Social Entrepreneurship CBMED5T05

Syllabus topics (RTMNU)

• Introduction of Social Entrepreneurship
• Difference between Social Entrepreneurship and Business Entrepreneurship
• Social Entrepreneurship and Government
• Social Entrepreneurs
• Dimensions of Social Entrepreneurship
• The Relation between Social Entrepreneurship and Social Change

Introduction to Social Entrepreneurship

Definition: Social entrepreneurship is the process of identifying a social problem and using business methods, innovation and risk-taking to solve it in a sustainable way, where the main aim is social benefit rather than private profit.

J. Gregory Dees described social entrepreneurs as "change agents in the social sector" who adopt a mission to create social value, pursue new opportunities, keep innovating, act boldly with limited resources, and are accountable for the outcomes.

Features:

1. Social mission first: solving a problem such as poverty, illiteracy, poor health or pollution.
2. Innovation: new products, services or models (e.g. low-cost eye surgery).
3. Self-sustaining: earns income through sales or fees instead of depending only on donations.
4. Profit reinvested: surplus is used for the mission.
5. Measurable impact: success is measured by lives changed, not only by money.

Indian examples: Amul (dairy cooperative, Dr Verghese Kurien), SEWA (Ela Bhatt), Aravind Eye Care, Goonj (Anshu Gupta), Sulabh International (Bindeshwar Pathak), SELCO India (solar power for the poor).

Social Entrepreneurship vs Business Entrepreneurship

Social Entrepreneurship and Government

Government and social entrepreneurs work in the same space — public welfare — and support each other.

1. Filling gaps: social entrepreneurs reach places where government services are weak (remote villages, slums).
2. Partners in delivery: government schemes are often delivered through NGOs and social enterprises, e.g. the Akshaya Patra Foundation runs mid-day meals (PM POSHAN) in many States.
3. Policy support: Startup India, Atal Innovation Mission, Section 8 companies under the Companies Act 2013, CSR spending under Section 135 of the Companies Act 2013, and the Social Stock Exchange set up under SEBI.
4. Innovation for policy: successful models (like the Amul cooperative model) are adopted as national policy (Operation Flood).
5. Regulation: registration, FCRA for foreign funds, tax exemptions — check latest rules.

Social Entrepreneurs

A social entrepreneur is a person who sees a social problem as an opportunity and builds an organisation to solve it in a new and lasting way.

Qualities: empathy and passion for the cause; vision; creativity; courage to take risks; leadership and team building; resourcefulness (doing more with less); patience and persistence; ethical behaviour and accountability.

Examples: Dr G. Venkataswamy (Aravind Eye Care — affordable cataract surgery), Ela Bhatt (SEWA — self-employed women), Bunker Roy (Barefoot College — training rural women as solar engineers), Muhammad Yunus (Grameen Bank, Bangladesh — microfinance, Nobel Peace Prize 2006).

Dimensions of Social Entrepreneurship

1. Social mission: the purpose of creating social value is central.
2. Innovation: new ways of solving old problems.
3. Market orientation: using business tools — pricing, marketing, efficiency — to earn revenue.
4. Sustainability: financial (self-funding) and environmental sustainability.
5. Risk-taking: working with uncertain funding and difficult markets.
6. Scalability: ability to grow and be copied in other places.
7. Social impact: measurable change in people's lives.
8. Community participation: involving beneficiaries in decisions.

Social Entrepreneurship and Social Change

Social change means a lasting change in the behaviour, structures, values or living conditions of society. Social entrepreneurs are called "agents of social change" because:

1. They challenge old systems — e.g. Sulabh changed sanitation practices and dignity of manual scavengers.
2. They empower the weak — SEWA gave poor women a voice, savings and bargaining power.
3. They change attitudes — Goonj made used clothing a matter of dignity, not charity.
4. They create replicable models that governments and others copy.
5. They influence policy — Amul led to Operation Flood and the White Revolution.

