Chapter 12: SOCIAL ENTREPRENEURSHIP AND VIRTUOUS BUSINESS (Contributions…
Chapter 12: SOCIAL ENTREPRENEURSHIP AND VIRTUOUS BUSINESS
Entrepreneurship, Innovation and Creative Destruction
‘Through the process of Creative destruction, the economic equilibrium disentangles and along with it emerges the impetus for innovation of products and methods geared at developing competitive advantage. In so doing, it discards existing goods, services and ventures into obsolesce.’
12.1 Social entrepreneurship
Use entrepreneurial talents to solve social problems.
Gather the resources to solve social problems to satisfy some unmet needs that the welfare systems will not or cannot meet.
Combine visionary and real-world problem-solving capacity braced by strong ethical fibre and the zeal for change − path breaking.
Principles of Social Entrepreneurship
Positive social impact
Social entrepreneurship responds to communities that have been marginalized or excluded by existing market actors or non-market institutions.
Social entrepreneurship seeks innovation and imagines new and very different futures. It is aimed at ‘creative destruction’.
Use of sustainable methods
Social entrepreneurship must include a strategy for achieving financial sustainability such as earning income.
Adaptive scalable Innovation
A social entrepreneur’s idea of an innovation is that it is adaptive and can be ‘scaled up’ beyond any particular context
Acting responsibly in using God’s bounties and abilities
Produce what others find useful
Benefit all those they deal with
Act responsibly towards those they included in the risks they took
Take advantage of their innovative capacities to:
-Develop competitive advantage and create wealth
-Create social divide
Islam and the Social Entrepreneur
Muslim entrepreneurs prioritize on worship to Allah and the halal concept.
They are not wasteful and are trustworthy.
They practice high moral values and are concerned for the welfare of others.
They are knowledgeable and care for society and the environment.
Contributions of Social Entrepreneurs
SEs use business success to address social or environmental challenges while engaged in finding solutions for social inequalities and environmental problems.
Promote ethical market
They drive companies to embed social responsibility in their business relationships, showing that ethical commitment and business success can be combined, and promoting the trend towards ethical consumerism. They challenge current business practices by pioneering innovative ethical market activities that win the hearts of the people and bring profit to the company.
Advocates improved public service
Tapping upon their high engagement with users and the capacity to build
their trust, social entrepreneurs help improve the quality of public service
through the shaping of service design and pioneer new approaches that can
influence the way services are delivered by the public sector.
Boost overall entrepreneurial involvement of the
In general, an enterprise contributes to economic success, and as such, must be encouraged. Social entrepreneurship provides an avenue to those not attracted by conventional business. Together, they close the gap for improved
productivity; encouraging new people into business, which may include the
under-represented and deprived communities with untapped ideas.
12.2 Becoming a Social Entrepreneur
Before Taking off
The power of dreams
Dreams provide visions of possible future
The power of passion
Passion helps you bounce back and persevere
The power of positive deviance
Misfits who make new discoveries and novel destinies
The power of mind
All problems have solutions
The power of future trends
Envisage the future and create opportunities
The power of mapping
Understand the whole social makeup
The power of the Bang for the Buck
Ability to stretch resources
After Taking off
The power of building a new programme
It is new, exhilarating and challenging
The power of the new professional identity
New identity, challenging but with vast support
The power of community building
It empowers and enables value creation
The power of augmentation
Large scale replicable solutions and new risks
Qualities of successful social entrepreneur
Advocate and serve
Make markets work
Nuture non profit networks
Common Traits of Successful Social Entrepreneurs
Social Entrepreneurs are highly educated
The majority of them have university degrees with some having attained postgraduate degrees.
They excelled in extra-curricular activities
They excelled in extra-curricular activities including sports during their youth.
They are exposed to different cultures
They experienced different cultures while studying, living or working outside their home countries.
They have an intimate understanding of the problems
They understand the problems they are trying to solve and are seeking out systemic change through government agencies for widespread impact.
12.3 Measuring and Improving social impact
Social impacts are the societal or environmental changes created by our activities and investments.
Equality and livelihood
Nutrition and poverty
Security and justice
Societal and Environmental Impacts
Health and resource depletion
Conservation and waste
Literacy and environmental health
Energy use and climate change
Creating and measuring social impact
What would I or others be interested to invest in?
Identity, process, financial and social impact
What do I seek to redress?
Understand the issues, intervention options, target recipients and investment options
How do I get there?
Creating the impacts and linking actions to impacts
How do I know that I am already there?
Innovative service delivery, capacity building, research, advocacy and infrastructure
How do I amplify the impact?
By asking, ‘What if?’ and followed by ‘If…, then…?’
12.4 Virtous Business
It is a spiritual act of doing business because:
It combines creativity, community concern and practical realism backed by virtues.
It hinges on the social domain.
It consolidates moral and spiritual dimensions and considers the people whom and for whom the work is being performed
Characteristics of Virtuous business