Unit – 6

An Overview of Social Entrepreneurship

Social Entrepreneurship - Process of creating value by bringing together a unique
package of resources to exploit an opportunity, in pursuit of high social returns

Social Entrepreneur

Social entrepreneurs drive social innovation and transformation in various fields including
education, health, environment and enterprise development. They pursue poverty
alleviation goals with entrepreneurial zeal, business methods and the courage to innovate
and overcome traditional practices. A social entrepreneur, similar to a business
entrepreneur, builds strong and sustainable organizations, which are either set up as not-
for-profits or companies.

What is Social Entrepreneurship?

Social entrepreneurship is:-

 About applying practical, innovative and sustainable approaches to benefit society in

general, with an emphasis on those who are marginalized and poor.
 A term that captures a unique approach to economic and social problems, an approach that
cuts across sectors and disciplines grounded in certain values and processes that are
common to each social entrepreneur, independent of whether his/ her area of focus has
been education, health, welfare reform, human rights, workers' rights, environment,
economic development, agriculture, etc., or whether the organizations they set up are non-
profit or for-profit entities.
 It is this approach that sets the social entrepreneur apart from the rest of the crowd of
well-meaning people and organizations who dedicate their lives to social improvement.

For social change to occur and remain successful social entrepreneurs must be able to
move from theory to practice by: coming up with a mission, finding ways in which they can
implement their mission, constantly coming up with innovative solutions in order to
maintain change, and creating an impact for those living in the community in which the
entrepreneur wishes to create 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 heightened accountability to the constituencies served and for the outcomes created.

Categorization of entrepreneurial organizations

Following are the categorization of entrepreneurial organizations:-

i. Non-profit organization- In Nepal, Non-profit organization are those organization that

operate without the profit motive and qualify for some types of tax exemptions.
According to Nepal Income Tax Law 2058, non-profit organization is:

“A social, religious, educational or benevolent organization of public nature established

with non-profit motive.”

“An amateur sports organization so formed with a view to promoting social or sports
related facilities that the organization or its member does not derive profits.”

ii. Imitative (Copied or similar) Non-profit organization- These organizations imitate or

copy similar types or organizations and creates value in the society.
For example schools, church etc and those organization gets certain types of tax
exemption and also considered as the key for innovation.
For example: Teach for Nepal, Maiti Nepal, Bal Mandir, Samata School etc
As all non-profits organizations, Imitatives also promote social value according to how
they qualify for tax exempt status. A review of the types of organizations that qualify for
tax exempt status e.g. religious, educational, scientific, literary, public safety, sports and
cruelty prevention not to mention charitable can bring to mind numerous examples of
imitative organizations-churches, schools, scientific research centres, sporting clus,
societies for the prevention of cruelty to children and animals and so on- that are not
innovative in any respect except, for example, their introduction to a new geographic
area. Imitative nonprofits may also be productively examined for opportunities for
innovation.
 iii. Innovative Non-profit organizations- Such organization is totally new way of creating a
social value or contribution in a society. Such organization must promote social values
in some new innovative way and also have to qualify for tax exemptions.

In the context of globalization, technological advances and the development of the knowledge
economy, organizations must change and adapt to remain competitive. Innovation is a key to
building and sustaining a competitive advantage. For entrepreneurs, innovation can positively
support operational efficiency, improve performance, attract a skilled workforce, and build
knowledge. Innovation can enable a competitive advantage in the market place and function to
enhance performance.

Organizations in this category must qualify for tax exempt status with the IRS of Nepal Taxation
Laws and promote social value in an innovative way. The difference in this category form the
previous one is the emphasis on innovation or the element of change, that characterizes the
enterprise.

iv. Hybrids- Such organization is usually non profit but with the earning income
components, as it uses profit for creating social values. For example running
organization earning profit and using 2/3 or more of its income for social welfare by
creating some short of social values.

