Social Entrepreneurship Definition Matrix Prepared by S. Dev Appanah & Brooke Estin
Definitions by Organisations/ Individuals
Innovation
J. Gregory Dees, Professor of Social Entrepreneurship at Duke University
x
1)
Social entrepreneurs are reformers and revolutionaries, as described by Schumpeter, but with a social mission. They make fundamental changes in the way things are done in the social sector. Their visions are bold. They attack the underlying causes of problems, rather than simply treating symptoms. They often reduce needs rather than just meeting them. They seek to create systemic changes and sustainable improvements. Though they may act locally, their actions have the potential to stimulate global improvements in their chosen arenas, whether that is education, health care, economic development, the environment, the arts, or any other social field.
Attack underlying causes
Social Mission x Education
Business model
Impact
Organisational structure
x
x
Not-for-profit
Social purpose business
Create social/ environmental value
Social purpose business
Health-care Economic development Environment
Community development banks Hybrid Organisations
Arts 2)
In addition to innovative not-for-profit ventures, social entrepreneurship can include social purpose business ventures, such as for-profit community development banks, and hybrid organizations mixing not-for-profit and for-profit elements, such as homeless shelters that start businesses to train and employ their residents. The new language helps to broaden the playing field. Social entrepreneurs look for the most effective methods of serving their social missions.
Sources “The Meaning of “Social Entrepreneurship” J. Gregory Dees Original Draft: October 31, 1998 Reformatted and revised: May 30, 2001
Local action w/ potential for global improvement Large scale
Shelters starting businesses
Systemic change Sustainable improvements
Hybrid organisations
Definitions by Organisations/ Individuals
Innovation
Bill Drayton, CEO and Chair of Ashoka 1) “A leading social entrepreneur sees a new opportunity, figures it out and then starts introducing it at the local level.”
x
2)
Social entrepreneurs are individuals with innovative solutions to societyʼs most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change. Social entrepreneurs find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to take new leaps. Social entrepreneurs act as the change agents for society, seizing opportunities others miss and improving systems, inventing new approaches, and creating solutions to change society for the better. While a business entrepreneur might create entirely new industries, a social entrepreneur comes up with new solutions to social problems and then implements them on a large scale.
Innovative solutions Seizing new opportunities
Social Mission
Business model
x
Impact
Organisational structure
x
Societyʼs most pressing social problems
Wide/ large scale change Changing the system Spreading the solution
SOURCE: 1) http://www.ashoka.org/social_entrepreneur 2) Ashoka: Innovators for the Public, Youtube, http://www.youtube.com/watch?v=teBdIMhTOT4
Definitions by Organisations/ Individuals
Innovation
Social Mission
Business model
Impact
Organisational structure
Professor Muhammad Yunus, Founder of Grameen Bank 1) Social entrepreneurship is a very broad idea. As it is generally defined, any innovative initiative to help people may be describes as social entrepreneurship. The initiative may be economic or non-economic, for-profit or not-for-profit.
x
x
x
x
For-profit
Any innovative initiative
Serving people, planet; disadvantaged groups
Social business; non-loss, nondividend business
Long-term social goals
Not-for-profit
2)
3)
Social business is a subset of social entrepreneurship. All those who design and run social businesses are social entrepreneurs. But not all social entrepreneurs are engaged in social businesses. A social business can be defined as a non-loss, non-dividend business. Rather than being passed on to investors, the surplus generated by the social business is reinvested in the business in order to support the pursuit of long-term social goals. The bottom line of a social business is to operate without incurring losses while serving the people and the planet- and in particular those among us who are most disadvantaged- in the best possible manner.
[Social Entrepreneurship Definition Matrix.doc]
Surplus reinvested for long-term social goals
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SOURCE: Creating a World Without Poverty: Social Business and the Future of Capitalism. Muhammad Yunus. Pg. 24 & 32
Definitions by Organisations/ Individuals
Innovation
Social Enterprise Alliance USA 1) A social enterprise is an organization or venture that advances its social mission through entrepreneurial, earned income strategies. 2)
Social Mission
Business model
x
x
Non-profit
Social mission
Earned income strategies
For-profit
Social enterprise describes any non-profit, for-profit or hybrid corporate form that utilizes market-based strategies to advance a social mission.
Impact
Organisational structure
Hybrid corporate form
Market-based strategies to advance social mission
Earned income strategies
SOURCE: http://www.se-alliance.org/about_vision.cfm
Definitions by Organisations/ Individuals Social Enterprise Coalition UK 1) Social enterprises are businesses set up to tackle a social or environmental need. 2)
Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose is central to what they do. Rather than maximizing shareholder value their main aim is to generate profit to further their social and environmental goals. Social enterprise is a business model which offers the prospect of a greater equity of economic power and a more sustainable society by combining market efficiency with social and environmental justice.
