilize platforms like Facebook,
Instagram, Twitter, and LinkedIn to share stories, showcase impact, and interact with
supporters.
SEO (Search engine optimization): Building organic traffic to your website can be a great
way to build incoming leads and buyers to your website. If you are going to invest any
money into a digital strategy online, SEO can be a cost-effective way to do so.
Partnerships and Collaborations: Collaborate with nonprofits, government agencies,
corporations, and other stakeholders to amplify your impact and reach. Pool resources,
expertise, and networks to achieve common goals.

TYPES OF RISK:
Risk

Financial Market Reputational Social impact Partnership Ethical

Operational Legal & Regulatory Governance Environmental

Fig. types of risks

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Financial risk: This includes risks related to funding, revenue generation, and financial
sustainability.

Market risk: Social enterprises may face risks related to changes in market demand,
competition, and market dynamics.

Operational risk: It encompasses a wide range of potential issues, including supply chain
disruptions, technology failures, and human resource challenges.

Legal & Regulatory risk: Compliance with laws and regulations is essential for social
enterprise, particularly those operating in sectors with specific legal requirements or regulatory
oversight.
Reputational risk: Reputation is crucial for social enterprises, as their ability to attract
funding, partners, and customers often depends on their perceived social impact and ethical
behaviour. Reputational risks can arise from scandals, negative publicity, or perceived failures
to uphold social values.

Social impact risk: Risks related to measuring, monitoring, and demonstrating impact can
arise from inaccurate data, flawed evaluation methods, or challenges in achieving desired
outcomes.

Partnership risk: Risks associated with partnerships include conflicts of interest,

disagreements over goals or strategies, and dependence on the reliability of partner
organizations.
Environmental risk: Risk related to environmental factors such as climate change, natural
disaster, or resource scarcity.
Ethical risk: Ethical risk can include issues such as conflicts of interest, exploitation of
vulnerable populations, or failure to uphold human rights principles.

Governance risk: Risks related to governance include conflicts of interest, inadequate board
oversight, and lack of clarity in roles and responsibilities.

Types of risk management in social enterprise:

• Financial risk management
• Operational risk management
• Social impact risk management
• Market Risk management
• Legal and Regulatory risk management
• Reputational risk management
• Strategic risk management

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RISK MANAGEMENT IN SOCIAL ENTERPRISES
Risk management is crucial for the success and sustainability of social enterprises. These
organizations face unique challenges due to their dual focus on social impact and financial
viability. Here are some key considerations for managing risks in social entrepreneurship:
1. Risk Identification:
o Understand the specific risks associated with the social enterprise’s mission
and operations.
o Identify internal risks (e.g., governance, financial stability) and external risks
(e.g., regulatory changes, market shifts).
2. Impact Risk:
o Social enterprises must balance impact and financial sustainability.
o Assess the risk of compromising social goals for financial gains or vice versa.
o Develop strategies to mitigate this risk, such as measuring impact consistently
and transparently.
3. Financial Risk:
o Social enterprises often operate with limited resources.
o Evaluate financial risks related to funding gaps, cash flow, and revenue
diversification.
o Create contingency plans and explore alternative funding sources.
4. Operational Risk:
o Consider risks related to day-to-day operations.
o Address supply chain disruptions, volunteer management, and scalability
challenges.
o Implement robust processes and systems to minimize operational risks.
5. Legal and Regulatory Risk:
o Stay informed about legal requirements and regulations.
o Ensure compliance with tax laws, reporting obligations, and any industry-
specific regulations.
o Seek legal advice when needed.
6. Partnership and Collaboration Risk:
o Collaborations with other organizations can enhance impact but also introduce
risks.
o Assess potential risks in partnerships (e.g., reputation risk, conflicting goals).
o Establish clear agreements and communication channels.
7. Reputation Risk:
o Social enterprises rely on trust and credibility.
o Mitigate reputation risks by maintaining transparency, ethical practices, and
consistent communication.
o Address any negative publicity promptly.
8. Environmental and Social Risks:
o Consider the impact of the enterprise’s activities on the environment and local
communities.
o Implement sustainable practices and assess social risks (e.g., unintended
consequences of programs).
9. Risk Mitigation Strategies:
o Develop risk mitigation plans tailored to the organization’s context.
o Regularly review and update risk assessments.
o Involve stakeholders in risk management discussions.
o

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 10. Resilience and Adaptability:
o Social enterprises should be agile and adaptable.
o Build resilience by diversifying income streams, fostering innovation, and
learning from failures.

Remember that risk management is an ongoing process. Social entrepreneurs must

proactively address risks while staying true to their mission.

LEGAL FRAMEWORK FOR SOCIAL VENTURES:

The legal framework for social ventures can vary depending on the country and the
specific structure of the venture. However, here are some common legal structures and
considerations for social ventures:
Nonprofit Organization: Nonprofits are often established to pursue social or charitable
missions. They are typically exempt from certain taxes and can receive tax-deductible
donations from supporters.
Social Enterprise: Social enterprises are businesses that prioritize or environmental goals
alongside financial returns. They can take various legal forms, including traditional for-
profit entities like corporations or LLCs.
Cooperatives: It is owned and operated by their members and can be structured as for-
profit or nonprofit entities and are often guided by principles such as democratic control
and concern for the community.
Regulatory compliance: This can include tax laws, employment regulations, industry-
specific regulations, and reporting requirements.
Mission Alignment: When choosing a legal structure, social ventures should consider how
well it aligns with their mission, values, and long-term goals.
Legal Advice: It’s important for social ventures to seek legal advice from professionals
with experience in both the relevant area of law and social entrepreneurship.

