Social

Entrepreneurship

Contribution By:
Kartikeya Raina
Trainer-GEU
CURRENT SCENARIO OF ENTREPRENEURSHIP IN
INDIA
 Social
Entrepreneurship
Social entrepreneurship is the activity of establishing new business
ventures to achieve social change. The business utilises creativity
and innovation to bring social, financial, service, educational or
other community benefits

Social enterprises are not charities or welfare agencies. They are

private businesses established by entrepreneurs with an emphasis
on human values rather than just profit. These businesses focus on
working with and enhancing the social capital within the
community by encouraging participation, inclusion and utilising a
bottom-up approach to achieve social change
 Elements of Social
Enterprise
Three core elements:
Created to provide benefits for a community
Creates opportunities so people can help themselves
as well as others
Utilises sound commercial business practices to
ensure its sustainability i.e. the business will
naturally uphold and encourage environmental
sustainability as well as ethical considerations
 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
Example: Ben and Jerrys Ice-cream
 Difference
The only big difference between
commercial and social entrepreneurship:

Denomination of the returns

Social and commercial entrepreneurship

have most of the same characteristics
 What Is a Nonprofit?
Tax & regulatory definition: An organization that
Enjoys special tax status
Faces a non-distribution constraint (profit=0)

Functional definition: An organization that forms

to perform public tasks.
environmental protection, social service
provision
religious activity, art museum
influence the direction of public policy
The Process of Social
Entrepreneurship
1. Find an opportunity.
2. Develop a business concept.
3. Figure out what success means and how
to measure it.
4. Acquire the right resources
5. Launch and grow.
6. Attain goals.
 Forces on Social
Entrepreneurship
External forces
Environmental factors Perturbation of the environment
Social climate conducive to social
entrepreneurship
Availability of financial and Political change
nonfinancial resources Cultural change
Political climate that facilitates
Economic change
social innovation

Social entrepreneurship
process begins

Entrepreneurial Preparation to exploit

personality traits opportunities
Education
Experience

Internal forces
 Social Entrepreneurs Look
Like Any Other Kind of
Entrepreneur
Innate characteristics

Education and experience

Innovativeness

Entrepreneurial
Achievement orientation
orientation
Socially-entrepreneurial
Independence
orientation

Sense of control over destiny Community awareness

And social concern

Low risk aversion

Tolerance for ambiguity

 Myths about Social
Entrepreneurship
Social entrepreneurs are anti-business
The difference between commercial and
social entrepreneurship is greed
Social entrepreneurs are nonprofit managers
Social entrepreneurs are born, not made
Social entrepreneurs are misfits
Social enterprises usually fail
Social entrepreneurs love risk
 Main Challenges at
Present
Money
Competition
Demonstrating effectiveness
Technology
Trust
Human resources
Public-sector relations
 Where do you find
social enterprises?
Social entrepreneurs find opportunity in most economic sectors.
The growth areas for social enterprises are identified as:
Environmental
Housing
Health and care
Information services
Public services
Financial services
Training and business development
Manufacturing
Food and agriculture
 Evolving Models:
Poor as Consumers
Group as customer
Byrrajus Water Project

Pay as you use offerings

e.g., SELCO

Skill enhancement
e.g., Mann Deshi Business School

Asset creation and ownership

e.g., Rickshaw Bank

Market linkages
e.g., Sammridhi
Byrrajus Water
Project
Market linkages
Sammridhi
Asset creation and
ownership

Rickshaw Bank
Pay as you use
offerings
Mann Deshi Business
School
Skill enhancement
Bill Drayton
 Best quote:

Social entrepreneurs are

not content just to give a
fish or teach how to fish.
They will not rest until they
have revolutionized the
fishing industry.
 Favorite quote:
Poverty is the worst form of
violence.
Verghese Kurien
 Favorite quote:
Indias place in the sun would
come from the partnership
between wisdom of its rural
people and skill of its
professionals