Likely exam questions

1. (Long, 8/16 marks) What is social entrepreneurship? Distinguish between social entrepreneurship and business entrepreneurship.
2. (Long, 8/16 marks) Explain the dimensions of social entrepreneurship and its relation with social change.
3. (Short, 4 marks) Write a note on social entrepreneurship and government.
4. (Short, 4 marks) State the qualities of a social entrepreneur.
5. (Short, 4 marks) Give any two examples of social entrepreneurs in India.

Syllabus topics (RTMNU)

• Types of Social Enterprise Models
• Characteristics and Emergence of Social Enterprises
• Social Enterprises by Mission Orientation
• Strategic Management in a Social Enterprise

Meaning of Social Enterprise

Definition: A social enterprise is an organisation that runs a business activity (selling goods or services) mainly to achieve a social or environmental purpose, and reinvests most of its surplus in that purpose.

Types of Social Enterprise Models

Kim Alter's well-known classification gives these operational models:

1. Entrepreneur support model: sells business support (microloans, training) to poor entrepreneurs. Example: microfinance institutions like Ujjivan (started as an MFI).
2. Market intermediary model: buys products from small producers and sells them in bigger markets at fair prices. Example: Fabindia (artisans), Amul.
3. Employment model: provides jobs and training to people who find it hard to get work (disabled, ex-prisoners). Example: Mirchi & Mime restaurant in Mumbai employing speech- and hearing-impaired staff.
4. Fee-for-service model: sells social services directly to beneficiaries at a fee. Example: low-cost private schools, hospitals.
5. Low-income client model: provides products to the poor at affordable prices. Example: SELCO solar lamps, Aravind Eye Care (paying patients subsidise free ones).
6. Cooperative model: members own and benefit. Example: Amul, Lijjat Papad.
7. Market linkage model: connects producers to buyers without buying itself. Example: e-Choupal (ITC) for farmers.
8. Service subsidisation model: a business activity earns money to fund a separate social programme.
9. Organisational support model: a separate business owned by an NGO gives profits to the parent NGO.

Characteristics of Social Enterprises

1. Social purpose: clear social or environmental mission.
2. Trading activity: earns a major part of income from sales or fees.
3. Reinvestment of surplus in the mission.
4. Democratic or inclusive governance: stakeholders, often beneficiaries, take part in decisions.
5. Accountability to community and funders through social audits.
6. Innovation in products, processes and delivery.
7. Double or triple bottom line: people, planet and profit.

Emergence of Social Enterprises

Reasons why social enterprises grew in India and the world:

• Limits of government: the State alone could not meet all welfare needs.
• Decline of donor funds: NGOs needed their own income for survival.
• Market failure: private firms ignored poor customers ("bottom of the pyramid", C.K. Prahalad).
• Rise of impact investing and CSR funds (Companies Act 2013, Section 135).
• Technology: mobile phones and digital payments made reaching rural people cheaper.
• Young educated founders wanting purposeful careers; incubators in IITs, IIMs and universities.

Social Enterprises by Mission Orientation

Based on how closely the business activity is linked to the mission:

Strategic Management in a Social Enterprise

Strategic management means setting long-term goals and choosing the best plans and resources to reach them. In a social enterprise it balances social mission with financial survival.

Steps:

1. Vision and mission: state clearly what social change is wanted.
2. Environmental scanning: study needs of the community, competition, government schemes (SWOT/PESTLE analysis).
3. Strategy formulation: choose the model, target group, pricing (cross-subsidy), partnerships with government, CSR and NGOs.
4. Resource mobilisation: grants, CSR funds, impact investors, crowdfunding, social stock exchange, earned revenue.
5. Implementation: build the team, processes and technology.
6. Evaluation and impact measurement: social audit, Social Return on Investment (SROI), theory of change.
7. Scaling up: expanding to new areas through branches, franchising or open-source models.

Challenges: mission drift (chasing money and forgetting the cause), limited funds, hiring skilled staff at low pay, measuring impact, and government regulations.

