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“PRACADEMIC” SOCIAL ENTREPRENEURSHIP AND A SUSTAINABLE WORLD
AuthorsMichael Caslin IIICEO, Global Center for Social Entrepreneurship Network (GCSEN)[email protected] Mary Kate Naatus, Ph.D.Associate Professor, Department ChairDepartment of Business AdministrationSaint Peter’s University, [email protected] 201-761-6393
Len GreenFeatured Lecturer, Adjunct Faculty MemberMember, Board of Directors Babson [email protected]
Joseph J SzocikManaging Director Research andInnovation, [email protected]
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INTRODUCTION
Our paper describes the Global Center for Social Entrepreneurship Network (GCSEN) Foundation’s pracademic
social entrepreneurship methodology and its contribution to developing a sustainable world.
Michael Caslin, Professor Caz to his students, founder and CEO of GCSEN, developed the fundamentals of the
“pracademic” methodology over four decades of teaching, at leading Universities around the world, and
managing the growth of the Network for Teaching Entrepreneurship (NFTE) to reach 600,000 low income
youth in 31 states and 14 countries.
In 2016 GCSEN collaborated with faculty from Saint Peter’s University, Wheaton College, and Babson College
on a paper describing a pracademic Four (4) Stage Social Entrepreneurship model. The model guides Social
Entrepreneurs (SEs) to organize a social enterprise capable of “scaling up” positive impact to Transformative
Scale. Each stage focuses on stage specific tasks, and challenges facing the SE with respect to both Impact
Design e.g., social, environmental, economic problems, solutions, metrics, scaling strategy, and Impact
Organization e.g., continuous improvement of operational excellence. The paper was presented to a global
audience at the 13th Annual Social Entrepreneurship Conference hosted by USC’s Marshall Business School
The pracademic methodology is a unique combination of practitioner focus, instruction in practical skills,
internships on real world projects, and rigorous academic education. The methodology guides and prepares SEs
to achieve positive impact and transformative scale to ameliorate or solve society’s most pressing problems.
Positive impact can spread the growth of something good, or stop the spread of something bad. Transformative
scale addresses the “root cause” of social problems to affect system/cultural change that closes the gap between
real world conditions of a problem and the ideal conditions resulting in social benefits such as increased
equality, social justice, quality of life, etc., forces shaping the on-going evolution of a sustainable world.
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Section 1 presents a brief overview of challenges related to scaling social impact and key tasks, concepts, tools and
principles from the extensive and rapidly growing lingua franca of the discipline of social entrepreneurship related to
developing a social enterprise.
Section 2 describes a Four Stage Model for developing a social enterprise capable of sustaining the effort required to
deliver positive impact at increasing magnitudes of social complexity over what is likely to be a multi-year time
frame.
Section 3 describes some of the Educational Implications of the Model for meeting the life –long learning needs of
members of the Social entrepreneurship discipline, e.g., students, practitioners, faculty; briefly reviews how the
pracademic methodology assists in achieving outcomes related to sustainability e.g sustainable operations, business
strategy, social justice, etc.; and a brief preview of the GCSEN’s planned SES Institute and seven (7) Certification
Levels of the pracademic methodology.
ARTICLE
Entrepreneurs have a long history of being praised. However in the hyper attention spotlight of today’s social
media the volume of accolades directed to SEs requires balancing attention with preparation as addressed
by Daniela Papi-Thornton’s article, “Tackling Heropreneurship: Why we need to move from “social
entrepreneur” to social impact”, in the Stanford Social Innovation Review (SSIR) in February 2016, “Step
aside, Superman, there’s a new kind of superhero in town. We’ve entered an era of heropreneurship (sic),
where reverence for the heroic social entrepreneur has led countless people to pursue a career path that
promises opportunities to save the world, gain social status, and earn money, all at the same time.”1
The author went on to express the following concerns related to the “reverence for the heroic social
entrepreneur”, “In this “everyone an entrepreneur” era, hack-a-thons, accelerators, business incubators, and
social entrepreneurship training courses are around every corner. They mostly focus on training people with
the skills they need to start a social business, neglecting the many other skills required to fully understand a
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problem and fuel social change…….To really change a system, I believe people need a more holistic set of
skills, including systems thinking, an understanding of collaboration tools to further collective impact, and
lateral leadership skills such as the ability to lead without power and to galvanize movement toward a common
goal across a diverse and disjointed solutions ecosystem.”
Our paper addresses the concerns raised by the author regarding the skills and tools social entrepreneurs require
“to really understand a problem and fuel social change”, in a Four Stage Model covering the following:
Identifying critical tools, concepts, principles and methodologies available to social entrepreneurs from
the discipline of social entrepreneurship
Demonstrating how social entrepreneurs can utilize these skills and tools to develop, continually
improve, and sustain a social enterprise that delivers social impact
Describing how the social entrepreneur can develop a scaling strategy to scale-up social impact utilizing
collaboration, systems thinking, collective impact and related social organizational methodologies
Describing how Saint Peter’s University, Wheaton College, and GCSEN will collaborate to deliver on-
going education to social entrepreneurs through customized classes featuring blended learning.
While recognizing the role of the social entrepreneur as a catalyst for change, our emphasis will be on what the
social entrepreneur must do to develop a social enterprise as the essential vehicle for delivering social impact.
The critical role of the social enterprise reflects fundamental realities of the social world, “Man’s self-production, is
always and of necessity a social enterprise. Men together produce a human environment with the totality of its socio-
cultural and psychological formations…just as it is impossible for man to develop , as man, in isolation so it is
impossible for man in isolation to produce a human environment.”2
Section 1: Scaling and Social Enterprise Development
As a context for Section 2 we will briefly discuss both Scaling and developing a social enterprise. Both topics
will be covered in greater detail in Section 2. The Bridge Span Group’s identifying “Taking what works to
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transformative scale will be the defining challenge of the social sector in the coming decade.”3 has been widely
credited in placing scaling impact to transformative scale on every SEs agenda.
