Social innovation and entrepreneurship

Question 1

Social entrepreneurship is

Answer 1

An innovative, social value creating activity that can occur within or across non-profit, business or government sectors

Question 2

Growth of interest in social entrepreneurship due to

Answer 2

• Retreat of state and supra-state institutions from tackling social needs directly
• Inability of institutions to generate new and innovative solutions

Question 3

Logic of social entrepreneurship

Answer 3

• The world is growing and with it, so is are social issues
• Governments struggle to solve these issues - lack of innovation, bureaucracy
• So social entrepreneurs are enrolled to help solve

Question 4

Examples of social enterprises - Grameen Bank

Answer 4

Founded in 1983 in Bangladesh. The bank removed the need for collateral and created a system based on accountability, mutual trust and participation. Credit is used to fight poverty, not create it. Socio-economic conditions are attempted to be improved by allowing the poor into banking orbits

Question 5

Examples of social enterprises - One laptop per child

Answer 5

Provide each child with a rugged, low cost, low power, connected laptop. Designed hardware, content and software for collaborative, joyful and self-empowered learning

Question 6

Examples of social enterprises - Toms shoes

Answer 6

Toms shoes operate a “one for one” policy, whereby for every pair of shoes bought, one is donated to someone in need. They have a “double bottom line” and reinvest their income from sales into improving lives

Question 7

Commercial VS. Social

Answer 7

Commercial entrepreneurship is focussed on breakthroughs, and new needs.
Social entrepreneurship is focussed on serving basic, longstanding needs more effectively through innovative approaches

Question 8

Difference in people/resources

Answer 8

• Have to provide value more explicitly with a much more heterogeneous set of stakeholders than in private companies
• Social enterprises mission often provides a common anchor for diverse shareholders
• Social entrepreneurs may need to spend a significant proportion of time networking/fundraising
• Duration of funding may be shorter

Question 9

How is social entrepreneurship measured?

Answer 9

• Performance is measured against social and financial goods
• Simultaneous assessment of performance against: financial and shareholder performance, internal and external shareholder expectations and responsibilities