Notesale: Turn your study into money

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Social entrepreneurship
Firstly, it is important to define social entrepreneurship
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They adopt business models to offer creative solutions to
complex and persistent social problems
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Furthermore, Zahra et al (2009) recognizes three different types of social
entrepreneurs: Social bricolage where social entrepreneurs are understood as those
who make and improvise with whatever resources are available to them; social
constructionists in which entrepreneurs focus on addressing opportunities and market
failures and social engineers who recognise issues within existing social structures and
attempt to introduce innovations that will lead to a revolutionary change
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It knows what difference is
trying to make, who it aims to help, and how it plans to do it
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social-purpose organizations emerge when there is social-market failure
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Hill Holt Wood
(HHW) is a 14-hectare deciduous woodland
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Through the education and training provided HHW are able to address
issues relating to youth crime, dysfunctional behaviour and educational exclusion
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However, it is important to address the question of how social entrepreneurship is
different from traditional or commercial entrepreneurship
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Success, in turn, is
measured by the creation of social wealth rather than the economic wealth
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For a commercial entrepreneur, an opportunity must
have a large market size and the industry must be attractive
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Therefore, the scope of opportunities for social entrepreneurs is relatively wider
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Consequently,
entrepreneurs and their organizations are often pulled into rapid growth by pressure
from funders, demand for their products or services, and pushed by their social
missions to meet those needs
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One case could be
Kaboom, a non-profit organization that has raised more than $10 million for
community playgrounds since 1995
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As one board member described, “Kaboom was
building the plane while they were flying it, and they had to slow down to speed up
again
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Thus, social entrepreneurs may respond in
different ways to adverse contextual conditions than their commercial counterparts
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Moreover, while the social marketplace may not reward entrepreneurs for superior
performance as easily as the commercial marketplace does for commercial
entrepreneurs, neither does inferior performance get punished as easily
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Many social enterprises that are
inefficient often can continue for some time
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Social entrepreneurs may therefore have a tendency to pay
less attention to the operating context
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For example, Sesame Workshop is an
organisation with the aim of using television as a tool to help children learn
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Thus, in order to continue to deliver its social
mission, the organisation had to support its educational programs with revenue
generating activities, such as book publishing
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(Oster, 1995)
Furthermore, social enterprises often rely upon volunteers to serve key functions
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In commercial entrepreneurship, the key motivation for all players involved is to build
a profitable company and to earn attractive returns
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Multitude of financial institutions provides them with a wide range of
financial instruments to meet their needs
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social entrepreneurs are often faced with more constraints: limited access to the best
talent; fewer financial institutions, instruments, and resources which hinder their
ability to achieve the organization’s goals
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For example, the National Foundation for Teaching
Entrepreneurship (NFTE), the world’s largest organization promoting entrepreneurial
leadership among youth was initially founded by Mariotti
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Deals: Deals are contractual relationships between the entrepreneurial venture and
the resources providers
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For example, City Year, a non-profit organization that engages youth in national
service, depends upon a wide range of funding sources from the government to a
number of different sponsors, each of which demands different expectations
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Moreover, philanthropic funders and volunteers are motivated to donate their money
or time for a range of reasons
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Each of these
demands can impose significant limitations on a social entrepreneurs’ ability to
determine how resources can best be used
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Thus, negotiating deals between the social entrepreneur and resources
providers is considerably more complex and challenging in social than in commercial
entrepreneurship

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