What is social entrepreneurship?

Ans: Social Entrepreneurship refers to the process of identifying and solving social problems
through innovative and sustainable business models. It is a broader concept that includes
individuals or organizations that work to create social impact while maintaining financial
sustainability. Social entrepreneurship can take various forms, including nonprofits, for-profits,
or hybrid models.
What is social enterprise?
Ans: Social Enterprise refers to a specific type of business that prioritizes social or
environmental impact while maintaining financial viability. A social enterprise typically operates
like a business, generating revenue through goods or services, but its primary goal is to achieve
positive social change rather than maximizing profits for shareholders.
Example:
 A social entrepreneur might develop a new way to provide clean drinking water to rural
areas.
 A social enterprise could be a company that sells eco-friendly water filters and reinvests
profits into expanding clean water access.
Both concepts aim for positive societal impact, but social entrepreneurship is about the
approach, while social enterprise is about the business model.

Possible Impacts of Social Entrepreneurship

1. Addressing Social Issues – Provides innovative and sustainable solutions to social
problems like poverty, education, healthcare, and environmental challenges.
2. Economic Growth – Creates jobs, stimulates local economies, and contributes to GDP
growth through socially responsible businesses.
3. Empowerment of Communities – Encourages self-reliance by providing skills,
employment, and opportunities to underprivileged groups.
4. Improved Access to Essential Services – Enhances access to healthcare, clean water,
affordable education, and other basic needs.
5. Environmental Sustainability – Promotes eco-friendly business practices and solutions
to climate change, waste management, and renewable energy.
6. Sustainable Development – Aligns with the UN Sustainable Development Goals (SDGs)
to create a more inclusive and equitable world.
What is sustainable entrepreneurship?
Ans: Sustainable Entrepreneurship refers to the process of creating and running a business that
balances economic success, social responsibility, and environmental sustainability. The goal is
to develop innovative business models that generate profit while minimizing negative impacts
on society and nature.
Example:
A company that produces biodegradable packaging made from plant-based materials instead of
plastic. This business not only makes a profit but also reduces environmental pollution and
promotes sustainability.

What are the parts / subsections of sustainable entrepreneurship? How Ecopreneurship,

Social Entrepreneurship and Corporate Social Responsibility are related to sustainable
entrepreneurship?
Ans: Sustainable entrepreneurship is a broad concept that integrates multiple dimensions. It can
be divided into three key subsections:
1. Ecopreneurship: Environmental entrepreneurship with entrepreneurial actions
contributing to preserving the natural environment, including the Earth, biodiversity, and
ecosystems, is called ecopreneurship. Example: A startup producing solar-powered
water purifiers.
2. Social entrepreneurship: This encompasses the activities and processes undertaken to
discover, define, and exploit opportunities in order to enhance social wealth by creating
new ventures or managing existing organizations in an innovative manner. Example: A
company providing affordable education technology for underprivileged children.
3. Corporate social responsibility: This refers to actions that appear to further some social
good beyond the interests of the firm and that are required by law and often denote
societal engagement of organizations. Example: A large corporation reducing its carbon
footprint by switching to renewable energy sources

