Unit 1

Social Entrepreneurship

Introduction to Social Entrepreneurship,

Characteristics & Competencies
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 Nature of Social Entrepreneurship

• Learning Objectives
• 1) Understand social entrepreneurship.
• 2) Differentiate social entrepreneurship from commercial entrepreneurship.
• 3) Differentiate social and business entrepreneurs.
• 4) Explore the global nature of social entrepreneurship.
• 5) Describe the role of individual characteristics in social venture creation.
• 6) Identify the competencies required to be a successful social
entrepreneur.
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 Nature of Social Entrepreneurship

• Understanding Social Entrepreneurship

• Refers to the process of exploiting entrepreneurial opportunities that
add social value.
• Social entrepreneurship is a social value creating activity.
• Social entrepreneurship addresses social issues.

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 Nature of Social Entrepreneurship

• Understanding Social Entrepreneurship (cont’d)

• Typology of Social Ventures
- Purely Philanthropic Social Ventures
- Purely Commercial Social Ventures
- Hybrid Social Ventures
- Corporate Social Ventures

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 Nature of Social Entrepreneurship
• Typology of Social Ventures (cont’d)
Purely philanthropic Purely Commercial

Motives, Methods, Purely Philanthropic Hybrid Purely Commercial

and Goals

Beneficiaries Pay nothing Subsidized rates or mix of full payers Market-rate prices
  And those who pay nothing

Capital Donations and grants Below-market capital or mix of donations Market-rate capital
  and market-rate capital

Workforce Volunteers Below-market wages or mix of volunteers Market-rate compensation

  and fully paid staff

Suppliers Make in-kind donations Special discounts or mix of in-kind and Market-rate prices
  full-price donations

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 Nature of Social Entrepreneurship
• Similarities between Social and Commercial Entrepreneurship

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 Nature of Social Entrepreneurship

• Global Nature of Social Entrepreneurship

• Social entrepreneurship is a global phenomenon.
• Meaning, practice and governance of social entrepreneurship vary across countries.
• In Europe, social entrepreneurship is broadly defined and includes all organizations
of the third sector.
• A form that a social venture takes depends on its institutional environment.

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 Social Entrepreneurship:
Mindset, Characteristics & Competencies
• What is the role of a Social Entrepreneur?
- Adopting a mission to create and sustain social value.
- Recognizing and relentlessly pursuing new opportunities to serve that mission.
- Engaging in a process of continuous innovation, adaptation, and learning.
- Acting boldly without being limited by resources currently in hand.
- Exhibiting heightened accountability to the constituencies served and the outcomes
created.

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 Social Entrepreneurship:
Characteristics & Competencies
• Table 1. Individual Characteristics and Social Entrepreneurial Actions
Dispositional Characteristics Actions leading to social entrepreneurship
Autonomy/Independence Being a social entrepreneur helps to manage one’s own venture. It also helps become one’s
own boss
Goal setting allows the social entrepreneur to focus on the direction sets for the social
venture.
Goal Setting/Drive Inner action leading a person to pursue a given course of action. Is important to start and
sustain a social venture

Need for Achievement Being a social entrepreneur helps a person realize his/her full potential

Passion Passion allows the social entrepreneur to relentlessly pursue the social opportunity

Risk Propensity Desire to take moderate risks influences entrepreneurial behavior

Self-Efficacy Believing that one has the capacity to successfully engage in a course of action influences
entrepreneurial activity
Being alert to social opportunities leads social entrepreneurs to seek opportunities where
others see intractable problems.
Entrepreneurial Alertness Prior experience and knowledge can improve alertness, leading a social entrepreneur to spot
opportunities in familiar terrains

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 Social Entrepreneurship:
Characteristics & Competencies
• Table 1. Individual Characteristics and Social Entrepreneurial Actions
Dispositional Characteristics Actions leading to social entrepreneurship
Being alert to social opportunities leads social entrepreneurs to seek opportunities where
others see intractable problems.
Alertness Prior experience and knowledge can improve alertness, leading a social entrepreneur to spot
opportunities in familiar terrains.

Autonomy/Independence Being a social entrepreneur helps to manage one’s own venture. It also helps become one’s
own boss.
Goal setting allows the social entrepreneur to focus on the direction sets for the social
venture.
Goal Setting/Drive Inner action leading a person to pursue a given course of action. Is important to start and
sustain a social venture.

Need for Achievement Being a social entrepreneur help a person realize his/her full potential.

Passion Passion allows the social entrepreneur to relentlessly pursue the social opportunity.

Risk Propensity Desire to take moderate risks influences entrepreneurial behavior.

Self-Efficacy Believing that one has the capacity to successful engage in a course of action influences
entrepreneurial activity.

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 Social Entrepreneurship:
Characteristics & Competencies
Table 2. Entrepreneurial Competencies
Competencies Explanations
Opportunity recognition Competencies related to recognizing and developing market opportunities through
competencies various means.

Competencies related to person-to-person or individual-to-group interactions, such as

Relationship competencies building a context of cooperation and trust, using contacts and connections, persuasive
ability, communication and interpersonal skill.
Conceptual competencies Competencies related to different conceptual abilities, which are reflected in the behaviors of
the entrepreneur, such as decision skills, absorbing and understanding complex information,
and risk-taking, and innovativeness.

Organizing competencies Competencies related to the organization of different internal and external human, physical,
financial and technological resources, including team-building, leading employees, training
and controlling.

Strategic competencies Competencies related to setting, evaluating and implementing the strategies of the firm.

Commitment competencies Competencies that drive the entrepreneur to move ahead with the business.

Man, T. W. Y., Lau, T., & Chan, L. K. F. (2002). The competitiveness of small and medium enterprises: A conceptualization with focus on
entrepreneurial competencies. Journal of Business Venturing, 17(2), p. 132.
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 Reading

• Students should read chapter 1 & 2 from the book to enhance

their further understanding.
• https
://online.vitalsource.com/#/books/9781136655937/epubcfi/6/22%5B%3B
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• https://online.vitalsource.com/#/books/9781136655937/epubcfi/6/24%5B
%3Bvnd.vst.idref%3DfC02_chapter%5D!/
4/2/12/38%5Btab2_1%5D/4/18/2/2%400:0
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