MODULE 1:

Introduction to
Social Entrepreneurship
CRISTAL RIO U. MANUEL, MBA
Instructor
Social Entrepreneurship
❑ Activity of establishing new business ventures to achieve social change
❑ Utilizes creativity and innovation to bring social, financial, service,
educational or other community benefits.
❑ Not charities or welfare agencies.
❑ Focus on working with and enhancing social capital within the
community by encouraging participation

(Talbot, Tregilgas & Harrison, 2002)

Social Entrepreneurship
● The pursuit of social objectives
with innovative methods,
through the creation of
products, organizations, and
practices that yield and sustain
social benefits.
Brief History of Social Entrepreneurship
- It has always existed but has not been recognized as such (works of St.
Francis and Gandhi)
- As a movement, it developed as a response to major global forces that
change patterns of life around the world (Industrialization, Urbanization and
Globalization)
- The term was originally coined in 1972
- Bill Drayton – widely considered as the father of modern social
entrepreneurship
- In 1980 he founded the Ashoka: Innovators for the Public. – a professional
organization that identifies individual social entrepreneurs and brings them in
a global fellowship
Elements of Social Enterprise
❑ Created to provide benefits for a community
❑ Creates opportunities so people can help themselves as well as others
❑ Utilizes sound commercial business practices ensure its sustainability
i.e. the business will naturally uphold and encourage environmental
sustainability as well as ethical considerations
Components of Social Entrepreneurship
❑ Entrepreneurs
❑ Innovations
❑ Opportunities/needs
❑ Organizations

Fredrik Bjork, Malmo University

https://www.slideshare.net/lufrbj/introduction-to-social-entrepreneurship-
11560327?qid=e2f290d2-b547-4226-840c-
8a06ad106796&v=&b=&from_search=17
Components of Social Entrepreneurship
1) identifying a stable but inherently unjust equilibrium that causes the exclusion,
marginalization, or suffering of a segment of humanity that lacks the financial
means or political clout to achieve any transformative benefit on its own;

2) identifying an opportunity in this unjust equilibrium, developing a social value

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

3) forging a new, stable equilibrium that releases trapped potential or alleviates

the suffering of the targeted group, and through imitation and the creation of a
stable ecosystem around the new equilibrium ensuring a better future for the
targeted group and even society at large.
Characteristics of a Social Entrepreneur
❑ Not bound by sector norms or traditions
❑ Not confined by barriers that stand in the way of their goals
❑ Develop new models and pioneer new approaches to enable them to
overcome obstacles
❑ Take innovative approaches to solve social issues
❑ Transform communities through strategic partnerships
Social Entrepreneurship and Social Enterprise
- Similar in nature but there are distinct differences
- Not all Social Enterprise are “entrepreneurial”
- “Entrepreneurial” is associated with opportunity identification and innovation
- Social Entrepreneurship is introducing something new to the market
Key Ingredients of Social Entrepreneur
Business Entrepreneur
- Primarily focused in profit and wealth
maximization (Single Bottom Line)
- A business entrepreneur has nothing
to do with running the organizations.
- The role of the entrepreneur only
occurs in the very beginning of the
organizational life cycle of the
business.
vs Social Entrepreneur
- Triple Bottom Line Approach
(Profit, People and Planet)
- A social entrepreneur acts
simultaneously as the Manager
due to lack of middle level
managers in the sector.
- A continuous process of
building organizations by
employing innovation and
entrepreneurial methods
throughout the process
Business Entrepreneur vs Social Entrepreneur
4 Major Variables:

a. Market Failure – creates different entrepreneurial opportunities for both

social and business entrepreneur. A problem for business entrepreneur is an
opportunity for social entrepreneurs
b. Mission – differences in mission is the distinguishing feature between the
two that manifests itself in multiple areas of enterprise management and
personnel motivation
c. Resource Mobilization – human and financial mobilization is a prevailing
difference that leads to different management approach
d. Performance Measurement
Business Entrepreneur vs Social Entrepreneur
Business Entrepreneur vs Social Entrepreneur
Business Entrepreneur vs Social Entrepreneur
A Business Entrepreneur’s approach to a sanitation problem

a. What is the market that would pay for the solution?

