Created: Jan 06, 2007
Updated: Aug 06, 2007
All Areas of Focus » Civil Society Organizations: Nonprofits, Philanthropy, and Social Entrepreneurs »

Social Entrepreneurship

Social entrepreneurship refers to the activity of activists who use entrepreneurial methods to address systemic social problems. The term has been associated with risk-takers who use ideas, resources, and opportunities in novel ways in order to produce outcomes that benefit society. Although social entrepreneurs can work in both the for-profit and nonprofit realms, their success is measured by social profit, not monetary gains.

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Tags/Keywords
social change, social profit, social benefit, social capital, social entrepreneur, nonprofits, social enterprise, public benefit, citizen sector, Ashoka, Skoll Foundation, Omidyar Network, Schwab Foundation, Michael Young, citizen sector, civil society, nonprofits, foundations, nongovernmental organizations, NGOs, change-makers, social innovation, social development, poverty, social capitalism, community development, micro credit, micro loans, micro franchising

Key People: Muhammad Yunus, Bill Drayton
 
  • FEATURED ORGANIZATIONS

    Tn_sec_logoSocial Enterprise Coalition (SEC) is the UK's national body for social enterprise.


    Dasra seeks to strengthen the effectiveness of the non profit sector through the application of best practices to maximize the investment of social investors and ensure lasting impact for the end beneficiary.


    Tn_socialimpactintllogonew2Social-Impact International helps address gaps in professional development opportunities for social entrepreneurs.


    FEATURED RESOURCES

    Med_logo_2.socialedgeSocial Edge Resources Wiki is maintained by the Social Edge community.

    Tn_ashokalogo1Changemakers.net focuses on the rapidly growing world of social innovation. It provides solutions and resources needed to help everyone become a changemaker.

    Tn_.seSocial Entrepreneurship: New Models of Sustainable Social Change. Examines the phenomenon of 'social entrepreneurship' as practised by grass-roots activists, NGOs, policy makers, international institutions, and corporations
 

Med_enterprising_ideas

Enterprising Ideas - A New PBS Show Profiling Social Entrepreneurs NOW on PBS is devoting an entire beat to covering people who use business strategies for humanitarian purposes - also known as social entrepreneurs. It is also sponsoring the Project Enterprise Contest — a contest where users nominate a promising social innovator and the show follow the winner's trials and tribulations.


Are you a Social

Entrepreneur?






  • The Social Entrepreneurship Series
  • 2007 Skoll Award Social Entrepreneurs


Full Definition:

Social entrepreneurship refers to the activity of activists who use entrepreneurial methods to address systemic social problems. The scope of social entrepreneurship encompasses the entire listing under Area of Focus. The term has been associated with risk-takers who use ideas, resources, and opportunities in novel ways in order to produce outcomes that benefit society. Although social entrepreneurs can work in both the for-profit and nonprofit realms, their success is measured by social profit, not monetary gains. The term is relatively new dating back to the 1950s and the work of Michael Young who created sixty different social benefit organizations in the world, including the School of Social Entrepreneurs in 1997. The practice of social entrepreneurship extends back to the public health movement during the industrial revolution and would include such notables as Florence Nightingale, Susan B. Anthony, and M.K. Gandhi. The greatest single proponent of social entrepreneurship has been Bill Drayton of Ashoka. The best-known practitioner of social entrepreneurship is Muhammad Yunus, the creator of microfinance and microcredit, the founder of Grameen Bank in Bangladesh, and the 2006 Nobel Peace Prize winner. Despite the recent publicity, the work of most social entrepreneurs remains largely unnoticed.

Discussion

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molly 3 months ago
Just read a great book called "The Power of Unreasonable People", by Pam Hartigan and John Elkington, founder of SustainAbility. As Bill Strickland said in his book Make the Impossible Possible, “Why not do something remarkable with our time on the planet? Why not set our sights outrageously high?” This book addresses exactly this: Definitely a must-read for anyone interested in SE & future trends.
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What is the purpose of a rating system? Sorry for my ignorance, please catch me.
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The book Peter suggested "Managing and Measuring Social Enterprises" is the best thing I've read one the subject so far.
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SorenG about 1 year ago
Rating can be tricky, I think. Not quite sure the answer to this here. One is to show just one's "favorites" and how many people listed a group as a "favorite." However, then can you sort by the groups with the most favorites?

This is one of those delicate matters that can be awesome or fail miserably . . .

(Mark, glad you like the Navarre pic. I just threw it in there but I guess I better keep it)
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MarkGrimes about 1 year ago
Michael, glad you jumped into this discussion and hope anyone reading feels welcome to do the same thing.

A weighted voting system is interesting and glad to hear between you and Daniel this is being considered.

Please also see http://www.omidyar.net/user/active/ rating system where threads, posts and member profiles are all rated, and between -4 to +4 are anonymous, but members names become credited to the user when they spend points at the -5 and below and +5 and above levels.

>>If there is one thing I've learned from dealing with lots of orgs, is that many exist in a gray area of acceptability and whether they get in or not, can be very nuanced. In situations like that, a transparent system is needed and it would be great to have confidence in the users that do the actual voting.<<

So here is another example.

Recently was involved in an open space event and $5,000 was being given to benefit the people of Gulu, Uganda. 130+ people, primarily from Africa, attended the event...but roughly 35-45 were from Gulu. We divided into 5 teams at random, then each team developed an idea/project they thought could best benefit the Gulu community, and a "champion" volunteered for each idea/project.

