DRAFT

Social entrepreneurs: understanding how a social

entrepreneur has change the world

Introduction

The idea of Social Entrepreneurship has become increasingly popular as social problems in our
complex modern society have grown In a way, it is a reaction to the ‘bottom line’ philosophy of
modern big business with its emphasis on short-term profit to the detriment of any long-term
benefit to society as a whole or the human component of the business itself. Social
Entrepreneurship seeks to harness the practical dynamism of the successful businessman to
enrich and help society, especially in countries where the individual is beset with problems of
dire poverty and lack of opportunity.

While the concept of social entrepreneurship is relatively new, initiatives that employ
entrepreneurial capacities to solve social problems are not. We have found a variety of initiatives
—particularly focused on the problems of poor and marginalized populations—that have
transformed the lives of thousands of people around the world (Alvord et al., 2003)

Social entrepreneurs play an important role is societal development. In contrast to traditional “

business” entrepreneurs, they focus primarily on social value creation, namely, the alleviation of
social problems such as poverty, hunger, illiteracy, environmental destruction, etc. (Mair and
Noboa, 2005).

In many ways social entrepreneurs are to the society what business entrepreneurs are to the
economy, meaning that although they may, like business entrepreneurs, be interested in profit,
but their emphasis is on social change.

According to Dees (1998) the idea of “social entrepreneurship” has struck a responsive cord. It is
a phrase well suited to our times. It combines the passion of a social mission with an image of

1
business-like discipline, innovation, and determination commonly associated with, for instance,
the high-tech pioneers of Silicon Valley. The time is certainly ripe for entrepreneurial approaches
to social problems. Many governmental and philanthropic efforts have fallen far short of our
expectations. Major social sector institutions are often viewed as inefficient, ineffective, and
unresponsive. Social entrepreneurs are needed to develop new models for a new century.

In reflection, the terms social entrepreneur and social entrepreneurship were first used in the
literature on social change in the 1960 and 1970s. It came into widespread use in the 1980s and
1990s, promoted by William Drayton the founder of Ashoka: Innovators for the Public, and
others such as Charles Leadbeater (Wikipedia, 2009) Drayton, founder of the world’s first
organization to promote social entrepreneurship, ‘Ashoka’, is credited with coining the phrase
“Social Entrepreneur”, to describe a person who recognizes logjams in society and finds ways to
free them. This type of person envisages a universal change, and figures out how to heave whole
societies on to new, rewarding paths. This type of entrepreneur strains and shoves until the job is
done, identifying and solving large-scale social problems. Only an entrepreneur has the vision
and determination to complete the huge tasks involved, and social entrepreneurs are agents of
fundamental change.

Definition

Whilst social entrepreneurship is attracting growing amounts of talent, money, and attention, it
has become increasingly difficult to identify who is a social entrepreneur and what he/ she does,
resulting in all sorts of activities are now being called social entrepreneurship. To this end there
arises a need to clarify the definition of the term, in an effort to simplify the identification of a
social entrepreneur

Any definition of social entrepreneurship should reflect the need for a substitute for the market
discipline that works for business entrepreneurs. We cannot assume that market discipline will
automatically weed out social ventures that are not effectively and efficiently utilizing resources.
(Dees, 1999)

For Martin and Osberg (2007) the definition of the term “social entrepreneurship” must start with
the word “entrepreneurship.” The word “social” simply modifies entrepreneurship. If
entrepreneurship doesn’t have a clear meaning, then modifying it with social won’t accomplish
2
much, either. In the end they believe that the critical distinction between entrepreneurship and
social entrepreneurship lies in the value proposition itself. For the entrepreneur, the value
proposition anticipates and is organized to serve markets that can comfortably afford the new
product or service, and is thus designed to create financial profit. From the outset, the
expectation is that the entrepreneur and his or her investors will derive some personal financial
gain. Profit is sine qua non, essential to any venture’s sustainability and the means to its ultimate
end in the form of large-scale market adoption and ultimately a new equilibrium. The social
entrepreneur, however, neither anticipates nor organizes to create substantial financial profit for
his or her investors – philanthropic and government organizations for the most part – or for
himself or herself. Instead, the social entrepreneur aims for value in the form of large-scale,
transformational benefit that accrues either to a significant segment of society or to society at
large.