When SEs discuss “Scaling Up Impact”, relative to their targeted problem, how do they know their innovative
solution has achieved its intended result? Duke Professor Paul Bloom offers the following definition, “Scaling
social impact…the process of closing the gap between the real and ideal conditions as they pertain to particular
social needs or problems.”4 It is widely recognized that reaching scale on this level requires innovative
approaches “nonprofit leaders and philanthropists are searching for ways to scale impact beyond adding sites”.
Put simply, the question now is “How can we get 100x the impact with only a 2x change in the size of the
organization?”5 NESTA, the UKs Innovation Foundation, proposes that SEs adopt a scaling strategy to meet the
goal “a scaling strategy involves establishing why, what and how you’re going to scale.”6
The McConnell Foundation’s7 research on scaling impact provides SEs with initial guidance to implementing a
scaling strategy (see Figure 1 and Table 1).
FIGURE 1
TABLE 1
DESCRIPTION MAIN STRATEGIESScaling Out Impacting greater numbers.Based on the recognition that many good ideas or
Deliberate replication:Replicating or spreading programs
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initiatives never spread or achieve widespread impact geographically and to greater numbersSpreading principles:Disseminate principles, with adaptation to new contexts via cogeneration of knowledge
Scaling Up: Impacting law and policyBased on the recognition that the roots of social problems transcend particular places, and innovative approaches must be codified in law, policy and institutions
Policy or legal change efforts:New policy development, partnering, advocacy to advance legal change and redirectinstitutional resources.
Scaling Deep: Impacting cultural roots.Based on the recognition that culture plays a powerful role in shifting problem domains, and change must be deeply rooted in people, relationships, communities and cultures.
Spreading big cultural ideas andusing stories to shift norms and beliefsInvesting in transformative learning and communities of practice
Crosscutting strategies For scaling:Cross-cutting strategies were those approaches all participants reported using to scale their initiatives, and were not specifically associated with scaling out, up, or deep.
Making scale a conscious choiceAnalyzing root causes and clarifying purposeBuilding networks and partnershipsSeeking new resourcesCommitment to evaluation
Having developed their scaling strategy the SE then faces the challenges of building their social enterprise to deliver
their social impact.
Table 2, page 9, was developed by GCSEN, to assist SEs to undertake critical tasks required to organize a social
enterprise. Table 2 includes eighty-two (82) of these key concepts, tools, etc., numbered, and correlated with a key
aspect of developing a social enterprise. The Table is intended to provide social entrepreneurs with a guide for
organizing their work and researching helpful information.
The material in Table 2 was selected from the lingua franca of the social entrepreneurship discipline. As noted by
Professor Jay Rao9 all professional disciplines have their own lingua franca of tools, concepts, principles, etc.
In Section 2, due to space limitations, we will be restricted to reviewing a small sample of the tools and concepts
summarized in the Table’s seven Columns. Also due to space limitations, material from Table 2, presented in Section
2, will not follow the order in which material was originally presented in Table 2.
Column 1 (C1):Tools and methodologies to clarify the SEs passion aka personal “Why”, and the related purpose
aka “Why/Mission ” of their social enterprise
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Column 2: Tools and methodologies to define their target problem, identify value add solutions, select initial
indicators and metrics
Column 3: Tools and methodologies to organize their enterprise to deliver impact effectively, efficiently, and by
continuously improving operational excellence.
Column 4: Tools and methodologies to scale up impact to reach transformative scale as determined by mission,
co-system dynamics and the enterprise’s ability to engage in systems thinking, collaboration and collective
impact.
Column 5: Organizing to scale up social impact through four stages of progressive development.
Columns 6 &7: Differentiate between Wicked and Tame Problems and their unique solutions e.g., linear solutions
that may work to solve Tame Problems will not work on Wicked Problems8.
Table 2 is NOT intended to be a rigid step-by –step formula for organizing a social enterprise or an all-inclusive
methodology. Our students are encouraged to combine the material with their experience, and lessons learned
from adversity, to create their unique social enterprise, much as Montaigne’s “Bees” turn their “pilfrings’ into
something new and valuable.
“The bees steal from this flower and that, but afterwards turn their pilferings into honey, which is their own; it
is thyme and marjoram no longer. So the pupil will transform and fuse together the passages that he borrows
from others, to make of them something entirely his own; that is to say, his own judgement. His education, his
labour, and his study have no other aim but to form this.”10
We fully expect SEs will use the material in Table 2 along with the robust literature and research of the SE
discipline and transform it, to develop a unique social enterprise with the capacity to successfully carry out their
dual role as a skilled change agent and as a skilled entrepreneur.
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The SE’s role as change agent encompasses tasks related to collaboration, community organizing, collective
impact, lobbying for changing laws and regulations, systems change, etc. The role of SE as change agent could
grow even more complex as a result of the Flow Project’s persuasively making the case for “radical social
entrepreneurs”. “Social entrepreneurs have innovated within paradigms — radical social entrepreneurs must
shift the paradigms themselves.”11 (Original Emphasis)
The SEs role as entrepreneur encompasses the tasks related to developing an enterprise that continually
improves the operational excellence of all departments and processes to increase efficiency and effectiveness.
