This document discusses ways to expand on William Baumol's typology of productive, unproductive, and destructive entrepreneurship. It suggests social entrepreneurs can teach conventional entrepreneurs by demonstrating that value is created for multiple stakeholders, not just the entrepreneur. A more comprehensive framework is needed to analyze entrepreneurial ventures across economic, social, and process dimensions. This could involve mapping intended and achieved rents or externalities for stakeholders. Analytic tools from fields like set theory, tensor calculus, and cluster analysis may help classify different types of entrepreneurial models and their effectiveness. The goal is to better understand entrepreneurial intentions and impacts to improve measurement and share best practices.

1. Beyond Baumol...
(or... Moving Past 'Productive', 'Unproductive' &
'Destructive': How Social Entrepreneurship Helps
Us Generalize Baumol's Typology)
OR... How social entrepreneurs can teach
entrepreneurs, part 47.. ??
Norris Krueger, Entrepreneurship Northwest
(norris.krueger@gmail.com @entrep_thinking)
Dianne Welsh, UNC Greensboro
Theresa Michl, Munich School of Management
(but......).

2. “shoulders of giants...”
Jill Kickul
Jennifer Woolley & Maija Renko (from Wed!)
Johanna Mair (& Christian Seelos from Thurs!)
Sophie Bacq (& Frank Janssen)
Filipe Santos; Jeff Robinson; Geoff Kistruck
Sharon Alvarez; Tom Lumpkin (not just Thurs)
Colleen Robb (Post) & Jeff Stamp
Doug Bosse; Jon Entine; Sandy Gough
Marc Gruber, Carina Lomberg, Jana Thiel
and of course... Will Baumol

3. Partial list of the 'suspects”
Baumol's typology
Rents
Social rents
Externalities
Residual claimant theory
Tensor calculus
Cobb-Douglas production functions
Entrepreneurial lntentions!

4. What Do We Mean by...
“I intend to be a social entrepreneur”??
As noted frequently thus far...
Who is gaining rents? (or not?)
What's the revenue model?
Who is delivering the value?
Etc. etc. (thus...)
Nonprofit-Hybrid-ForProfit dimension is
far from sufficient

5. My biased (but correct)
assumptions
For good entrepreneurs, entrepreneurship isn't about
YOU; it's about creating value for others.
Great entrepreneurs act like social entrepreneurs.
“Entrepreneurs Pay Themselves Last”
Residual Claimant model: Entrepreneurs generate
value for customers, suppliers, employees,
community, etc., etc.
And THEN get paid
So What Can Social Entrepreneurs Teach Us?

6. Baumol's trichotomy
Productive
Unproductive
Destructive

7. BUT....
For WHOM?
(FROM Whom?)
(And By WHAT Means??)
Sure sounds like a business model
topic...

8. Business Models 101
Value Proposition
(what's the value and to whom?)
Value Delivery
(how is delivered & by whom?)
Value Capture
(who gets 'paid' & how/where/when)
....and as Filipe shows, “capture” for SE's can
be, um, complicated

9. Rents
Speak to 'sustainability'
Can be positive or negative
Can be economic or non-economic
Can be multi-dimensional (but...)
In theory, they are objective but....

10. Social Rents
(Colleen Robb & Jeff Stamp, ICSB 2010)
More than merely non-economic
Or Bosse's mix of economic & non-economic
More than the aggregation of individual rents
Think supernormal social impact

11. Externalities
Another angle: Externalities
Also can be positive or negative or...
Mixed (multi-dimensional)
Certainly can have complex, differential
effects on various stakeholders

12. Stakeholders
Any organization has multiple
stakeholders
Willingly or unwillingly
(even purely economic entrepreneurs,
Tom!)
If I think I'm one of your stakeholders...
I am!

13. Why Not a Model to
Make Paul Light Happy?
Assume that Entrepreneurs (of any type):
(Value Proposition Set)
INTEND to Develop Rents for Stakeholders
(Value Delivery Set)
Have an intended production function that
allocates rents & externalities to
stakeholders

14. Production function
[insert here a complex set-theoretic n-
dimensional production function with n-
dimensional output function;
Further assume fuzzy sets;
Represent via tensor calculus]
OR....

15. Beyond the For-Profit/Hybrid/non-
Profit Continuum?
Does anyone think ventures are uniformly
distributed across the cells?
Should we be able to create multi-dimensional
taxonomy to categorize “entrepreneurial”
ventures?
(per Tom L – maybe there's an added
dimension for process? “Entrepreneurial”
versus “Bureaucratic”?)

16. Analytic Tools?
Baumol Trichotomy versus Stakeholders
Stakeholder Rents/Externalities Map
(economic & non-economic)
Ecosystem (Stakeholder) Map?
JW map?

17. Analytic Tools? (quant?)
(insert another incredibly complex
mathematical formula)
(but probably fuzzy sets and definitely
multiplicative)
Amenable to cluster analysis or profile
analysis:
Which clusters/profiles are most prevalent?
Which are most effective?

18. Implications for Measurement?
Tie measurement to rents? (externalities??)
What did we INTEND?
What did we ACHIEVE?
How did we implement?
(Can we look to others in 'our' cluster for
BPs?)

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How can I help YOU get
involved?
www.StartupWeekend.org

20. Global Entrepreneurship Week
Nov 15-22
www.UnleashingIdeas.org
(How can I help YOU get
involved?)

21. Contact us!
 Norris
– norris.krueger@gmail.com
 @entrep_thinking
 also LinkedIn, Facebook
 Theresa
– michl@lmu.de
 Dianne
 dhwelsh@uncg.edu