Innovation
Social Mission
Business model
Impact
Organisational structure
x
x
x
Not-for-profit
Social and environmental need
Business to tackle social/ environmental need
Greater equity of economic power and a more sustainable society
Social purpose business
Social or environmental objectives are central to the organisation
Generate profit to further social/ environmental goals
Hybrid organisations
SOURCE: http://www.socialenterprise.org.uk/
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Definitions by Organisations/ Individuals
Innovation
Jed Emerson, Stanford Graduate School of Business 1) By “social enterprise” we mean the application of business models and acumen to address social issues, whether through non-profit or for-profit corporate structures.
Social Mission
Business model
Impact
Organisational structure
x
x
Non-profit
Social issues
Business models and acumen to address social issues
For-profit corporate
SOURCE: “Nothing Ventured, Nothing Gained: Addressing Critical Gaps In Risk-Taking Capital For Social Enterprise” Working Paper By Jed Emerson, Tim Freundlich And Jim Fruchterman With Loren Berlin And Keely Stevenson
Definitions by Organisations/ Individuals
Innovation
New Profit Inc 1) Social entrepreneurs are visionaries who generate innovations with the potential to transform a problem or field; possess exceptional abilities to rally the human and financial resources to transform their vision into a reality; and deliver high-quality social impact. 2)
Social Mission
Business model
Impact
Organisational structure
x
x
x
Not-for-profit
Transformational innovation
Infusion of financial and strategic resources to scale social innovations
High-quality social impact
Social purpose business
Business model
Impact
Social innovations
Social entrepreneurs have powerfully demonstrated their models, and with an infusion of financial and strategic resources can take their social innovations to scale.
Hybrid organisations
SOURCE: http://www.newprofit.com/about_model.asp
Definitions by Organisations/ Individuals
Innovation
Schwab Foundation for Social Entrepreneurs 1) A social enterprise is an organization that achieves large scale, systemic and sustainable social change through a new invention, a different approach, a more rigorous application of known technologies or strategies, or a combination of these.
X
x
New invention
Large scale, systemic and sustainable social change
2)
Social entrepreneurs are leaders, change driven, passionate, innovative, risktakers, believers in people, high standards.
[Social Entrepreneurship Definition Matrix.doc]
Different Approach
Social Mission
Organisational structure
Rigorous application of 4 } 5
3)
A social entrepreneur combines the characteristics represented by Richard Branson and Mother Teresa.
known technologies/ strategies
SOURCE: http://www.schwabfound.org/whatis.htm
Definitions by Organisations/ Individuals
Innovation
Skoll Foundation 1) The social entrepreneur aims for value in the form of transformational change that will benefit disadvantaged communities and ultimately society at large.
x
2)
Just as entrepreneurs change the face of business, social entrepreneurs act as the change agents for society, seizing opportunities others miss by improving systems, inventing new approaches and creating sustainable solutions to change society for the better.
Inventing new approaches
Social Mission x Disadvantaged communities and society at large
Business model
Impact
Organisation al structure
x
x
Not-for-profit
Sustainable solutions
Transformational change
Social purpose for profit business Hybrid organisations
SOURCE: 1) http://www.skollfoundation.org/aboutsocialentrepreneurship/whatis.asp 2) http://www.ssireview.org/articles/entry/social_entrepreneurship_the_case_for_definition/
Definitions by Organisations/ Individuals
Innovation
The Small Enterprise Education and Promotion (SEEP) Network 1) A social enterprise is a nonprofit organization or socially oriented venture that advances its social mission through entrepreneurial market-based approaches to increase its effectiveness and financial sustainability with the ultimate goal of creating social impact or change.
X
2)
Social enterprise is about linking financial and moral incentives in business and the marketplace. Social enterprise has synergies with existing poverty alleviation approaches—value chain development, market development, and microfinance— and can augment and add value to current initiatives as well as provide new tools.
Social Mission x
Business model
Impact
Organisational structure
x
x
Non-profit
improvement
Socially oriented
New invention
Socially oriented
Market-based approaches
Different Approach
Poverty alleviation
Financial sustainability
Value chain development
Linking financial and moral incentives in business and the marketplace
Market development
Economic Improvement Quantitative and Qualitative measure Policy Change
Microfinance SOURCE: 1) http://www.seepnetwork.org/ 2) http://communities.seepnetwork.org/edexchange/node/89 [Social Entrepreneurship Definition Matrix.doc]
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Definitions by Organisations/ Individuals
Innovation
The Roberts Foundation Homeless Economic Development Fund 1) A revenue generating venture founded to create economic opportunities for very low income individuals, while simultaneously operating with reference to the financial bottom-line.
