The document discusses promoting entrepreneurship and social entrepreneurship. It defines entrepreneurs as innovators who implement change by introducing new goods, production methods, markets, supply sources or organizations. Entrepreneurship is crucial for development as it results in lower unemployment, innovation adoption and structural economic changes. Social entrepreneurship addresses social problems through mission-driven initiatives using entrepreneurial approaches to create social value rather than profit. The government can promote entrepreneurship by establishing strong property rights, legal systems and macroeconomic stability.
9. Entrepreneur
• Innovator implements change
• Five manifestations:
1. Introduction of new/improved good
2. Introduction of new method of production
3. Opening of new market
4. Exploitation of new source of supply
5. Carrying out new organization
10. Entrepreneurs
• See world differently
• Envision future better than others
• Seize opportunities that go unnoticed
• Perceive and accept risks differently
• Exceptional mind-set
15. Entrepreneurs
• “Persons who are ingenious and creative
in finding ways that add to their own
wealth, power, and prestige”.
• Resource and process where individuals
utilize opportunities in market through
creation of new business firms
17. Entrepreneurship
• Crucial factor in development and well-being of
societies
• Results
• Lower unemployment rates
• Adopt innovation
• Structural changes in economy
• New competition
19. Entrepreneurship
matter for Development
• Structural transformation from low-income,
traditional economy to modern economy
• Creating new firms outside household
• Absorbing surplus labour from traditional sector
• Providing innovative intermediate inputs to final-goods
producing firms
20. Entrepreneurship
matter for Development
• Greater specialization in manufacturing
• Raising productivity and employment in both
modern and traditional sectors
• Employment growth substantial
• Contribution to female empowerment
21. Being Entrepreneurs
• Non-pecuniary returns
• Independence
• Positive change in lifestyle
• Sense of achievement
• Higher levels of job satisfaction
22. Designing Policies
• Complicated
• Three questions:
1. Should entrepreneurship be supported?
2. Can entrepreneurship be supported?
3. What is the most effective means of support?
23. Government
• Cannot raise supply or quantity of
entrepreneurship
• Influence allocation of entrepreneurial ability
• “Get the institutions right”
• Protection of property rights
• Well-functioning legal system
• Maintain macroeconomic and political stability
• Competitive tax rates
24. “Entrepreneurial
Economy”
• Creativity and innovation flourish
• Liberalized private-sector economy
• Knowledge, policies focused on formation and
function of regional clusters and linkages with
rest of economy
25. Government
• Limitations in dealing with growing number of
global challenges:
• Climate change
• Insecurity
• Violent conflict and terrorism
• Migration
• Vulnerability to financial and economic shocks
27. Social Entrepreneurship
• Contributions to improve welfare of
communities
• Socially-oriented entrepreneurial activities
• Spectrum of entrepreneurship
28. Social Entrepreneurship
• Tied with creating social value
• Not personal profit
• Passion of social mission +
• Business-like discipline, innovation, and
determination
30. Social Entrepreneurs
• Individuals with innovative solutions to society’s
most pressing social problems
• Visionaries
• Realists
31. Definition
• Mission-driven individual
• Uses entrepreneurial behaviours to deliver
social value to less privileged
• Entrepreneurially oriented
• Financially independent, self-sufficient, or
sustainable
32. Typology
Unique
characteristics of
Profit-oriented
entrepreneur
Characteristics
common to both
types
Unique
characteristics of
Social Entrepreneur
•High achiever
•Risk bearer
•Organizer
•Strategic thinker
•Value creator
•Holistic
•Arbitrageur
•Innovator
•Dedicated
•Initiative taker
•Leader
•Opportunity alert
•Persistent
•Committed
•Mission leader
•Emotionally charged
•Change agent
•Opinion leader
•Social value creator
•Socially alert
•Manager
•Visionary
•Highly accountable
33. Boundaries of Social
Entrepreneurship
• Distinction between social entrepreneurship
and other non-entrepreneurial, mission-driven
initiatives
• Do not extend to philanthropists, social
activists, environmentalists, companies with
foundations, socially responsible organizations
• Needed and valued but not social
entrepreneurs
34. Social Entrepreneurs
• Operate within boundaries of two
business strategies:
1. Non-profit with earned income
strategies
• Hybrid social and commercial
entrepreneurial activity to achieve self-sufficiency
• Organization both social and commercial
• Revenues and profits generated improve
delivery of social values
35. Social Entrepreneurs
2. For-profit with mission-driven strategies
• Social-purpose business
• Performing social and commercial entrepreneurial
activities simultaneously to achieve sustainability
• Organization both social and commercial
• Financially independent
• Founders and investors benefit from personal monetary
gain