SOCIAL

ENTREPRENEURSHIP
Bulacan State University
 ENVIRONMENTAL AWARENESS
• Eco vision
• A leadership style that encourages open and
flexible structures that encompass the employees,
the organization, and the environment, with
attention to evolving social demands.

Eco vision is a leadership style that aims to

stimulate simultaneous transformations
within the organization and in the
environment.
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 ENVIRONMENTAL AWARENESS
• Key Steps in an Environmental Strategy
1. Eliminate the concept of waste.
2. Restore accountability.
3. Make prices reflect costs.
4. Promote diversity.
5. Make conservation profitable.
6. Insist on accountability of nations.
Environmental awareness is having an understanding of the
environment, the impacts of human behaviors on it, and the
importance of its protection.

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 SHARED VALUE AND THE TRIPLE BOTTOM LINE

• Shared Value
• An approach to creating economic value that also creates value for society by
addressing its needs and challenges—company success begets social progress
when overcoming societal problems reduces costs for firms, increases
productivity, and opens new markets.
• Triple Bottom Line (TBL)
• An accounting framework that combines consideration of traditional economic
measures with environmental and social dimensions to measure the firm’s
performance in achieving its sustainability goals.

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 TRIPLE BOTTOM LINE MEASURES

Economic Environmental Social

Performance Performance Performance

• Personal income • Hazardous chemical • Unemployment rate

• Cost of underemployment concentrations • Median household income
• Establishment sizes • Selected priority • Relative poverty
pollutants
• Job growth • Percentage of population
• Electricity
• Employment distribution by with a post-secondary
consumption degree or certificate
sector
• Fossil fuel • Average commute time
• Percentage of firms in consumption
each sector • Violent crimes per capita
• Solid waste
• Revenue by sector • Health-adjusted life
management
contributing to gross state expectancy
• Hazardous waste
product.
management
• Change in land use/land
cover

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 HISTOR
Y
• Social Entrepreneurship is relatively a new term. It came in to
notice just a few decades ago. But its usage can be found
throughout the history.
• In fact, there were several entrepreneurs who established social
entrepreneurs to eliminate social problems or bring positive change
in the society. Vinoba Bhave, the founder of India’s Land Gift
Movement, Robert Owen, the founder of cooperative movement
and Florence Nightingale, founder of first nursing school and
developer of modern nursing practices might be included in this
category.
• They had established such foundations and organizations in 19th
century that is much before the concept of social entrepreneurship
used in management.

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 FOCUS AREAS OF SOCIAL ENTREPRENEURSHIP

• Enhance a person‘s ability to improve her or his economic well-being and

personal dignity through opportunity.
• Harness aid to be more accountable, transparent and solutions-oriented,
for lasting development.
• Enable access to and ensure use of reliable, affordable and appropriate
healthcare in disadvantaged populations.
• Address issues of sustainable productivity not beneficiary by beneficiary,
but system wide.
• Lay the foundation for peace and human security.
• Harness the capital and consumer markets that drive change by considering
all costs and opportunities.
• Transform the way water is managed and provided, long-term, for both
people and agriculture

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 ROLE AND IMPORTANCE OF SOCIAL ENTREPRENEURSHIP

• Employment Development The first major economic value that social entrepreneurship
creates is the job and employment Estimates ranges from one to seven percent of people
employed in the social entrepreneurship sector.
• Innovation / New Goods and Services Social entrepreneurs develop and apply innovation
important to social and economic development and develop new goods and services. Issues
addressed include some of the biggest societal problems such as HIV, mental ill-health,
illiteracy, crime and drug abuse which, importantly are confronted in innovative ways.
• Equity Promotion social entrepreneurship fosters a more equitable society by addressing social
issues and trying to achieve ongoing sustainable impact through their social mission rather
than purely profit-maximization. Another case is the American social entrepreneur J.B.
Schramm who has helped thousands of low-income high-school students to get into tertiary
education.

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 ROLE OF TECHNOLOGY
• The Internet, social networking websites and social media
have been pivotal resources for the success and
collaboration of many social entrepreneurs.
• Using wiki models or crowdsourcing approaches, for example,
a social entrepreneur organization can get hundreds of
people from across a country (or from multiple countries)
to collaborate on joint online projects
• Having IT (Information Technology) enabled kiosks in rural
areas in wherein those people and the teenagers and the
youth in particular can pick up valuable IT skills which
would enhance their employability in future.

