Lecture 1 Flashcards
(24 cards)
What is SE?
It’s entrepreneurship plus social mission
Dichotomy of value (differences between TE and SE)?
Economic vs Social Value
Profit-seeking vs Social Mission
Holistic Value
Generic concept of value
Increase in the utility of society’s members
Value Creation vs Value Capture
Value creation in SE?
Adopting a mission to create and sustain social value
Innovation and Change Agents - Schumpeter
Engaging in a process of continous innovation, adaptation, and learning
Reformers and Revolutionaries seeking systemic and sustaianble change
Drucker - Pursuit of Opportunity
Recognizing and relentlessly pursuing new opportunities to serve that mission
Other’s problems = SE opportunities
Stevenson - Resourcefulness
Acting boldly without being limited by resources currently in hand
Skilled at doing more with less - bootstrapping
Exhibiting heightened accountability to the constituencies served and for the outcomes created
Sound understanding of the constituencies they are serving
Creating fit between investor values and community needs
What are the problems with dealing with SE problems
Overlapping and unclear boundaries regarding definitions and who is responsible for solving social and environmental problems
What are the main goals of SE?
Prioritizing social and environmental goals over financial goals
Trade off of Value Capture for Value CReation
What is the spectrum of enterprises?
There are enterprises, which are hybrid and have differing levels of focus on social value.
With traditional for-profit and non-profit being at the two ends.
Key diffferences between commercial and SE focus
Create social/environmental value Achieve sustainable solutions Make the enterprise redundant/dispensible Logic of empowerement Reinvest profits in enteprise goal Regard for others
PCDO model?
People, Context, Deal and Opportunity
PCDO - People?
Human/FInancial Inputs
Internal/External
Skills, attitudes, knowledge
PCDO - Context
External factors affecting the outcome of opportunity
Macroeconomy, tax, regulation
PCDO - Deal
Exchange of value
Economic benefits, social recognition and personal satisfaciton
PCDO - Opportunity
Desired future state
Requires investmetn and resources
PCDO Opportunity - Investment of resources
TE - Breaktrhoughs and new needs
SE - Unmet needs and market failure
PCDO - Macroeconomy, regulations and so on
TE - Might not pursue an opportunity because of tough regulations
SE - pursue opportunities “because of” inhospitable context
PCDO - Human resources
TE - More financial capabilities and ability to attract top talent
SE - heavy relliance on volunteers, the 3F’s, more constraints and less flexibility
PCDO - Deals
TE - focused on monetary performance, much easier to measure
SE - Social value is hard to be measured, consumers are usually with limited or no buying power.
Case - Rotterzwam
Local sourcing of coffee grinds and local sales of mushrooms to minimize transportation.
Don’t expand so that they encorage entrepreneurs to copy and set up their own local hub
Case - Greyston Bakery
P - collaborating with various partners, volunteers and cusotmers
C - addresing the socia context where unemployment problem is embedded
D - transformation of community, compassion and empowerment
O - meeting the needs for meaningful employment (open hiring)
Key elements of SE
Market failure Mission Beneficiaries Performance Measurement REsource Mobilization Strategy Mission Performance Measurement Market Mechanism Resource Mobilization