Research on social impact has highlighted the value of regularly improving organizational effectiveness to
increase impact. “Most of the value that established social sector organizations create comes from their core,
routine activities perfected over time. Efficiently producing and providing standard products and services
creates tremendous value, particularly in places with widespread poverty……. For organizations that have
found a working model in a particular context, efforts toward predictable, incremental improvements—
exploiting what an organization knows how to do well, rather than developing innovations, exploring new
activities, or creating new knowledge—may generate superior outcomes over time”12
The four stage model, described in Section 2, provides the SE with a flexible framework for undertaking both
roles. The need to simultaneously perform both roles was concisely identified by F.M. Santos, “For social
entrepreneurs the central unit of analysis is the sustainable solution and its underlying business model.”13
Customized education, tailored to the needs of SEs managing an evolving social enterprise, will provide SEs
with opportunities to update workforce skills and continuously improve operational excellence.
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Table 2 GCSEN :LINGUA FRANCA SOCIAL ENTREPRENEUR DISCIPLINE: A PRIMER FOR HIGH IMPACT SOCIAL ENTREPRENEURS (HISE)-82 Concepts, tools, principles
C1 DEFINE YOUR WHY:PERSONAL,& BUSINESSMAKE MEANING1
MAKE MONEY2
C2 WHATIMPACT DESIGN:ID PROBLEM14 & TBLI15
SOLUTIONS & METRICS
C3 HOWIMPACT
ORGANIZATION:DELIVER SOLUTIONS
C4 TRANSFORMATIVE SCALE 51 SOLVE SOCIETY’S MOSTPRESSING PROBLEMS
C5 STRATEGY FORSCALING UP IMPACT
4 STAGES (GCSEN)67
C6 TAME PROBLEMS 75 SERIOUS, COMPLEX –NOT AS COMPLEX AS WICKED
C7 WICKED PROB.s 69 SOCIALLY COMPLEX,e.g., RACISM, POVERTY, CLIMATE CHANGE, WAR
LIFE MAP3
WHY:Personal, PASSION4
SOCIAL ENTREPRENEUR SKILLED ASCHANGE AGENT16
SOCIAL ENTREPRENEUR SKILLED AS ENTREPRENEUR37
SYSTEMS THINKING 52 *MENTAL MODELS53
1-Start Up: Planning,1A Impact DesignDefine targeted problemsID potential value adding solutions1B Impact Org. : Deliver ImpactCulture: Innovation &ContinuousImprovement
Has a well-defined and stable problem statement;• Has a definite stopping point, i.e., when the solution is reached;• Has a solution that can be objectively evaluated as right or wrong;• Belongs to a similar class of problems that are all solved in the same similar way;• Has solutions that can be easily tried and abandoned;• Comes with a limited set of alternative solutions.”1 ST GEN.SOLUTION 76 LINEAR SOLUTION77, WATERFALL MODEL78
1 Understand problem2 Gather information to understand the context3 Analyze information4 Generate solutions5 Assess solutions and choose the best one6 Implement the chosen solution7 Test8 Modify the solution, repeat if necessary,
N.B. COMMUNICATIONS STRATEGY IS CRITICAL
*The problem is linked to other problems;• Problem is unique;There are different (perhaps incommensurable) views of the problem and contradictory solutions;• There is a lack of information about current state of affairs;• There are cultural, economic and other constraints on any solution;• There are numerous possible intervention points;• Considerable riskuncertainty, ambiguity • The problem is not “solvable” (e.g. there is no technical solution or no one person or group who can solve it).NOT SOLVABLE BY LINEAR 1st GEN SOLUTIONS70 WICKED PROBLEMSNEED 2ND GEN. SYSTEMS SOLUTIONS71 e.g.,Agile Development 72 Sprints73 Scrum Cards74
N.B. COMMUNICATIONS STRATEGY IS CRITICAL
GOLDEN CIRCLE5
WHY, HOW, WHAT: Enterprise, PURPOSE6
THEORY OF CHANGE17
PAM 4 (GCSEN)79
PERFORMANCE MANAGEMENT SYSTEM38
SYSTEMS ANALYSIS 54 *SYSTEM DYNAMIICS/MAPPING55
HEDGEHOG CONCEPT7
-Integrate Personal and EnterprisePassion +Purpose
MAP ECO-SYSTEM 18
ECO-SYSTEMSOLUTIONS MAP80
(GCSEN)
LEAN START-UP 39 CULTURE OFCONTINUOUSIMPROVEMENT40
-Plan, Do, Check, Act(P-D-C-A) Cycle
SYSTEMS SOLUTIONS 56 * MODELLING e.g.,Artificial Intelligence57
-Deep Mind58
-IBM Watson59
ENTERPRISE MISSION 8 8 WORDS OR LESS1ST A VERB
IMPACT VALUE CHAIN19 COLLECTIVE IMPACT 60 *5 ELEMENTS NEEDED FOR SUCESS61
2- Initial Impact2A Impact DesignInitial impact/Proof of conceptRefine Design2B Impact OrganizationLean: P-D-C-A Improve Operational Excellence68:
KEY ENTERPRISE ASSUMPTIONS 9 Why would anyone want to work for you?
Why would anyone want you as their neighbor?
Why would anyone want to buy from you?
Why would anyone want to invest in you?
