Social Entrepreneurship Definition Matrix

Social Entrepreneurship Definition Matrix Prepared by S. Dev Appanah & Brooke Estin Definitions by Organisations/ Individuals Innovation Social

Mission Business model

Impact Organisational structure

J. Gregory Dees, Professor of Social Entrepreneurship at Duke University

1) Social entrepreneurs are reformers and revolutionaries, as described by Schumpeter, but with a social mission. They make fundamental changes in the way things are done in the social sector. Their visions are bold. They attack the underlying causes of problems, rather than simply treating symptoms. They often reduce needs rather than just meeting them. They seek to create systemic changes and sustainable improvements. Though they may act locally, their actions have the potential to stimulate global improvements in their chosen arenas, whether that is education, health care, economic development, the environment, the arts, or any other social field.

2) In addition to innovative not-for-profit ventures, social entrepreneurship can include social purpose business ventures, such as for-profit community development banks, and hybrid organizations mixing not-for-profit and for-profit elements, such as homeless shelters that start businesses to train and employ their residents. The new language helps to broaden the playing field. Social entrepreneurs look for the most effective methods of serving their social missions.

x Attack underlying causes

x

Education Health-care Economic development Environment Arts

x Social purpose business Community development banks Hybrid Organisations Shelters starting businesses

x Create social/ environmental value Local action w/ potential for global improvement Large scale Systemic change Sustainable improvements

Not-for-profit Social purpose business Hybrid organisations

Sources “The Meaning of “Social Entrepreneurship” J. Gregory Dees Original Draft: October 31, 1998 Reformatted and revised: May 30, 2001

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Definitions by Organisations/ Individuals Innovation Social Mission

Business model


Bill Drayton, CEO and Chair of Ashoka 1) “A leading social entrepreneur sees a new opportunity, figures it out and then

starts introducing it at the local level.”

2) Social entrepreneurs are individuals with innovative solutions to societyʼs most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change. Social entrepreneurs find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to take new leaps. Social entrepreneurs act as the change agents for society, seizing opportunities others miss and improving systems, inventing new approaches, and creating solutions to change 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.

x Innovative solutions Seizing new opportunities

x

Societyʼs most pressing social problems

x Wide/ large scale change Changing the system Spreading the solution

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



Professor Muhammad Yunus, Founder of Grameen Bank 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. The initiative may be economic or non-economic, for-profit or not-for-profit.

2) Social business is a subset of social entrepreneurship. All those who design and run social businesses are social entrepreneurs. But not all social entrepreneurs are engaged in social businesses.

3) A social business can be defined as a non-loss, non-dividend business. Rather

than being passed on to investors, the surplus generated by the social business is 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.

x Any innovative initiative

x

Serving people, planet; disadvantaged groups

x Social business; non-loss, non-dividend business Surplus reinvested for long-term social goals

x Long-term social goals

For-profit Not-for-profit


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




Social Enterprise Alliance USA 1) A social enterprise is an organization or venture that advances its social mission

through entrepreneurial, earned income strategies.

2) Social enterprise describes any non-profit, for-profit or hybrid corporate form that utilizes market-based strategies to advance a social mission.

x

Social mission

x Earned income strategies Market-based strategies to advance social mission

Non-profit For-profit Hybrid corporate form Earned income strategies

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




Social Enterprise Coalition UK 1) Social enterprises are businesses set up to tackle a social or environmental need.

2) Many commercial businesses would consider themselves to have social

objectives, but social enterprises are distinctive because their social or environmental purpose is central to what they do. Rather than maximizing shareholder value their main aim is to generate profit to further their social and environmental goals. Social enterprise is a business model which offers the prospect of a greater equity of economic power and a more sustainable society - by combining market efficiency with social and environmental justice.

x

Social and environmental need Social or environmental objectives are central to the organisation

x Business to tackle social/ environmental need Generate profit to further social/ environmental goals

x Greater equity of economic power and a more sustainable society


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



Business model


Jed Emerson, Stanford Graduate School of Business 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.

x

Social issues

x Business models and acumen to address social issues

Non-profit For-profit corporate

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




New Profit Inc 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 financial resources to transform their vision into a reality; and deliver high-quality social impact.

2) Social entrepreneurs have powerfully demonstrated their models, and with an infusion of financial and strategic resources can take their social innovations to scale.

x Transformational innovation Social innovations

x Infusion of financial and strategic resources to scale social innovations

x High-quality social impact


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




Schwab Foundation for Social Entrepreneurs 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 rigorous application of known technologies or strategies, or a combination of these.

