PROJECT MANAGEMENT &

ENTREPRENEURSHIP
(KHU-802)
Unit – 5

(DR. A.P.J ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW)

(Formally Uttar Pradesh Technical University)
 UNIT-5

SOCIAL ENTREPENEURSHIP

• Social Sector Perspectives

• Social Entrepreneurship

• Social Entrepreneurship Opportunities and Successful

Models

• Social Innovations and Sustainability

• Marketing Management for Social Ventures

• Risk Management in Social Enterprises

• Legal Framework for Social Ventures

.
 UNIT-5
SOCIAL ENTREPRENEURSHIP
Social entrepreneurship is the process of recognizing and resourcefully pursuing
opportunities to create social value. Social entrepreneurs are innovative, resourceful, and
results oriented. ... “What business entrepreneurs are to the economy, social entrepreneurs are
to social change.

1. Recognizing and resourcefully pursuing opportunities to create social value

2. Crafting innovative approaches to addressing critical social needs

Social entrepreneurship is the process of recognizing and resourcefully pursuing

opportunities to create social value. Social entrepreneurs are innovative, resourceful, and
results oriented. They draw upon the best thinking in both the business and non profit worlds
to develop strategies that maximize their social impact. These entrepreneurial leaders operate
in all kinds of organizations: large and small; new and old; religious and secular; non profit,
for-profit, and hybrid. These organizations comprise the “social sector.”

“What business entrepreneurs are to the economy, social entrepreneurs are to social change.
They are the driven, creative individuals who question the status quo, exploit new
opportunities, refuse to give up, and remake the world for the better”

What are the types of social entrepreneurship?

• Nonprofit. A tax-exempt, non-business entity that invests excess funds back into the mission.
• Co-operative. A business organized by and for its members. ...
• Social purpose business. ...
• Social firm. ...
• Socially responsible business. ...
• For-profit.

Social Sector Perspectives and Social Entrepreneurship

What is the concept of social entrepreneurship?

Social entrepreneurship is an approach by individuals, groups, start-up companies or

entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or
environmental issues.

What is social entrepreneurship explain the types of social entrepreneurship?

The Community Social Entrepreneur

Social entrepreneurs on this scale are usually individuals or small organizations.
Microfinance loans are one example - offering financial solutions to local people with no
access to banking. These entrepreneurs work directly with members of the community.

Types of social entrepreneurs

When it comes to driving change through social entrepreneurship, there are many definitions.
These individuals and companies represent a vast cross-section of what they are trying to
accomplish with their businesses. They also differ in terms of their strategies and goals for
bringing about social change.
Dr. Joe Johnson is an entrepreneur who has studied the field for over 25 years. He is the
founder of Welfont, which has funded and launched over a dozen start-ups. Dr. Johnson has
outlined what he considers to be the four most common types of social entrepreneurs.

1. The Community Social Entrepreneur

This entrepreneur seeks to serve the social needs of a community within a small geographical
area. These entrepreneurial initiatives could be anything from creating job opportunities for
marginalized members to building a community center. Social entrepreneurs on this scale are
usually individuals or small organizations. Microfinance loans are one example - offering
financial solutions to local people with no access to banking.

2. The Non-Profit Social Entrepreneur

These entrepreneurs are focused on social, not material gain, meaning they prioritize social
well-being over traditional business needs. They reinvest any profits into the business to
facilitate the further expansion of services
Non-profit social entrepreneurs are usually companies and organizations that choose to use
their power for social good. The story of Goodwill Industries serves as a great example: In
1902, the company started employing poor residents to work with donated goods, reinvesting
all profits into job training programs.
These entrepreneurs are usually more likely to meet their stated goals due to readily available
funding. However, they are also dependent on its successful generation for social good.
This path is usually taken by more business-savvy entrepreneurs who want to use their skills
for creating change. While the results often take longer to manifest, they can take effect on a
larger scale. Joining a local non-profit or training program is usually a reliable way to start.

3. The Transformational Social Entrepreneur

These people are focused on creating a business that can meet the social needs that
governments and other businesses aren't currently meeting. The transformational category is
often what non-profits evolve to with sufficient time and growth. They become larger
organizations with rules and regulations - sometimes growing to the point of working with or
getting integrated into governmental bodies
4. The Global Social Entrepreneur
These entrepreneurs seek to completely change social systems in order to meet major social
needs globally. It's often where big companies end up when they realize their social
responsibility and begin concentrating on positive change as opposed to just profits. It's also
where the largest charity organizations, such as the Bill & Melinda Gates Foundation,stand.
The global need in question can be anything from free access to education to clean water.
This is usually a lofty goal that spans continents and links many organizations and interests
together. However, the trade-off is in scrutiny - if global social entrepreneurs fail to meet the
needs and gather sufficient support, their failure has a bigger impact than those of smaller
organizations.
Q-What is the meaning of social entrepreneur explain with examples how social
entrepreneurs benefit society and humanity at large?
Social entrepreneurs are individuals with innovative solutions to society's most pressing and
daunting social problems. They are ambitious and persistent, tackling major social issues and
offering new ideas for wide scale change.

Social Entrepreneur: Meaning, Need, Significance for Society!

Entrepreneurs are essential drivers of innovation and progress. In the business world, they act
as engines of growth, harnessing opportunity and innovation to fuel economic advancement.
On the other hand, social entrepreneurs are individuals who recognize a social problem and
use entrepreneurial principles to organize, create, and manage a venture to make social
change.

