Beyond legal and economic duties, many business organizations exert efforts to give back and

give more to society—a concept called corporate social responsibility (CSR), which is the
central topic of this unit.
MODULE 5 FOURTH QUARTER
Corporate Social Responsibility
MODULE 6
Employer Responsibilities and Employee Rights
MODULE 7
Business and Environmental Sustainability
MODULE 8
Ethics and Marketing
MODULE 9
Social Entrepreneurship
MODULE 10
Creation of a Social Enterprise
Learning Outcomes for Module 9 Social Entrepreneurship:

▪ Explain the importance of establishing and

sustaining business enterprises as a source of job
opportunities and financial freedom.

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 INTRODUCTION
Module 9 is devoted to the discussion of social entrepreneurship. This module looks into
the modeling of social entrepreneurship process and introduces different models that may
fit into the social enterprise framework.

SOCIAL ENTREPRENEURS
▪ Want to create widespread change
▪ Look for new ways to address pressing
social issues
▪ Driven by something much more than
making profits
▪ They are out to make a difference in the
world.
Key changes that have made the social entrepreneurship phenomenon
possible:
According to David Bornstein, a journalist and author who focuses on social innovation:

1. The global increase in prosperity and the increase in wealth of the middle class have
afforded them the financial capacity to invest in social ventures.
2. The increase in the number of democratic and semi-democratic societies has given the
citizens the freedom to pursue social entrepreneurship to provide solutions to social
problems outside of the government and business sectors.
3. The proliferation of new communications technology, access to the internet, and
popularity of social media have increased people’s level of awareness of social
problems and their impact on societies.
Social Entrepreneurship
▪ Comes from the Latin word socialis, which means “an
associate, ally, or companion.”
▪ It suggests an organization of people who belong in
interdependent groups that live and work together
cooperatively in a community or society.

Entrepreneurship
It is promoting INNOVATION by seizing opportunities to
provide a new product or implement a new production
method, and then organizing the needed production inputs
and assuming FINANCIAL RISK.

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Entrepreneur
An entrepreneur is “someone who seeks to profitably solve a problem that the world has, in
exchange for enough monetary compensation to achieve his or her dreams.”
- Clay Clark, CEO of a business consulting firm

SOCIAL ENTREPRENEURS play the role of CHANGE AGENTS in the social sector through
various means.

▪ 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.
▪ Exhibiting heightened accountability to the constituencies served and for the outcome.
▪ Adopting a mission to create and sustain social value (not just private value).
o Provide solutions to the challenges facing society today
o Making profits and providing what the market needs are means to a social end
o Look for long-term social return on investment (ROI)

▪ Recognizing and relentlessly pursuing new opportunities to serve that

mission.
o See the opportunities, not just the problems
o They are visionaries who are determined to explore the opportunity they see and to
make it work.
▪ Engaging in a process of continuous innovation, adaptation, and learning.
o Involve in applying an existing idea in a new way or situation.

▪ Acting boldly without being limited by resources currently in hand.

o Social entrepreneurs use resources efficiently.
o They have a clear vision of what they want to achieve, and they work hard, take risks,
and develop strategies in order to achieve their goals.

▪ Exhibiting heightened accountability to the constituencies served and for the

outcome.
o Social entrepreneurs take steps to ensure that they are creating social value.
o Provide real social improvements
o Work hard to be able to do what they set themselves to achieve
Modeling the Social Entrepreneurship Process

Social entrepreneurship is the process of recognizing and pursuing

opportunities to create social value, that is, to develop and implement
solutions to social, cultural, and environmental issues.

It involves the interaction of the individual entrepreneur, the enterprise itself,

and the context in which the entrepreneur and the social enterprise operate
(Kickul, Lyons 2012).
The Timmons Model of the Entrepreneurship Process
The three key components of a successful business venture are opportunity, team, and
resources.
Opportunity
• The entrepreneur has to be able to create
value for the consumers at the right price
in order for the opportunity to become
viable.
Resources
• The company can create a competitive
advantage for its products.
• The resources must also match the
requirements of the opportunity.
The Timmons Model of the Entrepreneurship Process
The three key components of a successful business venture are opportunity, team, and
resources.
Team
• The size of the team is based on the size and
nature of the opportunity.
• A good team is a requirement for the venture
to succeed.
• Choose the right members of the team to
contribute to the success of the business.
The Timmons Model of the Entrepreneurship Process
All the components of the process must complement each other and must maintain
balance.