LOGIC MODEL20 SHINGO PRIZE42
-Assess Efficiency
B-CORP ASSESSMENT43
-Assess Impact
COLLABORATION62
PROBLEM DRIVEN ITERATIVE ADAPTATION (PDIA))21
SE BUSINESS CANVAS MODEL (GCSEN)81
4 ORGANIZATIONAL STRATEGIES 63 5 FIELD BUILDING STRATEGIES 64 (BRIDGESPAN GROUP)65
METRICS 22 *OUTCOMES23
*IMPACT24
*LEGACY25
METRICS*RESOURCES44
*INPUTS45
*OUTPUTS46
2 nd GEN. SOLUTIONS 66 1 Consult eco-system residents not experts2 People resist forced solutions3 Planning is based more on morals, ethics4 Planning is political5 Communicating is key6.Challenging is a virtue7.Planning process is argumentative8 Trade-off is good/badnot right/wrong9 Problems may never be solved , only re-solved
3 Scale up Impact3A Impact DesignID Collective Impact,CollaborationOpportunities3B Impact OrganizationLean PDCA-Reduce cost, waste, errorsIncrease Impact
HUMAN CENTERED DESIGN26
www.IDEO.com27OPEN BOOK MANAGEMENT47
ROOT CAUSE ANALYSIS28 PERFORMANCE DASHBOARD48
BUILD YOUR TEAM 10 *”A” LEVEL PLAYERS HIRE A+ PLAYERS (Hire up)11
* COMPEMENTARY SKILL SETS12
* HIRE STAFF WHO CHALLENGE YOU-AVOID GROUPTHINK13
CUSTOMER DEVELOPMENT29
4 STEPS TO EPIPHANY30BUSINESS PLAN49
GO FORWARD PLAN(GCSEN)82
4-Transformative Scale (TS) 4A Impact Design TS initiativesSystem Change, etc.4B Impact OrganizationLean PDCA-Reduce cost, waste, errorsIncrease Impact
QUALITATIVE EVAL. 31 *RUBRICS32
BALANCED SCORECARD50
MEASURE, EVALUATE IMPACT 33 Impact Reporting & Investment Standards,IRIS34
Social Return on Investment (SROI)35
Global Impact Investing Rating System (GIIRS)36
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Section 2: Four Stage Model for Developing a Social Enterprise
“A social enterprise is an organization or initiative that marries the social mission of a non-profit or
government program with the market-driven approach of a business.”14
Our Four Stage model includes features from the Skoll Centre’s overview on Social Innovation.15. Skoll’s
approach is consistent with the author’s experience and research on social entrepreneurship and social
enterprises and provides a valuable framework for organizing our recommendations.
Stage 1-Start-Up
Stage 2-Initial Impact, Proof of Concept
Stage 3-Scaling Impact
Stage 4- Transformative Scale
Our goals for Section 2 include providing guidance to SEs in undertaking critical tasks required to start, grow,
sustain, and continuously improve the operational excellence of their social enterprise; assisting SEs to meet the
demands of life-long professional development by providing access to educational programs that assist social
entrepreneurs to develop their skills as change agents and entrepreneurs; and assisting SEs to continuously
improve and expand their organizational capacity to scale-up impact at increasing levels of organizational
complexity.
Structure-Format-Content
Structure. In each stage we will present material organized under: Impact Design e.g., Defining and Revising
Targeted Problems, Value Added Solutions, Scaling Strategy; Impact Organization e.g., Organizational
Structure and Processes supporting the delivery of positive impact.
Format. Topics followed by a number enclosed by parentheses, e.g., logic model (20) refers to items in Table
2.
Content. The confines, of a thirty page paper, restricts us to providing a minimum of information on the topics
we introduce, as well as to selectively featuring a representative sample of concepts and tools from Table 2. We
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will describe WHAT is being discussed and WHY. Additional background information can be obtained by
consulting our Sources.
STAGE 1: Start Up
The following definition of a social entrepreneur from Ashoka outlines the challenges SEs face in their role as
change agents. “Social entrepreneurs are individuals with innovative solutions to society’s most pressing
social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for
wide-scale change. Rather than leaving societal needs to the government or business sectors, social
entrepreneurs find what is not working and solve the problem by changing the system, spreading the solution,
and persuading entire societies to move in different directions.”16 (Emphasis added) “
In Stage 1 the SE has three (3) critical tasks: 1) Getting Organized: Clarifying personal passion and the related
mission of their social enterprise. 2) Impact Design A) Defining the Targeted Problem(s) B) Identifying value
adding solutions C) Selecting Indicators and Metrics, D) Scaling Strategy 3) Impact Organization Developing
an organizational structure to deliver their proposed solution (s) to their targeted problem.
Task 1: Clarifying personal passion and related enterprise mission
1.1 Life Map (3) WHAT: Helps organize key aspects of your life, e.g., activities, travel, hobbies, goals, etc. and
clarify what motivates them to take action. WHY: Every Social enterprise has its beginning with an idea
that motivates the social entrepreneur and influences the Mission of their social enterprise
1.2 The Golden Circle (5) What: The Golden Circle17 shifts the focus from the social entrepreneur’s motivation
to the core purpose i.e., the why of the social enterprise. WHY:: Sinek’s book, Start With Why, points out
that clearly defining the Why (core belief) of your enterprise, then the How and the What, confers
competitive advantage.
1.3 The Hedgehog Concept (7) WHAT: The Hedgehog Concept18,Figure 2, integrates the personal passion of
the social entrepreneur with the social enterprise’s defining mission and programs. (Figure 2). WHY:
Assists the Social Entrepreneur to align personal passion with the purpose of the enterprise.
FIGURE 2
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Task 2 Impact Design: Define Problem(s),
2.1 Define the Problem Your Social Enterprise will address
2.1-1 Eco-System Member Solution (ESMS) Map {18} (Figure 3) WHAT: The ESMS assists the SE to
correlate key information from eco-system members regarding the range of solutions on which members are
already engaged. WHY: By developing the ESMS the SE can fine tune their own solution (s) to insure that A)
they add value to solving the targeted problem and B) potential future collaborators are identified.
FIGURE 3
2.2-3 Theory of Change (ToC) [17] {Figure 4} WHAT: Theory of Change is essentially a comprehensive
description and illustration of how and why a desired change is expected to happen in a particular context. It is
focused in particular on mapping out or “filling in” what has been described as the “missing middle” between
what a program or change initiative does (its activities or interventions) and how these lead to desired goals
being achieve”.20 WHY: The ToC requires the SE and their colleagues to think through assumptions related to 12
their project. It also provides a valuable visual aid on the project to stakeholders, colleagues and member of the
public whose support may be needed for implementation. Figure 6 is GCSEN’s ToC.