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 PROBLEMS FACING BY SOCIAL
ENTREPRENEUR

Strategy and Remaining

Funding Long-Term True to
Focus the
Mission
Lack of
Lack of skilled Social and Governmen
man force Cultural Effect t support

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 SOME FAMOUS SOCIAL ENTREPRENEURS
Bill Drayton
Drayton is recognized as one of the
pioneering social entrepreneurs of our time.
Drayton founded “Ashoka: Innovators for the
Public” in 1980, which takes a multi-faceted
approach to finding and supporting social
entrepreneurs globally

Muhammad Yunus
founded Grameen Bank 1983. In 2006, Yunus was
awarded the Nobel Prize for creating the Grameen
Bank to empower villagers with the funding to pull
themselves out of poverty.

Sanjit “Bunker” Roy

He had a privileged upbringing in India, in contrast to many
Indians who live off of less than US $1 a day. He
founded Barefoot College in 1972, a solar-powered college
for the poor.

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 GOVERANCE OF SOCIAL ENTEREPRENEURSHIP

What is governance? Why is it important in social

entrepreneurship?
Governance is formally defined as “systems and processes that ensure the overall
direction, effectiveness, supervision and accountability of an organization”.
Governance mechanisms can include governing boards, monitoring systems and
signaling mechanisms like reporting or codes of conduct.
Social entrepreneurs address the most pressing problems societies face through
employing scalable, self-sustainable and innovative business models. They must balance
financial responsibilities and social impact and must coordinate among multiple
stakeholder groups, including investors, employees, regulators, clients and beneficiaries.
As a result, social entrepreneurs leaders manage complex trade-offs.

A carefully selected, well-designed and well-managed board will help the social
entrepreneurs to reach its goals.

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 Governance

Governance refers to the set of systems,

principles and processes by which a social
enterprise is governed.
They provide the guidelines as to how the
enterprise can be directed or controlled
such that it can fulfill its goals and
objectives.
 Why governance is important in
social entrepreneurship?

Governance of a social enterprise, if

incorporated well, helps safeguard the mission
of the enterprise while allowing the
management team to meet the demands of
such various stakeholders as investors,
employees, clients and beneficiaries, as well as
comply with public policies and regulations.
 WHY CREATE A BOARD?

For social entrepreneurs, governance is key to both overseeing compliance with policies and
regulations and to safeguarding the organizational mission while meeting the demands of
various stakeholders.
Boards can help management teams reach their goals and mission in several
ways:
• Provide strategic support and expertise: Organizations can compensate for a lack of in-house
competencies or expertise through board members.
• Provide access to networks: Board members open doors to valuable external networks (e.g.
fundraising , advocacy and the recruitment of high talent)
• Ensure the vision and legacy: Boards include and empower carefully selected
individuals to guide the enterprise. This ensures the organization’s vision succeeds
beyond the efforts of the founder or management team.
• Signal credibility to external stakeholders: Investors, contractors and customers may trust
the organization more if it has well-regarded board.

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 HOW SHOULD BOARDS
EVOLVE ?

No single governance structure fits all social entrepreneurs oreven fits the same
enterprise over time. Rather, governing boards should be tailored to the organization
and be dynamic to the changing needs of the organization over its lifespan. social
entrepreneurs should evaluate and modify their governance structures regularly and
in particular during the following:
• The enterprise reaches the next life cycle stage
• The legal structure of the enterprise changes
• The financial structure of the enterprise changes, most commonly
related to the shareholder base
• The external environment changes (e.g. new government regulations)

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 HOW DO I RECRUIT THE RIGHT BOARD MEMBERS?

Many early-stage social entrepreneurs build boards out of their network of family
and friends. While this may reduce the initial effort, it can be a disadvantage at
later stages if board members do not possess the relevant skills, representation,
network and reputation to provide strategic guidance and oversight.
To search for capable board members, social entrepreneurs can:
–Solicit recommendations from investors, foundations and other social
entrepreneurs
– Search through intermediary platforms
–Research, identify and reach out to people with expertise in or passion for
the cause
–Attend networking events and ask intermediaries for support in making

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 CONTD…

Relevant questions to ask potential board members

before selecting them include:
• What is your understanding of the mission and
vision?
• How would you measure the success?
(expectations of social, financial return)
• Where do you see the enterprise and the sector within the
next 5-10 years?
• How much time can you devote to attending board
meetings?
• Which skills or other benefits (like networks) can you
provide to our enterprise?
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 WHAT ARE THE RIGHTS AND DUTIES OF MY BOARD MEMBERS?

