Social Entrepreneurship - Instructional Material (Complete) .Docx WAPA NASUGDAN

SOCIAL
ENTREPRENEURSHIP
Prepared by:
JAMES M. JADRAQUE
Instructor
IRENE CRIS P. TAGHAP

Instructor
COURSE SPECIFICATIONS
Name of Author: JAMES M. JADRAQUE

IRENE CRIS P. TAGHAP
Course Title Social Entrepreneurship

Course This course offers a practical introduction to social entrepreneurship and involves
Description innovation, society, and corporate social responsibility (CSR) issues. This will
examine entrepreneurship and enterprise generation as a key foundation of the
development of both economic and social capital, as well as individual and
community empowerment. This gives emphasis on the assessment of
entrepreneurship to drive social change, build sustainable ventures, and to design
enterprises for disadvantaged communities. Students are expected to identify
possible enterprise for social entrepreneurship.
Units/Credits 3 units
Equivalent
Course Upon completion of this course, each student should be able to:
Outcomes 1. Examine the concepts underpinning
social entrepreneurship to gain a comprehensive understanding of the
opportunities.
2. To be able to define the field of social
entrepreneurship and key traits of social entrepreneurs.
3. Investigate the best practices, successes
and failures, of social entrepreneurship.
4. Critically assess the range of strategic
and operational issues faced by those who create and manage social
enterprises.
5. Describe and apply the theories from the
Lean Startup and Business Models needed to rapidly adapt to an uncertain
environment facing social entrepreneurs.
COURSE PACK STRUCTURE
Modules Intended Learning Outcomes Lessons

 Define social entrepreneurship; Lesson 1: Social
Introduction to  Discuss the roles and characteristics Entrepreneurship and Social
Social of social entrepreneurs; and Entrepreneur
Entrepreneurship  Describe what social entrepreneurs
are
Challenges Causing  Discuss the major constraint in Lesson 2: Major Constraint in
Change accessing financial capital; Accessing Financial Capital
 Discuss how entrepreneurs support
each other for funding;
 Identify factors affecting social
change
Values in Social  Explain the relationship between the Lesson 3: Vision and Values
Entrepreneurship visions and actions of an
entrepreneurs; Lesson 4: Kinds of Social
 Identify the divergent types of social Entrepreneurship
entrepreneurship organizations;
 Recognize the different kinds of
social entrepreneurship
Source and  Examine the source of opportunities Lesson 5: Opportunity
Discovery Of Social for social purpose business venture Recognition in Social
Entrepreneurship  Recognize the five primary classes Entrepreneurship Research,
of market failure that are mentioned
Sources and Recognition of
in the welfare economics literature
 Recognize the three major Social Opportunities
dimensions of prior knowledge that
Lesson 6: The Evaluation and
are important to the process of
Exploitation of Social
entrepreneurial discovery
Opportunities
 Discuss how social entrepreneur
evaluate opportunities
Developing an  Recognize two major distinguishing Lesson 7: Social
Interactive Model characteristics of the socially Entrepreneurship Research:
of Social innovative entrepreneur Setting Boundaries
 Identify set of activities that the
Entrepreneurship
entrepreneur embraces to make its Lesson 8: Environmental and
vision of the future a concrete Organizational Dimension and the
organization, with its focus on the
Interactive Model of Social
dynamics of discovery, evaluation
and exploitation of opportunities Entrepreneurship
 Explain the effect of environment in
the process of exploiting
opportunities
 Describe the appropriate
organizational setting that is crucial
to predict the overall effectiveness of
each social entrepreneurship
initiative
 Present an interactive model of
social entrepreneurship
MODULE I
Module Overview
Hi. Good day everyone! Welcome to Entrep 3110 (Social Entrepreneurship)! This module
introduces the concepts of social entrepreneurship. It identifies the roles and characteristics of social
entrepreneurs.
Module Objectives/Outcomes
Upon completion of this module, you should be able to:

 Define social entrepreneurship;
 Discuss the roles and characteristics of social entrepreneurs;
 Describe what social entrepreneurs are; and
Lessons in the Module
This module consists of Lesson 1 – Social Entrepreneurship and Social Entrepreneur.

MODULE I: INTRODUCTION TO SOCIAL ENTREPRENEURSHIP
Lesson I Social Entrepreneurship and Social Entrepreneur
Learning Outcomes
At the end of this lesson, you should be able to:

 Define social entrepreneurship;
 Discuss the roles and characteristics of social entrepreneurs; and
 Describe what social entrepreneurs are
Time Frame: 4.5 hours
Introduction
Hi everyone! Welcome to Lesson 1! In this lesson you will be able to define social
entrepreneurship, delineates it as a field of study and you will also be able to discuss the roles and
characteristics of social entrepreneurs. Lesson 1 is intended to help you develop a deep understanding
of social entrepreneurship.
Activity
To start this lesson, I would like you to discuss the difference and similarities of
entrepreneurship and social entrepreneurship by using a Venn diagram.
Analysis
1. What social or environmental challenges do you want to resolve?

______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
2. What resources could you mobilize to address those challenges?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
Abstraction
What is entrepreneurship?
The concept of entrepreneurship is not new. The word itself derives from the French word
entreprendre, which literally means “to undertake.” Joseph Schumpeter defined entrepreneurs as
innovators who drive the “creative–destruction” process and their function is to reform or revolutionize
the pattern of production.
Today, entrepreneurship is commonly defined as the relentless pursuit of opportunity without

regard to resources currently controlled. In this regard, entrepreneurship is concerned with the
discovery and exploitation of profitable opportunities.
This is in line with the early works of Joseph Schumpeter, who focused more on the
entrepreneur as an innovator and an agent of change rather than a person who necessarily starts a
new business. Hence, entrepreneurship can occur any time one or several individuals engage in an
activity that adds value to what already exists.
What is social entrepreneurship?
The economic dimension in social entrepreneurship is a means to an end —which is the social
value. Regardless of the country and governance mechanisms, the definition of social entrepreneurship
should include the following four elements:
• address a particular social need;
• be centered on the creation of social value;
• emphasize social impact; and
• acknowledge that the means to attain the social mission can include purely philanthropic,
hybrid, or market-orientated mechanisms.
Most authors tend to agree that the main driver of social entrepreneurship is the social problem
being addressed. A more comprehensive definition of social entrepreneurship is offered by Mair and
Marti:
First, we view social entrepreneurship as a process of creating value by combining resources in
new ways. Second, these resource combinations are intended primarily to explore and exploit
opportunities to create social value by stimulating social change or meeting social needs. And
third, when viewed as a process, social entrepreneurship involves the offering of services and
products but can also refer to the creation of new organizations. Importantly, social
entrepreneurship … can occur equally well in a new organization or an established organization,
where it may be labeled social intrapreneurship. Like intrapreneurship in the business sector,
social intrapreneurship can refer to either new venture creation or entrepreneurial process
innovation.
This definition helps to capture the essence of

social entrepreneurship as a process through
which individuals, organizations, or
communities take actions whose outcomes
add social value. Social entrepreneurship can
also be a process within an existing
organization where actions are taken to meet
social needs.
What is a social entrepreneur?
A social entrepreneur is someone who designs and implements an intervention, product, or

service that improves the well-being of marginalized individuals and populations. He creates and
implements effective, scalable, and sustainable solutions to the most basic of human challenges.
Illustration 1.1 Social Entrepreneur
Since profit making is a secondary objective, therefore social entrepreneurs are passionate and
determined about what they do. They process a very high level of motivation and are visionaries who
aim at bringing about a change in a way things are.
What does a social entrepreneur do?
Social entrepreneurs work to ensure that sensible ideas take root and actually change people’s
thinking and behavior across a society. The role of the social entrepreneur can be understood through
these examples. Social entrepreneurs initiate and lead change processes that are self-correcting,
growth-oriented, and impact-focused. They create new configurations of people and coordinate their
efforts to attack problems more successfully than before. It’s a complex role that involves a great deal
of listening, recruiting, and persuading. The job can be boiled down to one essential function: the social
entrepreneur helps others to envision a new possibility, appreciate its meaning, and recognize how it
can be broken down into doable steps that build momentum for change. Social entrepreneurs play the
role of change agents in the social sector, by:
• adopting a mission to create and sustain social value (not just private value);
• recognizing and relentlessly pursuing new opportunities to serve that mission;
• engaging in a process of continuous innovation, adaptation, and learning;
• acting boldly without being limited by resources currently in hand; and
• exhibiting a heightened sense of accountability to the constituencies served and for the
outcomes created.
What are the qualities or characteristics of social entrepreneurs?
Social entrepreneurship is a process – involving a long-term commitment and continual

