UNIT 5
SOCIAL
ENTREPRENEURS
HIP
Social Sector
Social sector is often used to refer sectors of
education, health, sanitation and nutrition, etc.
Two approaches of social sectors are
1. Human resource development approach:
It emphasizes investment in education, health
and nutrition as a means of enhancing the
quality of human capital. It limits the role of
public intervention.
2. Human development approach: The term has
been given by united nations development
program. This approach focused on people
and their opportunities and choices. It helps in
improving the lives of people rather than
assuming the economic growth which
automatically leads to greater well being for
all.
Social Sector Perspective
Social sector perspective include right to
education, land rights, food security, health for
all, gender equality, women empowerment,
livelihood and employment guarantee.
Social Entrepreneurship
• It is process of recognizing the social problems
and achieving a social change by employing
entrepreneurial principles, process and
operations.
• It is associated with non profit sectors but
does not eliminate the need of making money.
• Along with social problems it also focuses on
environmental problems, women
empowerment and child rights.
Different types of social entrepreneurships
1) Community enterprises: They serve specific
community, religion or groups.
2) Social firms: They help physical and learning
disabled people and helps them to find jobs
in mainstream market.
3) Credit union: These are community based
financial institutions which provide loan
facilities.
4). Development trust: They assist people in
ownership and management of community
property.
5). Public sector spinout: They were setup to
provide services that were earlier provided by
public sector enterprises.
Importance of social entrepreneurship for
society
• They help in employment generation.
• Innovation of new goods and services can
achieved.
• They helps in equity formation of the
company.
• They provide skill development to general
people.
Some successful models of social
entrepreneurship
• Study hall education foundation: It provides
free education to poor girls and works with
900 schools.
• Selco: This project is first rural solar financing
program in India.
• Childline: It provides health care and police
protection to street children.
• Goonj: It collects clothing from urban crowd
and distribute them among poor and needy.
• Pipal tree: It works to create job opportunities
for the unemployed youth in rural areas.
• Rangasutra: It aims to revive craftsmanship
and talent in rural areas and provide them
employment.
• Frontier markets: It supplies solar energy
powered products to rural India at extremely
affordable costs.
Social Innovation
Social innovation refers to the design and
implementation of new solutions that imply
conceptual, process, product or organizational
change which ultimately aims to provide
welfare and well beings of communities and
individuals.
Social innovations are available in three forms:
1. Product based.
2. Process based
3. Socially transformative
Different ways to ensure sustainability in
social enterprise
1) Growth and comfort cannot be combined.
2) Pick one area and stick to it.
3) Start with a big idea and scale it down.
4) Stick to the purpose of starting the enterprise
5) Reinvention will lead to ultimate success to
goal.
Market Management
It means the management of all the activities
related to marketing.
It includes the following steps:
1. Choosing the target market.
2. Growing customers in target market.
3. Creating special value in the product.
Objectives of market management
• Attracting new customers.
• Satisfying the demands of customers.
• Maximizing profitability.
• Maximizing the market share.
• Creating a good public reputation
Marketing for social entrepreneurship
It is a social and managerial process in which
individuals and groups receive what they want
and need through the exchange of products or
services. The task of marketing is to identify
and define specific markets for specific
products.
Practices used in marketing for a social
enterprise
1. Focus on product or services.
2. Showcase social impact theory.
3. Should be transparent with product.
4. Utilize digital marketing strategy.
5. Building a consistent social enterprise brand.
6. Spend money on marketing.
Risks involved in Social Enterprise
• Difficulty in obtaining finances.
• The more controversial the cause, the more
backlash you can expect to get.
• Not focusing on profits.
• Long hours workout causes burnout.
• Lack of public knowledge causes difficulty to
gain support for your cause.
• Not having a substantial support structure.
• Lack of resources and funds causes difficulty in
marketing.
Steps to manage risks in social enterprise
1. Risk identification: Risk arises from
government legalization, policies and
regulations, inadequate funding, security and
safety, climate hazards, norms and cultures
and managerial incompetence.
2. Risk impact assessment: How risk can impact
cost, schedule, quality, program scope or
performance.
3. Developing the approach and plan: The risk
management plan describes how risk
management will be structured and
performed on the project.
4. Selecting the risk management tool: Factors
such as program complexity available
resources are to be considered by selecting
tools.
5. Risk prioritization analysis: Impact
assessment, probability of occurrence and
consequences are the main factors while
prioritizing the risks.
6. Risk mitigation planning, implementation
and progress monitoring: Risk mitigation is
planned, then implemented, results are
viewed to revise any course of action.
Legal framework
The rules, rights and obligation of companies,
government and citizens are set forth in a
system of legal documents called a legal
framework.
Legal framework necessities in business are:
1. Maintaining order using set of rules and
regulations.
2. Resolving disputes between members of
organization.
3. Establish generally accepted standards.
4. Protect rights and liberties of employees
working with the organization.
5. Protect relation with other co-working bodies,
government authority and customers.
Legal structures used in social
entrepreneurship sectors
• Non-profit or charitable organization: These
startups do not expect revenue from their
activities. Example-teach for India.
• The for- profit social enterprise: There are five
types of for- profit enterprise:- sole
proprietorship, partnership, private firm and
co-operation. They are suited for growth and
profit.
• The hybrid model: This type of social
enterprise can attract both donation and
grants and still be able to have social venture
funding. Example:- Head held high foundation.
