Social Entrepreneurship

Flashcard maker : Lily Taylor
Jeff Skoll
-First employee and president of eBay
-Created to Skoll Foundation
– Has awarded $400 million in 14 years
Skoll’s Definition of Social Entrepreneurs
Society’s change agents, creators of innovations that disrupt the status quo and transform our world for the better
Bill Drayton
-Popularized social entrepreneurship
-McKinsey consultant for 10 years, EPA assistant administrator
-Established Ashoka-Innovators for the Public (2006)
Ashoka Fellows
-Recipients of Ashoka financial support
-Support is investment in the individual rather than the idea
Greg Dees
-Father of social entrepreneurship education
-Convinced the World Economic Forum to embrace social entrepreneurship
-Helped fly social entrepreneurs to Davos to meet business titans
-Taught the first course on social entrepreneurship at Harvard
-Launched the Center for the Study of Social Innovation at Standford
-Active social entrepreneur (Among the poor Appalacians and advising philanthropists to revive downtown San Jose)
Dees’s Definition of Social Entrepreneurs
Change agents in the social sector who
-Create public value
-Pursue new opportunities (Key term)
-Innovate and adapt
-Act boldly
-Leverage resources they don’t control
-Exhibit a strong sense of accountability

Most widely cited definition

Susan B. Anthony
Social entrepreneur, campaigned for women’s suffrage in U.S.
Vinoba Bhave
Social entrepreneur from India, disciple of Ghandi, founder and leader of the Land Gift Movement, mentor to Drayton
Land Gift Movement
Bhave’s project, redistribution of land to aid India’s untouchables and landless
Dr. Maria Montessori
Social entrepreneur from Italy, developed the Montressori approach to early childhood education
Florence Nightingale
Social entrepreneur from UK, founder of modern nursing, established the first school for nurses, fought to improve hospital conditions
John Muir
Scottish born American social entrepreneur, instrumental in establishing the National Parks System, established the Sierra Club
William and Catherine Booth
British social entrepreneurs, established the Salvation Army
Muhammad Yunus
-Bangladeshi social entrepreneur
-Founded the Grameen bank
-Micro-finance innovator
-Winner of the Nobel Peace Prize
Yunus’s Definition of Social Entrepreneurship
-Business objective will be to overcome poverty or one or more problems which threaten people and society
-Not for profit maximization
-Financial and economic sustainability
-Investors get back their investment amount only, no dividend given beyond investment money
-When investment is payed back, company profit stays with the company for expansion and improvement
-Environment conscious
-Workforce gets market wage with better working conditions
-Do it with joy
Oxfam
English social entrepreneurship venture, established in 1942 by activists, fights world hunger and social injustice
Wendy Kopp
Social entrepreneur involved in Teach for America
Teach for America
Social entrepreneurship venture hoping to eliminate educational inequity by enlisting high-achieving recent college graduates and professionals to teach in low income area schools for at least two years
Charles Best
American social entrepreneur, public high school teacher, experienced lack of learning materials, created website for citizen philanthropy called DonorsChoose.org
DonorsChoose.org
Best’s social venture, citizen philanthropy website allowing anyone to be a philanthropist, can donate as little as a dollar, program benefits students and teachers
Inderjit Khurana
Formed Ruchika School Social Service Organization (RSSO) in Bhubaneswar, Orissa, India
Ruchika School Social Service Organization
Khurana’s social entrepreneurship venture, teachers gather the children together between the stops of the train for lessons, touches lives of over 4000 underprivileged children
Blake Mycoskie
American social entrepreneur, started TOMS Shoes, TOMS donates a pair for a pair, sold over 10000 shoes in the first year
Social Entrepreneurship Myths
-Big risk takers/gamblers (May define risk differently, seek to minimize risk)
-All entrepreneurs fit a certain profile
-Entrepreneurs are born not made
Behavior of Social Entrepreneurs
-Good listeners
-Open-minded
-On the lookout for useful information
-Non-ideological
-Intentionally cultivate relationships with people from many backgrounds so they better understand how to navigate change
-Sometimes so totally devote themselves to their idea that they fail to develop a personal life and have difficulty working with individuals who want to more balanced life
Social Entrepreneurship vs Business Entrepreneurship
Social entrepreneurs maximize some form of social impact, business entrepreneurs maximize profit or shareholder wealth and builds an entity that provides value to customers and meaningful work to employees
Ideology
Can impede problem solving if it serves to filter reality and cause individuals to dismiss evidence that challenges his/her beliefs
Notes on Social Entrepreneurship
-Not all non-for-profits are social entrepreneurs
-Necessary for social entrepreneurs to have a profit driver
-Social entrepreneurs are not focused on shareholder wealth
-Social entrepreneurs have a social mission whose profits are used to fulfill that social mission/reinvest
Grameen Bank
-Founded by Muhammad Yunus
-Micro-finance
-Gives loans primarily to women
-Loans are usually $25-$100
Gloria de Souza
