Social Entrepreneurs

Entrepreneurial Incentives that Drive

Philanthropic Giving

Social Entrepreneurs Defined

field of growing interest for the new generation of technology entrepreneurs.

The title of Social Entrepreneur does not define how the donor established his or her wealth. Instead, it describes how individuals (who usually recieve financial commitments) address social challenges through entrepreneurial pursuits

Social Entrepreneurship Encompasses a range of dynamic

management strategies for pursuing optimal social and environmental impact

Harness individual and collective action through non profits and social purpose businesses, cross sectoral alliances, private, or public sector platforms

Social Entrepreneurs Defined

Funded by entrepreneurs who broke the business mold and are seeking to break the social mold

Capitalist approach to philanthropy Support entrepreneurship to drive

social good

USA TODAY, November 3, 2005Ebay founder takes lead in social entrepreneurship

Social EntrepreneursBY GIFTING

Pierce Omidyar, E-bay Founder

• Donated $100 million • Tufts University • Microfinance program

Social EntrepreneursBY CREATING A FOUNDATION

Sergey Brin and Larry Page, Google Founders

Created the Google Foundation Gifted $90 million for into the newly launched foundation

USA TODAY, November 3, 2005Ebay founder takes lead in social entrepreneurship

Professor J. Gregory Dees, Faculty Director,

Duke's Fuqua School of Business Center for the Advancement of Social Entrepreneurship (CASE)

Successful entrepreneurs not only change the pattern of production, they improve it.

We can define philanthropic entrepreneurship as the productive efforts of an individual, team, or organization that reform or revolutionize the patterns by which private resources and relationships are mobilized and deployed to effect social change.

http://www.fuqua.duke.edu/centers/case/articles/0805/corner.htm

Professor J. Gregory Dees, Faculty Director,

Duke's Fuqua School of Business Center for the Advancement of Social Entrepreneurship (CASE)

1. Introducing a new good or quality of a good

2. Utilizing a new method of

production or distributio

1. A FOUNDATION’S PROGRAM RELATED INVESTMENTS

2. VENTURE PHILANTHROPY

In The Theory of Economic Development, Schumpeter identifies five ways in which entrepreneurs create new combinations, thus reforming or

revolutionizing the pattern of production.

http://www.fuqua.duke.edu/centers/case/articles/0805/corner.htm

Professor J. Gregory Dees, Faculty Director,

Duke's Fuqua School of Business Center for the Advancement of Social Entrepreneurship (CASE)

3. Taking existing products into new markets

4. Drawing on a new source of supply

5. Creating a new form of organization or industry structure.

3. LAUNCHING COMMUNITY FOUNDATIONS

4. EMPLOYEE GIVING CAMPAIGNS

5. COMMUNITY FOUNDATIONS

http://www.fuqua.duke.edu/centers/case/articles/0805/corner.htm

TRADITIONAL SOCIAL

PHILANTHROPY VS. ENTREPRENEURSHIP

Alleviate the symptoms of problems

Make a grant to Habitat for Humanity

Eliminate the causes of problems

Make business loans to low income families

Prerequisites for being a Social Entrepreneur

Social Entrepreneurs Must understand and often alter the social system that creates

and sustains the problems in the first place To make ecosystem change more systematic, social

entrepreneurs should create a map of their ecosystem that identifies all of the players adn environmental conditions along with the relationships between them (SSIR, Winter 2008 page 49)

Frameworks for Social Entrepreneurs

Ecosystem Approach

Relationships b/w challenges and their environments

Ind’l org’n economics framework

Gaining competitive advantage

Capturing profits

Protecting against new entrants and substitute products

http://www.fuqua.duke.edu/centers/case/news/1207/Dees_Bloom_Ecosystem.html#cultivateecosystem