The focus of management should be on execution, while the focus of the governance body should
be on providing guidance and oversight. Boards should not get involved in day-to-day operations
but should oversee the results of these operations.
Boards serve two primary responsibilities: support and oversight. While many view these as mutually
exclusive, they are complementary in a high- performing
Support
Support refers to four areas. First, boards constitute sparring partners that provide strategic guidance
and challenge management. This also includes helping to develop innovative and effective business
models. Second, board members provide access to their networks, which can help raise awareness of
the social entrepreneurs as well as foster fundraising and business development. Third, boards serve as
ambassadors for the mission of a social entrepreneurs and thus provide advocacy and legitimization.
The fourth area includes aspects of oversight: ensuring cash flows to increase the sustainability of the
business.

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 CONTD
…
Oversight
Oversight primarily refers to safe guarding the mission of a social
entrepreneurship. Boards monitor the performance of manage men against
benchmarks that reflect the double bottom line.
Thus, monitoring concerns social as well as financial performance. While
financial indicators are easy to measure and compare, social performance is
often hard to seize. To avoid an inordinate focus on financial performance, social
entrepreneurs should pay attention to defining performance indicators for the
social mission. Furthermore, boards should emphasize the need for external
audits as well as accountability measures to increase transparency towards
external stakeholders

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 APPROVAL OF MANAGEMENT DECISIONS

A task amid support and oversight is the approval of certain management decisions.
Board approval should serve to guarantee conformity with the overall mission.
Furthermore, board approval constitutes a form of legitimization to communicate
certain decisions in front of the team.
Topics that require board approval include the following:
• Decisions related to the annual budget.
• Decisions on financing.
• Changes in ownership structure
• Remuneration of the chief executive and Succession of
the chief executive and the management team.
• Decisions about overall strategy.

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 HOW TO EVALUATE THE WORK OF A BOARD?

Given that board members desire their contributions to be

meaningful, social entrepreneurs should communicate regularly
with them about what is working well and what is not.
• A review at the end of each meeting: It is good practice to review a
meeting at the end, ask everyone for comments, what went well and
what went wrong.
• Informal conversations between meetings: The board members should
communicate with each other about any outstanding issues or conflicts
that are preventing effectiveness affecting the culture of the board.
• Boards should evaluate their effectiveness and identify development
potentials.

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 BUILDING A
SOCIAL
ENTERPRISE
a new business model that combine capitalism
and do-gooder mentality

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 OUTLINE

• Defining your mission

– Dimensions of social entrepreneurship
– Mission as the entrepreneur’s most useful tool
– How to define your organization’s mission
– Planning and leading through mission

• Recognizing and assessing opportunities

– Opportunity recognition
– Assessing opportunities

Sources:
1. Dees. J.G., Emerson, J. and Economy, P. (2001). Enterprising Nonprofits: A Toolkit for Social Entrepreneurs. New
York: John Willey and Sons. Chapters 1, 2, 3.
2. Praszkier, R. and Nowak, A. (2013). Social Entrepreneurship: Theory and Practice. New York: Cambridge University 36
Press. Chapter 2.
Social, Environmental, Economic SSI (Self and Social Identification)
Responsibility, and Sustainability
(SEERS)
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 Social Entrepreneurship:
a new business model that combine
capitalism and do-gooder mentality

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 CAPITALISM
Refers to an economic system
where private businesses can have
ownership of capital goods. As per
capitalism meaning, individuals can
privately own means of production.
 DO GOODER
Someone who does things
that they think will help
other people, although the
other people might not find
their actions helpful.
 FACTS: MILLENIALS (WHO ARE IN PRODUCTIVE AGE, BORN IN BETWEEN 1980S
AND 2000) CHANGE THE VERY DEFINITION OF THE WORD “WORK”

• 94% are interested in using their skills to benefit a cause

• Today’s young people -> CONCERN with MAKING POSITIVE IMPACTS on the world as they are with
making money
• It’s not just where we’re working, or even how we’re working-> It’s what we’re working for
• It’s more than just Millennials — we want the future of work to be independent. We
must value time over money — for their families, friends, communities, and creative
passions
• It’s something deeper than a charity
• IT SIGNALS A FUNDAMENTAL SHIFT IN THE WAY OUR ECONOMY
FUNCTIONS 29
5 REASONS SOCIAL ENTREPRENEURSHIP IS A NEW BUSINESS
MODEL

It connects you to your life purpose

It keeps you motivated

It helps you help others discover their life purpose

It is what today's consumers

It brings you lasting happiness
want

Source: Fox 42
(2016)
TRIPLE BOTTOM LINE BUSINESS

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SO, HOW DO SOCIAL ENTERPRISES CREATE DOUBLE AND TRIPLE BOTTOM LINE PROFIT?