FIGURE 4
2.3 Impact Design: Identifying Solutions. Select Indicators, Metrics, Scaling Strategy
2.3-1 Key Performance Indicators (KPI), Metrics (21 & 22) WHAT: “A key performance indicator (KPI) is
a business metric used to evaluate factors that are crucial to the success of an organization.”21 WHY: Its well
known that you can’t improve what you can’t measure. KPIs and associated Metrics provide the social
enterprise with the means to monitor and evaluate the effectiveness of their positive impact solution. A simple
example illustrates the methodology:
13
Targeted Problem—“Greening” the Community Energy Supply
Sample Indicator—% of community energy from solar
Metrics
• Sample Baseline score—current % of KWH from solar =3%
• Sample Goal—Increase % of KWH from solar from 3% to 7% in 5 years
Your action plan describes your activities to reach the goal
2.3-2 Root Cause Analysis (28) {Figure 5}WHAT: “A root cause is the deepest cause in a causal chain that
can be resolved. A root cause is that portion of a system that, at the fundamental level, explains why the
system’s natural behavior produces the problem symptoms rather than some other behavior.”22 WHY:
identifying the Root Cause of a problem often leads to an effective, timely solution.
FIGURE 5
2.3-3 Impact Value Chain (19) {Figure 6} WHAT: “The impact value chain traditionally starts with input-
level data and progresses to activity, output, outcome, and impact-level data. Evidence of the extent to which an
investment has made a meaningful difference increases moving to the right on the spectrum.”23 The Impact
Value Chain provides a valuable visual aid to the enterprise and related stakeholders on the actual impact
delivered by the enterprise solution. It also provides the enterprise with a tool to monitor and evaluate ROI of
resources14
FIGURE 6
2.3-4 Scaling Strategy: Initial Formation
Decisions on when and how to scale up impact, in Stages 2,3,4, will depend on variables such as he enterprise’s
mission, problem definition, solutions, indicators and metrics, the current state of both eco-system dynamics
the larger environment e.g., politics, economy, etc.; the enterprise’s operational capabilities given its state of
organizational maturity; and classifying the targeted problem as Wicked or Tame (Table 2, C 6, C 7) is a critical
task in Stage 1 as that determines the future solution strategy as illustrated by Root Cause Analysis and Systems
Thinking.
Key Takeaways Impact Design (ID) This section demonstrates how the SE could draw on some of the tools in
Table 2 to 1) Define their targeted problem, 2, Identify value added solution(s) 3, Select key indicators and
metrics to evaluate solution (s) 4) Develop a scaling strategy in Stages 2,3,4.It further demonstrates that the SE
has additional tools and resources they can draw on from Table 2.
2.4 Impact Organization: Organizing the Social Enterprise to Deliver Social Impact
2.4-1 Lean StartUp (38) WHAT: “The Lean Startup offers entrepreneurs—in companies of all sizes—a way to
test their vision continuously, to adapt and adjust before it's too late. Ries provides a scientific approach to
creating and managing successful startups in an age when companies need to innovate more than ever.24”
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WHY: The SE in their role as skilled entrepreneur has the challenge of marrying the social mission of a non-
profit or government program with the market-driven approach of a business. In order to deliver social impact
the social enterprise must be operated effectively, efficiently and ideally generate revenue to at least cover
replacement of resources. The lean startup methodology provides the SE with an approach to deliver impact in
an efficient, cost-effective fashion.
2.4-2 Performance Management System: Managing Outcomes (37) {Figure 7} WHAT: The Framework for
Managing to Outcomes provides managers/leaders with a guide to “create a world-class performance-
management system.”25 WHY: The SE cannot improve what they cannot measure. The Framework provide the
SE with a guide to organize the collection, measurement, reporting and evaluation of the positive impact they
are delivering.
FIGURE 7
2.4-3 Balanced Scorecard (49) {Figure 8} WHAT:“The balanced scorecard is a strategic planning and
management system that is used extensively in business and industry, government, and nonprofit organizations
worldwide to align business activities to the vision and strategy of the organization, improve internal and
external communications, and monitor organization performance against strategic goal.”26 WHY: Managing
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the social enterprise in accordance with the four perspectives of the balanced score card assists the enterprise to
deliver social impact in a manner that is both ethical, efficient, and meets customer expectations.
FIGURE 8
2.4-4 Open Book Management (46) WHAT: “Open-book management is generally accepted to include the
following components:1)Sharing the income statement and balance sheet with most employees; 2) Sharing
other data with employees 3)Encouraging employees to use the information in their daily work; 4)Training
employees to understand financial numbers; and 5)Sharing the financial results through a gainsharing
program.”27 WHY: OBM assists the social enterprise to develop a culture that treats their employees in an
equitable manner and assists the enterprise to sustain its operations for the long term: 36% of fast growing firms
practice OBM; as do 22% of “slow growth firms”; and 8% of “no growth firms”.
2.4-5 Business Plan (48) WHAT: “A business plan is a document demonstrating the feasibility of a prospective
new business and providing a roadmap for its first several years of operation.” (whatis.techtarget.com). The
Business plan, along with the Theory of Change, provides the SE with an initial guide for planning the
organization of the social enterprise, including financing, staffing, facility management, cash flow and all other
operational processes e.g., human resources, payroll, etc. WHY: Assist the SE to think through and organize all
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the nitty gritty details in starting up an enterprise operating with market driven discipline while also providing
the foundation for applying for financing.