Social entrepreneurs are individuals with innovative solutions to society’s most pressing and
daunting social problems. They are ambitious and persistent, tackling major social issues and
offering new ideas for wide scale change.

According to him, the social entrepreneur plays the role of a change agent in society by:
a. Adopting a mission to create and sustain social value;

b. Searching for and pursuing new opportunities to serve that mission

c. Continually innovating, adapting, and learning in pursuit of the mission;

d. Acting boldly without consideration of resources current in hand; and

e. Being accountable for outcomes of activities.

Thus, social entrepreneur is different from a business entrepreneur in the sense that the
former assesses its success in terms of its impact he/she makes on society whereas the latter
measures his/her performance in terms of profit and return

Following are some of the historical examples of leading social entrepreneurs across the
world:
(i) Florence Nightingale (United Kingdom (UK) :
Founder of the modem nursing, she established the first school for nurses and fought to
improve hospital conditions.

(ii) Vinobha Bhave (India):

Founder and leader of the Land Gift Movement, he caused the redistribution of more than
7,000,000 acres of land to aid India’s untouchables and landless.

(iii) Dr. Maria Montessori (Italy):

Developed the Montessori approach to early childhood education.

Why Social Entrepreneurs?

The need for and significance of social entrepreneurs is imbued with multiplicity of
justifications. Just as business entrepreneurs change the face of business, social entrepreneurs
act as the change agents for society, seizing opportunities others miss and improving systems,
inventing new approaches, and creating solutions to change society for the better.

While a business entrepreneur might create entirely new industries, a social entrepreneur
comes up with new solutions to social problems and then implements them on a large-scale
for the benefit of the humanity.

Social Entrepreneurship Opportunities

What is social opportunity
Set of circumstances that make it possible to pursue a group of actions able to produce
social value.
How are social entrepreneurial opportunities different?
While the traditional entrepreneur aims to create a product, service or process for which a
consumer will pay, the social entrepreneur aims to create a product, service or process
from which society will benefit.

Social entrepreneurship differs from traditional entrepreneurship in many ways. One

key way to distinguish a traditional entrepreneur from a social entrepreneur is through
the goal he hopes to achieve. While the traditional entrepreneur aims to create a
product, service or process for which a consumer will pay, the social entrepreneur
aims to create a product, service or process from which society will benefit. In
essence, traditional entrepreneurs aim to create commercial value where social
entrepreneurs aim to create social value.

Furthermore, because social entrepreneurs are tackling issues such as the prevention
and treatment of HIV/AIDS, the outcomes of their success can be more rewarding.
While a success in the business world can mean more money for investors, success in
social entrepreneurship can mean saving lives — and fundamentally improving the
world.

The work of social entrepreneurs also differs from that of civil society organizations.
While philanthropists, social activists and nongovernmental organizations (NGOs)
also work toward the creation of social value, they achieve that social value in
different ways.
 Opportunities for Social Entrepreneurs In India

• Waste Management: In a country like India, solid and liquid waste management are
undoubtedly the corner stone for a clean and green India. ...
• Deep Cleaning Services. ...
• Green Infrastructure: ...
• Water Management:
For the uninitiated, Socio-preneurs are individuals with innovative solutions to society's most
pressing social problems. These folks are full of enthusiasm to tackle social issues by offering
new ideas to bring about large scale changes in the society.
Here we are listing some untapped opportunities for the budding entrepreneurs:
1. Waste Management:

• In a country like India, solid and liquid waste management are undoubtedly the corner
stone for a clean and green India. It is clearly an area of focus.

• In Indian context, this is a journey or race with no 'finish line'. On the ground, various
solutions, best practices and business models have emerged. In some areas, we see
some cases of dramatic turnarounds. In many other cases the situation is only
worsening owing to delays and at best inaction. Progress is visible in the space of
solid waste management. Sewage or liquid waste management is still largely left to
traditional approaches and conventional systems that either don't work or are fraught
with gaps in implementation.

Deep Cleaning Services

To keep India clean and green Prime Minister Narendra Modi has initiated the Swatch Bharat
Campaign. But only initiating such campaign won’t make India clean. We need to work
together towards this ambition to make our country tidy.

And for aspiring entrepreneurs this a great sector to tap. Cleaning industry is still untapped
and it needs young blood to step in and change the face of the sector by using their innovative
skills and techniques.

3. Green Infrastructure:

Green Infrastructure is vital in providing and connecting life support systems for urban
environments. It includes parks and reserves, gardens, waterways and wetlands, streets and
transport corridors, pathways and greenways, squares and plazas, roof gardens and living
walls, just to name a few. This space provides huge opportunities for entrepreneurs to meet
India's green infrastructure needs in 2016 and beyond.

4. Water Management:

Water is one of the most important element of life. But the scarcity of drinking water, is
appalling. In today’s time, access to clean water is the biggest achievement for any family
living in remote areas of the country. You, being an entrepreneur, can look into this matter
and figure out the best way to solve this problem with the help of your entrepreneurial skills.
So if you are planning to become a social entrepreneur, renewable energy or recycling space
is not the only option that you can opt for. There are more major issues and areas which you
can tap and churn out money by helping society to live better life.

What are the 5 P's of social entrepreneurship?

Based my entrepreneurial experience as a millennial, success in business requires five
P's: persistence, patience, purpose, people and profits

What are the entrepreneur opportunities?

