Social

Entrepreneurship
Haitao YU
 About me…

Personal Education Professional

A member of an indigenous ethnic group

on the Tibetan Plateau in West China

Twitter: @YuHaitao10
Prof. Muhammad Yunus Grameen Danone Foods
Microcredit System Ending Children Malnutrition
in Bangladesh
Mainstream
business world
is paying attention
to Social
Entrepreneurship
As well as
business schools
and students
around the world
Doing research
while watching
SEs pitching
 What is a Social Enterprise?

How is it distinctive?
Discussion
Social Enterprises
European Commission’s Definition:
 Social enterprises are positioned between the traditional private and public sectors.
 Although there is no universally accepted definition of a social enterprise, their key distinguishing
characteristics are the social and societal purpose combined with an entrepreneurial spirit of the
private sector.
 Social enterprises devote their activities and reinvest their surpluses to achieving a wider social or
community objective either in their members' or a wider interest.

 The role of entrepreneurs is to revolutionize the economic structure by bringing new paradigms.
(Schumpeter (1984)’s Creative Destruction)
 The role of social entrepreneurs is not different. They often have an innovative nature (social
entrepreneurship), through the goods or services they offer, and through the organization or
production methods they resort to. They have been starting to transform realities in the whole world.
Social Enterprises/Businesses

 Adam Smith (1776): the primary objective of businesses is to create and maximize wealth.
 Social Enterprises/Businesses

 Goals: they have a clear social purpose and make decisions based on the maximization of social
impact.

 Business models: they adopt profitable business strategies to create social impact.
(competitiveness, efficiency, time-to-market, …)

 Profit sharing: they devote their activities and reinvest their surpluses to achieving a wider social or
community objective.
Discussion Why do we need Social Entrepreneurship?
 Power without love is reckless and
abusive, and love without power is
sentimental and anemic.
The Moral
Argument
― Martin Luther King Jr.
The System
Argument

Source: The World Economic Forum, 2022

Sustainable Development
Some Major Disruptions Today
Entrepreneurship and Innovation in Our Time
PhD Research:
Norlha Textiles
 Data Source
• 74 days in the field, 63 days
in the focal organization and
its village
• 1 village and 2 towns in
northeast part of the
plateau
• 50 recorded interviews, 32
unrecorded interviews or
long informal discussions
The Tibetan Plateau

• Tough physical
conditions.

• Unique and isolated

culture.
Rapid Development Relocation Cash economy
& consumerism

Information
& technology
Climate change
 1 2 3
2004 2005-2006 2007

Establishing
Norlha
Norlha
Norlha’s
Impact:
Preserve the
Tradition
Norlha’s
Impact:
Embrace
Modernity
“Most of the normal nomads clustered in our shop and spend money only during the winter
Cash economy
when they have the cash, however, Norlha employees come in a more regular pattern all year
round.”
- A local shop owner
“I have more confidence in lending money to Norlha employees because their incomes are
more predicable.”
-A Local nomad
 Fall Winter Spring

Nomadic
life time

Norlha’s Social
Impact: Cash
Management Nomadic
life in a
$ $ 0 Risks!

time
cash
economy

Stable salary and spending

$$ $$ $$ $$ $$ $$ $$
Norlha life time
 “I came here to create something that is stable, has a
long life and lays the foundation for the future. We
Who is have always been trying to create something that can
Dechen? Why eventually run by the local people based on the
materials that are locally available. One thing struck
Dechen? me was that when I first walked through the village in
2004, I took some pictures of the kids, just playing in
Some the village. One day in 2010, I was looking at the
pictures and found that three of the kids were already
implications? employees at Norlha. It was quite striking to me. I
realized what we are already building the future.”
---Dechen
Break
The Entrepreneur is
Rooted in their Place
What is Place?

Space Place
• Physically • Sense it through experience
• Abstract • Endowed meanings, values
• Can be represented just in number • Emotionally attached

Reference: Relph, (1976), Tuan(1974, 1979)

The Place

everyone cares:

HOME
Sense of Place

• Physical environment • Social relations based

based (Tuan, 1974) Massey (1991)
  Human Capital
 Suggests “knowledge provides individuals with increases in their
cognitive abilities, leading to more productive and efficient potential
activity”
Human Capital  Tactic: “know-how, the often noncodified components of activity”
 Explicit: “Know-what consists of the explicit type of information
and (e.g. education)”
Social Capital
 Social Capital
 “the ability of actors to extract benefits from their social structures,
networks and memberships”

Reference: Davidsson, & Honig, (2003). 

  Sense of place (based on environment and social relations) can be
regarded as a tactic human capital (e.g. know-how of terroir)
 Sense of place (based on social relations) can be regarded as a
social capital (e.g. network, reputation)

Sense of Place as
Human and
Social Capital
Why Sense of
Place is Important
in Social  More likely to generate compassion on
Entrepreneurship the place where you make sense
 Care
 Empathic on the needs
 Emotional commitment

Reference: Grimes, McMullen, Vogus, Miller, (2013)

 Identify the social / Discover
environmental needs Opportunity

Sense of Place Assign values

and Social Sense of Place
Emotionally attached
Decide to Entry

Entrepreneurship (investment)
Outcomes
Emotionally attached
(persistence)

Social bond Successful

(resources) Outcome
They know better
Reference: Shane, & Venkataraman, (2000)  how to play
Davidsson, & Honig, (2003). 
Back to Norlha
Scaling Norlha: Discussion (15
minutes)
The invitation from the Choni County

Should Dechen collaborate? Why?

How to proceed the collaboration if Dechen decides to collaborate?

What would be the strategies that Norlha can scale up its impact?
Scaling up vs. Scaling deep

Kim and Kim, 2021, Going Viral or Growing Like an Oak Tree? Towards Sustainable Local Development
through Entrepreneurship, Academy of Management Journal
Break
Some Examples
beyond Norlha
Some Examples
Affordable, Low-carbon,
reducing deforestation problem
Major Challenges
 Capability building
 Scaling up
 Impact measurement
 Governance and transparency: social Impact or social washing?

Social Impact Strategy

 Economic and social development for local communities
 Preservation for traditional culture and know-how
 Empowerment for local people
How to Finance and Support Social Enterprises?
Direct Investment
Investment Return

Technical
Capital Providers
Active
Assistance Investment Targets
• High Net Worth Individuals Accelerator (Impact Enterprises)
• Family Offices
• Development Finance -Social enterprises
Institutions - Traditional businesses
• Foundations with social mission

Investment Impact Investment

Investment
Net Return Gross Return
Fund
A Call for Action: Thought For Food

Thought For Food (TFF), an

international platform dedicated to
fixing our food system through bold,
breakthrough agriculture solutions,
and promote sustainable agriculture.
TFF 2022 https://vimeo.com/694725917?
embedded=true&source=vimeo_logo&owner=10968624
 Funds Social Enterprises

Individuals Food
TFF Academy

Foundations
Agriculture
Community

Corporations
Technology
Cash grant
Innovative ideas
Teams are from these schools...
TFF Success Stories | TFF 2020 Challenge Finale from Thought For Food on Vim
eo
https://player.vimeo.com/video/469788755?h=a30124a957
Some Examples
An alternative, nutrient-dense
replacement of traditional
cooking oil, made from edible
insects.
Some Examples
Convert ugly, unsellable, and
almost expiring food into an
innovative food powder
Some Resources
https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/examples
https://eom.org/knowledge-hub
Why we care about the planet?
Because it is the PLACE that we
call
 Feedback

https://forms.gle/uhdj5qJGomXQrfaA9

Twitter: @YuHaitao10