Relationship to Sustainable Entrepreneurship

 Sustainable entrepreneurship is the umbrella concept that incorporates ecopreneurship
(environment-focused), social entrepreneurship (social impact-driven), and CSR
(responsible business practices in existing corporations).
 While ecopreneurs and social entrepreneurs build businesses with sustainability at the
core, CSR is more about existing businesses improving their sustainability efforts.
What is triple bottom line? What are the bottom-line measures of economic, environmental
and social performance?
Ans: The Triple Bottom Line (TBL) is a business framework that measures success beyond just
financial profit. It evaluates a company's impact based on three key factors:
1. People (Social Impact) – How the business affects employees, communities, and society
(e.g., fair wages, ethical labor practices, community support).
2. Planet (Environmental Impact) – How the business minimizes environmental harm (e.g.,
reducing carbon footprint, sustainable sourcing, waste management).
3. Profit (Economic Impact) – Ensuring financial viability to sustain operations and growth
while maintaining ethical practices.
Bottom Line Measures for Economic Performance:
 Personal income
 Cost of underemployment
 Establishment sizes
 Job growth
 Employment distribution by sector
 Percentage of firms in each sector
 Revenue by sector contributing to gross state product
Bottom Line Measures for Environmental Performance:
 Hazardous chemical concentrations
 Selected priority pollutants
 Electricity consumption
 Fossil fuel consumption
 Solid waste management
 Hazardous waste management
 Change in land use/land cover
Bottom Line Measures for Social Performance:
 Unemployment rate
 Median household income
 Relative poverty
 Percentage of population with a postsecondary degree or certificate
 Average commute time
 Violent crimes per capita
 Health-adjusted life expectancy
What are Benefit Corporation and Certified B corporation? What are the key differences
between them? Explain with examples?
Ans: Both Benefit Corporations and Certified B Corporations (B Corps) focus on social and
environmental impact alongside profit, but they differ in legal status and certification.
1. Benefit Corporation (Legal Business Structure)
A Benefit Corporation is a legal business entity that commits to social and environmental
impact while generating profit.
🔹 Key Features:
 Legally required to consider the impact of decisions on employees, communities, and
the environment.
 Recognized in certain U.S. states and some other countries.
 Held accountable through self-reporting or third-party standards.
 Does not require B Corp certification but can pursue it.
🔹 Example:
✅ Patagonia, Inc. – The outdoor apparel brand is legally incorporated as a Benefit Corporation,
meaning it is legally obligated to prioritize environmental and social impact along with profit.
2. Certified B Corporation (B Corp) (Voluntary Certification by B Lab)
A Certified B Corporation (B Corp) is any for-profit business that meets high standards of social
and environmental impact as set by B Lab, an independent nonprofit.
🔹 Key Features:
 Any for-profit business (LLC, Corporation, etc.) can apply.
 Must pass the B Impact Assessment and meet strict performance standards.
 Certification must be renewed every three years.
 Does not change a company’s legal structure (but may require governance changes).
1. 🔹 Example:
✅ Ben & Jerry’s – The ice cream company is a Certified B Corp, meaning it meets B Lab’s
standards for environmental and social responsibility but is not legally structured as a
Benefit Corporation.

Differences Between Benefit Corporations and Certified B Corporations

Feature Benefit Corporation Certified B Corporation (B Corp)

A legal business structure that commits A certification given by B Lab to

Definition to social and environmental impact businesses meeting high social and
while generating profit. environmental performance standards.

A voluntary certification that any for-

Legal Recognized as a legal entity in certain
profit business (LLC, Corporation, etc.)
Recognition U.S. states and some other countries.
can apply for.

Legally required to consider the impact

Must pass B Lab’s assessment and
Accountability of decisions on society, employees,
meet rigorous impact standards.
customers, and the environment.

No external certification required;

Certification Certified by B Lab, an independent
status is granted through legal
Body nonprofit organization.
registration.

Permanent legal status (unless changed Must be renewed every three years by
Renewal
by the company). maintaining high impact scores.

Can operate as a for-profit business Can be any business entity (LLC,

Flexibility with social impact, even without B partnership, etc.) if they meet B Lab’s
Corp certification. certification criteria.

🔹 Key Takeaway: A Benefit Corporation is a legal business structure, while a B Corp is a

certification that can apply to different business types. Many companies are both.

What are the major impacts of entrepreneurship in global poverty?