• Cross-Compensation – One group of customers pays for the

service. Profits from this group are used to subsidize the
service for another, underserved group.
• Fee for Service – Beneficiaries pay directly for the
goods or services provided by the social enterprise.
• Employment and skills training – The core purpose is to
provide living wages, skills development, and job
training to the beneficiaries: the employees.
• Market Intermediary – The social enterprise acts as an
intermediary, or distributor, to an expanded
market. The beneficiaries are the suppliers of the
product and/or service that is being distributed to an
international market.
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SO, HOW DO SOCIAL ENTERPRISES CREATE DOUBLE AND TRIPLE BOTTOM LINE PROFIT?

• Market Connector – The social enterprise facilitates

trade relationships between beneficiaries and new
markets.
• Independent Support – The social enterprise delivers a
product or service to an external market that is
separate from the beneficiary and social impact
generated. Funds are used to support social programs to
the beneficiary.
• Cooperative – A for-profit or nonprofit business that is
owned by its members who also use its services,
providing virtually any type of goods or services.
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 DEFINING YOUR
MISSION
“Mission is the star we steer by.
Everything begins with mission,
everything flows from mission” (Frances
Hesselbein)
• Mission as the entrepreneur’s most useful tool: It is
the reason why we do what we do; a reason for
being, purpose.
• Mission as a discipline
• Mission as a flexible too: it has to be revisited regularly
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 What is mission?
Mission is the core purpose of an organization
or a company.
It is a summary of the aims and core values.
A mission tells what you as an organization do
for customers.
A mission is comprehensive but also very
specific to set you apart from other
organizations.
 EXAMPLES OF MISSION STATEMENTS
• TED: Spreading Ideas. (2 words)
• Smithsonian: The increase and diffusion of knowledge. (6 words)
• National Wildlife Federation: Inspiring Americans to protect wildlife for our children’s future. (9)
• American Heart Association: To build healthier lives, free of cardiovascular diseases and stroke.
(10)
• Oxfam: To create lasting solutions to poverty, hunger, and social injustice. (10)
• New York Public Library: To inspire lifelong learning, advance knowledge, and strengthen our
communities. (10)
• The Nature Conservancy: To conserve the lands and waters on which all life depends. (11)
• CARE: To serve individuals and families in the poorest communities in the world. (12)
• Habitat for Humanity International: Seeking to put God’s love into action, Habitat for Humanity
brings people together to build homes, communities and hope. (16)
• San Diego Zoo is a conservation, education, and recreation organization dedicated to the
reproduction, protection, and exhibition of animals, plants, and their habitats. (20)
• Doctors without Borders (Médecins Sans Frontières) works in nearly 70 countries providing medical
aid to those most in need regardless of their race, religion, or political affiliation. (21)
• The Rotary Foundation: To enable Rotarians to advance world understanding, goodwill, and peace
through the improvement of health, the support of education, and the alleviation of poverty. (24)
• NPR: To work in partnership with member stations to create a more informed public – one challenged
and invigorated by a deeper understanding and appreciation of events, ideas and cultures. (28)

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 DIAGNOSTIC TOOL TO DEFINE YOUR MISSION
Is the mission: Yes To No
some
extent
1. Short and sharply focused?
2. Clear and easily understood?
3. A statement of why you do what you do or why the
organization exists?
4. About purpose, not means?
5. Sufficiently broad?
6. A direction for doing the right things?
7. Focused on your opportunities?
8. Matched to your competence?
9. Inspiring your commitment?
10.Stating what, in the end, you want to be remembered
for?
Source: Dees, et al. (2001, p. 25)
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 ASSESSING OPPORTUNITIES: A QUICK GUIDE
• Demand: is there a demand for the social services or products
to be offered?
• Mission Fit: does it fit with the mission?

