Social entrepreneurship: Characteristics of social entrepreneurship

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Characteristics of social entrepreneurship

Social entrepreneurs as “change agents” within a policy framework: how could culture gain?

Social entrepreneurship overcomes the gap between the business and the public sectors, as it is connected to the “non-profit” or the “third” sector, as well as to the concept of the “social economy”, with emphasis on objectives to serve communities and society rather than generating a company’s profit.

The main characteristics of social entrepreneurship, outlined in diverse theoretical resources, are:

Explicitly formulated mission to create and sustain social value and to benefit the communities;
High degree of economic risk and autonomy in activities related to producing goods and/or selling services;
Pursuit of new opportunities and exploration of hidden resources to serve that mission;
Quest for sustainable models, based on well elaborated feasibility study;
Ongoing engagement in innovation, adaptation and learning;
Decision-making power not based on capital ownership;
Participatory and collaborative nature involving various stakeholders;
Limited distribution of profit and minimum amount of paid work;
Change opportunities lying in the hands of every individual.

Globally, social business enterprises are active mainly in the social, environmental, human rights and gender equality areas. Examples include: street children; children’s health; health insurance for disadvantaged people; housing; educational opportunities; poverty in degraded urban areas; ageing and the elderly; migrants and ethnic minorities; work and employment; climate crisis; pollution problems; clean drinking water; empowerment of women; human rights; gender equality; digital divides.

Policy objectives behind social entrepreneurship programmes

Bill Drayton, the founder of Ashoka emphasises in his numerous presentations and speeches that:
“Everyone is a change maker. Social entrepreneurs are critical in this change - they have a vision, and they have a big impact.”

He also points out that
“97%of people are afraid to see the problem. Once when people love the idea of solving the problem, they would be more willing to see it.”

Social entrepreneurs are visionaries who see beyond the usual. They solve social problems using synergetic approaches where the result is much higher than just the sum of individual ideas. They have an impact because they collaborate globally by investing time and creativity to change policies, legislation and frameworks. The most important policy objectives results of social entrepreneurship programmes and projects are:

Creating new jobs;
Improving the living standards;
Inventing new products and services;
Activating citizens’ participation in decision-making at all levels;
Nurturing democratic processes;
Integrating new comers, marginal groups, immigrants, vulnerable groups of the population;
Developing intercultural competence;
Creating wealth: reinvestment and generation of investments;
Improving the image of local areas;
Using regional resources in a creative and effective manner;
Empowering to people to change their lives, to get motivated.

Global debates continue.....

The global debates around the social entrepreneurship phenomenon are orientated towards finding new models for increasing the social effects and the impact on policies. Key questions are:

What role can social entrepreneurs play in post-conflict states to speed the development of economic and political stability and deliver a new format for peaceful societies?
How can the unique contribution of women in social entrepreneurship programmes be improved?
How can social entrepreneurs influence strategic decisions in the most timely, effective and efficient manner?
To what extent is social entrepreneurship recognised, understood and respected as a profession?

The 2009 Skoll World Forum facilitated discussions, debates and critical questioning around the theme of Social Entrepreneurship: Shifting Power Dynamics - exploring how social entrepreneurs access, navigate and influence power dynamics in their approach to change. Nearly 800 delegates from more than 60 countries convened for this premier gathering of the world’s leading social entrepreneurs. Prominent figures from the social, academic, finance, corporate and policy sectors engaged for three days and nights in a series of debates, discussions and work sessions focused on accelerating, innovating and scaling solutions to some of the world’s most pressing social issues. The Forum also discussed how the credit crunch has reflected the need for a higher financial viability of projects and has accelerated the process of seeking efficiency within the charitable and social entrepreneurial sectors. Browse the highlights here.

Social entrepreneurship: between market and government failures

Social entrepreneurship initiatives and the cultural sector

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