Social Entrepreneurship

Need for social entrepreneurship:

1) Community needs are growing in size and diversity.

2) More nonprofits are competing for government and philanthropic funds.

3) Traditional forms of funding are becoming smaller and less reliable.

4) New for-profit businesses are competing with nonprofits to serve community needs.

5) Funders and donors are demanding more accountability

Social Enterprise - An organization or venture that advances its social mission through entrepreneurial, earned income strategies

Examples -

1) Maria Montessori, the first female physician in Italy, began working with children in 1906 and created a revolutionary education method that supports each individual child's unique development. Montessori schools allow each child to realize his or her full potential by fostering social skills, emotional growth and physical coordination, in addition to cognitive preparation.

2) Muhammad Yunus revolutionized economics by founding the “Grameen Bank” or "village bank," in Bangladesh in 1976 to offer "microloans" to help impoverished people attain economic self-sufficiency through self-employment, a model that has been replicated in 58 countries around the world

Characteristics of Social Entrepreneurs:

1) Ambitious: Social entrepreneurs tackle major social issues, from increasing the college enrollment rate of low-income students to fighting poverty in developing countries. These entrepreneurial leaders operate in all kinds of organizations: innovative nonprofits, social purpose ventures such as for-profit community development banks, and hybrid organizations that mix elements of nonprofit and for-profit organizations.

2) Mission Driven: Generating social value-not wealth-is the central criterion of a successful social entrepreneur. While wealth creation may be part of the process, it is not an end in itself. Promoting systemic social change is the real objective.

3) Strategic: Like business entrepreneurs, social entrepreneurs see and act upon what others miss: opportunities to improve systems, create solutions and invent new approaches that create social value. And like the best business entrepreneurs, social entrepreneurs are intensely focused and hard-driving-even relentless-in their pursuit of a social vision.

4) Resourceful: Because social entrepreneurs operate within a social context rather than the business world, they have limited access to capital and traditional market support systems. As a result, social entrepreneurs must be exceptionally skilled at mustering and mobilizing human, financial and political resources.

5) Results oriented: Ultimately, social entrepreneurs are driven to produce measurable returns. These results transform existing realities, open up new pathways for the marginalized and disadvantaged, and unlock society’s potential to effect social change.