b. What is the highest amount he can charge for it?
c. How low can his production and running costs be?
A Social Entrepreneur’s approach to a sanitation problem

a. How to solve an issue in a sustainable way?

b. Who are the neediest people he/she can employ?
c. How can he/she empower individuals in the given area and educate them
about the need for sanitation?
d. How can he/she recycle the waste?
e. How can he/she achieve maximum social impact?
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Grameen Bank

● Is a microfinance organisation and community

development bank founded in Bangladesh. It makes
small loans (known as microcredit or "grameen
credit") to the impoverished without requiring
collateral.
● Grameen Bank originated in 1976, in the work of
Professor Muhammad Yunus at University of
Chittagong, who launched a research project to
study how to design a credit delivery system to BANK FOR THE POOR
provide banking services to the rural poor. In
October 1983 the Grameen Bank was authorised by
national legislation to operate as an independent
bank.
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Grameen Bank

● Muhammad Yunus was inspired during the

Bangladesh famine of 1974 to make a small loan of
US$27 to a group of 42 families as start-up money
so that they could make items for sale, without the
burdens of high interest under predatory lending
● As of 2017, the Bank had about 2,600 branches and
nine million borrowers, with a repayment rate of
99.6%. 97% of the borrowers were women. The
Bank has been active in 97% of the villages of
Bangladesh.
● Grameen Bank is now expanding into wealthy
countries, as well. As of 2017, Grameen America
had 19 branches in eleven US cities. Its nearly
100,000 borrowers were all women.
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Grameen Bank

● Grameen Bank is founded on the principle that

loans are better than charity to interrupt poverty:
they offer people the opportunity to take initiatives
in business or agriculture, which provide earnings
and enable them to pay off the debt.
● It targets the poorest of the poor, with a particular
emphasis on women, who receive 95 percent of the
bank's loans. Women traditionally had less access
to financial alternatives of ordinary credit lines and
incomes. They were seen to have an inequitable
share of power in household decision making.
● No legal instrument (i.e. no written contract) is
made between Grameen Bank and its borrowers;
the system works based on trust. (v)
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Aravind Eye Institute

● It was founded by Dr. Govindappa Venkataswamy

(popularly known as Dr.V) at Madurai, Tamil Nadu in
1976. It has grown into a network of eye hospitals
and has had a major impact in eradicating cataract
related blindness in India.
● As of 2012, Aravind has treated nearly 32 million
patients and performed 4 million surgeries, the
majority of them being cheap or free making it the
world’s largest and most productive eye-care
service group. The model of Aravind Eye Care
hospitals has been applauded and has become a
subject for numerous case studies across the
world.
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Aravind Eye Institute

● In 1970's, India did not have eye care facilities to

treat patients on such a large scale. Dr.
Venkataswamy, the head of Ophthalmology at
Madurai Medical College established the GOVEL
Trust in 1976 after his retirement at the age of 58.
The first Aravind Eye Hospital was founded in
Madurai as a modest 20-bed hospital in a home
after most banks refused to lend money citing Dr.
V's age and the eccentric model.
● Mc Donald’s service efficiency to adapt in the scale
of Aravind Eye Institute.
● Large scale operation | Paying patients subsidize
the poor Model.
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Aravind Eye Institute

● Dr. V's vision was to eradicate needless blindness in

India. Dr. V. wanted to emulate the service efficiency
of McDonald's fast food and sought to adapt it to
the eye care system to cope with increasing the
numbers of patients treated.
● Aravind established an outreach program wherein
doctors reach out to remote villages to conduct eye
camps sponsored by various organizations
● Aravind Hospital started in 1976 as an 11-bed
hospital in Madurai. Aravind opened a hospital in
Theni in 1985 and Tirunelveli in 1988. (v)
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Bambike

