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:
- Social mission first: solving a problem such as poverty, illiteracy, poor health or pollution.
- Innovation: new products, services or models (e.g. low-cost eye surgery).
- Self-sustaining: earns income through sales or fees instead of depending only on donations.
- Profit reinvested: surplus is used for the mission.
- 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
| Basis | Social Entrepreneurship | Business Entrepreneurship |
|---|---|---|
| Main aim | Social value and welfare | Profit and wealth creation |
| Use of profit | Reinvested in the social mission | Distributed to owners/shareholders |
| Measure of success | Social impact (people helped) | Profit, market share, growth |
| Customers | Often poor or neglected groups | Those who can pay |
| Funding | Grants, donations, impact investors, sales | Owners' capital, loans, equity |
| Legal form | Trust, society, Section 8 company, cooperative, or company | Proprietorship, firm, company |
| Example | Goonj | Reliance Retail |
Social Entrepreneurship and Government
Government and social entrepreneurs work in the same space โ public welfare โ and support each other.
- Filling gaps: social entrepreneurs reach places where government services are weak (remote villages, slums).
- 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.
- 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.
- Innovation for policy: successful models (like the Amul cooperative model) are adopted as national policy (Operation Flood).
- Regulation: registration, FCRA for foreign funds, tax exemptions โ 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 โ affordable cataract surgery), Ela Bhatt (SEWA โ self-employed women), Bunker Roy (Barefoot College โ training rural women as solar engineers), Muhammad Yunus (Grameen Bank, Bangladesh โ microfinance, Nobel Peace Prize 2006).
Dimensions of Social Entrepreneurship
- Social mission: the purpose of creating social value is central.
- Innovation: new ways of solving old problems.
- Market orientation: using business tools โ pricing, marketing, efficiency โ to earn revenue.
- Sustainability: financial (self-funding) and environmental sustainability.
- Risk-taking: working with uncertain funding and difficult markets.
- Scalability: ability to grow and be copied in other places.
- Social impact: measurable change in people's lives.
- 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:
- They challenge old systems โ e.g. Sulabh changed sanitation practices and dignity of manual scavengers.
- They empower the weak โ SEWA gave poor women a voice, savings and bargaining power.
- They change attitudes โ Goonj made used clothing a matter of dignity, not charity.
- They create replicable models that governments and others copy.
- They influence policy โ Amul led to Operation Flood and the White Revolution.
Likely exam questions
- (Long, 8/16 marks) What is social entrepreneurship? Distinguish between social entrepreneurship and business entrepreneurship.
- (Long, 8/16 marks) Explain the dimensions of social entrepreneurship and its relation with social change.
- (Short, 4 marks) Write a note on social entrepreneurship and government.
- (Short, 4 marks) State the qualities of a social entrepreneur.
- (Short, 4 marks) Give any two examples of social entrepreneurs in India.