setbacks. For this reason, social entrepreneurs share certain qualities including the following:
1. ability to overcome apathy, habit, incomprehension, and disbelief while facing heated
resistance;
2. ability to shift behavior, mobilize political will, and continually improve their ideas;
3. ability to listen, recruit and persuade;
4. encourages a sense of accountability, and a sense of ownership for the change.
Social entrepreneurs are also comfortable with uncertainty and have a high need for autonomy.
Since social entrepreneurs will face adversity along the way, another important quality is the capacity to
derive joy and celebrate small successes. Successful social entrepreneurship involves well established
behaviors which can be acquired. While some people appear to be born with more entrepreneurial
inclination than others, most people can learn to behave like entrepreneurs.
Other Common Characteristics of a Social Entrepreneur

1 Economic intelligence They always see things in a different way.
2 Socially motivated They are naturally motivated to help others.
They can make very difficult decisions, overcoming apparently
3 Courage
insurmountable problems.
They have the capability to quickly foresee new business
4 Quick and alternative thinking
opportunities and to create new ways of doing things.
5 Innovative They have their own way of thinking and delivering solutions.
6 Risk Takers They take risks and their decisions are for the good of society.
Table 1.1 Common Characteristics of a Social Entrepreneur
----------
Application
Please write the correct answer on the space before the number.
__________________1. __________________ defined entrepreneurs as innovators who drive the

“creative–destruction” process and their function is to reform or revolutionize
the pattern of production.
__________________2. __________________ is a process by which citizens build or transform
institutions to advance solutions to social problems, such as poverty, illness,
illiteracy, environmental destruction, human rights abuses and corruption, in
order to make life better for many.
__________________3. True or False:
An entrepreneur is someone who designs and implements an intervention,
product, or service that improves the well-being of marginalized individuals
and populations.
Assessment
After reading the lesson, think about a problem that bothers you in your community or in the
world in general. Identify the social problem and develop a social concept to address it. Explain your
choice and write your answer in a space provided below.
Closure
Congratulations for finishing Module 1 – Lesson 1!  You may now proceed to the next lesson.
Module Summary
In this module, you have learned the following:
 Social entrepreneurship is a process by which citizens build or transform institutions to

advance solutions to social problems, such as poverty, illness, illiteracy, environmental
destruction, human rights abuses and corruption, in order to make life better for many.
 A social entrepreneur creates and implements effective, scalable, and sustainable
solutions to the most basic of human challenges.
References
 Bornstein D. & Davis S. (2010). Social Entrepreneurship: What everyone needs to know?
Oxford University Press, Inc.
 Chahine, T. (2016). Introduction to Social Entrepreneurship 1st Edition. CRC Press
 Hockerts K., Mair J. & Robinson J. (2010). Values and Opportunities in Social
Entrepreneurship. Palgrave Macmillan.
 Hockerts K., Mair J. & Robinson. (2006). Social Entrepreneurship. Palgrave Macmillan.
MODULE II
Module Overview
Hi everyone! Welcome to Module 2 - Lesson 2! This module discusses the major constraint in
accessing financial capital and describes how entrepreneurs support each other for funding. This also
identifies the factors that hinder social change.

 Discuss the major constraint in accessing financial capital;
 Discuss how entrepreneurs support each other for funding; and
 Identify factors affecting social change.
This module consists of Lesson 2: Major Constraint in Accessing Financial Capital.

MODULE II: CHALLENGES CAUSING CHANGE
Lesson II Major Constraint of Accessing Financial Capital
Learning Outcomes

 Discuss the major constraint in accessing financial capital;
 Discuss how entrepreneurs support each other for funding; and
 Identify factors affecting social change.
Introduction
Hello students! Lesson 2 discusses the major constraint in accessing financial

capital. This also describes how social entrepreneurs support each other for funding. Finally, this lesson
identifies factors that hinder social change. This lesson is intended to help you to have a deeper
understanding of the challenges in social entrepreneurship.
Activity
To start this lesson, please find the words on the crossword puzzle
Q E T U O P S F H K E N T E R P R I S E Z C S V N M
W S O C I A L C H A N G E W R Y I P A D G J E K X V
B N X V Q P W O E I T R I T O Y U Z S S U N P R I V
F P O I U Y T R E O R G A N I Z A T I O N W A Q A E
I Z M X C V B N M S E L E N A Z L K J H G F R D S N
N S O L U O Y I N A P L U S D N S C G U I R A A F T
A F B A E R R O R D R S T A T E C C F E R V T T R U
N H A T S O C I A L E N T R E P R E N E U R I A A R
C K O I P E S O C O N S T R A I N T H T C H O E N E
E I M P A C T D Y R E I M A G O C S K R I O N D C N
R Z Z A Q X W C E V U R B T N Y M M L U L I P Q O A
S S O C I A L E N T R E P R E N E U R S H I P S E R
1. social entrepreneurship 4. capital 7. impact 10.
organization
2. entrepreneur 5. social entrepreneur 8. venture 11. separation
3. constraint 6. enterprise 9. social change 12. finance
Analysis
1. What social or environmental challenges do you want to resolve?

______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
2. What are the advantages and/or disadvantages of social change?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
Abstraction
What are the main financial constraints?
It is often assumed that start-up capital is a significant hurdle for social entrepreneurs. Although
it is never easy to obtain the initial investment or grant funding for a new idea, most social
entrepreneurs have less trouble in getting started than taking off. The major constraint is the difficulty in
accessing growth capital.
Social entrepreneurs running small or medium-size organizations pursue government funding
with reluctance because of the difficulty in complying with government reporting requirements. For
these reasons, many social entrepreneurs prefer to raise money from philanthropists. Philanthropists
can be more flexible, but each has unique application procedures and reporting formats. With little
standardization, fund-raising is time-consuming and expensive.
One barrier in social organizations is the shortage of people in this sector who have experience
writing business plans. Another is the challenge of adapting the business-planning format to
organizations that seek to cause social change rather than earn profits. For social entrepreneurs,
planning must begin with a theory of change and an analysis of how an idea will spread, achieve
impact, and influence others. Perhaps the biggest obstacle is a lack of belief in planning itself.
Changing the way we finance social change could produce greater clarity and more predictable
successes.
How do social entrepreneurs finance organizations and enterprises?
Launching an organization is a process of recruiting funders, advisors, board members, and

staffers, one by one. Early-stage social entrepreneurs often get a foot in the door of potential funders
through recommendations from mentors or professors.
Social entrepreneurs finance social organizations from a variety of sources. They often start
with people close to them – family, friends, classmates and professional contacts. Social entrepreneurs
also turn to corporations, public foundations, social venture competitions, impact investors and Web-
based intermediaries. Web-based intermediaries such as GlobalGiving and CanadaHelps have made it
possible for social entrepreneurs to receive small donations from many individuals, i.e. micro-
contributors.
In countries that lacked cultures of philanthropy or volunteerism, they created bases of support
by initiating competitions, cultural events, open houses, bartering arrangements, membership
programs, and activist television and radio shows. Out of the assembled micro contributions of citizens
they were able to build organizations capable of attacking problems on a major scale.
What’s stopping social change?
In The Wealth of Nations, Adam Smith wrote that the “greatest improvement in the productive
powers of society” came from the “division of labor.” However, the division of labor leads to absurdities
when applied to human needs.
The U.S. health system is organized around individualized care. A poor mother trying to assist
a child with asthma might need to connect, separately, with a pediatrician, a nutritionist, an allergist, a
physiotherapist, a health insurance specialist, a social worker, a housing advocate, an exterminator, a
school nurse, a gym instructor, and perhaps even a pollution inspector from the Environmental
Protection Agency (and possibly all through a translator). Pieces of the solution are so
scattered that assembling them can be an overwhelming challenge.
In societies divided into specialized arenas, career paths are vertical, not horizontal, so
preexisting beliefs within fields or industries tend to be reinforced rather than questioned. People are
less likely to develop relationships that challenge their world-views or expand their empathy and
understanding for other groups.
In the United States and Canada today, patterns of separation extend to whole communities. A
child growing up in the suburbs may reach college without once encountering a poor person in the
flesh. When too many people across society have difficulty taking the perspective of others, polarization
and political stagnation result.
----------
Application
Please choose the correct answer. Write your answer on the space provided before the
number.
________1. True or False:

