Entrepreneurship Management

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SOCIAL ENTREPRENEURSHIP

Filed under: Uncategorized — na134373 at 8:09 am on Wednesday, October 28, 2015
  • WHAT IS THE PRIMARY DRIVER OF THE SOCIAL ENTREPRENEUR?

I believe that the primary driver of the social entrepreneur is the interest of making a difference and finding innovative solutions to social problems such as global warming, natural resources conservation, pollution, and water or food shortages.

 

  • SHOULD A GREEN OR CLEANTECH VENTURES BE CLASSIFIED AS SOCIAL ENTERPRISE? IF SO, WHY?

I think green or cleantech ventures should be classified as social enterprise as long as they are concerned about social problems and as long as they are doing something about it. Since green ventures do care about social problems such as global warming, pollution and natural resource conversation, I think they should be considered social enterprise; these ventures are trying to minimize and avoid damage to the environment.

 

  • WHAT ARE SOME OF THE NEGATIVES OF FORMING THE SOCIAL VENTURE AS A NONPROFIT?

Some of the negatives of forming the social venture as a nonprofit is that  there is a limited potential that can be developed. The venture unfortunately would have to rely on other sources to perform, if the social venture lacks of these resources (such as volunteering, government help,  etc) it will not be able to support itself unless it is funded by the founder of the venture. Another negative to this is even if the  social entrepreneur is willing to fund and sustain the social venture with his/her own money, unfortunately, he/she wouldn’t be able to benefit or get some money back if the nonprofit  are sold or stops operations because the money from the venture would have to go into another nonprofit.

 

  • WHY DO STAKEHOLDERS VIEW THE SOCIAL VENTURE DIFFERENTLY FROM A TRADITIONAL VENTURE?

I believe that stakeholders view the social venture differently from a traditional venture because the venture is not focused on their own benefit or success but they are focused on finding innovative solutions to society’s most social problems not necessarily on making wealth for them. So, stakeholders view the social venture as a “change agent” that can make a difference and impact the world for better not as a primary way of making a living or money for themselves.

 

  • WHAT ARE SOME OF THE GROWTH CHALLENGES OF A SOCIAL VENTURE?

Some of the growth challenges that a social venture faces is how to manage their team and how to keep them satisfied and motivated.  If the employee feels to be more of a follower than an employee, there is a risk that at some point of the growth period, the employee might feel like the company is losing its mission and the company must make sure that there is good communication and that employees don’t feel betrayed but are aware of the important function they play in the company.  The company have to decide whether it would be better to hire   “passionate employees who are likely to be true believers in the social goal of the venture” or just hire someone who wants the job. The challenge is that the communication must be efficient with all of its members and the mission must keep clear and consistent.

 

DIFFERENCE BETWEEN CORPORATE SOCIAL RESPONSIBILITY,  SOCIAL ENTREPRENEURSHIP AND PHILANTHROPHY:

A Social Entrepreneur is characterized by the pursue of an innovative and creative idea to solve a social problem; the focus is not on solving the need or problem of a market, but of a community. A corporate social responsibility has some similarity with a social entrepreneur but they are not the same, they are similar in that it also cares about social concerns; however, they are different it is more  about the integration of not just one person but  the companies who  try to do business and generate profit while also concerning about the society and environment. Philanthrophy is characterized by the efforts of supporting charities and non profits companies to improve the human welfare, also not driven by the desire of making a profit.

DIFFERENCE BETWEEN SOCIAL ENTREPRENEURSHIP AND BUSINESS ENTREPRENEURSHIP:

Social Entrepreneurship and Business entrepreneurship are not the same; social entrepreneurship focuses on wealth creation just like the business entrepreneur does; however, this one not only does it for its own benefit but for the benefit of society, without the financial resource or profit they can’t achieve their social mission and impact society in a positive way. In the other hand, business entrepreneurship pursues wealth for its own benefit and the benefit of its stakeholders not necessarily for the benefit of the community.



138 Comments

10

   Imran Haraish

October 28, 2015 @ 1:32 pm

Dont forget to answer the other questions the prof. assigned in the syllabus before the deadline! 1. differences b/t corporate social responsibility, social entrepreneurship and philanthropy.
2. differences b/t social ent. and business ent.
(if you already did then you can just delete this comment)

11

   na134373

October 28, 2015 @ 5:20 pm

Thanks a lot Imran, I appreciate it!! I’ll post my answers, thanks!!

12

   Daniel Kvist

October 28, 2015 @ 6:14 pm

Great post! I agree that it can be difficult for a social enterprise to keep its employees motivated. I guess the company has to have a mission and vision statement and follow that one to show to its employees that: “this is what we stand for, and this is what we will do as well as how we will do it.”

13

   KNing

October 28, 2015 @ 8:44 pm

I really like how you explain the difference between SE and BE, especially how you justify the wealth creation activities of SE. From your emphasis of the community benefit, I also think you have a good understanding of the chapter.

14

   na134373

October 31, 2015 @ 6:32 am

Definitely, you are right Daniel, a mission statement is imperative for any company but especially for these kind of social enterprises; it would help avoid problems and have employees aware of the primary mission and vision of the company.

15

   na134373

October 31, 2015 @ 6:35 am

Yes, professor; wealth creation activity is an important point to consider when comparing the differences between SE and BE and the community benefit and how it is achieved is also important to consider.

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