2.4-5 Independent Assessments of Operational Excellence and Impact Delivery. WHAT: A critical aspect
of lean startup is continuous improvement of operational processes. Organizations can apply for the Shingo
Prize28 and receive an independent evaluation on their level of operational excellence. Organization can also
receive an independent assessment on how well they are delivering social impact from the B-Corp29 and by
Balle’s Quick Impact Assessment.30 WHY: These independent assessments provide SEs, staff, Board, and
stakeholders with affordable, high quality, complementary performance evaluations on both efficiency
(operations) and effectiveness (impact). Periodic performance evaluations can, if properly executed, provide a
foundation for developing a sustainable business model that supports delivery of positive impact at scale.
Figure 10 illustrates how a SE can organize the tools and methodologies described above to form a social
enterprise.
FIGURE 10
Key Takeaways from Impact Organization (IO): 1) The IO must be able to sustain forming, updating, and
delivering the enterprise’s solution. 2) The IO must also be able to support the IO’s underlying business model
i.e., a financially viable enterprise, for as noted in GCSEN’s definition of a SE, the SE’s goal is a blended value
solution that combines delivering social and environmental benefits with generating income, “A Social
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Entrepreneur is an Entrepreneur with acts with purpose for People, Profit and Planet to Make Meaning and
Make Money !” (GCSEN)
STAGES 2, 3, 4,
In stages, 2, 3, 4. SEs have the challenge to continuously improve and increase the capacity of both their
sustainable solution and underlying business model. Our model presents five (5) key activities that can be
customized by SEs in each stage to meet their unique requirements. We anticipate additional developmental
activities will be added from the SEs experience and from the evolving discipline of social entrepreneurship.
STAGE 2- Deliver Initial Impact
2A Impact Design
1. Enterprise Impact Evaluation: A) Report on Impact Metrics, Actual vs Goal(s); B) Identify errors &
make improvements.
2. Update Eco-System Solution Map EMS: A) Produce Version 2; B) Review current solutions from eco-
system members C) Identify potential for collaborating to grow Impact.
3. Potential Scaling Strategy
Increase enterprise impact from operational improvement
Consider copying a proven program or innovations
Explore joining existing collaborations on service delivery, public advocacy, etc.
collaboration is particularly critical if targeted problem is a Wicked problem
2B Impact Organization
4. Strenghten Communications Strategy utilizing cutting edge social media tools, and methods to
mobilize support from your eco-system while building political support with the public. The
“heropreneur” especially may benefit by learning from past failures in economic development that, “The
technical cleverness of the few is no substitute for the political will of the many.31”
5. Continuous Improvement Operational Excellence-Grow Impact
Lean: Plan- Do-Check-Act (PDCA)-See Figure 11
19
Improve Operational Efficiency: Reduce cost, waste, errors
Improve Operational Effectiveness: Increase Impact
Consider applying for the Shingo prize
Consider B-CORP Impact Assessment or Balle Quick Impact Assessment
Increasing impact, e.g. more/new programs, more staff
Update skills of workforce, e.g., Human Centered Design, etc
Add new operational capacities, e.g. Big Data Analytics, etc.
Increase revenue from cost cutting and increased efficiency
Explore new revenue streams
FIGURE 11
STAGE 3 Scale up Impact
3A Impact Design
1. Impact Evaluation: A) Report on Impact Metrics, Actual vs Goal(s); B) Identify errors & make
improvements.
20
2. Update Eco-System Solution Map EMS: A) Produce Version 3; B) Review current solutions from
eco-system members C) Identify potential for collaborating to grow impact.
3. Potential Scaling Strategy
Consider expanding and/or improving scaling strategies from Stage 2
Consider joining or initiating Collective Impact32 opportunities e.g.,
Consider 9 Strategies Scale what works: Four Organizational Pathways, 5 Field Building Pathways3
Form/Join Communities of Practice33 (CoPs)
3B Impact Organization
4. Improve and Expand Communications Strategy A) Upgrade technology B) Invest in workforce
training C) Collaborate with stakeholders on communications
5. Continuous Improvement Operational Excellence-Grow Impact
Lean: Plan- Do-Check-Act (PDCA)-See Figure 13
Improve Operational Efficiency: Reduce cost, waste, errors
Improve Operational Effectiveness: Increase Impact
Consider applying for the Shingo prize
Consider B-CORP Impact Assessment or Balle Quick Impact Assessment
Increasing impact, e.g. more/new programs, more staff
Update skills of workforce, Negotiation, etc.
Add new operational capacities,, Customer Development, etc.
Increase revenue from cost cutting and increased efficiency
Explore new revenue streams
Stage 4-Transformative Scale (TS)
4A Impact Design
1. Impact Evaluation: A) Report on Impact Metrics, Actual vs Goal(s); B) Identify errors & make
improvements.
21
2. Update Eco-System Solution Map EMS: A) Produce Version 4; B) Review current solutions from
eco-system members C) Identify potential for collaborating to grow impact.
3. Potential Scaling Strategy
Consider expanding and/or improving scaling strategies from Stages 2, 3
Consider joining or initiating Social Movements34,35,36 focused on large scale system, culture change aka
“scaling deep”
Consider joining or initiating 2nd Generation Systems37 solution efforts to address a Wicked problem
4B Impact Organization
4. Improve and Expand Communications Strategy A) Upgrade technology B) Invest in workforce
training C) Collaborate with stakeholders on communications
5. Continuous Improvement Operational Excellence-Grow Impact
Lean: Plan- Do-Check-Act (PDCA)-See Figure 13
Improve Operational Efficiency: Reduce cost, waste, errors
Improve Operational Effectiveness: Increase Impact
Consider applying for the Shingo prize
Consider B-CORP Impact Assessment or Balle Quick Impact Assessment
Increasing impact, e.g. more/new programs, more staff
Update skills of workforce, Collaboration, etc.
Add new operational capacities, Systems Modeling, etc.