Opportunity Team Resources

To achieve growth and sustainability

The Timmons Model in Social Entrepreneurship
Opportunity
Team
A societal need and is
motivated by market Resources
need Includes both internal
and external
stakeholders because Acquired primarily
collaboration between through funding
team members is vital to provided by venture
sustain a social capital firms to
enterprise companies that aim to
address environmental
and social issues through
their products or services
The PCDO Framework
The PCDO framework presents four interrelated elements of social entrepreneurship:
people, context, deal, and opportunity.
People
▪ Represents the human resource needed to
successfully run the enterprise.
▪ The collective skills of the people are needed to
fully operate the business.
▪ People also include the investors in the enterprise.
Context
▪ Elements in the environment where the
entrepreneurship takes place.
▪ Factors that are beyond the control of the
management
The PCDO Framework
The PCDO framework presents four interrelated elements of social entrepreneurship:
people, context, deal, and opportunity.
Deal
▪ Includes transactions involved in determining
how and to whom the benefits of the
entrepreneurial activity are dispersed.
▪ It is the substance of the bargain that defines
who gives what, who gets what, and when
those deliveries and receipts will take place.

Opportunity
▪ Creates an avenue for the enterprise to offer
something of value to the market.
▪ It is the essence of the framework.
The PCDO Framework in Social Entrepreneurship

Opportunity. People.
The entrepreneur can They are needed to
develop something mobilize the ideas Deal.
valuable for the market and pursue the goals. Deals do not clearly
to patronize. describe the complex
processes and
negotiations within a
social enterprise.
The CASE Model
• Developed by Güclü, Dees, and
Anderson of the Center for the
Advancement of Social
Entrepreneurship (CASE).
• Presents the process of creating a
social opportunity.
• The first stage involves generating
promising ideas.
• The second stage focuses on the
development of promising ideas into
attractive opportunities.
The CASE Model
First Stage
• The opportunities in the community
are generated based on social needs
and social assets.
• The opportunities need to be viable

Second Stage
• Includes a working hypothesis on the
social outputs, outcomes, and impacts
that are achievable
The CASE Model
Number of
Help alleviate weavers
Offering quality poverty by
Number of Bags
generating
bags made of employment for (output)
woven cloth underprivileged Kind of Bags
families
(outcome)

Change the lives of the

weavers and their families

The CASE model takes a promising idea and develops

this idea into an opportunity to create a social impact.
The Social Entrepreneurship Framework
• The social entrepreneurship framework is a modification of the PCDO framework.
• This framework identifies three elements: opportunity, people, and capital.

Opportunity
▪ Creates an avenue for the enterprise to offer something of value to the
market.
People
▪ Represents the human resource needed to successfully run the enterprise.
▪ The collective skills of the people are needed to fully operate the business.
Finance
▪ Finance providers
The Social Entrepreneurship Framework
This framework captures the synergy of the three elements in order to fulfill the social
value proposition (SVP).
• The SVP is at the heart of the social
entrepreneurship process. This is the
reason why target beneficiaries of a
social enterprise choose a company’s
products over its competitors.
• The three elements (opportunity,
people, and capital) overlap in the Venn
diagram.
• The factors around the diagram are the
environmental factors that can affect
the activities of the social enterprise.
The Social Entrepreneurship Process Model
▪ Attempts to put together the best of both the CASE model and the social
entrepreneurship framework.

Stage 2: Mission
Stage 1: Idea Creation
▪ Takes place in two Achievement
stages and starts
• Ideas are generated • The three elements
with idea creation
based on the (opportunity, people,
similar to the first
entrepreneur’s and resources) converge
step in the CASE motivation in the fulfillment of the
model. mission or purpose of
• The entrepreneur’s
motivation is influenced the social venture.
by his or her background
The Social Entrepreneurship Process Model
Ashoka Foundation
• At present, Ashoka claims to be the largest
network of social entrepreneurs in the
world
• The foundation helps social entrepreneurs
from the infancy of their projects up to their
development and success
• Ashoka also established a Global Academy
for Social Entrepreneurship with the
following aims:
• Representation
• Consultation
• Linkage/connection
• Global networking
Skoll Foundation

▪ Founded by Jeff Skoll, the first

employee and first president of eBay
▪ Instrumental in bringing media mileage
and international attention to the work of
social entrepreneurs around the world
▪ Flagship program: Skoll Awards for
Social Entrepreneurship
▪ Gawad Kalinga is among the recipients
GAWAD KALINGA DEVELOPMENT FOUNDATION