Social Mission x Create economic opportunities
Business model
Impact
Organisational structure
Impact
Organisational structure
x Revenue generating venture Financial bottom-line
SOURCE: http://www.redf.org/
Definitions by Organisations/ Individuals
Innovation
Nonprofit Enterprise and Self-sustainability Team (NESsT) 1) The term social enterprise to refers to "the myriad of entrepreneurial or 'selffinancing' methods used by nonprofit organizations to generate some of their own income in support of their social mission.
x
2)
The term social entrepreneur is currently used to mean very different, albeit interesting things. Some use the term social entrepreneur to refer to “social innovator” (i.e. an individual that is addressing a critical social problem in a particularly effective or innovative way). Others, including NESsT, use the term social entrepreneur (or social enterprise) to refer to a CSO (civil society organization) that uses entrepreneurial, business activities as a means to generate income and/or otherwise further its mission impact (e.g., to create employment opportunities for underserved constitutes). A social enterprise is also referred to as a “nonprofit enterprise,” “social-purpose business,” or “revenue generating venture” that operates with a “double bottom line” of generating financial return while simultaneously advancing a social mission.
Entrepreneur ial Social innovator
Social Mission x Critical social problem
Business model x
Non-profit
Self-financing methods Generate own income to support social mission Non-profit enterprise Social purpose business Revenue generating venture Double Bottom Line Financial return w/ social mission
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SOURCE: http://www.nesst.org/
Definitions by Organisations/ Individuals
Innovation
Social Mission
Business model
Impact
Organisational structure
The Non-profit Good Practice Guide 1) A non-profit venture that combines the passion of a social mission with the discipline, innovation and determination commonly associated with for-profit businesses.
x
x
Definitions by Organisations/ Individuals
Innovation
Social Mission
Business model
Impact
Organisational structure
Virtue Ventures 1) A social enterprise is any business venture created for a social purpose-mitigating/reducing a social problem or a market failure--and to generate social value while operating with the financial discipline, innovation and determination of a private sector business.
x
x
x
x
Not-for-profit
Mitigating/ reducing a social problem or market failure
Business venture
Social value
Social purpose for profit business
Social Mission
Business model
Impact
x
x
Profits through trading activities
Social outcomes
Non-profit
SOURCE: http://www.npgoodpractice.org/
Financial discipline
Hybrid organisations
SOURCE: http://www.virtueventures.com/
Definitions by Organisations/ Individuals Third Sector Enterprises 1) Social enterprise is not defined by its legal status but by its nature: its social aims and outcomes, the basis on which its social mission is embedded in it's structure and governance, and the way it uses the profits it generates through its trading activities.
Innovation
x Social aims
Organisational structure
SOURCE: http://www.3se.co.uk/index.php/Section1/page6.html
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Definitions by Organisations/ Individuals
Innovation
Social Enterprise Ambassadors 1)
2)
Social enterprises are profit-making businesses set up to tackle a social or environmental need. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose is central to what they do. Rather than maximizing shareholder value, their main aim is to generate profit to further their social and environmental goals.
Social Mission
Business model
x
x
Social or environmental need
Profit-making businesses
Social or environmental purpose is central to activities
By combining a public service ethos with a commercial focus on efficiency and good business practice, social enterprises are able to deliver on the things that really matter, whilst remaining both independent and sustainable.
Public service ethos
Impact
Organisational structure
Impact
Organisational structure
Generate profit to further social and environmental goals Commercial focus Independent and sustainable
SOURCE: http://socialenterpriseambassadors.org/content/view/183/76/
Definitions by Organisations/ Individuals Social Ventures Australia 1) At SVA, we define a social enterprise as a non-profit business whose purpose is to create employment for marginalized people. Marginalized people include people with disability, people with mental illness, refugees, indigenous Australians and other long-term unemployed people.
Innovation
Social Mission x Employment for marginalised people
Business model x
Non-profit business
Non-profit business
SOURCE: http://www.socialventures.com.au/content/Dictionary_of_Terms
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Definitions by Organisations/ Individuals
Innovation
University of Wisconsin- Madison 1) Social Entrepreneurship is the application of innovative ideas to solve social problems. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to create change.
X
Social Mission
Business model
x
Impact
Organisational structure
x
Innovative ideas
Solve social problem
Innovation
Social Mission
Business model
Impact
Organisational structure
x
x
x
Non-profit
Selling product or service
Create social/ environment al value
Societies
Create change
SOURCE: http://www.lssaa.wisc.edu/kecip/socentdef.html
Definitions by Organisations/ Individuals Enterprising Non-Profits 1) Social enterprises are businesses operated by non-profits, with the dual purpose of generating income by selling a product or service in the marketplace and creating a social, environmental or cultural value. 2)
The term "social enterprise" to refer to business ventures operated by non-profits, whether they are societies, charities, or co-operatives.
Charities Co-operatives
SOURCE: http://www.enterprisingnonprofits.ca/
The following is the number of times each element is highlighted in each definition: • Innovation – 11 times • Social Mission – 17 times • Business model – 15 times • Impact – 12 times In summary, the central elements of social entrepreneurship/ enterprises include: • Advancing a social mission • Applying innovative processes/ technologies • Having measurable and scalable impact • Integrating financial sustainability
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