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Social Entrepreneurship

Definition Matrix
Prepared by S. Dev Appanah & Brooke Estin

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

J. Gregory Dees, Professor of Social Entrepreneurship at Duke University x x x x Not-for-profit

1) Social entrepreneurs are reformers and revolutionaries, as described by Attack Education Social purpose Create social/ Social purpose
Schumpeter, but with a social mission. They make fundamental changes in the underlying business environmental business
way things are done in the social sector. Their visions are bold. They attack the causes Health-care value
underlying causes of problems, rather than simply treating symptoms. They Community Hybrid
often reduce needs rather than just meeting them. They seek to create systemic Economic development Local action w/ organisations
changes and sustainable improvements. Though they may act locally, their development banks potential for
actions have the potential to stimulate global improvements in their chosen global
arenas, whether that is education, health care, economic development, the Environment Hybrid improvement
environment, the arts, or any other social field. Organisations
Arts Large scale
2) In addition to innovative not-for-profit ventures, social entrepreneurship can Shelters
include social purpose business ventures, such as for-profit community starting Systemic
development banks, and hybrid organizations mixing not-for-profit and for-profit businesses change
elements, such as homeless shelters that start businesses to train and employ
their residents. The new language helps to broaden the playing field. Social Sustainable
entrepreneurs look for the most effective methods of serving their social improvements
missions.

Sources
“The Meaning of “Social Entrepreneurship”
J. Gregory Dees
Original Draft: October 31, 1998
Reformatted and revised: May 30, 2001
Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational
Mission model structure

Bill Drayton, CEO and Chair of Ashoka x x x


1) “A leading social entrepreneur sees a new opportunity, figures it out and then
starts introducing it at the local level.” Innovative Societyʼs most Wide/ large
solutions pressing social scale
2) Social entrepreneurs are individuals with innovative solutions to societyʼs most problems change
pressing social problems. They are ambitious and persistent, tackling major social Seizing new
issues and offering new ideas for wide-scale change. Social entrepreneurs find opportunities Changing
what is not working and solve the problem by changing the system, spreading the the system
solution, and persuading entire societies to take new leaps. Social entrepreneurs
act as the change agents for society, seizing opportunities others miss and Spreading
improving systems, inventing new approaches, and creating solutions to change the solution
society for the better. While a business entrepreneur might create entirely new
industries, a social entrepreneur comes up with new solutions to social problems
and then implements them on a large scale.

SOURCE:
1) http://www.ashoka.org/social_entrepreneur
2) Ashoka: Innovators for the Public, Youtube, http://www.youtube.com/watch?v=teBdIMhTOT4

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Professor Muhammad Yunus, Founder of Grameen Bank x x x x For-profit


1) Social entrepreneurship is a very broad idea. As it is generally defined, any
innovative initiative to help people may be describes as social entrepreneurship. Any Serving Social business; Long-term Not-for-profit
The initiative may be economic or non-economic, for-profit or not-for-profit. innovative people, planet; non-loss, non- social goals
initiative disadvantaged dividend
2) Social business is a subset of social entrepreneurship. All those who design and groups business
run social businesses are social entrepreneurs. But not all social entrepreneurs
are engaged in social businesses. Surplus
reinvested for
3) A social business can be defined as a non-loss, non-dividend business. Rather long-term social
than being passed on to investors, the surplus generated by the social business is goals
reinvested in the business in order to support the pursuit of long-term social goals.
The bottom line of a social business is to operate without incurring losses while
serving the people and the planet- and in particular those among us who are most
disadvantaged- in the best possible manner.

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SOURCE:

Creating a World Without Poverty: Social Business and the Future of Capitalism. Muhammad Yunus. Pg. 24 & 32

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Social Enterprise Alliance USA x x Non-profit


1) A social enterprise is an organization or venture that advances its social mission
through entrepreneurial, earned income strategies. Social mission Earned income For-profit
strategies
2) Social enterprise describes any non-profit, for-profit or hybrid corporate form that Hybrid corporate
utilizes market-based strategies to advance a social mission. Market-based form
strategies to
advance social Earned income
mission strategies

SOURCE: http://www.se-alliance.org/about_vision.cfm

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Social Enterprise Coalition UK x x x Not-for-profit


