2 Social entrepreneurship and social change

Social entrepreneurship

An activity that identifies and exploits opportunities to address a social or environmental problem, with social impact as the primary goal.

Social entrepreneur

A person who identifies and exploits opportunities to solve social or environmental problems.

Social enterprise

An organisation that uses business and market-based activities to create social or environmental impact as a central part of its mission.

Social entrepreneurial organisation

A broad term for an organisation that uses entrepreneurial approaches to create social or environmental impact; it can be for-profit or non-profit.

Social change

A change in the structures, culture, behaviour, norms, or institutions of society over time.

Social innovation

A new or improved solution or approach intended to address a social problem or social need.

Outcome-based social innovation

A social innovation defined by whether the new solution actually creates better, more effective, efficient, sustainable, or just social outcomes.

Process-based social innovation

A social innovation defined by the intention to address a social need, even if the intended positive outcome is not achieved.

Digital innovation

The creation or change of products, services, processes, or business models through the use of digital technologies.

Frugal innovation

The creation of products or services that meet a need using fewer resources and at a lower cost than existing alternatives.

Social impact

The beneficial outcomes that purposeful actions create for individuals, communities, organisations, or society.

Intended social impact

The social impact that an organisation deliberately tries to create.

Unintended social impact

Positive or negative effects caused by an activity that were not originally intended.

Traditional entrepreneurship

The identification and exploitation of market opportunities, usually with profit generation or market disruption as the primary goal.

Opportunity recognition

The process of identifying an opportunity that can be developed or exploited.

Creative destruction

The replacement of existing products, services, markets, or ways of working with new and innovative alternatives.

Charity

A non-profit organisation that provides help, services, or support to people or communities in need and generally relies more on donations, grants, or other non-market funding.

Beneficiary

A person or group that is intended to benefit from the activities of an organisation.

Beneficiary empowerment

Helping beneficiaries develop the skills, resources, independence, and opportunities to improve their own situation rather than only giving them direct assistance.

Social movement

A collective network of people and organisations that tries to change society, culture, or institutions through collective action and pressure.

Fair Trade Organisation (FTO)

An organisation with Fair Trade at the centre of its mission that supports producers through fair payment, better working conditions, training, and more equitable trade.

Fair Trade

A trading approach that aims to create fairer conditions, prices, and opportunities for producers and workers, particularly disadvantaged producers.

B Corp

A certified for-profit business that commits to balancing profit with social and environmental responsibility.

CSR (Corporate Social Responsibility)

Activities through which a traditional business tries to reduce harm or create positive social and environmental impact alongside its main commercial activities.

Business sustainability

The attempt by businesses to operate in ways that are economically viable while reducing negative social and environmental effects.

Double bottom line

The pursuit of both financial performance and social or environmental impact.

Triple bottom line

The pursuit of financial, social, and environmental performance, often described as people, planet, and profit.

Mission drift

A situation in which an organisation moves away from its original social or environmental mission, often because of commercial or financial pressures.

Market-based revenue

Income earned by selling products or services rather than relying mainly on donations or grants.

Value creation

The production of economic, social, or environmental benefits for customers, beneficiaries, or society.

Value appropriation

The amount of the value created that an organisation captures for itself, for example through profit.

Market failure

A situation in which the market does not adequately provide a needed product, service, or social benefit.

Public sector failure

A situation in which government or public organisations do not adequately provide a needed service or solve a social problem.

Negative externality

A harmful effect of an organisation's activities on other people, society, or the environment that is not fully reflected in the organisation's costs.

Empowerment of people and communities

One role of social entrepreneurship in which people and communities gain skills, employment, resources, confidence, and greater control over their lives.

Compensation for market and public sector failures

One role of social entrepreneurship in which social entrepreneurs address needs that businesses or governments fail to meet.

Economic development

The improvement of economic opportunities, employment, income, and living standards within a community or society.

Poverty alleviation

The reduction of poverty by improving people's income, opportunities, resources, and ability to support themselves.

Systems change

The intentional transformation of the structures, relationships, rules, beliefs, and other elements of a system that continue to produce social problems or injustice.

Institutional change

A change in established norms, beliefs, habits, expectations, or accepted ways of doing things in society or organisations.

Sustainable Development Goals (SDGs)

The 17 global goals adopted by the United Nations to address major social, economic, and environmental challenges.

WISE (Work Integration Social Enterprise)

A social enterprise that provides training and employment opportunities to people who are disadvantaged or excluded from the labour market.

Global North

A general term used for wealthier and more economically developed countries.

Global South

A general term used for lower-income and emerging economies, particularly in Africa, Asia, and Latin America.

Scale of social impact

The number of people, communities, or geographical areas reached and affected by an organisation's social impact.

Systems transformation

The broader transformation of an unjust or ineffective system through changes in its structures, relationships, rules, and institutions.