All social organizations that receive funding are effecting change on society.
________2. Specialization and separation hinder social change because:
a. various sectors of society have little interaction
b. vertical career paths help reinforce, and fail to challenge, preexisting beliefs
c. homogenous living situations – e.g. communities or homes – make understanding
other’s perspectives difficult
d. the solutions to problems – e.g. a child with asthma, or illnesses caused by improper
housing more broadly – are difficult to address when the total solution requires the
work of multiple specialists
e. all of the above
________3. One barrier in social organizations is the ________________ in this sector who have
experience writing business plans.
Assessment
In what way can you contribute to create an impact on social change? Explain your answer in
a space provided below.
Closure
Congratulations for a job well done!  Should there be some parts of the lesson which you
need clarification, please message me directly. You can now proceed to Module 3.
Module Summary
 Specialization and separation are some of the factors hinder social change.
 The major constraint is the difficulty in accessing growth capital.
References
 Chahine, T. (2016). Introduction to Social Entrepreneurship 1st Edition. CRC Press
MODULE III
Module Overview
Hi dear students! Welcome to Module 3 which is the last module. This module explains the
relationship between the visions and actions of social entrepreneurs and recognizes the different kinds
of social entrepreneurship.

 Explain the relationship between the visions and actions of social entrepreneurs;
 Identify the divergent types of social entrepreneurship organizations; and
 Recognize the different kinds of social entrepreneurship.
This module includes the following lessons:
Lesson 3: Vision and Values

Lesson 4: Kinds of Social Entrepreneurship
MODULE III: VALUES IN SOCIAL ENTREPRENEURSHIP
Lesson III Vision and Values
Learning Outcomes

 Explain the relationship between the visions and actions of social
entrepreneurs; and
 Identify the divergent types of social entrepreneurship organizations
Introduction
Hi students! Welcome to Lesson 3. This lesson will help you understand the relationship
between vision and action of social entrepreneurs and identifies the divergent types of
social entrepreneurship organization. Hope you will enjoy this lesson.
Activity
To start this lesson, I would like you to create a vision board in a whole sheet of long bond
paper and please follow the instructions below:
1. Create a list of goals and dreams you would like to achieve.

2. Collect a bundle of old magazines with beautiful pictures.
3. Find and cut pictures that represent your goals and inspire you.
4. Make a collage out of your photos.
Analysis
1. How can you define vision and action?

______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
Abstraction
Values are at the heart of social entrepreneurship. However, much of the early research into
social entrepreneurship has simply taken values for granted. Social entrepreneurship was implicitly
defined as a force for good requiring individuals with a strong set of values. However, it was rarely
questioned where these values come from or how social entrepreneurial behavior differs according to
the set values it is based upon.
Vision and Values
Social entrepreneurs are consistently described as ‘visionary’. The defining characteristic of

social entrepreneurs is that they have a vision which they pursue relentlessly, until that vision has been
enacted and fulfilled. Vision is commonly associated with entrepreneurial behavior, particularly in terms
of leadership skills. Without more serious attempts to understand what is ‘visionary’ about social
entrepreneurs the field of social entrepreneurship risks becoming overly focused on managerial issues,
such as organizational growth strategies and metrics, and losing touch with what is exciting and distinct
about social entrepreneurship. This is an exploratory study into how social entrepreneurs express their
visions, and how their visions guide and shape their actions.
Vision is described by Burnside (1991: 178) as ‘a living picture of a future, desirable end state’.
Vision, in other words, is said to be critical to entrepreneurial leadership, and is characterized as
specific, realistic and achievable.
Goal-setting theory offers an alternative perspective on the nature of vision and the creation of
a vision. Research supports the importance of goal-setting to the entrepreneurial process. Gollwitzer
(1996) found that goal-setting creates a perceptual readiness and guides a person’s attention towards
relevant opportunities. Kotter (1990) also stresses the primary importance of leadership in establishing
the vision and goals that establish the direction for an organization.
Intentionality does not offer a theory of vision, but it does help us to understand the actions of
entrepreneurs. The intentional process involves three stages:
1. Temporal tension:
Entrepreneurs are ‘here and now’ and future orientated and do not spend time thinking about
the past. They also have a wide range of task time horizons.
2. Strategic focus:
The model proposes that entrepreneurs focus on end states and not means, and on
organizational goals not personal goals.
3. Posture:
There are two aspects to posture, first, the alignment of ‘inner voices’, particularly values,
beliefs and wants so that there is no conflict between home life, work life and life style
aspirations. The second aspect is attunement to the environment, which it is suggested is
particularly important for ethically motivated entrepreneurs. Attunement is defined as the ability
to send and receive information, and is demonstrated by open-mindedness and the ability to
learn from mistakes.
Theory and research support the idea that vision, as ‘desirable end state’ ‘a target that
beckons’, is an essential element in the entrepreneurial process. Westley and Mintzberg’s (1989)
approach to visionary leadership offers a dynamic approach to the creation of the vision, but not to how
it is then followed through with actions. Intentionality provides a way of understanding the link between
intentions and actions, though it does not incorporate the concept of vision.
The research question posed here is: how does vision guide the actions of social
entrepreneurs? In order to focus the research, some specific areas for investigation were posed, which
were informed by the theories of intentionality, goal-setting and visionary leadership outlined above.
1. Vision
Social entrepreneurs did not present their visions as a living picture of a future,
desirable end state (Burnside, 1991). They did not have a tangible, concrete picture in their
minds of the future they were aiming for in the way that the literature suggests. When asked if
they knew what they were trying to create from the beginning, two of the social entrepreneurs
immediately and simply responded with ‘no’. Social entrepreneurs expressed their visions, what
they were aiming to create and achieve, as principles and values.
2. Goal-setting Strategies
There was a clear distinction apparent between the goal-setting strategies of the social
entrepreneurs and the non-entrepreneurs. All social entrepreneurs had up-to-date plans and
clearly defined goals which formed the basis for the work of their organizations; none of the
comparison group did. They were able to translate their visions into practical proposals that
established the work of the organization.
At the same time, all the social entrepreneurs were very different from one another in
how they planned, how their plans were set out, and the exact role of the plans within the
organization. In one case those plans were not even written but in the head of the social
entrepreneur and communicated verbally. The social entrepreneurs felt confident in planning
because they had a sense of control over their environment and over their futures, and they set
their own goals.
3. Actions
Central to this research was analysis of how the visions were followed through with
actions. All the social entrepreneurs had carried out specific actions in pursuit of their visions,
ideas or stated objectives. The social entrepreneurs operationalized their values in a variety of
ways, and were actively pursuing a wide range of new activities. They were very specific and
gave concrete information about activities that they were planning or were already taking place.
The present research examines whether the vision of individual entrepreneurs and non-entrepreneurs
guides their actions, and seeks to identify what specific strategies are adopted by entrepreneurs in
bringing their visions to life. This study also looks at the extent to which there is consistency between
the vision statements and the actions pursued amongst both entrepreneurs and non-entrepreneurs,
and seeks to identify distinguishing features between the two groups.
Divergent Orientations of Social Entrepreneurship
Social entrepreneurship organizations have a greater need to adapt to expectations in their
institutional environment than commercial firms, and this imperative of moral legitimacy differentiates
the social and commercial domains (Dart, 2004). Organizations oriented towards communitarian,
altruistic perspectives differ in significant ways from those with more rational, individualistic businesslike
orientations (Johnstone and Lionais, 2004; Ridley-Duff, 2007). Dorado (2006) maintains that social
entrepreneurship bridges a need to generate profit with a focus on service to disadvantaged groups,
and so entrepreneurial concepts from the business domain are not relevant always to social
entrepreneurship.
The two organizations had many features in common (Table 3.1). The organizations were
established around the same time, and both exhibited social entrepreneurial characteristics. The
organizations were comparable in the number and educational backgrounds of the founders. The
founders of each organization were proactive, innovative and committed to achieving the intended
mission. Each organization had built strong internal and external relationships based on trust,
cooperation and mutual benefit. Decision-making and organizational leadership was effective, and
although the style of management varied, each was appropriate for the client group. Each organization
considered it had been successful in achieving some of the intended goals.
Figure 3.1 Summary of two social entrepreneurship organizations
Here’s a comparison of the two organizations became successful in realizing their desired goals.
Banksia Hakea
aimed to improve the life of young people in the aimed to achieve financial stability as quickly as
local area, not simply to provide services for possible to allow further expansion of the service
them
wished to develop the skills and capabilities of swiftly recruited many volunteers and quickly
young volunteers who wished to contribute to the established its service profile
organization and its change mission
valued harmony, inclusion, friendships and valued rapid entrepreneurial achievement based
participatory decision-making on competition, business monitoring and
establishing a high public profile
achieved steady progression towards its very successful in achieving its financial goals,
objectives, became well known in government rapidly became well established and visible in
and influenced local youth policy to some extent the service community, and was well on the way
to becoming a significant organization in the
state
Table 3.1 Comparison of two social entrepreneurship organizations
Clearly, these two organizations are not the same. They differed in the legal form (company or
association), and commitment to generating income. They varied in the design of internal business
management systems, the focus on financial arrangements, and the level of staffing after the first year.
In essence, the two organizations had different orientations. Banksia displayed a volunteering service
orientation, while Hakea displayed strongly entrepreneurial characteristics. This fundamental difference
in orientation influenced the establishment process and how the organization went about its business. It
affected the organizational form, prioritizing of activities, and functional procedures implemented to
achieve the desired social goals. Orientation influenced how each organization positioned itself within
the environment. It influenced what kinds of openings were sought, and how quickly arrangements
were implemented to capitalize on opportunities.
Both types of organizations have social goals; both engage in business activities, hence both
are social entrepreneurship. However, social entrepreneurship organizations differ in the extent and
commitment to achieving social goals compared with the commitment to achieving financially
objectives. An entrepreneurial organization prioritizes acquiring strategic human and financial resources
in order to achieve its objectives as quickly as possible. On the other hand, a more altruistic volunteer
service organization operates from a self-sufficiency model to gain necessary knowledge, develop its
capabilities and achieve its goals, but it has less commitment to business objectives.
Values, integrity and reputation are central to all organizations with social or non-profit goals,
hence social entrepreneurship organizations develop according to the founders’ ideals (Hemingway,
2005; Voss et al., 2006). Since social entrepreneurship commits to achieving a public good, the
organization’s values are important for all involved: staff, volunteers, board members, clients and
partner organizations. Hence it is helpful for the founders of social entrepreneurship organizations to
identify and articulate their values to ensure those associated with the organization appreciate the
intended approach.
----------
Application