Dimensions of social entrepreneurship

In general, social entrepreneurship

is associated with non-profit
companies or firms whose main aim is
focused on social problems which are
not resolved by other private or
government institutions, where it is
surmised that the latter companies are
interested in profits in the degree
which allow them to sustain the social
activity. However, the existence of
for-profit companies which seek to
benefit their stakeholders by offering
products or services which contribute
to the improvement of health,
leisure or the environment, is evidence
which must be researched.
In the latter companies, the
simultaneous existence of a profit goal
and social objectives seems to be
mutually
reinforced. In the hotel sector, the
subject of this research, the
investment in leisure and health
for the
customer and the investment in the
environment appear to improve
profits, which can motivate several
of
these companies to include social
objectives in the central focus of
their strategy. If this takes place, even
though the essential interest are
business profits, we would be dealing
with companies whose central strategy
(policies, research priorities,
investments) are founded on social
objectives and accordingly, they are
focused
on a form (in the broadest sense) of
social entrepreneurship.
In general, social entrepreneurship
is associated with non-profit
companies or firms whose main aim is
focused on social problems which are
not resolved by other private or
government institutions, where it is
surmised that the latter companies are
interested in profits in the degree
which allow them to sustain the social
activity. However, the existence of
for-profit companies which seek to
benefit their stakeholders by offering
products or services which contribute
to the improvement of health,
leisure or the environment, is evidence
which must be researched.
In the latter companies, the
simultaneous existence of a profit goal
and social objectives seems to be
mutually
reinforced. In the hotel sector, the
subject of this research, the
investment in leisure and health
for the
customer and the investment in the
environment appear to improve
profits, which can motivate several
of
these companies to include social
objectives in the central focus of
their strategy. If this takes place, even
though the essential interest are
business profits, we would be dealing
with companies whose central strategy
(policies, research priorities,
investments) are founded on social
objectives and accordingly, they are
focused
on a form (in the broadest sense) of
social entrepreneurship.
In general, social entrepreneurship
is associated with non-profit
companies or firms whose main aim is
focused on social problems which are
not resolved by other private or
government institutions, where it is
surmised that the latter companies are
interested in profits in the degree
which allow them to sustain the social
activity. However, the existence of
for-profit companies which seek to
benefit their stakeholders by offering
products or services which contribute
to the improvement of health,
leisure or the environment, is evidence
which must be researched.
In the latter companies, the
simultaneous existence of a profit goal
and social objectives seems to be
mutually
reinforced. In the hotel sector, the
subject of this research, the
investment in leisure and health
for the
customer and the investment in the
environment appear to improve
profits, which can motivate several
of
these companies to include social
objectives in the central focus of
their strategy. If this takes place, even
though the essential interest are
business profits, we would be dealing
with companies whose central strategy
(policies, research priorities,
investments) are founded on social
objectives and accordingly, they are
focused
on a form (in the broadest sense) of
social entrepreneurship.
In general, social entrepreneurship
is associated with non-profit
companies or firms whose main aim is
focused on social problems which are
not resolved by other private or
government institutions, where it is
surmised that the latter companies are
interested in profits in the degree
which allow them to sustain the social
activity. However, the existence of
for-profit companies which seek to
benefit their stakeholders by offering
products or services which contribute
to the improvement of health,
leisure or the environment, is evidence
which must be researched.
In the latter companies, the
simultaneous existence of a profit goal
and social objectives seems to be
mutually
reinforced. In the hotel sector, the
subject of this research, the
investment in leisure and health
for the
customer and the investment in the
environment appear to improve
profits, which can motivate several
of
these companies to include social
objectives in the central focus of
their strategy. If this takes place, even
though the essential interest are
business profits, we would be dealing
with companies whose central strategy
(policies, research priorities,
investments) are founded on social
objectives and accordingly, they are
focused
on a form (in the broadest sense) of
social entrepreneurship.
In general, social entrepreneurship
is associated with non-profit
companies or firms whose main aim is
focused on social problems which are
not resolved by other private or
government institutions, where it is
surmised that the latter companies are
interested in profits in the degree
which allow them to sustain the social
activity. However, the existence of
for-profit companies which seek to
benefit their stakeholders by offering
products or services which contribute
to the improvement of health,
leisure or the environment, is evidence
which must be researched.
In the latter companies, the
simultaneous existence of a profit goal
and social objectives seems to be
mutually
reinforced. In the hotel sector, the
subject of this research, the
investment in leisure and health
for the
customer and the investment in the
environment appear to improve
profits, which can motivate several
of
these companies to include social
objectives in the central focus of
their strategy. If this takes place, even
though the essential interest are
business profits, we would be dealing
with companies whose central strategy
(policies, research priorities,
investments) are founded on social
objectives and accordingly, they are
focused
on a form (in the broadest sense) of
social entrepreneurship
mised that the latter companies are
interested in profits in the degree
which allow them to sustain the social
activity. However, the existence of
for-profit companies which seek to
benefit their stakeholders by offering
products or services whi
Praszkier and Nowak have identified five dimensions that make up Social Entrepreneurship. Although
many entrepreneurs may be advanced in some aspects of the five dimensional model, you must meet all 5
of the dimensions in order to be considered a social entrepreneur. The dimensions include:

 Social mission- An issue that needs to be addressed (aging, disabilities, education, health,
environment etc

 Social innovation- Once the entrepreneur chooses a mission, they come up with new
approaches to make changes.

 Social change- Creating changes that are long term

 Entrepreneurial spirit- This is important since it is the driving force of change

 Personality- “Pattern breaking individuals” a risk taking personality that does not give up is
important in order to create social change.

In general, social entrepreneurship

is associated with non-profit
companies or firms whose main aim is
focused on social problems which are
not resolved by other private or
government institutions, where it is
surmised that the latter companies are
interested in profits in the degree
which allow them to sustain the social
activity. Ho
Approaches to social entrepreneurship