Social Entrepreneurship

Dr. Sherifa Fouad Sherif

Cairo University

Social Entrepreneurship

An Economist defines an entrepreneur as one who brings resources, labor, material and other assets in to combinations that make their value greater than before and also one who introduces changes, innovations and a new order.

Social Entrepreneurship

• Psychologists define an entrepreneur as a person who is typically driven by a psychological force, which create a desire to obtain or attain something.

• Sociologists define an entrepreneur as a person whose actions would determine social status & contribute to societal development.

Social Entrepreneurship

Management experts define an entrepreneur as a person who has a vision and generates an action plan to achieve it.

According to Max Weber:Innovator with unusual will and energy,

clarity of vision and ability to act.

Drucker’s Views on Entrepreneur

“Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or a different service, capable of being learned and practiced. Entrepreneurs need to search purposefully for the sources of innovation.”

General Characteristics of an Entrepreneur

• Studies have determined six general characteristics –

1. Commitment and determination

2. Leadership

3. Opportunity Obsession

4. Tolerance of Risk, ambiguity and uncertainty

5. Creativity, self-reliance and ability to adapt

6. Motivation to excel

7. Self confidence

Entrepreneurial Skills• Skills useful for an entrepreneur to possess.• Group Skills –work and learn together, task

force, project teams• Technical Skills – technological, writing,

managing, organizing.• Business management skills- Decision Making

and analytical, conceptual skills• Personal Entrepreneurial Skills- risk,

innovative, visionary, persistent, manage change

Social Entrepreneurship Social entrepreneurship is the activity of establishing new

business ventures to achieve social change. The business utilises creativity and innovation to bring social, financial, service, educational or other community benefits.

Social enterprises are not charities or welfare agencies. They are private businesses established by entrepreneurs with an emphasis on human values rather than just profit. These businesses focus on working with and enhancing the social capital within the community by encouraging participation, inclusion and utilising a bottom-up approach to achieve social change

Elements of Social Enterprise

Three core elements: Created to provide benefits for a communityCreates opportunities so people can help

themselves as well as othersUtilises sound commercial business

practices to ensure its sustainability i.e. the business will naturally uphold and encourage environmental sustainability as well as ethical considerations

Characteristics of a Social Entrepreneur

Not bound by norms or traditionsNot confined by barriers that stand in the way of

their goalsDevelop new models and pioneer new approaches

to enable them to overcome obstaclesTake innovative approaches to solve social issuesTransform communities through strategic

partnerships

Social entrepreneurs“… a path breaker with a powerful idea, who combines

visionary and real world problem-solving creativity and is ethical.”

“ ..combines street pragmatism with professional skills..”

“ they see opportunities where others only see empty buildings, unemployable people and unvalued resources”

“..Radical thinking is what makes social entrepreneurs different .”

“they make markets work for people, not the other way around, and gain strength from a wide network of alliances”

“People see and then believe, entrepreneurs believe and then see”

Growth Areas for Social Enterprises

Social entrepreneurs find opportunity in most economic sectors. The growth areas for social enterprises are identified as:EnvironmentalHousingHealth and careInformation servicesPublic servicesFinancial servicesTraining and business developmentManufacturingFood and agriculture

Bill Drayton Bill Drayton isn't just a great example of a social

entrepreneur, he actually helped to define and promote the term itself.

Drayton is the founder and current chair of Ashoka: Innovators for the Public, an organization that is dedicated to finding and helping social entrepreneurs around the world. Drayton spreads out his social entrepreneurship expertise in other organizations as well.

As of 2010, Ashoka Foundation has sponsored 2,145 fellows in 73 countries, some of which have gone on to develop leading social businesses that have made a huge impact on communities around the world.

Ibrahim Abouleish

Ibrahim Abouleish was working in leading pharmaceutical firms in Europe, developing new treatments for osteoporosis.

Founding the development initiative SEKEM (Ancient Egyptian for "vitality from the sun").

SEKEM grows plants that are developed into herbal teas, fresh produce, and even organic cotton Abouleish has also played a key role in developing new chemical-free methods to process cotton and developing Egypt's first private pharmaceuticals company.

Mohamed YunusOne of the first names you're likely to

encounter is that of Muhammad Yunus.Yunus is the founder of the Grameen Bank, an

institution that provides microcredit loans to those in need to help them develop financial self-sufficiency.

Founded in 1983, the bank has brought in a net income of more than $10 million, and his work with the organization landed Yunus a Nobel Prize in 2006.