Entrepreneurial opportunities are usually defined as situations where products and services
can be sold at a price greater than the cost of their production. An 'entrepreneurial
opportunity', thus, is a situation where entrepreneurs can take action to make a profit
The concept of an ‘entrepreneurial opportunity’ is central for the study and theory of
entrepreneurship. Entrepreneurs are individuals who pursue entrepreneurial opportunities.
Without entrepreneurial opportunities, therefore, there will be no ‘entrepreneurship’,
conceptually speaking.

But is the concept of an ‘entrepreneurial opportunity’ an illusion, like time in physics? Can
entrepreneurial opportunities actually be said to exist? That is, can we talk about
‘entrepreneurial opportunities’ as existing out there, independent of what we do?
Entrepreneurial opportunities are usually defined as situations where products and services
can be sold at a price greater than the cost of their production. An ‘entrepreneurial
opportunity’, thus, is a situation where entrepreneurs can take action to make a profit. Profit-
making situations obviously exist: there are lots of businesses making money, or as
economists put it, exploiting market imperfections. But the problem with the notion
of entrepreneurial opportunities is that entrepreneurship is future-oriented action. The
question then becomes: how can we know that an opportunity exists to make money before
we try it?
This is where things turn problematic: there is no way of knowing for certain that we can sell
products and services with profit before we try and sell those products and services. If we do
make money, an entrepreneurial opportunity can be said to have existed: we took action and
made a profit. But if we make a loss, was just because of us screwing up, or was the
opportunity ever there in the first place?
Why is this problematic? Management theories should meaningfully guide managerial and
entrepreneurial action. In its current form, the theory of entrepreneurial opportunity informs
us that if we want to become entrepreneurs, we should go find an opportunity. This advice
seems nonsensical if there is no way of telling beforehand (or ex ante, as academics put it)
that an opportunity really exists. If we cannot tell that an entrepreneurial opportunity exists ex
ante (i.e., before we try it), a theory of entrepreneurship based on the concept of an
entrepreneurial opportunity advices us to act randomly. Such a theory seems of little value.
Two solutions are usually suggested to resolve this dilemma. First, while opportunities can be
said to exist in some abstract sense, they only become real when combined with the qualities
of the entrepreneur. That is, there are ‘opportunities for someone’ and ‘opportunities for me’.
A given ‘opportunity’ out there may be a real opportunity for me if I possess the right
qualities to make a profit pursuing it. But this does not really solve the dilemma, since there
is no way of telling for sure what qualities are needed and whether I actually possess them. I
still need to try it before I know it.
The other proposed solution is to focus on opportunity creation rather than
opportunity discovery. You can discover something that already exists. So, perhaps we
should talk about entrepreneurs creating opportunities rather than discovering them?
Unfortunately, also the opportunity creation approach fails to resolve the tautology inherent
in the ‘entrepreneurial opportunity’ concept. What if I try to create an opportunity and fail?
Am I then not entrepreneurial? Before Facebook, there was MySpace. Facebook founders are
billionaires. MySpace founders are not. The opportunity creation school suffers from exactly
the same tautology as does the opportunity discovery school: because of its focus on
opportunity, all it does (from a managerial perspective) is to incite us to act randomly.

So, if the concept of an entrepreneurial opportunity fails to provide meaningful guidance for
entrepreneurial action, what should we do instead? The discussion above helps understand
why there has been so much interest in the concept of Lean Entrepreneurship recently.
Remember how entrepreneurship used to be taught until only a few years ago (a whole lot of
people still do!). It was all about writing business plans. The idea was that before you launch
your business, you need to plan carefully, study the market and make sure that the
opportunity is there before you launch your business. Given the above, this is not likely to be
a very effective approach. This also explains why many business plan writing projects tend to
become paper-based exercises, the results of which are quickly discarded once the venture
comes into contact with the messy reality.

The Lean Entrepreneurship approach seeks to do away with this linear planning approach.
Instead of trying to pin down a mirage, you experiment. The emphasis is on action, not on
planning. You iterate. If one approach does not work, you pivot. Start with an idea. Work
together with potential customers to co-evolve an outcome that offers value for all. You still
end up with profit (provided you find an outcome that befits all) without having to worry
about an ‘opportunity’. Put less emphasis on planning (within reasonable limits of course!).
Put more emphasis on action. Instead of chasing ‘opportunities’ in some abstract ‘market’,
get close to the skin of your potential customers and work with them to make your venture
become a reality.

Social Entrepreneurship Opportunities and Successful Models

Social enterprise business models

Social enterprises apply business solutions to social problems. The ultimate goal is to achieve
sustainability by enabling non-profits to support themselves financially in innovative ways
instead of relying solely on grants and donations. Since there are no shareholders in a non-
profit organization, the profits from the related social enterprise are completely re-invested in
the work of the organization.

The emergence of revenue-generating activities for non-profits has created a new operating
model where business principles, market characteristics and values (competition,
diversification, entrepreneurship, innovation, and a focus on the bottom line) co-exist and
work with traditional public sector values like responsiveness to community and serving the
public interest. Essential to the success of a social enterprise is an effective business model.

