Part I

The Entrepreneurial Mind-Set

in the 21st Century

Chapter 4
Social Entrepreneurship
and the Global
Environment for
Entrepreneurship

PowerPoint Presentation by Charlie Cook

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a

publicly accessible website, in whole or in part.
 The Social Entrepreneurship Movement
• Social Entrepreneurship
 Entrepreneurship that is a form that exhibits
characteristics of non-profits, governments, and
businesses.
 Combination of private-sector focus on innovation, risk
-taking, and large-scale transformation with social
problem solving.
• The Social Entrepreneurship Process
 Recognition of a perceived social opportunity
translated into an enterprise concept.
 Resources are acquired to execute the enterprise’s
goals.
© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–2
 Defining the Social Entrepreneur
• Social Entrepreneurs
 A person or small group of individuals who founds
and/or leads an organization or initiative engaged in
social entrepreneurship.
 Also referred to as “public entrepreneurs,” “civic
entrepreneurs,” or “social innovators.”
 Creative thinkers continuously striving for innovation
in technologies, supply sources, distribution outlets, or
methods of production.
 Change agents who create large-scale change using
pattern-breaking ideas to address the root causes of
social problems.

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–3
 Defining the Social Enterprise
• Driven by social goals
 Challenges are presented regarding the boundaries of
what is and what isn’t a social enterprise.
 Social causes can be based on personal goals.
 General agreement that there is the desire to benefit
society in some way.
 Arguments can begin over the location of the social
goals and with the purposes of the social goals.

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–4
 Social Enterprise and Sustainability
• Sustainable Entrepreneurship
 Focus on the preservation of nature, life support, and
community.
 Pursuing opportunities to bring into existence future
products, processes, and services for gain, including
economic and noneconomic gains to individuals, the
economy, and society.

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–5
Table
4.1 Examples of Social Enterprise Obligations

Environment Pollution control

Restoration or protection of environment
Conservation of natural resources
Recycling efforts

Energy Conservation of energy in production and marketing operations

Efforts to increase the energy efficiency of products
Other energy-saving programs (e.g., company-sponsored car pools)

Fair Business Practices Employment and advancement of women and minorities

Employment and advancement of disadvantaged individuals (disabled, Vietnam veterans,
ex-offenders, former drug addicts, mentally retarded, and hardcore unemployed)
Support for minority-owned businesses

Human Resources Promotion of employee health and safety

Employee training and development
Remedial education programs for disadvantaged employees; alcohol and drug counseling programs
Career counseling
Child day-care facilities for working parents
Employee physical fitness and stress management programs

Community Involvement Donations of cash, products, services, or employee time

Sponsorship of public health projects
Support of education and the arts
Support of community recreation programs
Cooperation in community projects (recycling centers, disaster assistance, and urban renewal)

Products Enhancement of product safety

Sponsorship of product safety education programs
Reduction of polluting potential of products
Improvement in nutritional value of products
Improvement in packaging and labeling

Source: Richard M. Hodgetts and Donald F. Kuratko, Management, 3rd ed. (San Diego, CA: Harcourt Brace Jovanovich, 1991), 670

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–6
 Forms of Sustainable Entrepreneurship

Social Corporate Social

Ecopreneurship
Entrepreneurship Responsibility

Environmental Activities and processes Actions that appear to

entrepreneurship with undertaken to discover, further some social good,
entrepreneurial actions define, and exploit beyond the interests of
contributing to preserving opportunities in order to the firm and that which is
the natural environment, enhance social wealth by required by law and often
including the Earth, creating new ventures or denotes societal
biodiversity, and managing existing engagement of
ecosystems. organizations in an organizations
innovative manner

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–7
 Ecopreneurship
• Ecovision
 A leadership style that encourages open and flexible
structures that encompass the employees, the
organization, and the environment, with attention to
evolving social demands.
• Environmental Movement
 Initiated primarily by values rather than by design.
 Developed by a plan to create sustainable future.

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 Ecopreneurship (cont’d)
• Key Steps in an Environmental Strategy
1. Eliminate the concept of waste.
2. Restore accountability.
3. Make prices reflect costs.
4. Promote diversity.
5. Make conservation profitable.
6. Insist on accountability of nations.

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–9
 Shared Value and the Triple Bottom Line
• Shared Value
 An approach to creating economic value that also
creates value for society by addressing its needs and
challenges.
 Transforms business thinking by addressing issues
through innovation and methods.
• Triple Bottom Line (TBL)
 An accounting framework that goes beyond the
traditional measures of profit, return on investment,
and shareholder value to include environmental and
social dimensions.

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–10
 Triple Bottom Line Measures

Economic Environmental Social

Performance Performance Performance

• Personal income • Hazardous chemical • Unemployment rate

• Cost of underemployment concentrations • Median household income
• Establishment sizes • Selected priority pollutants • Relative poverty
• Job growth • Electricity consumption • Percentage of population
• Employment distribution by • Fossil fuel consumption with a post-secondary
sector • Solid waste management degree or certificate

• Percentage of firms in • Hazardous waste • Average commute time

each sector management • Violent crimes per capita
• Revenue by sector • Change in land use/land • Health-adjusted life
contributing to gross state cover expectancy
product.

© 2017 Cengage Learning ®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4–11