Chapter 3

Question 1

Define social innovation.

Answer 1

Resolve issues found in traditional solutions. 5 elements of social innovation : social need, innovative element, implementation and execution, improvements, and relationships/collaborations.

Question 2

Define social value creation.

Answer 2

Created when people place value on the changes they are experiencing in their lives.

Question 3

Name different types of social entrepreneurship.

Answer 3

1. For-profit social purpose ventures
2. Enterprising nonprofits
3. Hybrid social ventures

Question 4

Define enterprising nonprofits. (1/3 types of social entrepreneurship)

Answer 4

• Nonprofits that act like for-profits.
• Earned-income activities.
• Leverage innovative and entrepreneurial approaches.
• Market-based approaches.

Question 5

Define for-profit social purpose ventures. (2/3 types of social entrepreneurship)

Answer 5

-Social objectives, financial sustainability
-Shared value.
-Benefit corporation (B Corp).

Question 6

Define hybrid social ventures. (3/3 types of social entrepreneurship)

Answer 6

-Strategy to deliver social value.
-Gray zone between business, charity.

Question 7

Name the four models of revenue generation.

Answer 7

1. Customer model.
2. Employee model.
3. Product model.
4. Combined model.

Question 8

Examine funding sources for social ventures.

Answer 8

For profits seek investment from social venture capitalists.
For enterprising nonprofits, venture philanthropists support social ventures and are highly involved because their main goal is social impact.

Question 9

Name 3 main attributes of stakeholders.

Answer 9

1. Power related to dormant stakeholder
2. Legitimacy related to discretionary stakeholder
3. Urgency related to demanding stakeholder

Question 10

Name 4 types of stakeholders.

Answer 10

1. Dominant
2. Dependent
3. Dangerous
4. Definitive

Question 11

Define dominant stakeholders.

Answer 11

Have power and legitimacy. Ex : Deans

Question 12

Define dependant stakeholders.

Answer 12

Have urgency and legitimacy. No power. Most passionate. Ex : Students

Question 13

Define dangerous stakeholders.

Answer 13

Have power and urgency to coerce.

Question 14

Define definitive stakeholders.

Answer 14

Have all 3 attributes (power, legitimacy & urgency). Must be given priority.

Question 15

How to measure social impact ?

Answer 15

1. Theory of change
2. SROI (social return on investment)