Lecture 1 Flashcards
(26 cards)
Why is SEE believed to have originated in 1972?
In 1972, the Club of Rome built a model, “Limits to Growth”, showing that if we as a population continue going the same path, we will deplete all the resources on earth before the end of the century. “Limits to Growth” is the starting point for redefining entrepreneurship around sustainability
What technologies have been on the rise regarding sustainable solutions in recent years?
Impact Investing
Ethical Fashion
Food Tech
Climate Tech
Ed-tech
Blockchain Tech
Health Tech
Regenerative Agriculture
What is the Holistic View of Creation (Santos, 2012)?
It’s a value perspective that differentiates value capture and value creation. Each is a tradeoff with another.
What question does a Holistic View of Value ask?
What value is being created, for whom, for what, and who does that?
How does “Traditional Entrepreneurship” define value?
Value Capture for the organisation (and its owners).
Value Creation for paying customers.
What is the Economy-driven Logic?
o Entrepreneurs identify opportunities
o Act to create and deliver products and services to paying customers
o Develop business models in which their economic mission goals are achieved and measured in the form of monetary performance
metrics (sales, profits, ROI, shareholder value)
How does Haugh define Social Entrepreneurship?
Social entrepreneurship has also been called the simultaneous pursuit of economic, social, and environmental goals by enterprising ventures.
What is the difference between Commercial Entrepreneurs and Social Entrepreneurs?
Social Entrepreneurs and Differences;
o Distinct Goals
o Use Different Approaches
o Focus on different domains
o Sustainable solution to the problem vs sustainable competitive advantage
o Logic of empowerment vs Logic of control
What is the action logic?
The tradeoff between the dominant logic of value creation and the dominant logic of value capture.
Give an example of logic of value creation and value capture.
Value creation - Treating blindness for the poor
Value capture - Ponzi Scheme
What are the different Organisational Forms and their Value Logics?
o Traditional Non-profit (Value Creation)
o Non profit with income generating activities (Tradeoff)
o Social Venture (Tradeoff)
o Socially Responsible Business(Tradeoff)
o Corporation Practicing Social Responsiblity (Tradeoff)
o Traditional For-profit (Value Capture)
What are the characteristics, purpose and drivers of Value Creation and Value Capture organisations?
Value Creation: Social/Public Value Creation + Social/Public Mission Driven
Value Capture: Profit Maximization and Competetive Advantage + Profit Making Driven
What are the 5 different actors and their goals and logic of action?
- Governments (Defend Public Interest + Logic: REGULATION)
- Charity (Support disadvantaged populations + Logic: GOODWILL)
- Commercial Entrepreneurship (Achieve Comp. Advantage + Logic: CONTROL)
- Social Activism (Change social system + Logic: POLITICAL ACTION)
- Social Entrepreneurship (Deliver sustainable solutions + Logic: EMPOWERMENT)
Characteristics of Commercial Focus
o Maximize economic value capture
o Achieve sustainable (market) advantage
o Make enterprise indispensable
o Logic of control: dominate the market, reduce competition
o Logic of control: configure and manage value chains to appropriate the value created
o Distribute profits to owners, investors
Characteristics of Social Entrepreneurship
o Create social / environmental value
o Achieve sustainable solutions
o Make enterprise redundant / dispensable
o Logic of empowerment: beneficiaries, users, partners become a part of the solution
o Logic of empowerment: encourage competition,
design, replicate and scale the solution to create
more social value
o Reinvest profits in the enterprise mission
RotterZwam Case
RotterZwam operates a circular-economy enterprise that upcycles spent coffee grounds into a mushroom-growing substrate
What is the PCDO Model (Austin et al, 2006)
Provides insights into four interdependent and dynamic critical considerations for
commercial entrepreneurship:
- People
- Context
- Deal
- Opportunity
Describe each; P,C,D,O
People (Resources)
- Internal/External
- Skills, attitudes, knowledge contribute to success}
Context
- External factors affecting opportunities outcome
- Macroeconomy, regulations, tech, tax
- Not under control
Deal
- Exchange of value
- Who gives, gets, what and when
Opportunity
- Path to desired state
- Requiring investments and resource in hope of returners
PCDO in context of Social and Commercial Entrepreneurship (People)
Social
- Human and financial resources critical to success (Trust is key)
- Resource and business
model constraints, less
flexibility
Commerical
- Human and financial resources critical to success (Trust is key)
- Have good access to finance,
venture capital / equity deals, can
offer higher rewards and
incentives
PCDO in context of Social and Commercial Entrepreneurship (Context)
Social
- Macroeconomy, the tax and
regulatory, and the socio-political environment.
- SEs may pursue opportunities
“because of an inhospitable context”
Commerical
- Macroeconomy, the tax and
regulatory, and the socio-political environment.
PCDO in context of Social and Commercial Entrepreneurship (Deal)
Social
- Generate ROI
against the received resources
- Differences in value exchanges (kind of consumer, timing, flexibility, and
measurability)
Commerical
- Generate ROI
against the received resources
PCDO in context of Social and Commercial Entrepreneurship (Opportunity)
Social
- Investment of scarce resources in pursuit of future returns
- Unmet needs and market
failure (Social Returns)
Commercial
- Investment of scarce resources in pursuit of future returns
- Breakthroughs and new needs
(Economic Returns)
Social Value Preposition (SVP) structure (where is it and what does it consist)?
SVP Central
to
Opportunities
People
Capital
in
Organizational bounderies