A business model includes two key elements:

1. an operating strategy that includes internal organizational structure and external

partnerships that are crucial for creating the organization’s intended impact; and,
 2. a resource strategy that defines where and on what terms the organization will acquire
the resources (financial and human) it needs to do its work.
The business model for a social enterprise is the channel that the social entrepreneur converts
inputs into outcomes; the generation of both social value (measurable impact) and economic
value

Business
How it works Examples Key success factors
model

Microfinance
Entrepreneur Sells business support to its target organizations, Appropriate training for
support population. consulting, or tech the entrepreneur
support

Supply cooperatives like

Low start-up costs, allows
Market Provide services to clients to help fair trade, agriculture,
clients to stay and work in
intermediary them access markets. and handicraft
their community
organizations

Disabilities or youth
Provide employment opportunity organizations providing
Job training
and job training to clients and work opportunities in
Employment appropriateness and
then sells its products or services landscape, cafes,
commercial viability
on the open market. printing, or other
business
 Membership Establishing the
Free-for- Selling social services directly to
organizations, museums, appropriate fee structure
service clients or a third-party payer.
and clinics vis a vis the benefits

Similar to fee-for-service in terms

Healthcare Creative distribution
of offering services to clients but
Low-income (prescriptions, systems, lower production
focuses on providing access to
client eyeglasses), utility and marketing costs, high
those who couldn’t otherwise
programs operating efficiencies
afford it.

Bulk purchasing,
Members have common
Provides members with benefits collective bargaining
Cooperative interests/needs, are key
through collective services. (union), agricultural
stakeholders, and investors
coops, credit unions

Facilitates trade relationships Import-export, market Does not sell clients’

Market linkage between clients and the external research, and broker products but connects
market. services clients to markets

Sells products or services to an

external market to help fund other Can leverage tangible
Consulting, counselling,
social programs. This model is assets (buildings, land,
Service employment training,
integrated with the non-profit employees) or intangible
subsidization leasing, printing services,
organization; the business (expertise, methodologies,
and so forth
activities and social programs or relationships)
overlap.
 Similar to service
Similar to service subsidization,
subsidization–
Organizational but applying the external model; Similar to service
implement any type of
support business activities are separate subsidization.
business that leverages
from social programs
its assets

What are the various models of the social entrepreneurship process?

If you want to launch a social enterprise you should ensure that:

1. It is a good fit with the agency

2. You know your industry
3. You treat your enterprise as a business
4. You hire the right people
5. You set realistic expectations
6. You improve your financial literacy
You should also consider the following questions:

• How can you tell if your group is ready to embark on a social enterprise?
• What are the steps in a social enterprise planning process?
• How do you identify and assess enterprise opportunities?
• How do you plan for a social enterprise?
• How can you measure social returns in a business setting?
• What do you need to know about the legal context?

Further, the types of social business models are:

• Entrepreneur Support.
• Market Intermediary.
• Employment.
• Free-for-Service.
• Low-income Client.
• Cooperative.
• Market Linkage.
• Service Subsidization.

Social Innovations and Sustainability

 Sustainable innovation involves bringing into common usage of ideas, concepts, practices
and products that contribute to the ecological environment, social cohesion and economic
viablity. ... Many examples of sustainable innovation show this conviction.

Social innovation is a broad concept that has been deliberated from the perspective of diverse
academic disciplines for quite a long time. ... Social innovation, in turn, can play a key role
in enhancing sustainability by changing existing and creating new social practices for
building a sustainable economy and lifestyle.

What is the meaning of social innovation?

Social innovation refers to the design and implementation of new solutions that imply
conceptual, process, product, or organisational change, which ultimately aim to improve
the welfare and wellbeing of individuals and communities.

Social innovation refers to the design and implementation of new solutions that imply
conceptual, process, product, or organisational change, which ultimately aim to improve the
welfare and wellbeing of individuals and communities. Many initiatives undertaken by the
social economy and by the civil society have proven to be innovative in dealing with socio-
economic and environmental problems, while contributing to economic development. To
fully tap the potential of social innovation, an enabling policy framework is needed to support
public, non-profit and private actors to co-construct and implement socially innovative
solutions and thereby contribute to address socio-economic issues, build stronger territorial
resilience and better respond to future shocks.
What are some examples of social sustainability?
In corporations, social sustainability performance issues include human rights, fair labor
practices, living conditions, health, safety, wellness, diversity, equity, work-life balance,
empowerment, community engagement, philanthropy, volunteerism, and more.
What is Social Sustainability?
Social sustainability is an often overlooked aspect of sustainability, as sustainable
development discussions often focus on the environmental or economic aspects of
sustainability. All three dimensions of sustainability must be addressed to attain the most
sustainable outcome possible.

o Social sustainability occurs when the formal and informal processes; systems; structures; and
relationships actively support the capacity of current and future generations to create healthy
and livable communities. Socially sustainable communities are equitable, diverse, connected
and democratic and provide a good quality of life. WACOSS, Western Australia Council of
Social Services
o Social sustainability is a process for creating sustainable successful places that promote
wellbeing, by understanding what people need from the places they live and work. Social
sustainability combines design of the physical realm with design of the social world –
infrastructure to support social and cultural life, social amenities, systems for citizen
engagement, and space for people and places to evolve. Social Life, a UK based social
enterprise specializing in place based innovation
o The ability of a community to develop processes and structures which not only meet the
needs of its current members but also support the ability of future generations to maintain a
healthy community. Business Dictionary
 Social Sustainability in Business
From a business perspective, social sustainability is about understanding the impacts of
corporations on people and society. In the triple bottom line (TBL) model, social
sustainability is the least quantifiable part of sustainability. The TBL is an accounting
framework of three parts: social, environmental and financial. The TBL framework has been
adopted by organizations to evaluate performance. The three aspects interrelate to determine
a corporation’s performance.
In corporations, social sustainability performance issues include human rights, fair labor
practices, living conditions, health, safety, wellness, diversity, equity, work-life balance,
empowerment, community engagement, philanthropy, volunteerism, and more. Though
social impact, or social sustainability, issues are not easily quantifiable or measurable, they
are easier to identify.
Adrian Henriques, Professor of Accountability and CSR at Middlesex University and author
of ‘Corporate Impact – Measuring and Managing your Social Footprint,’ states, “Social
impact includes anything that affects company-stakeholder relationships: from how much and
how reliably suppliers are paid, to how a product affects lives. From how small shareholders
may be treated to the impact of alcohol on health and communities.”