Ans: Entrepreneurship plays a crucial role in reducing global poverty by creating jobs,
stimulating economic growth, and fostering innovation. Here are some of the major impacts:
1. Job Creation & Income Generation
 Entrepreneurs establish businesses that provide employment opportunities for local
communities, reducing unemployment and increasing household incomes.
 Small and medium enterprises (SMEs) contribute significantly to job creation,
particularly in developing countries.
2. Economic Growth & Development
  Entrepreneurship drives economic activity by increasing productivity, trade, and
investment.
 It promotes industrialization and technological advancements that enhance economic
resilience.
3. Empowerment of Marginalized Groups
 Entrepreneurship provides opportunities for women, youth, and low-income individuals
to become financially independent.
 Microfinance and social enterprises help empower underprivileged groups by providing
access to capital and skills training.
4. Innovation & Problem-Solving
 Entrepreneurs develop innovative solutions to social and economic challenges, such as
affordable housing, healthcare, and education.
 Technological innovations improve productivity in key industries like agriculture,
healthcare, and renewable energy.
5. Access to Goods & Services
 Businesses created by entrepreneurs bring essential goods and services (e.g., healthcare,
clean water, and financial services) to underserved communities.
 Mobile banking and fintech innovations help increase financial inclusion in remote areas.
6. Encouraging Self-Sufficiency
 Entrepreneurship reduces dependence on foreign aid by fostering local economic
ecosystems.
 Small business owners reinvest in their communities, leading to long-term poverty
reduction.
7. Strengthening Local & Global Markets
 Entrepreneurs contribute to supply chains, export industries, and foreign direct
investment, integrating local economies into the global market.
 Global entrepreneurship fosters trade partnerships and knowledge sharing, improving
overall economic conditions.
How Donald F. Kuratko views poverty? / What are the unique struggles that a poverty
entrepreneur (Lower income entrepreneur) confronts? / What is “Liability of Poorness”?
Classify the term.
Ans: Michael H. Morris, Donald F. Kuratko and two more researchers created a new term for the
unique struggles that poverty entrepreneurs face. It is labeled as liability of poorness. The
concept refers to the future potential of a new business, which is affected by challenges the
entrepreneur faces due to their background in poverty. These challenges come from personal
traits and external influences linked to their financial struggles. It is a multidimensional construct
that includes literacy gaps, scarcity mindset, intense personal pressure and lack of financial slack.

Scarcity Mindset: Intense Personal

Difficulties in Pressure: Single
planning, reactive parenthood, crime,
rather than proactive, food security, health
avoiding long term problems, inadequate
commitments housing

Lack of Financial Slack

Literacy Gaps:
(Safety Net): No
Functional, financial,
savings, lack of
technological,
retained earnings,
economic and
business literacy Liability under insured, few or
no benefits.
of
Poorness

What is Diaspora Network?

Ans: Diaspora networks are relationships among ethnic groups that share cultural and social
norms. It refers to a global community of people who have migrated from their home country
but maintain strong connections with it. These networks often support economic, social, and
business activities by sharing knowledge, resources, and opportunities. Through the Internet
and social media sites (Face book, LinkedIn, Twitter) diasporas are linking together stronger than
ever, offering potential linkages for global entrepreneurs.
Example:
The Indian diaspora is one of the largest in the world. Indian professionals living in the U.S. and
U.K. have helped boost India's tech industry by investing in startups, outsourcing work, and
mentoring entrepreneurs back home.
What are the methods to build international market for an entrepreneur?
Ans: The entrepreneur can actively engage in the international market in a number of ways,
including importing, exporting, international alliances and joint ventures, direct foreign
investment, and licensing.
Importing:
An entrepreneur becomes aware of import opportunities by attending trade shows and fairs
where firms gather to display their products and services. Another way is to monitor trade
publications.
Exporting:
Exporting is important for entrepreneurs because it often means increased market potential.
Exporting normally takes three to five years to become profitable. It will take time to learn the
intricacies and efficiencies of international business.
International Alliances:
In general, informal alliances are agreements between companies from two or more countries,
and they are not legally binding. The formal alliance usually requires a formal contract with
specifics about what each company must contribute.
Joint Ventures:
The joint venture is the more traditional self-standing legal entity. A joint venture implies the
sharing of assets, profits, risks, and venture owner ship with more than one firm. One of the
peek advantages of joint venture is to gain an intimate knowledge of the local conditions and
government where the facility is located.
Direct Foreign Investment:
A direct foreign investment typically involves ownership of 10 to 25 percent of the voting stock
in a foreign enterprise. Direct investment can be an exciting venture for entrepreneurial firms
making efforts to increase their sales and their competitive positions in the marketplace.
Licensing:
Licensing is a business arrangement in which the manufacturer of a product grants permission
to some other group or individual to manufacture that product in return for specified royalties
or other payments. Foreign licensing covers myriad contractual arrangements in which the
business provides patents, trademarks, manufacturing expertise, or technical services to a
foreign business.

Some more questions (seemed less important):

 Outline the key steps for entrepreneurs seeking global markets? (124)
 What are the threats and risks of building global market as an entrepreneur? (125)
 How international alliances and joint ventures can ease the path of actively engaging in
the international market? (Detailed in 122)
 Summarize the newest developments that have expanded the global marketplace? (119,
4-6a)
 Discuss the key initiative connected to environmental movement recommended by
Hawken and McDonough? (115-bottom)