A broader definition of the term social entrepreneur is given by Wikipedia which defines social
entrepreneurship as the work of a social entrepreneur. In this case a social entrepreneur is
someone who recognizes a social problem and uses entrepreneurial principles to organize, create,
and manage a venture to make social change. Whereas business entrepreneurs typically measure
performance in profit and return, social entrepreneurs assess their success in terms of the impact
they have on society. While social entrepreneurs often work through nonprofits and citizen
groups, many work in the private and governmental sectors.

Social entrepreneurs are the persons, who aspire to change the world in positive directions. They
have belief in their ability to make impact on the world / society by their sustained efforts in
certain directions. They build institutions and organizations which espouse certain ideas and
mission and try to create an impact on the world in certain positive directions. They establish self
sustaining organizations and institutions which can enable us to represent our ideas in concrete
shape and enable us to change the world. (Jain, 2008 )

According to Zeigler (2009) The social entrepreneurship support network, “Schwab” describes
the social entrepreneur as a “pragmatic visionary who achieves large scale, systemic and
sustainable social change through a new invention, a different approach, a more rigorous
application of known technologies or strategies, or a combination of these”.

3
Characteristics

The identification of social entrepreneurs is made simpler when there is a concise definition of
the aforementioned term. To many authors social entrepreneurs can be identified through certain
characteristics that they extol. In the book “The rise of the social entrepreneur” Leadbeater, 1997
characterized the social entrepreneur as being entrepreneurial: they take under-utilized,
discarded resources and spot ways of using them to satisfy un-met needs; Innovative: they create
new services and products, new ways of dealing with problems, often by bringing together
approaches that have traditionally been kept separate and transformatory: they transform the
institutions they are in charge of, taking moribund organizations and turning them into dynamic
creative ones. Most importantly, they can transform the neighborhoods and communities they
serve by opening up possibilities for self-development.

Social entrepreneurs exhibit qualities and behaviors we usually associate with the business
entrepreneur, but they start the entrepreneurial process by explicitly embracing social causes and
places themselves where social, civic and community based gaps exist (Perrini, 2005).

Fritz (2008) pointed out that David Borstein in his book “How to change the world: Social
Entrepreneurs the power of new ideas”, enumerated some of the major characteristics of a social
entrepreneur, to him, many people do not realize that they are entrepreneurs. They just know that
they are obsessive about some social problem and determined to do something about it. How do
we recognize such people? Borstein suggests that social entrepreneurs display the following
characteristics: (1) They are willing to self-correct. Entrepreneurs are not starry-eyed idealists as
you might think, but pragmatists who get the job done by focusing on the goal, not a particular
approach. (2) They are willing to share credit. (3) Social entrepreneurs are willing to break free
of established structures. (4) They are willing to cross disciplinary boundaries. Borstein says that
social entrepreneurs serve as "social alchemists," gathering ideas, experience and resources from
different fields resulting in configurations that are new and, many times, counterintuitive and (5)
They have a strong ethical motivation. Unlike other entrepreneurs who seek to create market
success, social entrepreneurs are driven by their ethical visions.

4
Other distinguishing characteristics of social entrepreneurs include: they are persons that are
driven and determined, ambitious and charismatic. They excel at spotting un-met needs and
mobilizing under-utilized resources to meet those needs (Leadbeater, 1997); and, they are
people of integrity, that are genuinely interested in contributing to society (Villareal, 2004);

How Social Entrepreneurs Change the World

In understanding how social entrepreneurs change the world it is invariably important to analyze
the work that these individuals do and how it benefits society. Social entrepreneurs drive social
innovation and transformation in various fields including education, health, environment and
enterprise development. They pursue poverty alleviation goals with entrepreneurial zeal,
business methods and the courage to innovate and overcome traditional practices.

