Lecture 3 Flashcards
(12 cards)
Main objective of SE?
Bring about a desired social change/impact - Basic needs of individuals, institutional needs of communities, and
needs of future generations…
What are the 2 key ways to realize social value?
Macro: SE as a change agent and/or providing social innovation
Micro: Integrating Social Value Proposition into business models and
operating strategies (micro)
What are the different ways to create social value?
- Market-only Model (Customer Value Path)
* Organization sells goods/services to customers (economic value capture) with no direct social component. - Hybrid Model (Customer-to-Beneficiary Cross-Subsidy)
* Organization generates revenue by selling to customers and uses part of those proceeds to deliver social value directly to beneficiaries. - Direct Beneficiary (Aid-Only) Model
* Organization delivers social value straight to end beneficiaries—no one pays the beneficiaries; funding comes entirely from donors/CSR/grants. - Intermediary Model (Indirect Path to Beneficiaries)
* Organization channels resources into local intermediaries (NGOs, schools, clinics), which in turn create social value for end beneficiaries. End beneficiaries still don’t pay.
What is SE influenced by?
- Influenced by personal characteristics, motivations and capabilities (Personals traits, motivation, mission, capacity)
- Goals of social impact mission (providing new benefits, institutional reforms, empowering and changing attitudes)
- Creating social value at many levels (Individual, community, national, global)
Where does social value and social change begin at? (Micro vs Macro)
Micro:
* Small-scale local problems with limited scope
* Leverage personal experience, local
expertise, and resources
Intermediate (Micro towards Macro)
* Develop new paths to deliver Social value
* Attention to institutional context
* Possibility for scalable solutions
* Leverage partnerships and corporates & CSR
Macro:
* Often large-scale issues
* Systemic problems
* Bring “revolutionary“ change
What are the 3 different typological perspectives on SE according to Zahra et al. (2009)?
Social Bricoleur: Remediation (Micro-level)
Social Constructionist: - Reform (Intermediate - Micro towards Macro)
Social Engineer: Revolution (Macro-level)
SE for poverty alleviation perspective: Remediation (cause of poverty, fix in context of entrepreneurship)
- Resource scarcity is the main cause of poverty
- Poverty is alleviated by providing access to resources
- When entrepreneurship is ‘unleashed,’ markets will flourish
Opportunity: Partnerships and provide information, training, financial capital and market access.
Remediation in context of entrepreneurial processes according to Sutter et al. (2019). (Opportunity Identification and Exploration, Entrepreneurial Growth)
- Opportunity Identification:
* Bottom-up approach to identify local needs
* Partnerships and their resources as a driver to OI
* Leverage between local and large organizations - Opportunity Exploration:
* Strong focus on financial resources as a major barrier to the poor
* Overcoming the barriers to accessing capital - Entrepreneurial Growth:
* Leveraging social networks and relationships at local level
* Standardization or products, processes, practices
SE for poverty alleviation perspective: Reform (cause of poverty, fix in context of entrepreneurship)
- Social exclusion as the main cause of poverty
- Poverty is addresses as entrepreneurship facilitates inclusion
- Often highlights the role of power imbalance
- Build alternative structures to provide products and services
addressing social needs - Opportunity exploitation can lead to the empowerment of women (may lead to power struggles: between previously privileged groups vs. newly benefited groups)
Reform in context of entrepreneurial processes according to Sutter et al. (2019). (Opportunity Identification and Exploration, Entrepreneurial Growth)
Opportunity Identification
* “Creative act” shaped by institutional settings
* Poverty alleviation by empowerment & identifying opportunities for social change
Opportunity Exploitation
* Institutional/social context to consider
* Power struggle: between previously privileged groups vs. newly benefited groups
* Requires legitimacy
Entrepreneurial Growth
* Entrepreneurs as active agents for institutional change
* Social & institutional context affect entrepreneurial growth
SE for poverty alleviation perspective: Revolution (cause of poverty, fix in context of entrepreneurship)
The most radical view and least common
* Poverty is the result of corrupt and broken systems which perpetuate the existing social order
* Poverty is addressed by introducing new means of organising society
* Critique of the capitalistic markets and evaluating growth
* Economic self-interest, efficiency, individualistic orientation
* Opportunities from offering alternative models of capitalism and
economic organization
* Poverty alleviation should result in social equality and justice, and
not replicate structures that perpetuate power imbalances
Revolution in context of entrepreneurial processes according to Sutter et al. (2019). (Opportunity Identification and Exploration, Entrepreneurial Growth)
Opportunity Identification
* Transformative opportunity for society
* Groups > Individuals
Opportunity Exploitation
* Requires vision and compassion > self-interest
* The critical role of the founder
Entrepreneurial Growth
* To ensure distributive justice
* Growth to be evaluated from empowerment and local capabilities