Intentionality offers an alternative perspective on the nature of vision and the creation of a
vision.
All social entrepreneurs had up-to-date plans and clearly defined goals which formed the
basis for the work of their organizations
________3. Values, integrity and ________ are central to all organizations with social or non-profit
goals.
Assessment
1. How social entrepreneurs express their visions? How their visions guide and shape their
actions? Please write your answer on the space provided below.
Closure
Good job! You’ve come a long way. Keep it up!  When you are ready, you can proceed to the
last lesson of this module.
Lesson IV Kinds of Social Entrepreneurship
Learning Outcomes
At the end of this lesson, you should be to recognize the different kinds of social
entrepreneurship.
Introduction
Hi dear students! You are now on Lesson 4. In this lesson, you will be able to learn and identify
the different kinds of social entrepreneurship.
Activity
To start this lesson, please rearrange the letters to form a correct word.
1. etrvnue =
2. ripo tf =
3. htphlinaicorp =
4. irmfs =
5. icmelmora c =
6. c t a u i t l r s i =
Analysis
1. How social entrepreneurship can make a difference?

______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
Abstraction
Different Kinds of Social Entrepreneurship
Social entrepreneurship is a way of creating social change through a set of

processes initiated by committed activists. It involves some degree of organizational self-reliance and
business activity. Both the goal for public change and self-sufficiency are important. Social
entrepreneurship has two core principles: recognition of a need to initiate social change to benefit a
target area or group, and the application of business like approaches; but it is operationalized as a
continuum.
A social entrepreneurship typology is proposed that accounts for differences in orientation. The
typology has two elements: commitment to achieving social change and business orientation (Figure
4.1). These two elements result in different organizations with orientations, organizational forms and
practices of social entrepreneurship.
Figure 4.1 Spectrum of social entrepreneurship organizations
1. Nonprofit Social Organizations
Nonprofit Social Organizations are organizations
closest to altruistic voluntary associations. These operate in
a manner similar to Banksia, with some intention to
generate operating income, but a higher commitment to
achieving the social goals. There is a close connection to
the client group, and participatory processes are valued
and promoted.
Illustration 4.3 An example of social responsible
Illustration 4.1 An example of nonprofit
enterprise
social organization
social organization
2. Entrepreneurial Social Ventures
These have been described by Dorodo (2006) and termed ‘community enterprises’ by
Haugh (2005) and others (e.g. Tracey et al., 2005). These ventures are hybrids. Some are
registered as companies, others are non-profit organizations. Entrepreneurial social ventures
bridge profit and service. They are dedicated to achieving a desired social change, but at the same
time are committed to generate substantial income from business processes to keep the
organization operational. Hence, entrepreneurial social ventures have a delicate balance between
achieving the desired social goal and an imperative to maintain a sustainable venture. When
difficult compromise decisions are made, the social goal is given a higher priority than achieving
higher profits.
3. Socially Responsible Enterprises
These operate as a business enterprise. Profit is a
priority, but at the same time, there is a firm commitment to
address a social change agenda. Hence there is a constant
juggle to achieve both profit and social goals. Socially
responsible enterprises may sacrifice some profitability in order
to achieve the desired social agenda, but being more business
oriented than entrepreneurial social ventures, maintaining a
reasonable profit is given a higher priority than the social goal if a compromise is required.
4. Philanthropic Firms
Philanthropic firms sit at the fourth step in social entrepreneurship. These are businesses
that make donations of money or goods to address an identified social disadvantaged group or
place. The actions usually have public relations motives. While there is an intention to achieve
some social good, the social agenda is only
important to a philanthropic firm because
ultimately it provides benefits for the firm. Hence
the social agenda is evaluated as a cost or
benefit for the firm. Philanthropic firms and their
actions are well described in the corporate social
responsibility literature (Garriga and Melé, 2004;
Illustration 4.2 An example of entrepreneurial
Jamali and Keshishian, 2008).
social venture
social organization
This typology is important for setting the boundaries of social entrepreneurship. It will start the
process of defining social entrepreneurship more clearly. It helps define variations among different
kinds of social entrepreneurship organizations that are not yet acknowledged in research or practice.
This will assist to distinguish important elements in each of the four kinds of organizations in their social
orientation and business practices. The typology will assist in understanding how and why some
organizations prioritize business when others do not. It will help distinguish why some social
entrepreneurship organizations engage in planning, and prioritize accessing human and financial
resources, when others do not. Each of the four types of social entrepreneurship has its place. Each
offers benefits to improve society. Being clearer in our understanding of the type of organization we are
discussing will improve our understanding of social entrepreneurship.
----------
Application
________________1. True or False:

Nonprofit Social Organizations are organizations closest to altruistic voluntary
associations.
________________2. True or False:
Philanthropic firms operate as a business enterprise.
________________3. This type of social entrepreneurship bridges profit and service.
________________4. These are businesses that make donations of money or goods to address an
identified social disadvantaged group or place.
Assessment
Identify two social ventures in your area. Classify these social ventures along the spectrum of
non-profit social organizations to philanthropic firms. Write your answer on the space provided below.
Closure
Congratulations! You have successfully completed this module. We hope that this course fulfilled your
expectations.
Module Summary
 Vision is a living picture of a future, desirable end state.