1) Social enterprises are businesses set up to tackle a social or environmental need.
Social and Business to Greater Social purpose
2) Many commercial businesses would consider themselves to have social environmental tackle social/ equity of business
objectives, but social enterprises are distinctive because their social or need environmental economic
environmental purpose is central to what they do. Rather than maximizing need power and a Hybrid
shareholder value their main aim is to generate profit to further their social and Social or more organisations
environmental goals. Social enterprise is a business model which offers the environmental Generate profit sustainable
prospect of a greater equity of economic power and a more sustainable society - objectives are to further social/ society
by combining market efficiency with social and environmental justice. central to the environmental
organisation goals

SOURCE: http://www.socialenterprise.org.uk/

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Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational
Mission model structure

Jed Emerson, Stanford Graduate School of Business x x Non-profit


1) By “social enterprise” we mean the application of business models and acumen to
address social issues, whether through non-profit or for-profit corporate structures. Social issues Business For-profit
models and corporate
acumen to
address social
issues

SOURCE:
“Nothing Ventured, Nothing Gained: Addressing Critical Gaps In Risk-Taking Capital For Social Enterprise”
Working Paper By Jed Emerson, Tim Freundlich And Jim Fruchterman With Loren Berlin And Keely Stevenson

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

New Profit Inc x x x Not-for-profit


1) Social entrepreneurs are visionaries who generate innovations with the potential to
transform a problem or field; possess exceptional abilities to rally the human and Transformational Infusion of High-quality Social purpose
financial resources to transform their vision into a reality; and deliver high-quality innovation financial and social impact business
social impact. strategic
Social innovations resources to Hybrid
2) Social entrepreneurs have powerfully demonstrated their models, and with an scale social organisations
infusion of financial and strategic resources can take their social innovations to innovations
scale.

SOURCE: http://www.newprofit.com/about_model.asp

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Schwab Foundation for Social Entrepreneurs X x


1) A social enterprise is an organization that achieves large scale, systemic and
sustainable social change through a new invention, a different approach, a more New Large scale,
rigorous application of known technologies or strategies, or a combination of invention systemic and
these. sustainable
Different social
2) Social entrepreneurs are leaders, change driven, passionate, innovative, risk- Approach change
takers, believers in people, high standards.
Rigorous
application of
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known
3) A social entrepreneur combines the characteristics represented by Richard technologies/
Branson and Mother Teresa. strategies

SOURCE: http://www.schwabfound.org/whatis.htm

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisation


Mission model al structure

Skoll Foundation x x x x Not-for-profit


1) The social entrepreneur aims for value in the form of transformational change that
will benefit disadvantaged communities and ultimately society at large. Inventing Disadvantaged Sustainable Transformational Social purpose
new communities solutions change for profit
2) Just as entrepreneurs change the face of business, social entrepreneurs act as approaches and society at business
the change agents for society, seizing opportunities others miss by improving large
systems, inventing new approaches and creating sustainable solutions to change Hybrid
society for the better. organisations

SOURCE:
1) http://www.skollfoundation.org/aboutsocialentrepreneurship/whatis.asp
2) http://www.ssireview.org/articles/entry/social_entrepreneurship_the_case_for_definition/

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

The Small Enterprise Education and Promotion (SEEP) Network X x x x Non-profit


1) A social enterprise is a nonprofit organization or socially oriented venture that
advances its social mission through entrepreneurial market-based approaches to New Socially Market-based improvement Socially oriented
increase its effectiveness and financial sustainability with the ultimate goal of invention oriented approaches
creating social impact or change. Economic
Different Poverty Financial Improvement
2) Social enterprise is about linking financial and moral incentives in business and Approach alleviation sustainability
the marketplace. Social enterprise has synergies with existing poverty alleviation Quantitative
approaches—value chain development, market development, and microfinance— Value chain Linking financial and
and can augment and add value to current initiatives as well as provide new tools. development and moral Qualitative
incentives in measure
Market business and
development the marketplace Policy
Change
Microfinance

SOURCE:
1) http://www.seepnetwork.org/
2) http://communities.seepnetwork.org/edexchange/node/89
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Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational
Mission model structure

The Roberts Foundation Homeless Economic Development Fund x x


1) A revenue generating venture founded to create economic opportunities for very
low income individuals, while simultaneously operating with reference to the Create Revenue
financial bottom-line. economic generating
opportunities venture

Financial
bottom-line

SOURCE: http://www.redf.org/

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Nonprofit Enterprise and Self-sustainability Team (NESsT) x x x Non-profit


1) The term social enterprise to refers to "the myriad of entrepreneurial or 'self-
financing' methods used by nonprofit organizations to generate some of their own Entrepreneur Critical social Self-financing
income in support of their social mission. ial problem methods

