Download - Social Entrepreneruship
Burton D. Morgan Center for Entrepreneurship
Social Entrepreneurship – Costa RicaEARTH University
May 18 – June 10, 2009
Copyright© 2009 Nancy Clement-Purdue University
765.494.9884
Nancy Clement
Overview
• Entrepreneurship/Philanthropy/Social Entrepreneurship• Entrepreneurship/nonprofit/Social Enterprise• Statistics on Nonprofits• Pioneers in Social Entrepreneurship• Why Social Entrepreneurship?• Why Social Entrepreneurship?• Social Enterprise • Types of Business for Social Enterprise• Examples
Entrepreneurship – The process by which one organizes, manages, and assumes the risks of a business or enterprise for personal gain.
Philanthropy – Giving to promote human welfare, without expectation of receiving something in return.
Defining
Social Entrepreneurship –The art of simultaneously pursing both a financial and a social return on investment.
something in return.
EntrepreneurQualities of an
competitioncompetition
competitionCOMPETITION
competition
• Sees Opportunities
• Risk Taker
• Accepts Responsibility
• Make Money
• Wants to be Rich
2009 copyright nancy clement
IP
• Wants to be Rich
• Protects IP
• Aspires towards IPO
• Independent
• Own Boss
• Maintains Control
IP
IP
• Sees Opportunities to Improve the Lives of others
• Risk Taker
• Accepts Responsibility
• Make Money for Sustainability of Mission
Social Entrepreneur
2009 copyright nancy clement
IP
IP
IP
IP
IPIP
IP IP
• EnRiches others
• Shares Protected IP
• Aspires to Achieve IPO - Community Wide
• In dependence with Others
• Boss of Own Destiny
• Relinquishes Control
Entrepreneurship /Nonprofit Organizations / Social Enterprise
“Entrepreneurship is the essence of free enterprise because the birth of new businesses gives a market economy its
vitality.” (Bygrave, 2004)
Social service spending make up about
Social Enterprise is a combination of free enterprise and the “love of mankind.”
Social service spending make up about 15% of the GDP and 2/3 of the Federal
Budget. (2007 US Census)
*Number of Nonprofit Organizations in the United States, 1996 - 2006
1996 2006
# of Orgs % of Orgs
# of Orgs. % of Orgs
change
All Nonprofits Organizations 1,084,939 100% 1,478,194 100% 36.2%All Nonprofits Organizations 1,084,939 100% 1,478,194 100% 36.2%
501(c)(3) Public Charities 535,930 49.4% 904,313 61.2% 68.7%
Private Foundations 58,774 5.4% 109,852 7.4% 86.9%
* IRS Business Master File 01/2007 –National Center for Charitable Statistics
Pioneers for Social Entrepreneurship
• William Dryton founded Ashoka 1980 (international)
• Gregory Dees – 1989 Duke University “the meaning of social entrepreneurship.” (www.fuqua.duke.edu) (non-profit)
• Skoll Foundation was created by Jeff Skoll in 1999 to pursue his vision of a world where all people, regardless of geography, vision of a world where all people, regardless of geography, background or economic status, enjoy and employ the full range of their talents and abilities.
• Schwab Foundation – 2000 – Applying practical, innovative and sustainable approaches to benefit society, with and emphasis on those who are marginalized and poor.”
• Muhammad Yunus – 2006 Nobel Peace Prize for Social Entrepreneurship (Grameen Bank-international)
Why Social Entrepreneurship?
• Creates a process that encourages change, both economic and social, through leadership and business practices while maintaining the focus on the organization’s mission.
• Provides income opportunities for many people • Provides income opportunities for many people held in the grips of poverty.
• A process by which nonprofit organizations explore income generating businesses that provide sustainable income and focus on the double bottom line”.
Social Enterprise
• May be a for-profit company that has incorporated a social mission into their way of doing business.
• May work directly with a non-profit organizations.
• May have a legal agreement which secures an income stream to a non-profitstream to a non-profit
• May provide a service that enhances the non-profits mission.
• May have an environmental mission.
Types of Businesses for Social Enterprise
Social Corporate Responsible Business
• Limited Liability Company (or Partnership)– Lowprofit Limited Liability Companies (L 3C)– Lowprofit Limited Liability Companies (L C)
• Corporations:– C-Corporation– S-Corporation– B-Corporation
ExamplesSocial Enterprise
Newman’s OwnBen & Jerry’s Greyston BakeryGoodwill IndustriesGoodwill IndustriesUniversity Research Private Foundations
Jerry Greenfield explains “It’s not that business is evil or bad, it is mainly without values.” He stresses that business values should be socially
conscious or mission-based.
The Purdue Series on Corporate Citizenship and Ethics-November 29,2005
Examples cont’d
Goodwill Industries –
Social Mission with a Retail Store?
Retrieved from - http://www.goodwill.org/page/guest/about/whatwedo
Retail Store with a Social Mission?
Retail Store?
Examples cont’d
Stonehenge Limited
"tie one on" before driving. Support of MADD and its efforts to change America's attitude toward drinking and driving, introduced "The Molecular Expressions™ Cocktail Collection Molecular Expressions™ Cocktail Collection men's neckwear. Recreate the molecular structures of alcoholic beverages.
Examples, cont’d
“Tufts will not lend money directly to
eBay founder donates $100 Million to Tufts University for social entrepreneurship
“Tufts will not lend money directly to entrepreneurs. Instead, it will make a variety of large investments, mostly loans at first, in private partnerships and investment firms. They, in turn, will support as many as 10,000 non-profit and for profit groups.”
Source USA Today, November 4, 2005
Personal Note
Social Entrepreneurship is the humanitarian side of
sustainability.