2) Social entrepreneurs are leaders, change driven, passionate, innovative, risk-takers, believers in people, high standards.

X New invention Different Approach Rigorous application of

x Large scale, systemic and sustainable social change


3) A social entrepreneur combines the characteristics represented by Richard

Branson and Mother Teresa.

known technologies/ strategies

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




Skoll Foundation 1) The social entrepreneur aims for value in the form of transformational change that

will benefit disadvantaged communities and ultimately society at large.

2) Just as entrepreneurs change the face of business, social entrepreneurs act as the change agents for society, seizing opportunities others miss by improving systems, inventing new approaches and creating sustainable solutions to change society for the better.

x Inventing new approaches

x

Disadvantaged communities and society at large

x Sustainable solutions

x Transformational change

Not-for-profit Social purpose for profit business Hybrid organisations

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




The Small Enterprise Education and Promotion (SEEP) Network 1) A social enterprise is a nonprofit organization or socially oriented venture that

advances its social mission through entrepreneurial market-based approaches to increase its effectiveness and financial sustainability with the ultimate goal of creating social impact or change.

2) Social enterprise is about linking financial and moral incentives in business and the marketplace. Social enterprise has synergies with existing poverty alleviation approaches—value chain development, market development, and microfinance—and can augment and add value to current initiatives as well as provide new tools.

X New invention Different Approach

x

Socially oriented Poverty alleviation Value chain development Market development Microfinance

x Market-based approaches Financial sustainability Linking financial and moral incentives in business and the marketplace

x improvement Economic Improvement Quantitative and Qualitative measure Policy Change

Non-profit Socially oriented

SOURCE: 1) http://www.seepnetwork.org/ 2) http://communities.seepnetwork.org/edexchange/node/89





The Roberts Foundation Homeless Economic Development Fund 1) A revenue generating venture founded to create economic opportunities for very

low income individuals, while simultaneously operating with reference to the financial bottom-line.

x

Create economic opportunities

x Revenue generating venture Financial bottom-line

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




Nonprofit Enterprise and Self-sustainability Team (NESsT) 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 income in support of their social mission.

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

x Entrepreneurial Social innovator

x

Critical social problem

x Self-financing methods Generate own income to support social mission Non-profit enterprise Social purpose business Revenue generating venture Double Bottom Line Financial return w/ social mission

Non-profit


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




The Non-profit Good Practice Guide 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.

x

x

Non-profit

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




Virtue Ventures 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 value while operating with the financial discipline, innovation and determination of a private sector business.

x

x

Mitigating/ reducing a social problem or market failure

x Business venture Financial discipline

x Social value

Not-for-profit Social purpose for profit business Hybrid organisations

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




Third Sector Enterprises 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 and governance, and the way it uses the profits it generates through its trading activities.

x

Social aims

x Profits through trading activities

x Social outcomes

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



Business model


Social Enterprise Ambassadors

1) Social enterprises are profit-making businesses set up to tackle a social or environmental need. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose is central to what they do. Rather than maximizing shareholder value, their main aim is to generate profit to further their social and environmental goals.

2) By combining a public service ethos with a commercial focus on efficiency and good business practice, social enterprises are able to deliver on the things that really matter, whilst remaining both independent and sustainable.

x

Social or environmental need Social or environmental purpose is central to activities Public service ethos

x Profit-making businesses Generate profit to further social and environmental goals Commercial focus Independent and sustainable

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




Social Ventures Australia 1) At SVA, we define a social enterprise as a non-profit business whose purpose is to

create employment for marginalized people. Marginalized people include people with disability, people with mental illness, refugees, indigenous Australians and other long-term unemployed people.

x

Employment for marginalised people

x Non-profit business

Non-profit business

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



Business model


University of Wisconsin- Madison 1) Social Entrepreneurship is the application of innovative ideas to solve social

problems. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to create change.

X Innovative ideas

x

Solve social problem

x Create change

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




Enterprising Non-Profits 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 creating a social, environmental or cultural value.

2) The term "social enterprise" to refer to business ventures operated by non-profits, whether they are societies, charities, or co-operatives.

x

x Selling product or service

x Create social/ environmental value

Non-profit Societies Charities 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

Social Entrepreneurship Definition Matrix

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