Fabio Rosa
Jeroo Billimoria
Erzsebet Szeheres
Country Analysis
-Political and legal factors
-Economic and financial factors
-Technological/infrastructure/resources
-Cultural and sociological factors
PEST Analysis
-Political/legal
-Economic
-Socio/Cultural (Hardest factor to predict)
-Technological
STEEP Analysis
-Social (Demographic factors)
-Technological
-Economic
-Ecological (Environmental/geographic factors)
-Political (Legal/government factors)
Political Factors
Corruption and payoff (Corruption Perceptions Index by Transparency International), laws, protectionism, intellectual property rights, government crackdowns, restrictions on freedom of information, population controll
Economic and Financial Factors
Poverty, exports, employment issues, labor issues and costs, foreign direct investment, government spending, major industries
Technological Factors
Infrastructure, distribution, technological development
Vietnam
-Ranked 123rd on Corruption Perceptions Index
-Many protectionism
-Copyrights/trademarks are protected but not patents
-Restricted freedom but there is a growing pressure for more freedom
-Severe penalties on having a third child
-Half way from rags to riches
-Extreme poverty has fallen to 12 percent
-Exports: rice, coffee, cashew nuts, chocolate, furniture, shrimp, lobster, textiles, foot ware, shoes, backpacks, and microchips
-Increasing labor costs driving FDI to other countries
-Government may be spending too much money, difficult to tighten spending
-70 percent of the population is under 30 years old
-90+ percent literary rate
-Typical house is 4×15 meters
-Lifestyle is primarily on the streets
-Great respect for ancestors
Vietnam Automobile Assembly
Joint venture between General Motors and Daewoo, Vietnamese workers worked more but were payed less than Korean workers
Intel in Vietnam
Building $1 billion factory near Hanoi, company’s largest facility (500000 square feet), plans to employ 4000 employees
AA Corporation in Vietnam
Furniture company, 1000 employees, $2.5 million/month in sales, premium margins, primary focus on 5-star hotels and premium shops, project for Kuwait royal family, purchases wood from the US, competitive advantage with labor costs and willingness to work long hours
FPT Corporation and Vietnam
25 year old woman, works in marketing, lives with her parents, works 8:30-5:30 five days a week and half days on Saturday, makes $300 a month, resistant to marraige
Ecological Factors of Vietnam
Global warming poses threat, 40 percent of the Makong Delta will be lost if the sea rises 1 meter, 2140 miles of coastline
Dark Side of Micro-Finance
Problems with class and social structure
Tragedy and Social Entrepreneurship
Tragedy often inspires people to get involved in social entrepreneurship
United States-Costa Rica Relations
Diplomatic relationship established in 1851 following independence from Spain; close and friendly relationship based on mutual respect for democratic government, human freedoms, free trade, etc; shared commitment to combating climate change, US aides Costa Rica in security
Costa Rica and World Affairs
Strong presence in world affairs do to views on the environment, human rights, and advocacy for the peaceful settlements of disputes
Americans in Costa Rica
120000 Americans live in Costa Rica, many retirees, 1.2 million visit each year
Security in Costa Rica
Costa Rica has no military, US provides public security, security encourages economic wealth and prosperity, keeps crime rate low, raises effectiveness of Costa Rica’s democratic institutions, Peace Corp volunteers work in economic development and youth empowerment and education
US-Central America-Dominican Republic Free Trade Agreement
US and Costa Rica adhere, facilitates trade and investment and regional integration, eliminates trade barriers, opens markets, promotes transparency
US-Costa Rica Trade
Most important trade partner is US, US-Costa Rica trade is almost one half of exports/imports/tourism/FDI
US Exports to Costa Rica
Machinery, oil, agricultural products, plastic, semiconductors
US Imports from Costa Rica
Computer accessories, semiconductors, medical instruments, pineapples, bananas, coffee
US-Costa Rica International Relations
Both belong to CAFTA-DR, UN, Organization of American States, International Monetary Funds, World Trade Organization
Gonzalo Gallegos
Charge d’Affaries ad interim, Costa Rica has an embassy in Washington DC
The Meaning of Social Entrepreneurship
Written by Greg Dees; combines the passion of a social mission with an image of business-like discipline, innovation, and determination; intention of social change matters
-Differentiated by social mission; changes how they perceive and assess opportunities
-Hard to determine success because marker factors do not take into account the value of social improvements, public goods/harms, and benefits for people who cannot afford to pay
-Survival/growth and donations/voluteers/etc. does not necessarily measure sucess
The Global Impact Investment Network
Started by Bill Gates, attempts to measure the results of giving, assesses businesses with explicit social goals, measures success of social impact bonds,
Social Impact Bonds
Innovative public-private financial instrument that is now being piloted in several countries in the hope of tackling thorny social issues such as re-offending by former prisoners

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