ROLES OF SOCIAL RESPOMSIBILITIES IN THE GROWTH OF AN

ENTREPRENEUR:
Reputation building: Entrepreneurs who prioritize social responsibilities build a positive
reputation. Consumers often prefer to support businesses that demonstrate ethical
behaviour and contribute positively to society.
Customer loyalty: Socially responsible entrepreneurs tend to attract loyal customers who
align with their values. Customers are more likely to remain loyal to a brand that
demonstrates a commitment to social causes they care about.
Employee engagement and retention: Companies that prioritize social responsibilities
tend to have higher levels of employee engagement and retention. Employees are more
motivated to work for organizations that make a positive impact on society, leading to
increased productivity and loyalty.
Risk mitigation: Socially responsible practices can help mitigate various risks, including
regulatory, legal, and reputational risks. By adhering to ethical standards and considering

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 the broader impacts of their actions, entrepreneurs can avoid potential pitfalls that may
harm their business.
Innovation and differentiation: Social responsibilities can drive innovation and
differentiation in products and services. Entrepreneurs who integrate social and
environmental considerations into their business models may discover new market
opportunities and attract customers seeking sustainable solutions.
Long-term sustainability: Socially responsible practices are often aligned with long-term
sustainability. By considering the social, environmental, and economic impacts of their
decisions, entrepreneurs can build resilient and sustainable businesses that thrive in the long
term.

ROLES OF SOCIAL BENEFITS IN THE GROWTH OF AN ENTREPRENEUR:

• Addressing social and environmental challenges

• Creating sustainable business models
• Empowering marginalized communities
• Fostering innovation and creativity
• Encouraging collaboration and partnerships
• Promoting social impact measurement
• Inspiring and serving as role models as leaving a legacy
• Driving systemic social changes
• Encouraging responsible consumption and production
• Building resilient and inclusive societies

SOCIAL ENTREPRENEUR AND THEIR SOCIAL ENTERPRISE:

[1] Harish Hande: One renowned social entrepreneur in India is Harish Hande, the co-founder
of SELCO India. Harish Hande recognized the need for sustainable solutions for energy access
in rural areas, particularly for marginalized communities. He established SELCO India with
the aim of providing affordable and reliable solar energy solutions to rural communities.

Through SELCO India, Hande has successfully impacted the lives of millions of people by
who found access to clean and affordable energy, thereby improving their quality of life and
promoting sustainable development.

[2] Sharad Vivek Sagar: Sagar is working in the field of education and public service as an
entrepreneur. He founded DEXETERITY GLOBAL in 2008 at the age of 16. Sagar
participated in Telenor Youth Forum 2016 in OLSO.

He was in the runners-up position for Queen’s Young Leaders Awards and awarded to 240
influential change-makers, representing 53 Commonwealth countries in 2018. He was invited
by President BARACK OBAMA to the White House.
[3] Ela Bhatt: SEWA is founded in 1972 by labour lawyer and organiser Ela Bhatt. It emerged
from the Women’s Wing of the Textile Labour Association (TLA). SEWA’s main goals are to

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organise women workers for full employment and self-reliance. SEWA aims to mainstream
marginalized, poor women in the informal sector and lift them out of their poverty.

Health insurance, childcare, housing are also provided by SEWA.

[4] Urvashi Sahni - Founder and CEO of SHEF (Study Hall Education Foundation) Urvashi
Sahni is a social entrepreneur and an activist. She is the founder and CEO of SHEF Study Hall
Education Foundation. Sahni is an Ashoka Fellow. Study Hall Education Foundation (SHEF)
is a social venture that awards students who are underprivileged and interested in studying
engineering or business scholarships. The foundation trained many students with various skills
that can make them successful. Using her foundation, she has enlightened the world about the
power of social entrepreneurship and how social entrepreneurs can help implement positive
societal changes. She was a corporate lawyer, but due to her tireless advocacy for social
entrepreneurship, she quit practicing law for her educational career pursuit.
[5] Saalumarada Thimmakka - Founder of Saalumarada Foundation Saalumarada
Thimmakka founded a non-governmental organization (NGO) called the Saalumarada
Foundation that assists widows, homeless children, and disadvantaged women across India.
She addressed environmental and social issues through sensitization of students and educating
women about societal issues like gender discrimination and inequality. Saalumarada
Thimmakka received many awards, such as the prestigious Padma Shri Award, the Global
Social Venture Competition (GSVC) World Impact Award, and many others.
[6] Shelly Batra – Founder of Operation ASHA Operation ASHA is a non-profit organisation.
It provides treatment and prevention services for tuberculosis (TB) in underprivileged
communities. The organisation has developed a unique technology platform. It streamlines the
treatment process and has treated over 80,000 TB patients to date.

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