Increase revenue from cost cutting and increased efficiency
Explore new revenue streams
SUMMARY
Our four (4) stage model is presented as “A” way, not necessarily “THE” way, or the “ONLY” way, that SEs
can organize their social enterprise to scale up impact at increasing degrees of complexity and lengthier time
22
horizons, as illustrated in Figure 12. Our fours stage model guides creating progressively higher impact at each
stage by the combination of Impact Design (ID) and Impact organization (IO).
FIGURE 12
SECTION 3: EDUCATIONAL IMPLICATIONS OF THE MODEL
This section integrates GCSEN’s 4-Stage model with higher education by applying specific pedagogical,
training and program approaches that can be used by colleges and universities to train and educate new and
experienced entrepreneurs across the continuum of stages leading to Stage 4: Transformative Scale. We include
a broad but not exhaustive set of activities and ideas that fit within each of the four stages of the model, and that
can promote the values of the model across entrepreneurship-focused courses and particularly in schools with a
comprehensive certificate, minor, major or comprehensive program in social entrepreneurship or those desiring
to build one. In addition, the authors support a community-engaged approach to the activities described in this
section, which will promote synergies and will allow students who are interested in developing entrepreneurial
skills to learn from, collaborate with, and assist entrepreneurs in the local community and gain career-relevant
experience and skills at the same time.
23
The nature of social entrepreneurship challenges social entrepreneurs to develop their tangible and
intangible business skills, holistic and interdisciplinary thinking and problem solving abilities in order to create
enterprises that achieve transformative scale. To support the needs of entrepreneurs at varying stages of
development, educational offerings should be tailored to each phase of development. The following table
(Table 3) connects the 4-stage model to course concepts, assignments, and methods. The specific assignments
and instructional format reflect the pracademic focus suggested by the authors.
Table 3: Pedagogical Approach: Start Up to Transformative Scale- 4 Stage Model
Model Stage Pracademic Framework 7-Certification levels
Specific Assignments
Stage 1: Start Up Workforce development Attracting, Training and Retaining talent
Distributed leadership Exercises on situational leadership & servant leadership
Human Centered design Emotional/Social intelligence exercise
Organizational Development Adaptation and pivoting exercise
Cash flow Cash management spreadsheet exercise for non-accounting majors
HR practices Diversity & Inclusion plan; MWOB certifications
Model Stage Pracademic Framework 7-Certification levels
Specific Assignments
Stage 2: Initiate Positive Impact
Mission and Strategic Planning Mission design exercise; Steps in Strategic Planning
Legal & Structural Frameworks for organizing
Creation of a legal plan & framework
Sales, branding, marketing Marketing planStage 3: Scale-up Impact
Ramp up Sales and Marketing Sales Pitch and CRM strategy
International opportunities Global marketing assessmentLicensing Licensing partner opportunity
assessmentStage 4: Transformative Scale
Impact Investing and accessing capital
Investor pitch and proposal
Models of social enterprise ownership for long term growth,
Strategic plan component on legal structure
Harnessing stories of impact, translating impact into brand
Communications & branding plan
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equity.
There is much debate about the effectiveness of teaching entrepreneurship in the context of the
classroom, due the experiential nature and importance of trial and error in the entrepreneurial process, which is
difficult to replicate in a classroom setting. In order for formal educational approaches to any type of
entrepreneurship education to be successful, the traditional lecture model must be radically adapted. This is one
important reason that we promote a hybrid model of teaching and learning, one that is flexible, that incorporates
technology, for the emerging “flipped” classroom, involves a high level of interaction with like-minded
individuals and experienced business-people, and one that allows for the building of social capital and a vital
network while going through the educational process. This is typically not an essential element of a college
level course, and requires social entrepreneurship faculty and program directors to go far beyond the traditional
course model and remove the boundaries of the classroom, which is true even for online courses.
In a 2015 paper that was presented at the 12th Annual Social Entrepreneurship conference, we described
a service-learning approach to enrich the teaching of entrepreneurship by partnering students with local
entrepreneurs39. We would like to take that approach much further by specifically incorporating the GSCEN
model to provide an essential toolkit for entrepreneurs, as well as structure the courses to maximize the potential
for social change, much like in Enos’ 2015 model40, which raises the importance of civic engagement e.g.,
developing local economies and sustainable communities, to a similar level as the business and
entrepreneurship content, in order to maximize collective impact through higher education social
entrepreneurship programs. Enos argues that many entrepreneurship programs focus solely on the individual
entrepreneur without emphasizing the civic engagement piece, which is a missed opportunity for universities to
positively impact their surrounding communities. In addition, as Smith, Barr, Terri, Barbosa, Saulo, Kickul
(2008) point out, the experiential and community-engaged approach to social entrepreneurship education
facilitates improvised learning and “learning by doing” on the part of the students. Since many students are not
familiar with the concept of social enterprise or social entrepreneurship before coming to these class
25
experiences, this allows for a deep connection and deep learning on the topic, as opposed to a more traditional
learning by lecture experience.
Pilot Study
GSCEN and Saint Peter’s University will pilot a hybrid model approach in teaching a Social
Entrepreneurship course at the university in the Spring 2018 semester. Specific modules will be built into the
course to help develop tangible skill sets in business, budgeting, marketing, defining social problems, and legal
areas to name a few, and in addition, we are working on adapting the traditional syllabus to focus on the
development of more intangible skillsets, such as opportunity recognition, relationship building, risk-taking,
adaptability and perseverance. At the end of the pilot semester, which will likely attract students who would
benefit most from a focus on the early stages of GSCEN’s social entrepreneurship model, a higher level course
will be offered, where students who have completed the initial concept and launch phases can further develop
their social enterprise beyond the Startup and Problem Definition stages.
