What is "Social" in Social Entrepreneurship?

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Presentation for Kellogg University KIEI 452 Fall 2014 "Social Entrepreneurship: Designing for Social Change." Week 3 presentation. See Lyonteaching.wordpress.com for more information.


  • 1. Week 3: What is Social?KIEI 452Gabrielle Lyon, PhDWEEK 3: What is Social?

2. How & When: Action PlanWEEK: 1 2 3 4 5 6 7 8 9 10Meet with Client (1) (2) (2) (3) (4)Conduct backgroundresearchConduct interviewsAgree on recommendationsFill in research holesBuild client implementationplanFinalize presentation andpresent(1) Understand business (2) Update on progress (3) Review findings (4) Final presentation 3. ObservationsABSENCE OF RED FLAGSGabrielle Lyon-KIEI452-Week 3DATA FETISHTIDYMUSHY ROLESALIGNMENT "Sniff TestNEXT STEPS 4. Week 3: What is Social?WEEK 3: What is Social? 5. 37 definitions of socialentrepreneurshipGabrielle Lyon-KIEI452-Week 3 6. 37 Definitions of Social EntrepreneurshipGabrielle Lyon-KIEI452-Week 3 7. KIEI 452 Responses to What is Social?Gabrielle Lyon-KIEI452-Week 3 8. Common Definition of SocialEntrepreneurship (Dees, 1998, 2001)Social entrepreneurs play the role of change agents in the social sector, by: Adopting a mission to create and sustain social value (not just private value), Recognizing and relentlessly pursuing new opportunities to serve thatmission, Engaging in a process of continuous innovation, adaptation, and learning, Acting boldly without being limited by resources currently in hand, and Exhibiting a heightened sense of accountability to the constituencies servedand for the outcomes created.Gabrielle Lyon-KIEI452-Week 3 9. Social as the modifierGabrielle Lyon-KIEI452-Week 3 10. Common CharacteristicsSocial Sphere/SocialityInnovation/DisruptionMarket OrientationGabrielle Lyon-KIEI452-Week 3 11. Social Spheres/ Sociality Welfare & health services (Aravind eye hospitals in India) Education & training Economic development (ex. Work integration social enterprises likeCara) Disaster relief & international aid (Water.org) Social justice & political empowerment (Change.org) Environmental planning & managementGabrielle Lyon-KIEI452-Week 3 12. Social as an Organizational Process Employment practices (employing low-skilled workers) Supply chain management (Fair trade) Energy usage & recycling (citizen-based renewable energy co-ops) Access to credit & financial services (microfinance)Gabrielle Lyon-KIEI452-Week 3 13. Innovation/Disruption Schumpters creative destruction -> Change systems and realign markets around new economicequillibriums. These can be small scale or large scale.Gabrielle Lyon-KIEI452-Week 3 14. Market Orientation For-profit social enterprise operates in a commercial market &reinvests profits in the social mission Continuous production of goods & services with economic risk who will PAY? Service recipients may not be paying for servicesrendered Note: suggests social is transactional only Minimizing paid work or a significant volunteer/in-kind element atthe heart of the business model (Chicago Architecture Foundation) Good business practices (performance metrics, continualimprovement, focus on achieving mission, intentionality aboutorganizational culture)Social mission has primacy & profits are a means to reach theGabrielle Lyon-KIEI452-Week 3mission 15. Social Entrepreneurship TypologiesGabrielle Lyon-KIEI452-Week 3 16. Fowler (2000) Integrated economic activity itself produces social outcomes Re-interpreted existing NPO increases/amplifies earnedrevenue Complementary commercial revenues cross-subsidize thesocial mission of a related non-profitGabrielle Lyon-KIEI452-Week 3 17. Alter (2006)Distinguishes social enterprise models based on Orientation to mission (Spectrum from mission oriented to profitoriented) Target audience How services are related to business activitiesThree models: Embedded - social programs are INHERENT in business activities.(ex. Fair Trade) Integrated - social programs overlap with business activities External external business activities fund social programs (ex.Health or education NPOs)Gabrielle Lyon-KIEI452-Week 3 18. Martin/Osberg (2007)For something to be considered a social enterprise: needs to be designed to achieve scale or inspire replication it can't "just" be a social service (ex. one library; it needs to be avision for a library SYSTEM) social activism is not equated to social entrepreneurship. In thecase of Martin/Osberg they actually call out activists with someconcerns. In their minds "activists don't take direct action. They tryto influence others (NGOs, consumers, workers) to take action.They go on to say "strategic nature of the action is distinct in itsemphasis on influence rather than direct action."Gabrielle Lyon-KIEI452-Week 3 19. What Social Entrepreneurship is NOT Not a discrete sector. Not a social economy. Its a set of hybridorganizations & processes that take form and action in differentinstitutional spaces and across existing sectors. Not a new form of Corporate Responsibility CSR isnt necessarily entreprenuerial or innovative; often aboutaligning practices with norms, often those established by lawsor policies Profit maximization is the ultimate goal, profit is directedtowards shareholders Not social innovation Social innovation => new solutions to social needs that are notprimarily market-based solutions. Ex. Participatory budgeting. Social change outside of a market-based solutionGabrielle Lyon-KIEI452-Week 3 20. Where Conversations Are Heading Field Building Ashoka Echoing Green Schwab Foundation Skoll Foundation Omidiyar Network Global Connectedness & New Localism (new media facilitatinginteractions amongst social entrepreneurs, funders & otherstakeholders) Public/Private Partnerships (Clinton Global Initiative) Collective ImpactGabrielle Lyon-KIEI452-Week 3 21. Entrepreneurship Theory Rests onEntrepreneursEntrepreneur -> PERSONAL CHARACTERISTICS required to identifyand pursue opportunity and the creation of a "singular outcome."In shorthand:1) an individual sees a "suboptimal" situation as an opportunity for a new solution new product new service new process2) The individual is "inspired" to change the status quo. They think"creatively" and develop a new "solution/product/service/process" then3) They "take action."Gabrielle Lyon-KIEI452-Week 3 22. What if social isnt the modifier?Gabrielle Lyon-KIEI452-Week 3 23. The Story of Rosa Parks and the Montgomery Bus Boycott RevisitedGabrielle Lyon-KIEI452-Week 3 24. What might we be missing.For individuals Assumption that everyone can participate; Self-efficacy- the idea that everyone understands themselves to beable to be see themselves as change-makers and involvedcitizens Idea that people who have "problems" or "suboptimal" situationscan name and create the solutions.Gabrielle Lyon-KIEI452-Week 3 25. What might we be missingFor organizations and social enterprises Strategic assessment of the value of engaging in endeavors tochange the status quo collectively - not just as individuals or asindividual organizations An accurate analysis and critique of the status quo. (i.e. there is a mainstream culture power dynamics that do not take into consideration or representminorities, disenfranchised populations or people who have adifferent experience.) Important lessons about how to design for social changeGabrielle Lyon-KIEI452-Week 3