Archive for the ‘ Social Entrepreneurship ’ Category

Research Paper on Social Business

So, for one of my summer school classes, our term paper was to write on whatever topic that relates to the social, political, or ethical environment in business. It only made sense that I wrote it on social entrepreneurship (or more specifically, social business). I did a ton of reading for my paper including academic/journal articles and other books.

Anyway, the main focus on my paper is –

While social entrepreneurship historically has been in practice, it has recently become an emerging field. In this paper, I am going to examine social entrepreneurship and the model and application of social business. More specifically, I will investigate the potential for poverty alleviation through social businesses serving the “bottom of the pyramid” (BOP) as a market.

In my paper, I evaluate the nonprofit vs. for-profit model, including discussion on the fundamental core values of what it means to be “nonprofit” vs. “for-profit.” I also discuss whether or not investors that invest in social businesses should get a return on their investment. Additionally, my paper examines the potential for partnerships between BOP communities and multinational corporations.

Anyway, the point of me posting it online is to get feedback on points made in my paper. Seeing as I am not a social entrepreneur, and I have no experience in social business, I’d really like some feedback on the different issues I discuss. I’m positive that there are many points I made that may have no basis in my argument, and can be refuted. I’d love to hear it — it will definitely be a learning experience for me. Furthermore, it’d be great to have some discussion about social business as a model and the potential for poverty alleviation.

View my paper here (PDF): Social Entrepreneurship and Social Business

Perpetual Oscillation

“He who despairs of the human condition is a coward, but he who has hope for it is a fool. – Albert Camus

So this quote has been on my WordPress “drafts” for quite a while now, because every time I want to write about this, I lose motivation and decide to not. But every time I come back to this draft and re-read this quote, the more I identify with it – but in opposite ways.

Some days, I’ll be the “he who despairs,” and others, I’ll be the “he who has hope.” And another day, I’ll be neither – somewhere in the middle as I think Camus intended.

It’s funny, because just last night, as I was reading through the numerous articles for my research paper on social entrepreneurship, I came across an article “Social Entrepreneurs and Catalytic Change” by Sandra A. Waddock and James E. Post, in which it discusses who a “catalytic social entrepreneur” is:

“The activities of social entrepreneurs can thus be distinguished from those of other types of public entrepreneurs by 1) the fact that social entrepreneurs are private citizens, not public servants, 2) their focus on raising public awareness of an issue of general public concern, and 3) their hope that increased public attention will result in new solutions eventually emerging…It is this latter aspect that gives rise to the term “catalytic.”

And I guess that is the one problem I have with that description. That is is the hope that may (or may not) result in new solutions.

If there’s anything I’ve discovered in my twenty years, it’s that hope is never enough. Hope can get you through the day, hope can sometimes bring about change, but it never guarantees change. This may be too tied into my own personal beliefs and philosophies, but the way I see it, one can never rely on and hope for others to change. We can try to change people, to change their beliefs and actions, but we can never guarantee it. Again, hope is never enough.

My too-demanding nature often leads to disappointment, because in every way (both on a personal and more global) level, I want that “hope” directed into reality. And so in reading this article, I would conclude that I disagree. If anything, a catalytic social entrepreneur must not hope that public awareness will bring about change: they must guarantee it and be the ones to bring about this change.

Now, is that too much to ask? Am I, too, being too hopeful? Here we go, a classic case of Rosalind-contradicting-herself. I don’t know – you tell me.

More recently than probably the last two years, I’ve become more cynical, more pessimistic once again toward “human nature” or specifically toward politics and existing injustices. I can never reconcile in my mind the fact that injustices will always exist but the fact that they are, as term itself states, unjust. And it’s not enough for me to want to change these injustices (i.e. my desperate – ha – and determined drive to break into social entrepreneurship and somehow succeed) at my present state and time, while instead of learning actual stuff I wished I were learning, I am instead reading other material I find irrelevant. It definitely doesn’t help, either, to be once again reminded of the “politics IS money” perspective which I realized I’ve tried to ignore. It’s one thing to realize this, but it’s another to have to constantly confront it and be okay (or NOT okay, both lead to the same results) with it.

I do know that “little things” count, and that small grassroots movements add up to become huge revolutions. But I’m still waiting for that. And, in a way, I guess I gave up. I lost faith in the “public” grassroots-movement-model and instead am turning to another sector for answers. Am I just too impatient? Do I need to try and stick it through? Am I really just wasting my time?

