Lecture 7 Flashcards
(25 cards)
What does ‘scaling impact’ mean in social entrepreneurship?
Expanding the reach, depth, or effectiveness of a social enterprise’s positive outcomes.
What are two core types of impact scaling?
1) Scaling up: delivering more benefits to the same group (quantitative). 2) Scaling out: reaching new groups or issues (qualitative).
Why is growth more complex for social enterprises than commercial ventures?
They must balance dual goals: financial sustainability and social impact, often facing conflicting stakeholder expectations.
Why do commercial ventures typically scale?
To increase profits, gain market share, reduce costs, meet demand, and create shareholder value.
What challenges do social enterprises face in scaling that commercial ones do not?
Need to prove impact, align values across partners, and secure non-traditional funding while maintaining mission integrity.
What are value-based barriers to scaling social enterprises?
Ethical value misalignment, rejection of profit-driven strategies, and fairness requirements in partnerships.
What are business model barriers to scaling social enterprises?
Difficulty attracting commercial or impact investors, low employee compensation, supply chain risks to authenticity.
What are institutional barriers to scaling social enterprises?
Lack of consumer awareness, cultural resistance, investor unfamiliarity with hybrid models, traditional risk aversion.
How can social enterprises overcome value-based barriers?
Develop value-aligned partnerships and contracts that reflect shared mission values.
What funding strategies help overcome financial barriers?
Leverage social mission to attract impact investors and social finance providers.
How can social enterprises build broader awareness and legitimacy?
Engage local communities, influence institutional norms, and launch education campaigns.
What are strategic approaches to scaling impact?
1) Grow organization size, 2) Partner multiplication, 3) Horizontal integration, 4) Human capital development, 5) Diversification.
What are alternative methods of scaling besides direct growth?
1) Social franchising, 2) Knowledge-sharing, 3) Lobbying, 4) Public campaigns.
What is ‘social franchising’?
Replication of a successful business model across locations by empowering new partners with tools, knowledge, and branding.
What trade-off challenge do social entrepreneurs face when scaling?
Balancing financial growth with social mission – may need to prioritize one over the other.
What does the HBR study suggest about prioritizing financial goals?
Social enterprises that prioritize financial sustainability often achieve greater impact at scale.
What are key elements influencing a social enterprise’s ability to scale?
Mission clarity, business model design, founder mindset, partner alignment, and institutional understanding of SEs.
What does ‘coordination complexity’ refer to in SEE scaling?
Increased difficulty managing operations, data, supply chains, and stakeholder relationships as the organization grows.
Why are regulations a challenge for scaling?
SEE models may not fit standard legal or institutional categories, and compliance across jurisdictions adds friction to expansion.
Why is human capital a constraint in SEE scaling?
Lower compensation and high demands deter talent, leading to difficulties in attracting and retaining skilled professionals.
How can aligning values with partners reduce growth friction?
It ensures mutual understanding, reduces conflict, and increases trust across funding and operational relationships.
Why is performance measurement essential in scaling?
Demonstrating credible and measurable impact is vital to attract impact-oriented funders and validate the mission’s effectiveness.
What role does anchoring in local communities play in scaling?
It builds trust, enhances legitimacy, and facilitates cultural alignment, improving acceptance and effectiveness.
What psychological factors may limit scaling intentions?
Founders may prefer stability or fear mission drift; their skills and networks may also limit ambition or execution capacity.