 Goal-setting theory offers an alternative perspective on the nature of vision and the
creation of a vision.
 Nonprofit Social Organizations are organizations closest to altruistic voluntary associations.
 Entrepreneurial Social Ventures are dedicated to achieving a desired social change, but at
the same time are committed to generate substantial income from business processes to
keep the organization operational.
 Socially Responsible Enterprises operate as a business enterprise.
 Philanthropic Firms are businesses that make donations of money or goods to
address an identified social disadvantaged group or place.
References
 Bornstein D. & Davis S. (2010). Social Entrepreneurship: What everyone needs to
know? Oxford University Press, Inc.
MODULE IV
Module Overview
Hi dear students! Welcome to Module 4. This module will provide you the knowledge about the
source and discovery of social entrepreneurship how it started to grow.

 Examine the source of opportunities for social purpose business venture;
 Recognize the five primary classes of market failure that are mentioned in the welfare
economics literature;
 Recognize the three major dimensions of prior knowledge that are important to the
process of entrepreneurial discovery; and
 Discuss how social entrepreneur evaluate opportunities.

Lesson 5: Opportunity Recognition in Social Entrepreneurship Research, Sources and
Recognition of Social Opportunities
Lesson 6: The Evaluation and Exploitation of Social Opportunities
MODULE IV: SOURCE AND DISCOVERY OF SOCIAL ENTREPRENEURSHIP
Lesson V Opportunity Recognition in Social Entrepreneurship Research,

Sources and Recognition of Social Opportunities
Learning Outcomes

 Discuss how research consistently acknowledged opportunity recognition as a vital feature
of social entrepreneurs
 Examine the source of opportunities for social purpose business venture; and
 Recognize the three major dimensions of prior knowledge that are important to the
process of entrepreneurial discovery.
Introduction
Hi Students! Welcome to Lesson 5. This lesson will help you understand how
research consistently acknowledged opportunity recognition as a vital feature of social
entrepreneurs, examine the source of opportunities for social purpose business venture
and recognize the three major dimensions of prior knowledge that are important to the process of
entrepreneurial discovery. Hope you will enjoy the lesson.
Activity
To start the lesson, look for an established social entrepreneurial firm and write down what are
the opportunities they found that it could benefit the market and society. Please indicate the name of
the business. You can answer it in sentence or in bullet form.
ASA Philippines Foundation is committed to three sectors. The first commitment is to the
marginalized poor sector for which the Foundation exists. The second commitment is to the staff
members who are dedicated to achieving the Foundation’s goals. The third commitment is to the
founders and patrons to make ASA Philippines the best and most self-sustainable MFI in the country.
To these ends, they deliver the highest value for money, client-responsive microfinance as well as
supplementary products and services to the poor through the enterprising women of each family; create
the best place to work in, where all staff members have the chance to live in dignity, develop a career
path and experience the fulfillment of changing other people’s lives as well as their own; be self-
sustaining and be the best managed microfinance institution in the Philippines.
Their vision is not-for-profit organization devoted to helping an increasing number of poor
Filipino families rise out of poverty by providing microfinancing to help them establish or otherwise
improve their own microenterprises. This shall result in increased family incomes and savings, while
giving them greater access to life support goods and services in the most cost-effective and
sustainable manner. Communities benefit as well from the goods and services provided by
our micro entrepreneurs.
Analysis
1. What is the importance of doing/conducting research to attain social entrepreneurial success?

Elaborate your idea.
The importance of conducting a research is that it can assist the social business visionaries
with thinking about the issues in a specific culture, and that issue gives them a clue and that
difficult will never be an issue to them yet it will be an open door for them to address that
specific issue.
Abstraction
Social Enterprise started by Bill Drayton (Founder of Ashoka Foundation). Ashoka has provided start-
up financing, professional support services, connections to a global network across the business and
social sectors, and a platform for people dedicated to changing the world. It aims directly to address
social needs and other nonfinancial goals through their own products, services or through the work
rendered by marginalized people or volunteer workers within the organization.
Opportunity Recognition in Social Entrepreneurship Research
Entrepreneurship has been defined as ‘the process of first, discovering and second, acting on a
disequilibrium opportunity’ (Kaish and Gilad, 1991: 46) and as ‘the attempt to create value through the
recognition of business opportunity...’ (Hulbert et al., 1997: 68). It is clear from the definitions that
opportunity recognition is an integral part of the field of entrepreneurship and represents one of its most
important early aspects (Hills et al., 1999). In fact, the most successful entrepreneurs are opportunity-
focused (Craig and Lindsay, 2002) and most of them believe they have a special sensitivity or alertness
towards opportunities (Craig and Lindsay, 2002).
Social entrepreneurship research has consistently acknowledged opportunity recognition as a

vital feature of social entrepreneurs. Seelos and Mair (2005) state that social entrepreneurs recognize
and act upon opportunities to improve systems create solutions and invent new approaches (to social
problems). Thompson et al. (2000: 328) defined social entrepreneurs as people who ‘realize where
there is an opportunity to satisfy some unmet need that the state welfare system will not or cannot
meet...’ The author (Thompson, 2002: 416) later adapted Sykes’s three-stage entrepreneurial process
to develop a four-step process of social entrepreneurship composed of the following:
• envisioning – perceiving an opportunity;
• engaging – engaging the opportunity with a mind to do something about it;
• enabling – ensuring something happens by acquiring the necessary resources;
• enacting – championing and leading the project.
Illustration 5.1 the social opportunities and identification process adapted from Gaglio (2004)
Sources of Social Opportunities:

Hockerts (2006) created a conceptual framework for social entrepreneurial opportunities and
came up with three sources:
 Activism
 Self-Help
 Philanthropy
This explains that the social purpose business ventures is in between for-profit
business world and social mission-driven public and non-profit organizations. Hockerts (2006) explains
that in order to keep their balance, social purpose business venture (those that are on the boundary of
for-profit and social mission-driven) need to discover opportunities to create both social and economic
value.
The Recognition of Social Opportunities

Due to market failures of different entrepreneurs, a new opportunity creates for other
entrepreneur Market and government failure create a need or set of needs for society that
entrepreneurs have to address, but the existence of that need does not guarantee that an entrepreneur
will exploit it. Shane (2000) suggests that there are three major dimensions of prior knowledge that are
important to the process of entrepreneurial discovery:
• prior knowledge of markets;
• prior knowledge of ways to serve markets;
• prior knowledge of customer problems.
The social entrepreneur prior knowledge will increase their discoveries in social opportunities.
When the Social Entrepreneur connects his knowledge of social need and means to satisfy that needs,
then social opportunities are recognized.
----------
Application
Read the Case Study and answer the following questions:
Case Study: NUCAFE