According to the UN Global Compact, social sustainability should be a critical part of any
business because it affects the quality of a business’ relationships with stakeholders. Social
sustainability is a proactive way of managing and identifying business impacts on employees,
workers in the value chain, customers, and local communities.
Companies that raise the importance of social sustainability recognize the significance of
their relationships with people, communities and society. Social responsibility becomes part
of their core business strategy and they consider how their activities affect people. There is a
human cost to doing business. A socially sustainable business will consider the safety of its
workers in a particular location. It will not allow its workers’ safety to be compromised by
forcing them to work in a building that has been deemed unsafe.
Providing safer working conditions, living wages and job security creates a more secure
supply chain.
Consumers want socially sustainable products. Consumers are more informed and
engaged. They care about the impact (environmental or social) of the products they buy.
Companies who are more transparent about their supply chains have reaped the benefits from
consumers who are willing to spend more for products that
are more ethical.

Social sustainability is attainable. Companies are now partnering with social sustainability
organizations to become more transparent, make their operations or supply chains more
ethical, and understand the human cost of business.
According to the UN Global Compact, aiming for social sustainability can help businesses in
a number of ways:

o Unlocking new markets

o Helping retain and attract business partners
o Becoming the source of innovation for new product or service lines
o Raising internal morale and employee engagement
o Improving risk management
o Improving company-community conflicts

Social Sustainability Dimensions or Issues

 According to Nobel Laureate Amartya Sen, social sustainability has 5 dimensions. These are
factors to be considered in determining if a business or a project is socially sustainable:

o Equity
o Will the project reduce disadvantage for the target group?
o Will it assist the target group to have more control over their lives, socially and
economically?
o Will it identify the causes of disadvantage and inequality and look for ways to reduce them?
o Will it identify and aim to meet the needs of any particularly disadvantaged and marginalized
people within the target group?
o Will it be delivered without bias and promote fairness?
o Diversity
o Will the project identify diverse groups within the target group and look at ways to meet their
particular needs?
o Will it recognize diversity within cultural, ethnic and racial groups?
o Will it allow for diverse viewpoints, beliefs and values to be taken into consideration?
o Will it promote understanding and acceptance within the broader community of diverse
backgrounds, cultures and life circumstances?
o Social cohesion
o Will the project help the target group develop a sense of belonging in the broader
community?
o Will it increase participation in social activities by individuals in the target group?
o Will it improve the target groups’ understanding of and access to public and civic
institutions?
o Will it build links between the target group and other groups in the broader community?
o Will it result in the provision of increased support to the target group by the broader
community?
o Will it encourage the target group to contribute towards the community or provide support for
others
o Quality of life
o Will the project improve affordable and appropriate housing opportunities for the target
group?
o Will it improve physical health outcomes for the target group?
o Will it improve mental health outcomes for the target group?
o Will it improve education, training and skill development opportunities for the target group?

What is the relationship between innovation and sustainability?

Innovation has a significant and positive effect on performance in organizational economic
sustainability. When a concern with the dimensions of sustainability is taken, the whole
process of innovation is improved and developed, making it more comprehensive,
sophisticated, and demanding
The study investigates the impact of innovation practiced by companies in relation to
sustainability performance, through the development of a meta analysis of scientific
production.

Marketing Management for Social Ventures

What do you mean by social Marketing?

 Social marketing is an approach used to develop activities aimed at changing or
maintaining people's behaviour for the benefit of individuals and society as a whole.
Combining ideas from commercial marketing and the social sciences, social marketing is a
proven tool for influencing behaviour in a sustainable and cost-effective way.

It helps you to decide:

• Which people to work with

• What behaviour to influence
• How to go about it
• How to measure it

Approach

Social marketing is a systematic and planned process. It follows six steps

Behaviour

The goal of social marketing is always to change or maintain how people behave – not what
they think or how aware they are about an issue. If your goal is only to increase awareness or
knowledge, or change attitudes, you are not doing social marketing.

Benefits people and society

This is the value – perceived or actual – as it is defined by the people who are targeted by a
social marketing intervention. It is not what is assumed to benefit them by the organisation
that is trying to encourage the behaviour change.

A social marketing approach

Even if you don’t take social marketing any further, just considering these four questions will
add value to your projects and policies.

1. Do I really understand my target audience and see things from their perspective?
2. Am I clear about what I would like my target audience to do?
3. For my target audience, do the benefits of doing what I would like them to do outweigh the
costs or barriers to doing it?
4. Am I using a combination of activities in order to encourage people to achieve the desired
action

How social marketing helps

 Policy: social marketing helps to ensure policy is based on an understanding of
people’s lives, making policy goals realistic and achievable. Policy example: water
rationing in Jordan

Strategy: social marketing enables you to target your resources cost-effectively, and
select interventions that have the best impact over time. Strategy example: lung
disease strategy in England

Implementation and delivery: social marketing enables you to develop products,

services and communications that fit people’s needs and motivations. Delivery
example: child car seats in Texas

What is marketing from social venture?

