Social Entrepreneurship

Roslyn Russell

RDU

Social Entrepreneurship

Social entrepreneurship is the activity of establishing new business ventures to achieve social change. The business utilises creativity and innovation to bring social, financial, service, educational or other community benefits.

(Talbot, Tregilgas & Harrison, 2002)

Social enterprises are not charities or welfare agencies. They are private businesses established by entrepreneurs with an emphasis on human values rather than just profit. These businesses focus on working with and enhancing the social capital within the community by encouraging participation, inclusion and utilising a bottom-up approach to achieve social change

Elements of Social Enterprise

Three core elements: Created to provide benefits for a communityCreates opportunities so people can help themselves

as well as othersUtilises sound commercial business practices to

ensure its sustainability i.e. the business will naturally uphold and encourage environmental sustainability as well as ethical considerations

Characteristics of a Social Entrepreneur

Not bound by sector norms or traditions Not confined by barriers that stand in the way of their

goals Develop new models and pioneer new approaches to

enable them to overcome obstacles Take innovative approaches to solve social issues Transform communities through strategic partnerships

Social entrepreneurs

“… a path breaker with a powerful idea, who combines visionary and real world problem-solving creativity, has a strong ethical fibre..”

“ ..combines street pragmatism with professional skills..”

“ they see opportunities where others only see empty buildings, unemployable people and unvalued resources”

“..Radical thinking is what makes social entrepreneurs different from simply ‘good’ people.”

“they make markets work for people, not the other way around, and gain strength from a wide network of alliances”

“they can ‘boundary ride’ between the various political rhetoric and social paradigms to enthuse all sectors of society”

Where do you find social enterprises?

Social entrepreneurs find opportunity in most economic sectors.

The growth areas for social enterprises are identified as: Environmental Housing Health and care Information services Public services Financial services Training and business development Manufacturing Food and agriculture

Global context

U.K. Community Action Network (CAN) The Stanford Business School Social Entrepreneurship initiative Canadian Centre for Social Entrepreneurship Social and Enterprise Development Innovations (SEDI) The Israeli Greenhouse for Social Entrepreneurship International Institute of Social Entrepreneurship Management

(India) Inter-American Development Bank The Initiative on Social Enterprise – Harvard Business School

Australian Context

Social Entrepreneurship Network (SEN)Social Ventures Australia (SVA)Asia-Pacific Centre for Philanthropy and

Social Investments (Swinburne)RMIT

Example: Ben and Jerry’s Ice-cream

Community Partnership Savings Accounts

A matched savings model designed to help people build assets

Usually it involves two dollars matched for every dollar saved

Account holders take money management and asset training classes while saving for a specific goal

An 18 month Community Partnership Savings Accounts

Pilot will be run by the Brotherhood of St Laurence and ANZ and will match savings specifically for education-related expenses.

Examples

In Canada there is a learn$ave program that has established Individual Development Accounts to promote self-sufficiency among low-income Canadians4,875 participants10 locations

In USA there are approximately 250 IDA programs that are showing success

Also UK and Singapore have similar programs

Australian Program

Commences in June 2003Will include 300 participantsThree locations – inner city, outer

suburban and regionalLower income participantsSpecific goal – education expenses for

children

Research project

Conduct an evaluation program to run concurrently with the pilot

Aims:To ensure appropriateness of the programTo ensure effectiveness of the programTo ensure efficiency of the program

Stages

1. Secondary data analysisOverseas IDA programAustralian context

2. Evaluation processAssess individual-level changeImplementation analysisAssess the effect on organisation

How?

Action research using qualitative techniquesIndividual interviewsParticipant focus groupsStaff focus groups

Quantitative measurements using bank data

Outcomes

Reports including:Indication of individual-level change in

participant behaviourPatterns of drop-out rates from the programPerceptions of participants in the programPerceptions of staff involvedIndication of individual-level change in staff

attitudes and learning

Outcomes (cont’d)

Intermediate reports on barriers to maintaining participations

Identify patterns in drop-out rates