In celebration of the United Nations’ International Day of the Cooperatives on July 7, Miller
Center recognizes GSBI® In-Residence accelerator alumnus, Joseph Nkandu, founder of the National
Union of the Coffee Agribusiness and Farm Enterprises (NUCAFE), for pioneering the farmer
ownership cooperative model in Uganda’s coffee value chain. Through the farmer ownership
cooperative model, smallholder coffee farmers collectively own and operate their coffee farms,
achieving scales that they could never reach as individual farmers — this is the transformative power of
the farmer ownership cooperative model.
Joseph grew up in a coffee-growing family in Uganda. His family relied on coffee as a cash
crop. His parents barely made enough money to pay school fees for Joseph and his siblings. Just like
the six million smallholder coffee farmers in Uganda, Joseph’s family could hardly afford water,
electricity, and education. The life of a smallholder coffee farmer was grim.
Joseph shared, “I asked myself, why were farmers always in crisis?”
He realized that smallholder coffee farmers received only a small fraction of the total value of
their coffee beans. Because most smallholder coffee farmers cultivated an average of one acre of
coffee bushes, they operated at small scales in a competitive market. This made it impossible to gain
any market power. When smallholder coffee farmers had to cover basic necessities and family
emergencies, they are forced to sell their beans before maturity. And without the scale, storage
capacity and market knowledge, they could only sell at whatever price the middlemen demanded. The
middlemen could, therefore, buy coffee beans from smallholder coffee farmers at a steep discount.
Joseph believed that if smallholder coffee farmers were organized into cooperatives using the
farmer ownership model, they would gain a competitive edge in the coffee value chain.
Joseph wanted to help the 500,000 smallholder coffee farmers in Uganda who on average earned less
than US$2.00 a day.
“To achieve economies of scale, to make a reasonable return on investment, you have to join up with
other farmers to become big.”
In 2003, Joseph founded the social enterprise National Union of Coffee Agribusiness and Farm
Enterprises (NUCAFE) in Uganda. Over the next fifteen years, Joseph formed two hundred farmer
cooperatives with over one million smallholders.
“NUCAFE works with the leadership of each cooperative to ensure that farmers receive training
in coffee farming, coffee family business management operations, social entrepreneurship, marketing
and cooperative management; only then can farmers operate sustainable cooperatives — entities that
are financially stable and democratically governed.” Once smallholder coffee farmers become members
of a NUCAFE cooperative, NUCAFE facilitates value-added services to the smallholder coffee farmers.
Cooperatives can store, grade and roast their coffee beans at NUCAFE’s centralized facility. These
services increase the value of the coffee beans by thirty percent as the coffee beans are export ready.
NUCAFE then markets the coffee beans to domestic and international buyers. Since 2009, for example,
NUCAFE has been selling coffee to Caffé River, an Italian coffee roasting company that operates in
Italy, Romania and Denmark.
NUCAFE charges the cooperatives a service fee for every kilogram of coffee marketed. Instead
of buying the coffee beans from cooperatives, NUCAFE acts as the service provider. Cooperatives,
therefore, have ownership of their coffee beans throughout the coffee value chain.
This service-fee model is transforming the coffee value chain of Uganda. In fact, the middlemen
who traditionally bought unprocessed beans from smallholder coffee farmers are now adopting this
model; rather than buying, the middlemen are providing processing services.
Hussien Walakira owns a processing factory in Uganda. He previously bought coffee beans
from smallholder coffee farmers for processing. But Hussien’s factory was operating at just forty percent
of its capacity: he realized that his business would go bankrupt if he did not increase the factory’s
operating capacity.
Hussien turned to NUCAFE for advice and, consequently, changed his middleman role. Instead
of buying coffee beans from smallholder coffee farmers to process, Hussien charged smallholder coffee
farmers a service fee for his processing services. More farmers began to use his processing factory. As
a result, Hussien’s factory now works at ninety percent of operating capacity.
“This is a win-win situation. Farmers and middlemen are both making money. This model is contributing
greatly to the fact that aside from Ethiopia, Uganda is one of the only East African countries that is able
to increase its coffee production.”
As the founder of NUCAFE, Joseph knew that more had to be done to catalyze systemic
change in Uganda’s coffee value chain. NUCAFE worked with the government to influence the National
Coffee Policy in 2013. And for the first time in the history of Uganda’s coffee value chain, the
government is enabling smallholder coffee farmers to participate in all stages of the coffee value chain.
As NUCAFE continued to expand its operations, Joseph started to build regional training hubs for
cooperatives. He needed to refine his business pitch to secure funding from investors. In 2016, Joseph
participated in the Global Social Benefit Incubator (GSBI), an accelerator program based in the Silicon
Valley at Santa Clara University.
“The beauty about the GSBI program is that you sharpen your skills in packaging your story and
business plan, which becomes a dynamic tool when you interact with investors.”
With funding secured to continue constructing regional training hubs, NUCAFE is beginning to
train Ugandan youth to become coffee entrepreneurs. Already, smallholders from NUCAFE’s
cooperatives can afford to pay for their children’s education — a luxury that Joseph never enjoyed in
his childhood. Philip Muluya, a smallholder coffee farmer, from the Kabonera village said, “Had it not
been for NUCAFE, my children would not be in good schools.”
1. What are the social opportunities Joseph Nkandu found to make NUCAFE successful?
The Social opportunities that Mr. Nkandu found is that he makes the coffee farmers a group or
cooperative so that the coffee industry in their country become a big contributor in the coffee industry
not just in their country but also by making the coffee farmers as one, they can produce more and by
that the availability of coffee are more than enough so that’s why they can produce coffee in other
country and by that NUCAFE became successful
2. How did he recognize social opportunity? Use the three major dimensions of prior knowledge.
He opens door base on what he encountered. His family is one of the espresso ranchers and
he knows and see difficulties of each rancher in their nation, despite the fact that they are the
provider and they are the person who ranches it, they actually taste the quintessence of
emergency, that is the reason, by that, he considers something that will improve their
circumstance, to his family as well as to the entirety of the ranchers, he transforms the issue
into open door for them to think and roll out some improvement.
Assessment
Pretend that you are a social entrepreneur in your community. Make some social opportunity
that can benefit both you and the society and how you will make it happen?
I will make the covid-19 as a social opportunity because the world is facing corona virus right
now. It affects almost of us in terms of mental, physical, financial, and what’s worse than that is that we
are not allowed to go out for us to cope up and get what we need to sustain our physical needs, and
most of all financial needs. Locked down in our houses is so hard to do, that’s why we need someone
to get and buy what we need. And this kind of situation is an opportunity for me and both me and the
society can benefit by this.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Closure
Congratulations for finishing Module IV – Lesson 5!  You may now proceed to the next
lesson.
Lesson VI The Evaluation and Exploitation of Social Opportunities
Learning Outcomes

 Discuss how social entrepreneur evaluate opportunities; and
 Present conceptual framework of social opportunity recognition and
exploitation.

Introduction
Hi everyone! Welcome to Lesson 6. In this lesson, you will be able to understand how social
entrepreneur evaluate opportunities and present conceptual framework of social opportunity recognition
and exploitation.
Activity
To start the lesson, kindly arrange the following sentences correctly.
1. of the the evaluation opportunity is an essential step in the process.

Answer:
2. status quo and the if individual no action is the opportunity,
remain ignores taken
Answer:
3. evaluate social social based on the that can be the exploitation of
opportunities entrepreneurs social value created through that opportunity
will
Answer:
Analysis
1. What are the factors to consider why we need to evaluate social opportunities?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
_________________________________________________________________
_________________________________________________________________
____________________
2. What are the things to consider during the exploitation stage?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Abstraction
The evaluation of social opportunities
The entrepreneur now evaluates the opportunity and decides that exploiting it can create the
necessary social values to diminish or possibly eradicate that social need. What factors do social
entrepreneurs use to evaluate that opportunity and decide that it is a meaningful one, well
worth their investment?
 Social entrepreneurs will evaluate social opportunities based on the social value
that can be created through the exploitation of that opportunity.
 Social entrepreneurs will evaluate social opportunities based on their access to resources that
will allow them to exploit said social opportunity.
The evaluation of the opportunity is an essential step in the process. Once social entrepreneurs
deem an opportunity to be worthy of exploitation, they proceed to act upon it and create social value.
Without exploitation, social entrepreneurship would not exist.
The Exploitation of Social Opportunities
A social opportunity is exploited depends on how the individual evaluates the social opportunity
that leads to three possible effects:
1. one of which will lead to the actual exploitation of the opportunity and eventual social value
creation
2. if individual ignores the opportunity, no action is taken and the status quo remain
3. on the other hand, the individual discounts the opportunity, exploitation does not take place, but
the individual might still act through other methods to attempt to diminish the social need
The availability of resources to the social entrepreneur will have a significant effect on the
strategy that will be implemented during the exploitation phase. The perceived value that can be
created through exploitation will have a significant effect on the strategy that will be implemented during
the exploitation phase.
Figure 6.1 Conceptual framework of social opportunity recognition and exploitation
----------
Application
True or False: is the statement is false and encircle the word that makes it wrong.
________________ 1. The exploitation of opportunities will substantiated on the possibility

to ‘generate simultaneously, economical rents and social benefits’.
________________2. The pursuit of business opportunity presupposes the identification and discovery
of an opportunity and a subsequent evaluation that may or may not lead to the
pursuit or exploitation of that opportunity.
Assessment
In your own words, explain the Conceptual framework of social opportunity recognition and exploitation.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Closure
Good job! You have completed the whole lessons of Module IV. 
Module Summary

