Lecture Entrepreneurship: Chapter 15 - Zacharakis, Bygrave, Corbett

SOCI AL 
ENTREPRENEURSHI P
Chapt e r   15

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

1


“Self-interest, rightly understood”
-Alexis

§
§

de Tocqueville

Classical entrepreneurs seek financial gain
Social entrepreneurs start with a social mission

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


Social entrepreneurship is rising
•

•

•

TRENDS
Opportunities created through increased
emphasis on social purpose &
sustainability
‘Wicked problems” with complex solutions
and multiple stakeholders are increasing
New organizations must consider a wider
variety of goals/outcomes.

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


Social Entrepreneurship is
defined by processes & people
DEFINITI
•

•

ON

Process-based definitions focus on actions:
ü

Social value creation

ü

Opportunity recognition

ü

Opportunity exploitation

ü

Resource mobilization

Entrepreneur-centric definitions focus on people
who:
ü

Find innovative solutions to society’s problems

ü

Are society’s change agents

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


There are 4 main types of social
ventures
TYPES
Economic

Economic

Social

Traditional

Social Purpose
Hybrid

Social

Impact

Mission

Social
Consequence

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

Enterprising
Non-profits


M
Traditional
ventures
seek
i
economic

outcomes
s
s
i
o
n
a
n
d
o
u

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

Traditional


E
Social
c
profits
o
n
o
m
i
c
m
i

s
s
i

Consequence balance
& mission
Social Purpose

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


S
Social
purpose
e
social
mission
e
k
s

start with a

a
p
r
o
f
i

t

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

Social
Consequence


D
Enterprising
nonprofits
r
income
into the cause
i
v
e
n
b
y
s
o
c
i

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

re-invest

Enterprising
Non-profits


T
Hybrids
pursue
social
and
h
economic
goals equally
e
i
n
t
e
r
n
e
t
/
m

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

Hybrid

E
Choose
a
venture
type
suited
for
a
your
resources & strategy TYPES
c
h
t
y
p
e
h
a
s
Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©


Measuring impact is critical
•

•

•

•

•

Social problems are complex

MEASUR
ES

Reducing consequences may not solve the
problem
Solutions are multi-pronged
Measures must related objectives and tied
to activities
Consider defining objectives in terms of a
Triple Bottom Line (TBL)
ü

Economic

ü

Environmental

ü

Social

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©

12


Recap
•

•
•

Until government & business meet
social needs, there will be demand for
social entrepreneurs
Many have created systemic change
Imitative and innovative
entrepreneurs can be equally
rewarded

Zacharakis, Bygrave and Corbett, Entrepreneurship, New York: Wiley,
2017 ©