Likely exam questions

1. (Long, 8/16 marks) Explain the various types of social enterprise models with examples.
2. (Long, 8/16 marks) What are the characteristics of social enterprises? Explain strategic management in a social enterprise.
3. (Short, 4 marks) Explain social enterprises by mission orientation.
4. (Short, 4 marks) State the reasons for the emergence of social enterprises.
5. (Short, 4 marks) What is mission drift?

Syllabus topics (RTMNU)

• Definition
• Values
• Goals
• Elements and Approaches/Considerations
• Examples of young Social Entrepreneurship
• Managing People in a Social Enterprise Environment
• Identifying Social Business opportunities

Definition of Social Youth Entrepreneurship

Social youth entrepreneurship means young people (generally 15–35 years) starting and running enterprises that solve social or environmental problems using innovation and business methods. It combines the energy and new ideas of youth with a social purpose.

India has one of the youngest populations in the world, so youth-led social enterprises can turn this "demographic dividend" into jobs and social change.

Values

1. Empathy: feeling the pain of others and wanting to help.
2. Integrity and honesty in using funds and reporting results.
3. Equality and inclusion: no discrimination by caste, gender, religion or disability.
4. Responsibility towards community and environment.
5. Courage and creativity to try new solutions.
6. Collaboration: working with communities, government and NGOs.

Goals

• Solve local problems — water, sanitation, education, health, waste.
• Create employment for self and others; reduce youth unemployment.
• Develop leadership, skills and confidence among young people.
• Promote active citizenship and community development.
• Achieve the Sustainable Development Goals (SDGs) at the local level.

Elements and Approaches/Considerations

Elements:

1. Social problem clearly identified.
2. Innovative idea or solution.
3. Business model that earns income.
4. Team and partners.
5. Resources: seed money, mentors, incubators.
6. Impact measurement.

Approaches/considerations for young social entrepreneurs:

• Start small, test, then scale (pilot project in one village or college).
• Use technology — apps, social media, digital payments — to cut cost.
• Seek mentorship and incubation: college incubation centres, Atal Incubation Centres, Startup India — check latest schemes.
• Legal form: choose between trust, society, Section 8 company, LLP or private company.
• Balance studies/career with the venture and manage risk.
• Community involvement: involve the people being helped from the start.

Examples of Young Social Entrepreneurs

Managing People in a Social Enterprise Environment

People in a social enterprise include paid staff, volunteers, interns, board members and beneficiaries. Managing them is special because pay is usually lower and motivation comes from the cause.

1. Recruit for passion and skill — people who believe in the mission.
2. Volunteer management: clear roles, training, flexible time, recognition.
3. Motivation: non-monetary rewards — meaningful work, learning, appreciation, certificates.
4. Participative leadership: involve staff and community in decisions.
5. Training and capacity building of local people so the work continues.
6. Fair pay and welfare as far as possible to reduce staff turnover.
7. Culture of transparency and accountability.

Identifying Social Business Opportunities

A social business opportunity is an unmet social need that can be served through a sustainable business model.

Steps:

1. Observe problems around you — lack of clean water, girls dropping out, plastic waste, farmers getting low prices.
2. Talk to the community to understand the real need (field survey).
3. Study existing solutions and their gaps.
4. Generate ideas through brainstorming and design thinking.
5. Check feasibility: can people pay something? Are CSR or grant funds available?
6. Test a pilot and improve.

Sources of opportunity: government schemes needing delivery partners, CSR mandates, the SDGs, new technology, "bottom of the pyramid" markets, and climate change (renewable energy, recycling).

Likely exam questions

1. (Long, 8/16 marks) Define social youth entrepreneurship. Explain its values, goals and elements.
2. (Long, 8/16 marks) How are social business opportunities identified? Explain how people are managed in a social enterprise environment.
3. (Short, 4 marks) State the approaches or considerations for young social entrepreneurs.
4. (Short, 4 marks) Give any two examples of young social entrepreneurs in India.
5. (Short, 4 marks) Write a note on volunteer management in a social enterprise.