Social ventures are embracing the concept of market segmentation which entails the
grouping of customers who share a similar set of needs and wants and then developing a
unique “marketing mix” for each segment
Marketing for social entrepreneurship is a social and managerial process in which
individuals and groups receive what they want and need through the exchange of
products and values. The task of marketing is to identify and define specific markets for
specific products.
Here are some tips to help get your sales and marketing for your social enterprise up
and running.
1. If your product is good enough, sales isn't a dirty word. ...
2. Know who your customers are. ...
3. Get your pricing right. ...
4. Sell benefits, not features. ...
5. Referrals, referrals, referrals! ...
6. Learn from rejection. ...
7. Don't give up.
Social ventures are embracing the concept of market segmentation which entails the grouping
of customers who share a similar set of needs and wants and then developing a unique
“marketing mix” for each segment

Who can do social marketing?

Nonprofit organizations and charities run the majority of social marketing campaigns.
Government organizations, highway safety coalitions, and emergency services (police, fire,
ambulance) run them as well. But social marketing is not out of the question if you're a
commercial business.

How do I start a social media marketing?

10 Steps to Getting Started in Social Media Marketing

1. Determine your goals.

What do you want to get out of your social Web participation? Why are you
doing it? Are you trying to generate direct sales? Are you trying to offer a
form of customer service? Do you want to build relationships with customers
and boost loyalty? Your answers to these questions greatly affect the type of
content you publish and the activities you participate in on the social Web.
2. Evaluate your resources.

Who is going to create your content? Who is going to maintain your social
media accounts? Who is going to respond to questions and be the face of your
business online? Do you have the technical ability in-house to join the online
conversation? If not, are you willing to learn? Can you or someone who works
with you write well? You need to be sure you have the necessary people in
place to execute a social media marketing plan before you start.
3. Know your audience.

Where does your target audience spend time online? What kind of content and
conversations do the audience members get most vocal about? What kind of
information do they want from you? What do they dislike? Remember, you're
not just pub¬lishing marketing messages on the social Web. You need to find
out what your audience wants and needs, so you can provide the kind of
content they find useful and interesting. However, you also need to be
personable, so they actually want to interact with you.
4. Create amazing content.

Once you know where your audience spends time and what kind of content
 audience members want, take the time to give them more of that kind of
content. Don't give up. You need to continually offer your audience amazing
content, which also comes in the form of conversations, in order to build a
loyal fol¬lowing of people who trust you as a source that can meet their needs
and expectations.
5. Integrate your marketing efforts.

All of your efforts at social media marketing should feed off each other.
Cross-promote your efforts both online and offline, and make sure your social
media and traditional marketing efforts work together seamlessly.
6. Create a schedule.

Allocate specific times during your day to devote to social media marketing.
For example, spend five minutes on Twitter before you check your e-mail
each day and another five minutes before you leave work each day. When you
create a schedule, it's easier to stick to it and make sure you don't skip your
social media marketing activities each day.
7. Adopt an 80-20 rule.

Always spend at least 80 percent of your time on social media activities that
are not self-promotional and no more than 20 percent of your time on self-
promotional activities.
8. Focus on quality, not quantity.

It can be easy to get caught up in the numbers, but don't become a slave to
followers and subscribers. It's better to have 1,000 highly engaged, loyal
followers than 10,000 followers who sign up to follow you but then never
acknowledge you again
9. Give up control.

You must let your audience take control of the online conversation and make
it their own so they develop an emotional attachment to you, your brand, and
your business. Remember, on the social Web, apathy or invisibility is a bigger
problem than negativity.
10. Keep learning.

You can never stop listening and learning. For success in social media
marketing, you need to be flexible and accept that change is good.

Risk Management in Social Enterprises

What is the risk of social enterprise?

The problem with social entrepreneurship is that the business models don't often turn over
massive profits. This, coupled with the fact that social entrepreneurship is widely
misunderstood, makes lenders wary of lending large amounts to social entrepreneurs.
A social entrepreneur is an entrepreneur that starts a business to create social change and
possibly solve certain social issues and problems. Examples of social entrepreneurs are wide
and varied. It could be someone who builds mobile apps designed to report crimes or creates
a business that aims to bring resources to underprivileged communities. At the end of the day,
social entrepreneurs are known for following their hearts.

Being a social entrepreneur can be a truly fulfilling career. You get to follow your dreams,
change people’s lives, all while obtaining financial freedom (hopefully). But there are
definitely many risks and challenges associated with becoming a fully-fledged social
entrepreneur, and you should be fully aware of them before embarking on this journey

Obtaining finance

Most entrepreneurs require some sort of funding when they start their entrepreneurial
projects. Whether they plan to obtain their funding from a private lender or a bank, the fact of
the matter is that starting a business involves overcoming many costs. The problem with
social entrepreneurship is that the business models don’t often turn over massive profits.
This, coupled with the fact that social entrepreneurship is widely misunderstood, makes
lenders wary of lending large amounts to social entrepreneurs.

Being constantly rejected by lenders can be extremely disheartening. That is why it is so

important to have a solid business plan and a dependable way in which you plan to turn over
profits.

Backlash

If you are fighting for a certain cause, in many cases, there will be people fighting against it.
The more controversial your cause, the more backlash you can expect to get. Even though
social entrepreneurs are known for being selfless and aim to help people and communities in
need, they often experience rather harsh backlash and criticism. In the day of social media,
backlash can be never-ceasing and can take a toll on your mental health.

It is essential to be aware of any existing social justice groups and if you would be stepping
on anyone’s toes with your intended projects.