High Most attractive

Mission Fit

Least attractive
Low

Low High
Demand (need/desire)
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ASSESSING THE OPPORTUNITY

Sustainability
Potential

Market
Potentia
l

S
o
c
i
a
l 39
 SOCIAL VALUE POTENTIAL (HIGH VS LOW)

• Strategic alignment: service/product creates social

value that is aligned with the mission.
• Achievable outcomes: service/product will create a
significant change in user behavior, condition, or level
of satisfaction.
• Partnership and/or Alliance: Additional partnership(s)
would have a synergistic effect and improve or
increase chances for desired results – social value.
• Organizational benefit: successful service/product will
increase or create positive community perception of
and/or political support for the organization.

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 MARKET POTENTIAL (HIGH VS LOW)

• User Need: Evidence of social need and an open

window of opportunity.
• User Desire: Evidence of user interest or evidence
of success of similar services in other
communities.
• Funder interest: Evidence of interest, or noticeable
trends in grant making or government contracts for
similar service.
• Market share: Evidence of an open market with little
competition.

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 SUSTAINABILITY POTENTIAL (HIGH VS LOW)

• Idea development: research and development resources are available

or easily accessible
• Startup: low cost of startup and/or easily accessible funding for startup.
• Cost-to-Benefit Ratio: Low total program costs compared against high
public
• Organizational
benefit. capability: Board, staff, or volunteer capability is present
and aligned with potential service or project.
• Income potential: target population with discretionary income potential
and/or evidence/desire to pay fees.
• Organizational capacity: internal structures, space, technology, etc.
are in order to easily adjusted for new services or expansion of services.
• Funder interest: trends or other evidence of funder interst for tree to five
year horizon.

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EMPHATIZE

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 ASSUME A BEGINNER’S MINDSET :
WHY ?

•We all carry our experiences, understanding, & expertise with us.
•These aspects of ourselves are incredibly valuable assets to bring
to
the design challenge – but at the right time, & with intentionality.
•Our assumptions may be misconceptions & stereotypes, &
can restrict the amount of real empathy we can build.
•Assume a beginner’s mindset in order to put aside these
biases, so
that you can approach a design challenge afresh.
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 ASSUME A BEGINNER’S MINDSET :
HOW ?
•Don’t judge. Just observe & engage users without the influence of value
judgments upon their actions, circumstances, decisions, or “issues.”
•Question everything. Question even (and especially) the things you think
you already understand. Ask questions to learn about how the user perceives
the world. Think about how a 4-year-old asks “Why?” about everything.
Follow up an answer to one “why” with a second “why.”
•Be truly curious. Strive to assume a posture of wonder & curiosity,
especially in circumstances that seem either familiar or uncomfortable.
•Find patterns. Look for interesting threads & themes that emerge across
interactions with users.
•Listen. Really. Lose your agenda & let the scene soak into your psyche.
Absorb what users say to you, & how they say it, without thinking about the
next thing you’re going to say.

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Set-up: Divide a sheet into three sections: What?, How?, & Why?

Start with concrete observations:

•What is the person you’re observing doing in a particular situation or photograph?
•Use descriptive phrases packed with adjectives & relative descriptions.

Move to understanding:
•How is the person you’re observing doing what they are doing?
•Does it require effort? Do they appear rushed? Pained?
•Does the activity or situation appear to be impacting the user’s state of being either
positively or negatively?
•Again, use as many descriptive phrases as possible here.

Step out on a limb of interpretation:

•Why is the person you’re observing doing what they’re doing, & in the particular way
that they are doing it?
•This step usually requires that you make informed guesses regarding motivation &
emotions.
•Step out on a limb in order to project meaning into the situation that you have been
observing. This step will reveal assumptions that you should test with users, & 68
•In empathy work, you want to understand your users’
lives, & specific tasks within the context of their lives.
•A User Camera Study allows us to understand a user’s
experience by seeing it through their eyes.
•It also allows you to understand environments to which
you might not normally have access.

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1.Identify subjects whose perspective you are interested in learning more about.
2.Briefly explain the purpose of the study, & ask if they would be willing to
take photographs of their experiences. Get permission to use images they take.
3. Provide a camera to your subject & instructions such as:
•“We would like to understand what a day in your life feels like. On a day of your
choosing, take this camera with you everywhere you go, & take photos of experiences that
are important to you.” Or, you could try:
•“Please document your [morning routine] experience with this camera.” Or,
•“Take pictures of things that are meaningful to you in your kitchen.”

Frame your request a little broader than what you believe your problem space
might be, in order to capture the surrounding context. Many insights can
emerge from that surrounding space.
4.Afterwards, have your subject walk you through the pictures & explain the
significance of what they captured. Return to a good empathetic interviewing
technique to
understand the deeper meaning of the visuals & experience they represent.
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