Mkt1019 characteristics of the social entrepreneur 1

Social entrepreneurship

The ‘personal characteristics’ approach

“Entrepreneurship”

Entreprendre: v. To undertake; to begin, start

(upon), embark upon, set about

•New product/service

•New method

•New market

•New form of organization

•Risk

•Combination of

resources/resourcefulness

(“reach exceeds grasp”)

•Value creation

Social Entrepreneur

Agents of change:

• Not to be confused with for-profit firms trying to be socially responsible. E. g. Body Shopresponsible. E. g. Body Shop

• Mission to create/sustain social value

• New opportunities for pursuit of mission

• Innovation, adaptation, and learning

• Not limited by resources currently in hand

• Accountability to constituencies and outcomes created

Social entrepreneurship – why it’s such a big deal

• Markets for ideas not necessarily efficient

• The search for meaning in work

– Senior executives dropping out of the rat race to focus on intrinsically rewarding experiencesintrinsically rewarding experiences

• Trends in spending and budgets by the traditional actor: government

• Increasing income inequality

– Shift to a winner-take-most society

Social entrepreneurship – why it’s such a big deal

• The paradox of corporate philanthropy

– Businessmen are penny-pinchers in their corporate avatars, but can be pretty generous in private life

• Gates Foundation• Gates Foundation

– Tax breaks

• Philanthropy is costless when tax-deductible!

– Corporate social responsibility

• Individual philanthropy sidesteps the controversies surrounding corporate philanthropy

Social entrepreneurship – why it’s such a big deal

• Microfinance

– The most challenging of social ventures

– One-third of the world’s population lives on a dollar a day

– Microfinance involves providing small loans/investment to the world’s poorest; venture capital for those with zero collateral

– e.g. Grameen Bank

Mike Bull says

• the decline of state involvement in the planned provision of services in society;and conceptualisation of the “market” (Mulgan, 2006);

• the focus of a culture that emphasises self-reliance and personal responsibility and the rise of entrepreneurship personal responsibility and the rise of entrepreneurship more generally (Scase and Goffee, 1980;Kuratko, 2005)

• changes in funding opportunities within the community, voluntary and non-profit (social) sectors – specifically the move from grant giving to contract/competitive tendering and the devolution, deregulation and privatisation of welfare states globally (Pearce, 2003; Goerke, 2003).

Heros and MavericksSocial Entrepreneurs

Ego’s, machismo

Thanks to Dave Dawes of Entreprenurses for the graphics

The problem (sexy thing about) with entrepreneurs

• Dislike bureaucracy & paperwork

• Love risk

• Extremely creative

• Bend and break rules

• Get bored easily

• Very difficult to manage

Difficult childhood?..............

Difficult to manage?..............

Often chaotic?.........

A poor manager?..........

Need a lot of space?.........

Stubborn?..................

Creative /deviant

A networker?.................

outcome-focused not processed-focused

A risk taker?...................

“ A patient is the most important person in our hospital.

He is not an interruption to our work, he is the purpose of it.

He is not an outsider in our hospital, he is part of it.

We are not doing a favour by serving him, he is doing us a favour by giving us an opportunity to do so.”

Unwavering values and principles?..

giving us an opportunity to do so.”

Mahatma Gandhi - Bombay Hospital Mission Statement

Then you are probably one of us!...

The UnLtd social entrepreneur

• Resistance to formal education system.

• Restlessness.

• Pro-risk, “opportunist” tendencies.

• Self-determined goals.

• A vocal conscience and the desire to be a “change activist.”

• Restlessness.

• Strong influence of socially-minded individual during youth.

• Spiritual identity.

• Experience as an outsider.

• Pivotal life moment(s).

activist.”

• Strong support network.

• Self confidence.

• Entrepreneurial approach to problem solving/challenges.

Flawed heros

• They have vices (ie chain smoking); they use expletives, and have fought personal battles to overcome violent behaviours when they’re upset; they can exhibit egotistical, even racist tendencies. More than one whom I met this summer had been institutionalized.

• Were they at the head of their class? No. (Well, two of them were, but both subsequently left college.) Did they excel at everything they ever did? No. In some cases, past failures outnumbered successes. did? No. In some cases, past failures outnumbered successes.

• Are they great managers or employees? Not necessarily. Some have been fired from jobs; others have quit and/or burned bridges upon departure.

• Do they do it for the glory? No, but many revel in recognition and appreciate public praise…. and some have been accused by friends, colleagues, and their own volunteers of being immature, possessive, self-absorbed, dictating, control freaks.

Superheros and mavericks

BUT????

• Do Social Entrepreneurs

– Act alone?

– Struggle against the system?

– Invent entirely new ways of doing things?

• Are they

– saviours of public and private business failure? (Evers, 2001; Nicholls, – saviours of public and private business failure? (Evers, 2001; Nicholls, 2006; Westall and Chalkley, 2007)

– the answer to “worklessness”, social isolation and inequality (Organisation for Economic Co-operation and Development, 2006),

– the quick fix for societies’ ills (Bull, 2008)

– Social entrepreneurs or social enterprises?