Not focusing on profit

Many social entrepreneurs are so caught up in their cause that they do not focus on creating a
profit. However, making a profit is very important when it comes to satisfying your investors,
maintaining a successful business, as well as putting food on your table. If the cause is really
your main priority, remember that the more profit you make, the more you will be able to put
back into your business and the more financial freedom you’ll have.

More profit also means that you’ll be able to hire employees, and you know what they say;
many hands make light work.

Burnout

Burnout is a genuine risk for social justice entrepreneurs. Because they often put their heart
and soul into their work, social entrepreneurs work themselves to the bone and work long
hours. Like with all types of entrepreneurs, there are no set working hours, so entrepreneurs
find their personal lives and their work lives amalgamating. It is very important to ensure that
you maintain a healthy work/life balance to avoid burnout which can affect both your
physical and mental health.

Lack of public knowledge

Although social entrepreneurship is growing and expanding, the majority of the general
public do not have a clear idea of what social entrepreneurship is exactly. This can make it
difficult for your cause to gain support, and support from the general public and local
communities is often imperative to your success as a social entrepreneur. The lack of
information both online and offline can lead to misconceptions.

Only through education and spreading information will the public be knowledgeable about
social entrepreneurs and the work that they do.

Not many success cases

Unfortunately, when looking for role models and success cases in the field of social
entrepreneurship, there are not many to choose from, so you have minimal business models to
use as templates. This also affects your likeliness to get a loan as lenders like to see examples
of similar, successful companies. This is why business models such as franchises find it so
easy to obtain loans, as there are many examples of successful cases.

Not having a substantial support structure

Having a support structure and entities that you can turn to for help and advice is very
important for the success of any business. Because social entrepreneurship is still relatively
new, there are not many support structures or even regulations in place for businesses that fall
into the social entrepreneurship sphere. Tax incentives in the UK are not yet regulated, and
this can definitely cause some confusion for social entrepreneurs.

Marketing

Marketing a social business definitely comes with its challenges. Unfortunately, many social
entrepreneurs do not put enough emphasis on effective marketing and may not have the
resources, time or funds to put into marketing, which could act as a massive risk and
challenge

How to eliminate risks as a social entrepreneur

When you look at the risks involved in becoming a social entrepreneur, it can be
disheartening, but there are ways to minimise these risks, including:

• Speak to any successful social entrepreneurs that you know of. Their advice and
guidance will be very valuable to you and may guide you on the best route to take
with your venture.
• Come up with a detailed business plan that covers everything you plan to do with
your project.
 • Focus on effective marketing that engages with the public and informs them of your
social business. The more public knowledge out there, the better!
• Prioritise making profits.
The more aware you are of the risk involved in social entrepreneurship, the more likely you
are to avoid these risks. Therefore, ensure that you inform yourself and keep your feet firmly
planted on the ground as you embark upon your journey towards social entrepreneurship.
Social enterprises play a key role in the UK, and stable social entrepreneurship should be
encouraged.

What are the 4 risk management?

The Risk Management Process is a clearly defined method of understanding what risks and
opportunities are present, how they could affect a project or organization, and how to respond
to them.

The 4 essential steps of the Risk Management Process are:

1. Identify the risk.

2. Assess the risk.
3. Treat the risk.
4. Monitor and Report on the risk.

Step 1: Risk Identification

The first step in the risk management process is to identify all the events that can negatively
(risk) or positively (opportunity) affect the objectives of the project:

• Project milestones
• Financial trajectory of the project
• Project scope

These events can be listed in the risk matrix and later captured in the risk register.
Step 2: Risk Assessment

There are two types of risk and opportunity assessments: qualitative and quantitative. A
qualitative assessment analyzes the level of criticality based on the event’s probability and
impact. A quantitative assessment analyzes the financial impact or benefit of the event. Both
are necessary for a comprehensive evaluation of risks and opportunities.
Step 3: Risk Treatment

In order to treat risks, an organization must first identify their strategies for doing so by
developing a treatment plan. The objective of the risk treatment plan is to reduce the
probability of occurrence of the risk (preventive action) and/or to reduce the impact of the
risk (mitigation action). For an opportunity, the objective of the treatment plan is to increase
the likelihood of the opportunity occurring and/or to increase its benefits. Depending on the
nature of the risk or opportunity, a response strategy is defined for the project. The following
7 strategies are possible
 Step 4: Risk Monitoring and Reporting

Risks and opportunities and their treatment plans need to be monitored and reported on. The
frequency of this will depend on the criticality of risk/opp. By developing a monitoring and
reporting structure it will ensure there are appropriate forums for escalation and that
appropriate risk responses are being actioned.

What is risk management in entrepreneurship?

Risk management is the practice of using processes, methods and tools for managing these
risks. Risk management focuses on identifying what could go wrong, evaluating which risks
should be dealt with and implementing strategies to deal with those risks.

Manage risk

Every business faces risks that could present threats to its success.

Risk is defined as the probability of an event and its consequences. Risk management is the
practice of using processes, methods and tools for managing these risks.

Risk management focuses on identifying what could go wrong, evaluating which risks should
be dealt with and implementing strategies to deal with those risks. Businesses that have
identified the risks will be better prepared and have a more cost-effective way of dealing with
them.

This guide sets out how to identify the risks your business may face. It also looks at how to
implement an effective risk management policy and program which can increase your
business' chances of success and reduce the possibility of failure.

The risk management process

Businesses face many risks, therefore risk management should be a central part of any
business' strategic management. Risk management helps you to identify and address the risks
facing your business and in doing so increase the likelihood of successfully achieving your
businesses objectives.

