2. An Entrepreneurial Revolution
1 million new ventures a year in U.S.
85% of the new jobs in SME’s
Product/service introduction rate higher
than ever before
Rate of wealth creation exploding
And it’s a global revolution
4. Social Entrepreneurship
a social enterprise is an organization that
trades for a social purpose.
Sometimes social enterprises are
described as 'not for profit' as any profit
or surplus generated is used to further
the social objectives of the business.
6. Social Entrepreneurship
Traditional Business – one bottom line
Social Enterprise – up to 4 bottom lines
Social: improving the quality of life, access to services, and so on for
communities
Environmental: minimising the enterprise’s own negative impacts, making
improvements
Economic: increasing employment rates, income levels, business start-ups,
etc
Financial: generating income and profits to be invested in the other bottom
lines
7. The Cooperative and Social
Entrepreneurship
Ownership
Members of the coop are the owners
Management
Board of Directors are Members
8. The Cooperative and Social
Entrepreneurship
the cooperative structure is the ideal
‘corporate’ structure to realize social
objectives
Ownership
Management
Allocation of the bottom line
9. The Process of Social Entrepreneurship?
1. Find an opportunity
2. Develop a business concept
3. Figure out what success means and
how to measure it
4. Acquire the right resources
5. Launch and grow
6. Attain goals
10. Three characteristics of Social
Entrepreneurship
Social entrepreneurship meets needs unmet
by commercial markets and (usually) the
government
Social entrepreneurship is motivated by social
benefit
Successful social entrepreneurship usually
works with, not against, markets
11. Other definitions of Social Entrepreneurship
Social Enterprises have social and/or
environmental objectives.
Social Enterprises are businesses looking for
financial independence.
A Social Enterprise cannot be the subsidiary of a
public sector body.
Social Enterprises are driven by values – both in
their mission and business practices
12. Social Entrepreneurship
Environmental factors
• Social climate conducive to social
entrepreneurship
• Political climate that facilitates
social innovation
Availability of financial and
nonfinancial resources
Perturbation of the environment
• Political change
• Cultural change
• Economic change
Entrepreneurial
personality traits
Preparation to exploit
opportunities
• Education
• Experience
Social entrepreneurship
process begins
External forces
Internal forces
Environmental factors
• Social climate conducive to social
entrepreneurship
• Political climate that facilitates
social innovation
Availability of financial and
nonfinancial resources
Perturbation of the environment
• Political change
• Cultural change
• Economic change
Entrepreneurial
personality traits
Preparation to exploit
opportunities
• Education
• Experience
Social entrepreneurship
process begins
External forces
Internal forces
13. Social Entrepreneurship
Innovativeness
Education and experience
Achievement orientation
Independence
Sense of control over destiny
Low risk aversion
Tolerance for ambiguity
Entrepreneurial
orientation
Community awareness
And social concern
Socially-entrepreneurial
orientation
Innate characteristics
Innovativeness
Education and experience
Achievement orientation
Independence
Sense of control over destiny
Low risk aversion
Tolerance for ambiguity
Entrepreneurial
orientation
Community awareness
And social concern
Socially-entrepreneurial
orientation
Innate characteristics
15. Myths about Social Entrepreneurship
Social entrepreneurs are anti-business
The difference between commercial and social
entrepreneurship is greed
Social entrepreneurs are nonprofit managers
Social entrepreneurs are born, not made
Social entrepreneurs are misfits
Social enterprises usually fail
Social entrepreneurs love risk
18. Social Entrepreneurship and Cooperatives
Grameen – Danone Foods
a social business Joint-Venture
Grameen Bank – prof Mohammud YUNUS
Danone Foods - France
19. Social Entrepreneurship and Cooperatives
Grameen – Danone Foods
Bangladesh
14 % has an income > 4.1 EURO/day (212 Pesos/day)
11 % has an income between 2.9 and 4.1 EURO/day
16% has an income between 2 and 2.9 EURO/day
37 % has an income between 1 and 2 EURO/day (50-100 Pesos)
22 % has an income < 1 EURO a day
20. Social Entrepreneurship and Cooperatives
Grameen – Danone Foods : Objectives:
To bring health through nutrition at very affordable price for all Bangladeshi children
To improve living conditions of the poorest of the community by involving them in all stages of
the business model (supply, production, sales), creating jobs and improving local competencies
To preserve non-renewable resources as much as possible
To be profitable to ensure economic sustainability
21. Social Entrepreneurship and Cooperatives
Grameen – Danone Foods : a ‘bumpy’ road….
2826569
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3500000
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Month of sales
Unitssoldpermonth
23. Social Entrepreneurship and Cooperatives
0
50
100
150
200
250
300
350
Health Education Religion Social
welfare
Arts and
culture
Subsector
Billionsof1997dollars
1977
1987
1997
24. Social Entrepreneurship and Cooperatives
Main Challenges for the Future
Money
Competition
Demonstrating effectiveness
Technology
Trust
Human resources
Public-sector relations
25. Social Entrepreneurship and Cooperatives
Main Opportunities for the Future
Demographic shifts
New philanthropy
Heightened awareness of sector
Increased social welfare spending through sector
Entitlement expansion
Welfare reform