2) The term social entrepreneur is currently used to mean very different, albeit Social Generate own
interesting things. Some use the term social entrepreneur to refer to “social innovator income to
innovator” (i.e. an individual that is addressing a critical social problem in a support social
particularly effective or innovative way). Others, including NESsT, use the term mission
social entrepreneur (or social enterprise) to refer to a CSO (civil society
organization) that uses entrepreneurial, business activities as a means to generate Non-profit
income and/or otherwise further its mission impact (e.g., to create employment enterprise
opportunities for underserved constitutes). A social enterprise is also referred to
as a “nonprofit enterprise,” “social-purpose business,” or “revenue generating Social purpose
venture” that operates with a “double bottom line” of generating financial return business
while simultaneously advancing a social mission.
Revenue
generating
venture

Double Bottom
Line

Financial return
w/ social
mission

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SOURCE: http://www.nesst.org/

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

The Non-profit Good Practice Guide x x Non-profit


1) A non-profit venture that combines the passion of a social mission with the
discipline, innovation and determination commonly associated with for-profit
businesses.

SOURCE: http://www.npgoodpractice.org/

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Virtue Ventures x x x x Not-for-profit


1) A social enterprise is any business venture created for a social purpose--
mitigating/reducing a social problem or a market failure--and to generate social Mitigating/ Business Social value Social purpose
value while operating with the financial discipline, innovation and determination of reducing a venture for profit
a private sector business. social problem business
or market Financial
failure discipline Hybrid
organisations

SOURCE: http://www.virtueventures.com/

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Third Sector Enterprises x x x


1) Social enterprise is not defined by its legal status but by its nature: its social aims
and outcomes, the basis on which its social mission is embedded in it's structure Social aims Profits through Social
and governance, and the way it uses the profits it generates through its trading trading activities outcomes
activities.

SOURCE: http://www.3se.co.uk/index.php/Section1/page6.html

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Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational
Mission model structure

Social Enterprise Ambassadors x x

1) Social enterprises are profit-making businesses set up to tackle a social or Social or Profit-making
environmental need. Many commercial businesses would consider themselves to environmental businesses
have social objectives, but social enterprises are distinctive because their social or need
environmental purpose is central to what they do. Rather than maximizing Generate profit
shareholder value, their main aim is to generate profit to further their social and Social or to further social
environmental goals. environmental and
purpose is environmental
2) By combining a public service ethos with a commercial focus on efficiency and central to goals
good business practice, social enterprises are able to deliver on the things that activities
really matter, whilst remaining both independent and sustainable. Commercial
Public service focus
ethos
Independent
and sustainable

SOURCE: http://socialenterpriseambassadors.org/content/view/183/76/

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Social Ventures Australia x x Non-profit


1) At SVA, we define a social enterprise as a non-profit business whose purpose is to business
create employment for marginalized people. Marginalized people include people Employment Non-profit
with disability, people with mental illness, refugees, indigenous Australians and for business
other long-term unemployed people. marginalised
people

SOURCE: http://www.socialventures.com.au/content/Dictionary_of_Terms

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Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational
Mission model structure

University of Wisconsin- Madison X x x


1) Social Entrepreneurship is the application of innovative ideas to solve social
problems. A social entrepreneur is someone who recognizes a social problem and Innovative Solve social Create
uses entrepreneurial principles to organize, create, and manage a venture to ideas problem change
create change.

SOURCE: http://www.lssaa.wisc.edu/kecip/socentdef.html

Definitions by Organisations/ Individuals Innovation Social Business Impact Organisational


Mission model structure

Enterprising Non-Profits x x x Non-profit


1) Social enterprises are businesses operated by non-profits, with the dual purpose
of generating income by selling a product or service in the marketplace and Selling product Create Societies
creating a social, environmental or cultural value. or service social/
environment Charities
2) The term "social enterprise" to refer to business ventures operated by non-profits, al value
whether they are societies, charities, or co-operatives. Co-operatives

SOURCE: http://www.enterprisingnonprofits.ca/

The following is the number of times each element is highlighted in each definition:
• Innovation – 11 times
• Social Mission – 17 times
• Business model – 15 times
• Impact – 12 times

In summary, the central elements of social entrepreneurship/ enterprises include:


• Advancing a social mission
• Applying innovative processes/ technologies
• Having measurable and scalable impact
• Integrating financial sustainability

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