A risk management process involves:

• methodically identifying the risks surrounding your business activities

• assessing the likelihood of an event occurring
• understanding how to respond to these events
• putting systems in place to deal with the consequences
• monitoring the effectiveness of your risk management approaches and controls
As a result, the process of risk management:

• improves decision-making, planning and prioritisation

• helps you allocate capital and resources more efficiently
• allows you to anticipate what may go wrong, minimising the amount of firefighting you have
to do or, in a worst-case scenario, preventing a disaster or serious financial loss
• significantly improves the probability that you will deliver your business plan on time and to
budget
Risk management becomes even more important if your business decides to try
something new, for example launch a new product or enter new markets. Competitors
following you into these markets, or breakthroughs in technology which make your product
redundant, are two risks you may want to consider in cases such as these.

Legal Framework for Social Ventures.

What legal structure is social enterprise?
Most social startups and new social enterprises are jumping into a Proprietary Limited (Pty
Ltd) company structure. This is the most common business structure under which most
normal profit-driven businesses operate
What Is A Social Enterprise?
Traditionally, businesses are set up to make a profit. Not-for-profits are set up to do social
good.

But what if you want to do both?

Social enterprises sit right in the middle of this spectrum – they are a rising group of
organisations who want to create profit and social impact.
Starting a social enterprise is a great way to create both financial and social value.

But, just with starting any organisation, the first challenge is always choosing the right
structure.

What are three legal structures for operating a social enterprise?

The three main forms they note are

the C corporation,

the S corporation, and

the Limited Liability Corporation (LLC).

What type of legal structure is best suited for social entrepreneurship ventures that
want to do good for society as an important part of the business?

Non-profit organizations are legal structures often used by social enterprises due to their tax
benefits.

What are some of the most common forms or legal structures of a social enterprise?
 Here are some of the most common forms that social enterprises take:
• Sole Proprietorship. A sole proprietorship is one of the simplest business forms for operating
a business. ...
• Partnership. ...
• Cooperative Society. ...
• Non Profit Organisation. ...
• Company Limited by Shares.
Here are some of the most common forms that social enterprises take:
Sole Proprietorship
A sole proprietorship is one of the simplest business forms for operating a business. It refers
to a single person who owns and operates the business, and is personally responsible for its
debts. Ideally suited to a small-scale enterprise, the sole proprietorship form has minimal
legal requirements which makes it easy and inexpensive to set up. It has no distinct entity
from the owner, which means that the owner’s personal assets may be at risk, and the sole
proprietorship will cease to exist on the owner’s demise. However, sole proprietorships may
face difficulty in accessing capital from traditional sources such as equity or grant funding. If
an individual wants to have partners involved in running the social enterprise, or wishes to
minimise his/her risk, this may not be the ideal structure.
Partnership
A partnership requires two or more partners, bound by a written or oral agreement (ideally, a
lawyer should help in drafting a written agreement) who agree to enter into business together.
A partnership can have a separate legal entity from the owners, and in the event of demise of
a partner, the procedure laid out in the partnership agreement will be followed and the
partnership may continue to exist. Partnerships can be appealing because they allow for
pooling of resources and talent, and in some countries also enjoy lesser tax levies. However,
the partners bear an unlimited liability, thus putting their personal assets at risk.
Some countries have a variation of a partnership known as a ‘Limited Liability Partnership’.
A Limited Liability Partnership contains elements of both partnerships and corporations (see
below). In this form, a partner’s liability may be restricted to his/her investment in the
partnership, and he/she will not be liable for another partner’s misconduct or negligence.
Additionally, Limited Liability Partnerships often offer similar tax advantages to those
enjoyed by partnerships, thus making it a more desirable form of partnership.
Cooperative Society
Cooperatives are enterprises which are controlled and owned by a group of people, and which
work for their collective benefit and satisfaction of their collective needs. The members have
an equal say in how the enterprise is run and how profit is divided. This is a very inclusive
form as decisions are made collectively by all members. If a social enterprise has or intends
to have a compact management team, it may not function most effectively as a cooperative
society.
Non Profit Organisation
Non Profit Organisations or Non-Governmental Organisations are organisations which are
independent from the state and are typically dedicated to furthering a particular social cause
or advocating for a particular point of view. They lack a profit motive and they often enjoy
tax exemptions or benefits. They usually have easier access to donor funding and grants in
light of their charitable/social objectives and governmental support in welfare states. This
structure is not conducive to all social enterprises because it limits the ability of an enterprise
to pursue profits.
Company Limited by Shares
A company is an association of persons with a profit motive, and which enjoys a distinct
legal identity. A company is recognised by law and enjoys many of the same rights as
individual persons, such as the right to own property in its name and the right to sue other
parties. This form has been widely adopted by social enterprises worldwide because of the
flexibility it allows to pursue revenue-generating activities. It could also widen the pool of
accessible funds for the enterprise, such as equity or investment by venture capitalist firms.
The liability of owners in this form is limited to the extent of their investment, which can
make it attractive. However, this structure is not legally required to have social objectives in
addition to profit-maximisation, so care must be taken to safeguard the social mission of the
enterprise. The management of such a company will be accountable to the shareholders, so
there must be a clear understanding regarding the emphasis that the enterprise will be placing
on its social objectives and profit-maximisation objectives

What are the 6 types of social enterprises?

In the British context, social enterprises include community enterprises, credit unions, trading
arms of charities, employee-owned businesses, co-operatives, development trusts, housing
associations, social firms, and leisure trusts