GCSEN is currently working on two initiatives that have the potential to promote sustainability in Higher
Education, the SES Institute and the next generation of Pracademic methodology organized in seven (7) levels
of Certification.
The SES Institute and the expanded pracademic methodology incorporated lessons learned from our
collaboration with our Higher education colleagues
SES Institute & Pracademic Methodology: Social Entrepreneurship and Sustainability
The Social Entrepreneurship System (SES) Institute
The SES Institute is a unique and visionary collaboration of cross-disciplinary higher education faculty and
campuses dedicated to changing the world through social entrepreneurship.
Colleges and Universities joining the SES Institute will be assisted to develop a comprehensive holistic system
of social entrepreneurship including, but not limited to, classes, courses, Faculty Certifications, “apprenticing
with the problem” internships, collaborations with NPOs, community based economic development, etc.
By 2027 the SES Institute expects to achieve the following goals:
26
1. Enabling 100 academic institutions to grow their social entrepreneurship programs, from startup
to scale.
2. Certifying 100,000 social entrepreneurs, who have completed the Seven Levels of “Pracademic”
education as “Certified Meaning Makers” (CMMs)
3. Activating and supporting 10,000 social enterprises
Benefits of the Institute “system” include:
Colleges become an active resource in assisting their local/regional ecosystems to more effectively
address social, economic, and environmental challenges.
Communities organize cross community collaboration on regional issues to increase impact and lower
costs.
Increases the Critical Mass of ally campuses with effective models of SE solutions to social problems
that can be replicated globally.
Colleges and Foundations across the world can collaborate on programs that deliver systems change
that generate large scale social impact by leveraging innovative program models and technology.
The Pracademic Certificate based Methodology is the core of the SES Institute.
Benefits of the “Pracademic” Certification Methodology include:
Colleges will organize SE education in a flexible manner, over time, consistent with available
resources and student /customer demand.
Certification of Faculty on SE course material related to their existing academic expertise and life
experience.
Undergraduate Students, Community Activists and Practicing SEs can enroll in programs that best
match their need and the developmental stage of their social enterprise.
Due to space constraints we can only offer a few, limited, examples illustrating how the Pracademic
methodology of social entrepreneurship promotes sustainability.
Sustainability in Business strategy
27
In Section 1 we quoted F.M. Santos“For social entrepreneurs the central unit of analysis is the sustainable
solution and its underlying business model.”13 The combination of a sustainable solution and underlying
business model assists the SE to continually address two main dimensions of sustainability, “maintain or kept
going, an action or process and pertaining to a system that maintains its own viability by using techniques that
allow for continual reuse” (dictionaty.com)
Sustainable operations
Our model emphasizes continuous improvement of effectiveness and efficiency to cut waste, and lower costs.
Sustainability and Social Justice
Pracademic solutions feature “4P Impact”, (People, Profit, Planet, and Place). In working to achieve
transformative scale, SEs focus on closing the gap between real world conditions of a problem and the ideal
conditions resulting in eliminating or ameliorating stable but unjust social equilibriums e.g., racial
discrimination.
Social Responsibility and Business Ethics
The pracademic organizational structure includes both Open Book Management and the Balanced Scorecard to
assist all employees to operate the social enterprise in accordance with the highest standards of social
responsibility and ethics.
Sustainability in Higher Education
Colleges joining the SES Institute expect to improve their ability to attract students; increase revenue from
tuition and research grants; improve attracting SMEs as faculty and enhance their prestige as Thought Leaders
with alums, parents, and Peers.
The SES Institute conducted its second Boot Camp for Wheaton College undergraduates in May 2017;
graduated is first cohort of Certified Meaning Makers (CMM) aka the new SEs for the millennium era, signed a
letter of intent with prospective member, Notre Dame de Namur University in California, and is in discussion
with other higher education institutions considering SES membership.
28
Figure 13 provides a representative overview of the link between the “4P Impact” of pracademic social
entrepreneurship and sustainability. Countries around the globe are looking to social entrepreneurs to
complement public development programs with innovative solutions to social, environmental and economic
problems. GCSEN’s SES Institute and its’ Pracademic Methodology are designed to both prepare social
entrepreneurs to meet these challenges, and to increase the number of social entrepreneurs taking on these
challenges. SEs can also utilize the UN’s Sustainable Development Goals Framework42 along with the newly
developed system of 230 Indicators43 to identify “4P Impact” projects in every region of the globe.
FIGURE 13: United Nations Sustainable Development Goals
Conclusion
Social entrepreneurs/enterprises will evolve thru different stages of development and as their enterprises
progress to transformative scale their interest in life long education will also evolve. Connecting courses and
educational experiences to the 4-stage model can help facilitate the planning and organizing of curriculum to
support pracademic learning experiences for social entrepreneurs across their lifetime.
From a programmatic and institutional perspective, social entrepreneurship courses and programming
can provide a catalyst for creativity and innovative thinking as well as a practical method for examining and 29
acting on social issues and issues of social justice. By its’ complex holistic nature, social entrepreneurship
requires coordination with disciplines from across the curriculum e.g., business and marketing, history,
computer science, communications, and the humanities. Social entrepreneurship projects with clear outcomes
have the power to impact partners and organizations beyond the confines of the campus and engage students in
the kind of inter-disciplinary thinking and holistic learning that both empowers them and sets them apart. The
biochemistry student with a great idea for a new type of water filter that can be used in developing countries
with limited access to potable water can benefit from working with a journalism student who can produce a
brief documentary explaining the problem and proposed solution, as well as the marketing student who will
identify the market value and run a digital marketing campaign to encourage broad support and attract funders.
In this manner, the proposed social entrepreneurship courses and programs can be a catalyst for broader change
and greater impact at the university and in the surrounding community.
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