Nagler (2007) considered the social entrepreneurial sector to be increasingly important for
economic (and social) development because it creates social and economic values. He identified
three major ways in which social entrepreneurs benefit society.

1. Employment Development

The first major economic value that social entrepreneurship creates is the most obvious
one because it is shared with entrepreneurs and businesses alike: job and employment
creation. Estimates ranges from one to seven percent of people employed in the social
entrepreneurship sector. Secondly, social enterprises provide employment opportunities
and job training to segments of society at an employment disadvantage (long-term
unemployed, disabled, homeless, at-risk youth and gender-discriminated women).

2. Innovation / New Goods and Services

Social enterprises develop and apply innovation important to social and economic
development and develop new goods and services. Issues addressed include some of the
biggest societal problems such as HIV, mental ill-health, illiteracy, crime and drug abuse
which, importantly, is confronted in innovative ways.
5
 3. Social Capital

Next to economic capital one of the most important values created by social
entrepreneurship is social capital (usually understood as “the resources which are linked
to possession of a durable network of ... relationships of mutual acquaintance and
recognition".

Case study: Emmaus and Plan Puebla

Emmaus

The Emmaus Movement was born in November 1949 after WWII where many French families
did not have any form of housing. It was founded by L `Abee Pierre, a former resistance fighter,
who at the time served as a member of parliament.

In 1952 Abbé Pierre founded Emmaus choosing the name because he loved the story of Jesus
meeting the disciples on the road to Emmaus and giving hope and purpose to their lives.

Abbé Pierre’s vision had been to create a community, which provided a person with a home
rather than a temporary living space. Although he came from a wealthy family he soon ran out of
money but used the idea of recycling clothes and old furniture as a way of raising funds. This led
to distinctive features of the Emmaus Communities – the provision of work to the people within
it to enable them to come off state benefits and support themselves.

Now 306 member groups finance the daily work activities of Emmaus International. This
movement is international and secular. They operate in 36 countries, and are organized into 4
regions (Africa, America, Asia, and Europe). The movement does not appeal to subventions;
each community has a high degree of autonomy. These communities themselves manage their
operation and their revenues. The association provides them legal support and important media
coverage.

All groups Emmaüs World contributes to the financing of solidarity in Africa, Latin America,
Asia and Europe. They are designed to make stronger the capacity of groups to work and develop
6
their social actions carried out locally for the poor. The aim is to strengthen the capacity of its
members to work and develop actions for the disadvantaged.

Plan Puebla

Plan Puebla was initiated in Mexico in 1966 by a small group of agricultural researchers who
recognized that Mexican agricultural research did not address the needs of small subsistence
farmers. The initiative sought to improve maize production techniques and transfer this new
technology to small subsistence farmers, in hopes of improving the general welfare of rural farm
families. The project gained momentum with support from the newly established International
Maize and Wheat Improvement Center. After 10 years, private funding of the initiative ended,
and the Mexican government took over the project. The model has been replicated in Colombia,
Peru, Honduras, and other areas in Mexico. The project has enabled the creation of the Cholollan
Regional Cooperative—a credit union founded in 1993 by former Plan Puebla staff—and the
Center of Rural Development Studies in Puebla.

• Essential Innovation: Improves crop production by focusing on small, farmer-oriented

cooperatives and providing support activities, rather than simply improving agricultural
technology

• Scope: Increased maize production by 62% among 47,000 Mexican farmers in the Plan
Puebla region. Educated poor, small subsistence farmers about income diversification and
facilitated a 252% increase in family income.