● The Bambike Project is an initiative of a Gawad

Kalinga (GK) resettlement in Victoria, Tarlac that
handmakes bamboo bicycles and provides people
with sustainable livelihoods.
● Bambike founder Bryan Benitez McClelland came
up with the idea in 2007 when he was still a
volunteer for Gawad Kalinga, but it wasn’t until 2010
that he officially started the business.
● Bambike is a socio-ecological enterprise based in
the Philippines that hand-makes bamboo bicycles
with fair-trade labor and sustainable building
practices.
● Bamboo Nursery | Scholarships | New Source of
Income.
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Bambike

● The bambuilders, who work six days a week, can

finish up to 10 bike frames a month.
● All bambikes are handmade, with the frame
fashioned from bamboo, the lugs or joints from
abaca and resin, and the connection points from
aircraft-grade aluminum.
● To Inspire and Empower the community of Tarlac as
well to go for a Green alternative with a competitive
unique Bikes. (v)
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Cropital, PhilCrowd and FarmOn

● Crowd Sourcing / Pool of funds and investing on

local farmers.
● Primarily done online as well as its monitoring.
● The companies listed seeks a potential agricultural
investment.
● Despite being an agricultural country, we are among
the top rice importers in the world. Agriculture also
contributes only to 9% of the country’s GDP, while
contributing to the majority of country’s
employment.
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Good Shepherd

● From begging for a food to survive, Good Shepherd

started out as a rolling store selling strawberry jam.
● Why strawberry jam? Aside from strawberries being
abundant in Baguio City every time it is in season,
the sisters noticed that while many tourists bought
fresh strawberries, they rarely took them all home
due to its short shelf life.
● Aside from taking orphans under their wing, the
Good Shepherd sisters, through the MMTC, helps
Cordillera youth live with dignity by providing them
education and employment. The MMTC has a
system wherein students can earn their way through
college by working at the training center. (Mountain
Maid Training Center)
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Good Shepherd

● “The brand’s success has produced a student

worker program, which now has over 370 college
students,” Sister Bautista said (the overseer). Last
year, the MMTC had 82 graduates from its student
worker program. As the sisters invested in more
technology, it also meant that they needed more
student workers. (v)
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Gawad Kalinga

● Aims to bring in sustainability for the community by

harnessing its residents for small to mid-scale
enterprises. It aims to create wealth by helping the
community produce world-class products and
services, enabled by private-public partnerships
where rich and poor can work together to build a
strong middle class.
● Community Infrastructure: The GK Community
Infrastructure Program (CIP) builds homes and
facilities (such as clinics and school buildings) for
impoverished people using labour paid for by
charity and the future residents of the houses
themselves.
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Gawad Kalinga

● Child and Youth Development: The GK CYD program

aims to develop the skills and talents of the children and
youth in the GK communities by inculcating values that
bring out their full potential. SIBOL, which means “to
grow,” provides value-based education to pre-school
children, aged 3 to 6 years old.
● Community Building: The GK Community Building
program provides GK villages with mentors who try to
instill a sense of community within the villagers.
● Environment: The GK Environment program aims to
create "green" model communities. The program
operates under a tagline of "Save the poor, save the
environment",and partners with environment advocacy
groups and government agencies to provide seminars
and environment-friendly programs for community
members.
Operating Foreign / Local and Social Entrepreneur / Entrepreneurship

Gawad Kalinga

● GK Kalusugan: Is a community health program with the

goal of improving health among impoverished people by
educating them about first aid and nutrition, as well as
connecting hospitals and medical professionals to needy
communities.
● Center for Social Innovation: CSI (Center for Social
Innovation) tries to encourage entrepreneurship and
connect would-be entrepreneurs with experts and
volunteers from fields necessary to build successful
enterprises.
Thank you! ☺