 What exactly a social entrepreneurship is and does

 And how it is different from entrepreneurship and

other social activities like Social service provision
and social activism
 Social Entrepreneurship has become an inclusive of all socially
beneficial activities.

 Too many “nonentrepreneurial” efforts are included in the definition

then Social entrepreneurship will fall into disrepute, and the kernel of
true social entrepreneurship will be lost.

 A clear and rigorous definition will enable the social entrepreneurship

supporters to focus their resources on building and strengthening a
concrete and identifiable field.
A special, innate ability to sense and act on opportunity,
combining out-of-box thinking with a unique brand of
determination to create something new to the world.

Entrepreneurial activities require a passage of time before

true impact is evident.
 French economist Jean-Baptiste described the entrepreneur as Value Creator one who
“shifts economic resources out of an area of lower and into an area of higher productivity
and greater yield"
 Austrian economist Joseph Schumpeter built upon this basic concept of value creation, and
identified in the entrepreneur the force required to drive economic progress, absent which
economies would become static, structurally immobilized, and subject to decay.
 Peter Drucker see the entrepreneur as someone who always searches for change, responds
to it, and exploits it as an opportunity”
 Israel Kirzner identifies “alertness” as the entrepreneur’s most critical ability.

Building from this theoretical base, the author’s describes the entrepreneurship as the
combination of a context in which an opportunity is situated, a set of personal characteristics
required to identify and pursue this opportunity, and the creation of a particular outcome.
 Entrepreneurial Context Entrepreneurial Outcome
Mainstream Computers, Computing system for Jobs and Wozniak created personal computers
Steve Jobs and Steve Wozniak

Inability of geographically based markets for Omidyar and Skoll created eBay
buyers and sellers for Pierre Omidyar and Jeff Skoll

Parents' limited options for toting their infants for Moores developed the Snugli, a frameless front-
Ann and Mike Moore or backpack that enables parents to carry their
babies and still have both hands free

Long distance courier service for Fred Smith Smith created FedEx
 Find an opportunity to provide a new solution (product, service, or process)

 The unique set of personal characteristics (inspiration, creativity, direct action, courage, and

fortitude) the entrepreneur brings to the situation.

 Inspired to alter the unpleasant equilibrium

 Thinks creatively and develops a new solution

 Takes direct action rather than waiting for someone else to intervene

 Demonstrates courage throughout the process, bearing the burden of risk and failure

 Possess the fortitude to drive their creative solutions through to fruition and market adoption
 Social Entrepreneurship signals the imperative to drive social change, and it is that
potential payoff, with its lasting, transformational benefit to society.

 The critical distinction between entrepreneurship and social entrepreneurship lies in the
value proposition itself.

 The entrepreneurial value proposition assumes a market that can pay for the innovation,
and may even provide substantial upside for investors.

 The social entrepreneur’s value proposition targets an underserved, neglected, or highly

disadvantaged population that lacks the financial means or political clout to achieve the
transformative benefit on its own.
1. Identifying a stable but inherently unjust equilibrium that causes the exclusion,
marginalization, or suffering of a segment of humanity that lacks the financial means or
political clout to achieve any transformative benefit on its own;

2. Identifying an opportunity in this unjust equilibrium, developing a social value

proposition, and bringing to bear inspiration, creativity, direct action, courage, and fortitude,
thereby challenging the stable state’s control; and

3. Forging a new, stable equilibrium that releases trapped potential or alleviates the
suffering of the targeted group, and through imitation and the creation of a stable ecosystem
around the new equilibrium ensuring a better future for the targeted group and even
society at large.
 Unfortunate equilibrium: Poor Bangladeshis' limited options for securing
even the tiniest amounts of credit.

 Yunus confronted the system and lended $27 from his own pocket to 42
women from the village of Jobra.

 Grameen Bank became a sustainable new equilibrium

 Identified an oppressive equilibrium in the way Hollywood worked
(financial interests, flashy and frequently violent blockbusters, studio
dominated system)

 Created Sundance Institute to take "money out of the picture" and

provide young filmmakers with space and support for developing their
ideas
Differentiating Social Entrepreneurship from other Socially Valuable Activities

 Social service provision:

 a courageous and committed individual identifies an unfortunate stable equilibrium – AIDS orphans in
Africa, for example – and

 sets up a program to address it – for example, a school for the children to ensure that they are cared for and
educated.

 The new school would certainly help the children it serves and may very well enable some of them to break
free from poverty and transform their lives.

 But unless it is designed to achieve large scale or is so compelling as to launch masses of imitators and
replicators, it is not likely to lead to a new superior equilibrium.

 Social activism:

 Instead of taking direct action, as the social entrepreneur would, the social activist attempts to create
change through indirect action, by influencing others – governments, NGOs, consumers, workers, etc. – to
take action.
 In the pure form, the successful social entrepreneur takes direct action and generates a
new and sustained equilibrium;
 The social activist influences others to generate a new and sustained equilibrium; and
 The social service provider takes direct action to improve the outcomes of the current
equilibrium.

 Hybrid Models using both social entrepreneurship and social activism or Social service
provision and social activism at the same time.
 Social service providers, social activists, and social entrepreneurs will often adapt one
another’s strategies and develop hybrid models which is less confusing and more
respectful than indiscriminate use of these terms.
 Indiscriminate use of the term may undermine its significance and
potential importance to those seeking to understand how societies
change and progress.

 Social entrepreneurship is as vital to the progress of societies as is

entrepreneurship to the progress of economies, and it merits more
rigorous, serious attention than it has attracted so far.
 This is a helpful contribution made by the author’s to the debate between
traditional (economic) entrepreneurship and social entrepreneurship.

 The article has been successful in establishing a definition of social

entrepreneurship and offshoots of socially motivated ventures.

 The authors have cited examples to create a demarcation between three concepts:
social entrepreneurship, social activism and social service providers in pure form
and hybrid model.

 To explore and illustrate their definition of entrepreneurship, the author’s have

taken the examples of American Entrepreneurs only.
 Case Studies can be written on Social Entrepreneurship committed societal

change and progress.

 The article can be extended by doing research on social service providers,

social activists and social entrepreneurs mentioning the impact or outcome of

developing hybrid models by adapting one another’s strategies.

 Further study can explore the way the pure form or hybrid model have an

impact on the outcomes.