The Bottom Line

Whilst Emmaus and Plan Puebla and are just two examples, they clearly show some of the
benefits these individuals gives to society and how they have indeed help to change the world

For example, the income strategy of Emmaus is tied directly to their mission: They either employ
people who are developmentally disabled, chronically mentally ill, physically challenged,
7
poverty stricken or otherwise disadvantaged; or they sell mission-driven products and services
that have a direct impact on a specific social issue. Social entrepreneurship is an essential tool for
job creation. They are able harnessing the energy of local communities and to help generate
significant job opportunities. This can clearly be seen in the case of Emmaus. Recently in
London the Prime Minister called upon social enterprises to create about 15, 000 new jobs (ICG,
2009).

Similarly they play the role of change agents in the social sector, by sustaining social value,
recognizing and relentlessly pursuing new opportunities to serve their mission, acting boldly
without being limited by resources currently in hand, and exhibiting heightened accountability to
the constituencies served and for the outcomes created. Emmaus was effectively able to tackle to
problem of poverty and homelessness, empowering beneficiaries to feel that they were making a
vital contribution to their own wellbeing. In Mexico, Plan Puebla was able to create economic
transformation in rural Mexico, through new innovations, which included create new maize
technology, expand coverage via government service and providing support functions as needed,
they were able to help Mexican farmers increase their income.

Motivated by altruism and a profound desire to promote the growth of equitable civil societies,
Abbé Pierre and Plan Puebla was able to change the performance capacity of society and pioneer
innovative, effective, and sustainable approaches to meet the needs of the marginalized, the
disadvantaged, and the disenfranchised.

Social entrepreneurs has also help change or shape governmental policy to tackling certain
social issue, for example, Nagler (2007) gave the case of the Brazilian social entrepreneur
Veronica Khosa, who developed a home-based care model for AIDS patients which later changed
government health policy.

Conclusion

Social entrepreneurs play an important role in transforming society. Their ability to create social
and economic value is indispensable in the development process. Their contribution to the

8
alleviation of some of societies more pressing problems have been recognized and every day
more emphasis is placed on the creation of social enterprises.

References

• Alvord, S.H., Brown, L. D. & Letts, C. W. (2003). Social Entrepreneurs: Leadership

that facilitates societal transformation – an exploratory case study. Harvard
University. 25 pgs

• Dees, J. G. (1998). The meaning of social entrepreneurship. Kauffman Center for

Entrepreneurial Leadership Ewing Marion Kauffman Foundation. 6 pgs

• Fritz, J. (2008). Are you a social entrepreneur? Characteristics of social

entrepreneurs.
http://nonprofit.about.com/od/nonprofitmanagement/fr/spotsocialentre.htm

• Institute for Career Guidance (2009). Social enterprise to be part of £1bn job creation
drive. http://www.icg-uk.org/article575.html

• Jain, T. K., 2008. Who is a social entrepreneur? Afterschool Centre for Social
Entrepreneurship.

• Leadbeater, C. 1997. The rise of the social entrepreneur. Demos. 87 pgs

• Mair, J. & Noboa, E. (2005). How intentions to create a social venture are formed: A
case study. Working Paper No. 593. IESE Business School. University of Navarra. 29
pgs

• Martin, O. & Osberg, S. (2007). Social Entrepreneurship: The case for definition.
Sanford Social Innovation Review. Sanford Graduate School of Business. 39 pgs

• Morris, M. (2002). What is social entrepreneurship?

http://www.essortment.com/family/socialentrepren_svia.htm
9
• Nagler, J. (2007). The importance of social entrepreneurship for economic
development policies. University of New South Wales, Sydney. 10 pgs

• Perrini, F (2005). The new social entrepreneurship: What awaits social

entrepreneurial ventures? Edward Elgar Publishing. 341 pgs

• Villareal, J. G. (2004). Emprende de manera social. Entrepreneur Magazine.

• Wikipedia (2009) Social Entrepreneur.

http://en.wikipedia.org/wiki/Social_entrepreneurship

• Zeigler, R. (2009). An introduction to social entrepreneurship. Voices, Preconditions,

Contexts. Edward Elgar Publishing.

10