Syllabus topics (RTMNU)

• Role of Innovation in Social Enterprises
• Centre for Social Innovation (CSI)
• Role of GOs and NGOs
• Various Programs: Health, Education, Employment and Environment
• Implications for Youth and Career Development
• Examples of Social Entrepreneurship in India

Role of Innovation in Social Enterprises

Social innovation is a new idea, product, service or method that meets a social need better than existing solutions and improves people's lives.

1. Lower cost: Jaipur Foot (BMVSS) gives artificial limbs free of cost; Aravind Eye Care's assembly-line surgery cuts cost per cataract operation.
2. Wider reach: mobile apps and telemedicine bring services to villages.
3. New business models: cross-subsidy, pay-per-use, microfinance groups.
4. Empowerment: innovations that let people help themselves (Barefoot solar engineers).
5. Sustainability: innovations that earn revenue so the work continues without donations.
6. Policy change: successful innovations are copied by government.

Centre for Social Innovation (CSI)

A Centre for Social Innovation is an institution that supports social entrepreneurs by giving them space, training, networks, research and funding links. The best-known is the Centre for Social Innovation in Toronto, Canada, a co-working space for social ventures; similar centres exist at universities (e.g. Stanford's Center for Social Innovation, which publishes the Stanford Social Innovation Review) and Indian institutions run social innovation and incubation centres.

Functions: shared workspace; incubation and mentoring; training and workshops; research and publications; networking with investors, CSR donors and government; awards and fellowships; impact measurement support.

Role of GOs and NGOs

GOs (Government Organisations):

• Make policies and schemes (Startup India, Stand-Up India, Skill India, Atal Innovation Mission, NRLM self-help groups).
• Give grants, subsidies and tax benefits; provide infrastructure.
• Partner with social enterprises in service delivery (PPP model).
• Regulate through laws on registration, CSR (Section 135, Companies Act 2013) and foreign contribution.

NGOs (Non-Governmental Organisations):

• Work at the grassroots and understand local needs.
• Run programmes in health, education and livelihood; raise awareness.
• Act as a bridge between government and people.
• Many NGOs become social enterprises by adding an income-earning activity.
• Examples: Pratham (education), SEWA, Akshaya Patra, CRY.

Programmes: Health, Education, Employment and Environment

Government programmes in these areas (Ayushman Bharat, Samagra Shiksha, Skill India, Swachh Bharat, National Solar Mission) often use social enterprises and NGOs as partners.

Implications for Youth and Career Development

1. New career path: founder, programme manager, impact analyst, CSR executive, fundraiser.
2. Skill development: leadership, problem-solving, communication, project management.
3. Self-employment rather than waiting for jobs.
4. Fellowships and internships (e.g. Teach For India, SBI Youth for India, Gandhi Fellowship) — check latest.
5. Personal satisfaction and social recognition.
6. CSR jobs in companies because of the legal CSR mandate.

Examples of Social Entrepreneurship in India

1. Amul: cooperative of milk producers in Gujarat; led by Dr Verghese Kurien; basis of the White Revolution.
2. SEWA: trade union and cooperatives of self-employed women, founded by Ela Bhatt in 1972.
3. Aravind Eye Care System: founded by Dr G. Venkataswamy in Madurai; paying patients subsidise free surgeries.
4. Sulabh International: pay-and-use toilets and low-cost twin-pit toilets; founded by Dr Bindeshwar Pathak.
5. Shri Mahila Griha Udyog Lijjat Papad: women's cooperative started in Mumbai in 1959 by seven women.
6. Akshaya Patra Foundation: mid-day meals for school children.
7. Goonj: material as a tool for rural development.

Likely exam questions

1. (Long, 8/16 marks) Explain the role of innovation in social enterprises and the role of GOs and NGOs in promoting social entrepreneurship.
2. (Long, 8/16 marks) Describe the role of social entrepreneurship in health, education, employment and environment with Indian examples.
3. (Short, 4 marks) Write a note on the Centre for Social Innovation.
4. (Short, 4 marks) State the implications of social entrepreneurship for youth and career development.
5. (Short, 4 marks) Write a short note on SEWA or Amul as a social enterprise.