Class 1

Types of entrepreneurs

• conventional

• institutional

• social

• cultural

conventional entrepreneur

an agent who enables or enacts a vision based on new ideas in order to create successful innovations

primary goal: economic

institutional entrepreneur

an agent who can mobilize resources to influence or change institutional rules, in order to support or destroy an existing institution, or to establish a new one

primary goal: institutional reform/development

cultural entrepreneur

an individual who identifies an opportunity and acts upon it in order to create social, cultural or economic value

primary goal: cultural diffusion/enlightenment

social entrepreneur

an actor who applies business principles to solving social problems

primary goal: social change/well-being

the 3 concepts of SE

1. a not-for-profit initiative in search of alternative funding strategies or management schemes to create social value

2. as the socially responsible practice of commercial businesses engaged in cross-sector partnerships

3. a means to alleviate social problems and catalyze social transformation

four key factors of SEs

1. individual characteristics of SE’s

2. operating sector

3. processes and resources

4. primary mission and outcomes

entrepreneurial process - individual level

• opportunity recognition and exploitation

• resource mobilization

• an innovative approach in delivering the social mission

• entrepreneurial influencing factors: personality, education, experience, skills, and judgement abilities

typology of social entrepreneurs

1. social bricoleur

2. social constructionist

3. social engineer

social bricoleur

perceive and act upon opportunities to address a local social need that they are motivated and have the expertise and resources to address

social constructionist

build and operate alternative structures to provide goods and services addressing social needs that governments, agencies, and businesses cannot

social engineer

creation of newer, more effective social systems designed to replace existing ones when they are ill-suited to address significant social needs

movements of SE

• philanthropists, church and state

• social society initiatives and NGO’s

• social innovation

• social economy

• base of the pyramid

social entrepreneurs play the role of change agents in the social sector, by:

• adopting a mission to create and sustain social value

• recognizing and relentlessly pursuing new opportunities to serve that mission

• engaging in a process of continuous innovation, adaptation, and learning

• acting boldly without being limited by resources currently in hand

• exhibiting heightened accountability to the constituencies served and for the outcomes created

financial challenges

1. access to funding

2. complex business models

3. predominant focus on social impact