Now, who am I, some guy from Portland, Oregon to vote for or decide what is best for the community and people of Gulu? In essence, after a two hour Q&A period, only the people of Gulu got to vote on the project they preferred and it worked like a charm. The other 2/3 of the people at the event just happily watched with great interest as the voting process took place.

Quite candidly in Gulu I saw oodles of white people in expensive white air-conditioned Range Rover trucks driving around, but never interacting with any local people. Not once. Must-read books like "Despite Good Intentions", "White Man's Burden" and "The Lords of Poverty" all outline similar problems with decades of what has become "the development industry". In other words there is a need to be somewhat weary that those in a "higher position" would assume know the answers, my faith is in the community being served and their ability to rate who are supposed to be helping them.

The local indigenous community members within Gulu very well understood the potential problems with a microfinance program. Corruption. They make be making 1,000 shillings a day (.58 cents), but just because they are extremely impoverished does not mean they don’t have some of the best ideas on what could truly help them overcome issues of poverty.

A non biased comparative rating system based on replicable, scalable, open source, transparent, easy to understand, sustainable, action based problem solving ideas would be worth its weight in gold and clean water.
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michael about 1 year ago
I thought I would jump into this discussion and add my two cents -

A rating system on WiserEarth exists already, but it is very, very crude. An organization can be either: active, out of scope, or in discussion. A rating/voting system could expand on this or make it obsolete.

One example of what we are considering is the system of weighted voting based on expertise developed at www.smartocracy.net. Basically, a new user has one proxy to keep (but can be given more), and multiple proxies to give away. I would give my proxies to other users I felt had expertise in a particular field, which would allow them to vote on organizations in question that have also been tagged in that field (using Area of Focus tags makes the most sense).

A straight forward example: An org that works in water rights is suspected of being a front group for Bechtel, it can be set to 'in discussion' and for a period of time users with a lot of proxies in 'Water Rights' could significantly influence the decision to keep the org active or set it out of scope.

An org. that has been set to 'out of scope' could be tagged with the discussion and voting that resulted in it getting that status. If there is one thing I've learned from dealing with lots of orgs, is that many exist in a gray area of acceptability and whether they get in or not, can be very nuanced. In situations like that, a transparent system is needed and it would be great to have confidence in the users that do the actual voting.

This is a great conversation though.

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MarkGrimes about 1 year ago
Hey Daniel. Could orgs get scared away? You bet. But one might imagine that many of the grassroots orgs willing to openly collaborate and such would be very open to a transparent system...pushing things to the smart edges so to speak. I’d go so far as to argue that smaller grassroots orgs have many of the best overall solutions to many problems, but given their size and limited voices their solutions often go unnoticed.

And I'm thinking too orgs play a part of this, but rating, ranking and evaluation "solutions" is much more important. "Clean Water"...do you care more about if the provider is UN or Save the Children or an NGO you've never heard of, or that it works best.

Mmmmmmmm.

A Consumer Reports type org to analyze problems and many various solutions that could also include various supporting global NPO/NGO's.

A standards and best practices evaluation process, nonpartisan, transparent and fair in every way possible.

Also Daniel, you might want to check on WiserEarth member Ethan McCutchen (another o/net member) and look into his Grass Commons...they are working on kind of a better product company rating thing too.
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danielbell about 1 year ago
Greetings Mark,

Don't have any answers, but I'm pleased to discuss. A rating system is something that is being considered for WiserBusiness, but a decision hasn't been reached. An important question, would a rating system encourage orgs to get involved or would it make them shy away? A meta-question, can one compare the disparate groups on W.E.?
Keep the discussion going.

peace
dan;el
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MarkGrimes about 1 year ago
>>It is too easy to "rate and rank" to satisfy the needs of funders (both major and micro) rather than parsing down to the intersection of "who?", "why?", and "what?"<<

Peter, I agree 100%

In the way many larger newspapers have "public community editors" inhouse to be critical of their own company on behalf of the public it could be interesting if NPO/NGO's had some similar position that transparently oversaw and reported publicly about the organization on behalf of clients, investors and donors.

Managing and Measuring Social Enterprises looks like a great book. $179...ouch.
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VSEF about 1 year ago
I think measurement is beneficial. Measuring strengths rather than a broad snapshot would advance most social endeavours.

It is too easy to "rate and rank" to satisfy the needs of funders (both major and micro) rather than parsing down to the intersection of "who?", "why?", and "what?"

I guess I'm looking for a "Now, Discover Your Strengths: How to Build Your Strengths and the Strengths of Every Person in Your Organization" for civil society organizations.

I can recommend "Managing and Measuring Social Enterprises"

[Edit: I removed the scripting for html links. Not an ability of the comment function.]
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MarkGrimes about 1 year ago
Well, thought I'd drop in a post here to explore the threaded dialogue experience a bit. I'm wondering if this site were to implement some form of community based reputation, rating and ranking system for the NPO and NGO groups what 7-15 things would be more important to rate?

Transparency? Measurable results reporting? Ability to scale? Cost benefit analysis? Collaborative environment?

What do you think would be some of the most important things to rate and rank? Or do you think rating and ranking is an awful idea?

MarkGrimes
http://www.ned.com
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