 The social entrepreneurs recognize and act upon opportunities to improve systems create
solutions and invent new approaches.
 Hockerts created a conceptual framework for social entrepreneurial opportunities and
came up with three sources which are Activism, Self-Help and Philanthropy .
 There are three major dimensions of prior knowledge that are important to the process of
entrepreneurial discovery which are prior knowledge of markets, prior knowledge of ways
to serve markets and prior knowledge of customer problem.
 Social entrepreneurs will evaluate social opportunities based on the social value that can
be created through the exploitation of that opportunity.
References
 https://www.scu-social-entrepreneurship.org/case-studies-1/2018/7/16/the-cooperative-
farmer-ownership-model-of-the-national-union-of-the-coffee-agribusiness-and-farm-
enterprises-ltd-nucafe
MODULE V
Module Overview
Hi everyone! Welcome to Module 5. This module discusses about developing an interactive
model of social entrepreneurship.

 Recognize two major distinguishing characteristics of the socially innovative entrepreneur;
 Identify set of activities that the entrepreneur embraces to make its vision of the future a
concrete organization, with its focus on the dynamics of discovery, evaluation and
exploitation of opportunities;
 Explain the effect of environment in the process of exploiting opportunities;
 Describe the appropriate organizational setting that is crucial to predict the overall
effectiveness of each social entrepreneurship initiative; and
 Present an interactive model of social entrepreneurship
Lesson 7: Social Entrepreneurship Research: Setting Boundaries
Lesson 8: Environmental and Organizational Dimension and the Interactive Model of

Social Entrepreneurship
MODULE V: DEVELOPING AN INTERACTIVE MODEL OF SOCIAL ENTREPRENEURSHIP

Lesson VII Social Entrepreneurship Research: Setting Boundaries
Learning Outcomes

 Recognize two major distinguishing characteristics of the socially innovative entrepreneur;
and
 Identify set of activities that the entrepreneur embraces to make its vision of the future a
concrete organization, with its focus on the dynamics of discovery, evaluation and
exploitation of opportunities.
Introduction
Hello dear students! Lesson 7 will discuss about the Social Entrepreneurship Research: Setting
Boundaries, the individual dimension in the portrayal of the new social entrepreneur and process
dimension in the discovery and exploitation of an opportunity to innovate. According to research and
public policy-makers the social enterprise (SE) offers creative and innovative solutions to complex and
persistent social problems through the adoption and implementation of entrepreneurial models of new
venture creation. That is why SE caters from social issues in management to entrepreneurship and
strategic management.
Activity
Watch a video through this link. https://www.youtube.com/watch?v=j5qKI-cx4Yk

If you are a social entrepreneur, how will you innovate Gourmet Keso that it can benefit a
large number of people in the society? Make a detailed plan from the production to selling of products.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Analysis
1. Differentiate Commercial Entrepreneurship and Commercial Entrepreneurship.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Abstraction
Social Entrepreneurship Research: Setting Boundaries
Social entrepreneurship (SE) is surfacing a vital path towards the concept of social change. SE
breaks up former perspectives on social sectors, surrounding both profit strength and non-profit culture,
with a strong orientation towards cooperation, participation and social unity.
The model of new venture creation introduced by Gartner defined Social Entrepreneur as “A
dynamic process which strives to exploit innovation designed explicitly to improve societal well-being,
resulting from the interactions among an individual dimension; an organizational dimension;
environmental dimension; and a process dimension that collectively initiate, guide or contribute to social
change”.
The individual dimension in the portrayal of the new social entrepreneur
Since the birth of entrepreneurship research, theories have associated a more person-centered
perspective to the analysis of the specific traits of the entrepreneurial phenomenon, explaining
entrepreneurship as a ‘function of the types of people engaged in entrepreneurial activity’ (Eckhardt
and Shane, 2003: 334). Even though research on the portrayal of the entrepreneurs and on how to
differentiate entrepreneurs from non-entrepreneurs (Gartner,1985) is extremely heterogeneous, the
studies share a sort of epic lens in describing these captains of industry.
Two major distinguishing characteristics of the socially innovative entrepreneur:
1. The vision that shapes a cause-driven social mission, which guides the social entrepreneur
towards changing existing patterns in the society or the community of reference.
2. The field of action: social entrepreneurs insist on the social sector as change promoter in
society; they pioneer innovation within the social sector through groundbreaking
entrepreneurial ideas; they have the ability to build capacity and they concretely demonstrate
the quality of the idea and measure social impacts–all with well-defined growth objectives.
The process dimension in the discovery and exploitation of an opportunity to innovate
The process dimension refers to the set of activities that the entrepreneur embraces to make its
vision of the future a concrete organization, with its focus on the dynamics of discovery, evaluation and
exploitation of opportunities (Shane and Venkataraman, 2000). Entrepreneurial opportunities represent
the possibility of generating of new goods, services, raw material and organizing methods that allow
outputs to be sold more than their production cost. Commercial entrepreneurial opportunities are for
profit motives while Social Entrepreneurship aims contribute to the reduction of social burdens and thus
initiate social change and the improvement of social conditions.
----------
Application
Read the question carefully and write the answer before the number.
_____________________1. It aims contribute to the reduction of social burdens and thus initiate social
change and the improvement of social conditions.
_____________________2. Represent the possibility of generating of new goods, services, raw
material and organizing methods that allow outputs to be sold more than their production cost.
_____________________3. True or False. Commercial Entrepreneurship initiate social change and
contributes to the improvement of social conditions.
Assessment
After reading the lesson, why do you think research and innovation important to Commercial
and Social Enterprise? Who do you think has an edge in research and innovation? Defend your
answer.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Closure
Good job! You’ve come a long way. Keep it up!  When you are ready, you can
proceed to the last lesson of this module.
Lesson VIII Environmental and Organizational Dimension and the
Interactive Model of Social Entrepreneurship
Learning Outcomes

 Explain the effect of environment in the process of exploiting opportunities;
 Describe the appropriate organizational setting that is crucial to predict the overall
effectiveness of each social entrepreneurship initiative; and
 Present an interactive model of social entrepreneurship
Introduction
Hello students! Lesson 8 will explain to you the effect of environment and organization in the
process of exploiting opportunities. This lesson will also present the interactive model of social
entrepreneurship and how different dimensions interconnected.
Activity
Make a research or watch the link provided below and make some reaction paper on why
ANTHILL Fabric Gallery choose a particular environment to be part of the production team.
https://www.youtube.com/watch?v=jvyWeygPVIk
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Analysis
1. In your own words, what do you think is the reason why social entrepreneurs need to have
an adequate organizational structure? Elaborate your answer.
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Abstraction
The Environmental Dimension

The environment of the social entrepreneur where they operate will define the success and
failure of the business even the entrepreneur has the capability and the capacity to enter social
entrepreneurship path.
Business entrepreneurship focuses on a list of variables that can affect the feasibility of the
process of new venture creation:
1. from the presence of venture capital to the availability of skilled human resources, including the
proximity of suppliers
2. the structure of the supply chain – from raw materials, production, delivery of the product and
the return if defective.
3. role of market institutions and governments
4. the availability of complementary services ex: babysitting help and parking facilities are two
complementary services that are provided in movie theaters
Three environmental factors appear to affect the process in social entrepreneurship:

1. the level of social, economic and political developments
 more on opportunity than constraint to the social entrepreneurship process
 social entrepreneurship aims at giving autonomy to marginalized groups, allowing them
to replicate autonomously the acquired knowledge base
 adaptation of managerial practices, business models, products or services, in a way
that fits the need of the community of reference. This may help them (the poor)
enhance their social and economic status.
 building a movement represents the third typology of innovation and relies on the
assumption that giving political voice to marginalized groups can help them to increase
social cohesion.
2. the development level of the social sector
 it corresponds to the structure of the competitive environment in which the organization
begins to operate.
 Even SE serves as innovator of social sectors, it operates in the same as public
authorities and other third-sector organizations, such as non-profits.
 Since social entrepreneurship organizations are the latecomers it is quite obvious that
their success depends on the strength of the other providers, on the resources and the
characteristics of the welfare state, and on the state of development of the traditional
third sectors.
3. the presence of supportive actors
 the main reference is here to the financial and consulting service sectors and their
ability to provide adequate financial assets and technical assistance to social
entrepreneurship organizations.
 As explained by Mair and Martí (2006), belonging to a social network can be relevant
for social entrepreneurs both to have access to much more relevant information,
resources and support, and to increase the general level of commitment to the social
problem or the specific entrepreneurial initiative.
The Organizational Dimension
An appropriate organizational setting that is crucial to predict the overall effectiveness of each
social entrepreneurship initiative.
Figure 8.1 The four key types of organizational structure that may lead to effective social entrepreneur
As you can see in Figure 8.1, Social Enterprise can be reframed into a continuum ranging from
purely non-profit organizations (Dees and Elias, 1998) to purely for-profit organizations with a
prominent social objective. This again emphasizes that social entrepreneurship can be pursued through
various vehicles, and that the dichotomy of non-profit vs. for-profit is not the right way to distinguish
between the social side and the business side of entrepreneurship (Peredo and McLean, 2006).
Two aspects are critical in addressing organizational decisions:
1. The scalability orientation - concerns social entrepreneurship organizations’ aptitude to grow

and to be replicated or stable. Since its potential is evaluated in terms of expected social value,
scalability is the criterion to keep in mind in the process of spreading social innovation as
widely as possible and thus maximizing social change and the improvement of social
conditions (Dees et al., 2004). In order to enhance and sustain the growth of the organization,
there must be a competitive employee, ability to manage tradeoffs between quantity and quality
and lastly, good interaction with the environment of reference.
2. Economic robustness – choosing the right organizational setting leads to economic
sustainability. The assessment of efficiency and economic robustness goes hand in hand with
the problem of measurability of results and balanced evaluation of social and economic
outcomes. This issue is critical for social-purpose organizations in that they involve several
different and crucial considerations. Values, for example, cannot be easily measured and often
are tied to a long-term horizon. Significant diversity exists within each field of action and across
different fields, in that each vision is highly community-based.
An Interactive Model of Social Entrepreneurship
Due to unfulfilled social needs, social entrepreneurial opportunity arises which lead to formation
and implementation of organizational structure. In fact, on the one side the extent to which the
institutional context is developed, the presence of role models and the level of competition within that
specific social sector affect the recognition of room for action, thus providing the push to behave
entrepreneurially and innovate.
As in the business case, social entrepreneurs do not retain or control all the necessary
resources to launch the entrepreneurial organization. For this reason, the assessment of expected
social value should be accompanied by a thorough analysis of the economic viability of the process in
terms of the amount of required resources. In this sense, a good opportunity is one that is able of
creating adequate value in a way that justifies the entrepreneurial risk that the exploitation of the
opportunity unavoidably implies.
The Interactive Model of Social Entrepreneurship
Figure 8.2 The Interactive Model of Social Entrepreneurship

As shown in Figure 8.2, the four (4) dimension interconnected to each other. The center of the
interactive model emphasizes that without identification of unfulfilled social needs, there will no
innovation and exploitation of social opportunity.
----------
Application
Write True if the statement is True. If the statement is False, write false and write the word that
makes it wrong.
____________________1. True or False. Due to fulfilled social needs, social entrepreneurial
opportunity arises which lead to formation and implementation of
organizational structure.
____________________2. Environmental dimension is more on opportunities that constraints for social
entrepreneur.
____________________3. Social Entrepreneurship operates differently to public authorities and other
third-sector organizations, such as non-profits.
Assessment
Explain the Interactive Model of Social Entrepreneurship and how the dimensions
interconnected to each other.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Closure
Congratulations for finishing Module V. I hope you understand and enjoy the lesson. 
Module Summary

 Social entrepreneurship is surfacing an important path towards social change and social
transformation.
 Social entrepreneurship breaks up previous perspectives on social sectors, encompassing
both profit strength and non-profit culture, with a strong orientation towards cooperation,
participation and social cohesion
 The value of this contribution lies in its attempt to develop a comprehensive, multi-
dimensional framework as a further step in the process of boundary-setting and
awareness-raising aimed at stimulating future research according to the critical areas
identified and the links between them.
 SE is at the forefront of innovation and creativity within the social sector, breaking up
previous perspectives on social sectors and encompassing both profit strength and non-
profit culture, with a strong orientation towards cooperation, participation and social
cohesion.
References
 https://www.choosesocial.ph/
 ANTHILL Fabric Gallery Youtube Channel

Social Entrepreneurship - Instructional Material (Complete) .Docx WAPA NASUGDAN

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Social Entrepreneurship - Instructional Material (Complete) .Docx WAPA NASUGDAN

Uploaded by

Copyright:

Available Formats

SOCIAL

IRENE CRIS P. TAGHAP

Name of Author: JAMES M. JADRAQUE

Course Title Social Entrepreneurship

COURSE PACK STRUCTURE

Modules Intended Learning Outcomes Lessons

Upon completion of this module, you should be able to:

Lessons in the Module

This module consists of Lesson 1 – Social Entrepreneurship and Social Entrepreneur.

Lesson I Social Entrepreneurship and Social Entrepreneur

At the end of this lesson, you should be able to:

Time Frame: 4.5 hours

1. What social or environmental challenges do you want to resolve?

Today, entrepreneurship is commonly defined as the relentless pursuit of opportunity without

What is social entrepreneurship?

This definition helps to capture the essence of

What is a social entrepreneur?

A social entrepreneur is someone who designs and implements an intervention, product, or

What does a social entrepreneur do?

What are the qualities or characteristics of social entrepreneurs?

Social entrepreneurship is a process – involving a long-term commitment and continual

Other Common Characteristics of a Social Entrepreneur

__________________1. __________________ defined entrepreneurs as innovators who drive the

In this module, you have learned the following:

 Social entrepreneurship is a process by which citizens build or transform institutions to

Upon completion of this module, you should be able to:

Lessons in the Module

This module consists of Lesson 2: Major Constraint in Accessing Financial Capital.

Lesson II Major Constraint of Accessing Financial Capital

At the end of this lesson, you should be able to:

Time Frame: 4.5 hours

Hello students! Lesson 2 discusses the major constraint in accessing financial

1. What social or environmental challenges do you want to resolve?

What are the main financial constraints?

How do social entrepreneurs finance organizations and enterprises?

Launching an organization is a process of recruiting funders, advisors, board members, and

What’s stopping social change?

________1. True or False:

In this module, you have learned the following:

Upon completion of this module, you should be able to:

Lessons in the Module

This module includes the following lessons:

Lesson 3: Vision and Values

Lesson III Vision and Values

At the end of this lesson, you should be able to:

Time Frame: 4.5 hours

1. Create a list of goals and dreams you would like to achieve.

1. How can you define vision and action?

Vision and Values

Social entrepreneurs are consistently described as ‘visionary’. The defining characteristic of

Divergent Orientations of Social Entrepreneurship

Social entrepreneurship organizations have a greater need to adapt to expectations in their

________1. True or False:

Lesson IV Kinds of Social Entrepreneurship

Time Frame: 4.5 hours

1. How social entrepreneurship can make a difference?

Different Kinds of Social Entrepreneurship

Social entrepreneurship is a way of creating social change through a set of

________________1. True or False:

In this module, you have learned the following:

 Vision is a living picture of a future, desirable end state.

Upon completion of this module, you should be able to:

Lessons in the Module

1. defined entrepreneurs as innovators who drive the