God, what does it all mean anyway?? What’s the point of it all? I hate my brain sometimes.

“Book studying” versus “Real world application”

So as finals time rolls around, I’m sitting on my bed, typing this blog entry, lazy as ever… I took my first “final” today (although it technically doesn’t count as one) and will take another one tomorrow, and yet the actual “Finals week” hasn’t even started. And yet I’m lazy, tired, and kind of overrrr it!

It’s hard to motivate myself to study for certain subjects in school sometimes because it feels like the material I’m learning will hardly help me in the “real world.” I think that’s a problem most students face nowadays, and I wonder: is the disconnect between “book studies” and “real world application” actually there, or is it something us students make up?

I guess I’d say it’s both – for some material taught, it really is all “book studies” and yet for others it can be very applicable. I can see students (like myself too, sometimes) using the “it’s not even going to help me in real life” excuse to get out of studying, even though in the end it probably doesn’t affect anyone but themselves…

Or, I could view this “disconnect” another way: the lack of motivation for me to study for certain subjects/classes is manifested in me spending my time doing other things, such as participating in the #SocEntChat May 2009 that happened yesterday afternoon. Let’s digress for a second– What is #SocEntChat?!

#SocEntChats is a Twitter-based real-time discussion on social entrepreneurship themed around specific issues/areas/events each month. It is designed for current and aspiring social entrepreneurs, funders, media and supporters to share their ideas, discuss the state of the field, identify the latest innovations and pinpoint areas requiring more exploration… (more information is provided here)

I spent the next hour or so reading and particpating in some really great discussion about social entrepreneurship (see my previous blog entry on social entrepreneurship) at universities and also touched upon the very topic I just talked about – the disconnect, and whether or not school/education/grad-school prepares one for going into the field of social entrepreneurship.

After the chat, I spent one more hour just reading other articles/browsing Twitter/more web stuff on social entrepreneurship instead of studying..

It seems so paradoxical (not sure if this is the right word to use here…) that I’d rather engage in conversation about topics I’m actually interested in rather than spend my time studying for a class that seems like it’s not going to help me much. But people don’t go to school and get “an education” for no reason, so I’m sure one way or another it’s supposed to help me down the line, but it’s just hard to see how in the moment…

Anyway, at this point I think I’m just rambling, so I’m going to stop.

Meanwhile, feel free to share your thoughts on this!

Social Entrepreneurship

Today, I came across an article: The business of doing good: How to start a social enterprise. Over the past year or so, I’ve learned about “social business” (as first introduced to me through Muhammad Yunus’ book, Creating a World Without Poverty), its principles nicely defined on Mike’s blog post. Since then, I’ve browsed the web, searched for articles about social entrepreneurship/social business, and read about different accomplishments by social entrepreneurs. I’ve decided that the terms “social business”, “social entrepreneurship”, and “social enterprise” all pretty much embody the same message – using business to provide a social benefit. The three terms do mean different things, although I think as of now there has not been as much distinction between the three. The “business of doing good” article, I believe, refers to “social enterprise” as also a “social business.” I just came across an article that defines each, which after reading, I believe my goal is a social purpose business (“social business”).

The article that I came across today just so happened to very concisely put together different aspects of a social enterprise, so I figured I’d share (for my own future reference as well) parts of the article.

What exactly is the difference between an entrepreneur and a social entrepreneur?

Social entrepreneurs differ from their traditional counterparts in the way they view the world. If your sole concern is to expand your own bank balance then the sector isn’t for you but if you want to make a difference beyond putting the odd pound in a charity box, setting up a social enterprise could be the perfect way to achieve your aims.

I remember the first time I was introduced to the concept of a “social business.” For the longest time, I knew I wanted to “use business to change the world”, as I used to say. I didn’t know that such a concept was already in place and in practice (this tends to happen quite a lot – humans are way smarter than I give them for..naive me!). I remember being thrilled by this realization.

So how does a social enterprise “provide a social benefit”?

How you decide to invest your profits is another key early stage decision. Some businesses give away their income, while others provide a product or service which directly benefits a social cause and reinvest the profits back in the business for staff and product or service development issues.

What I’ve always dreamed of is the latter part – using business itself as part of the solution, directly benefiting society in some way.

Lastly, the one aspect of starting and running a social business that both daunts and excites me is that not only does a social business provide a social benefit, it must — as all businesses must — be profitable. There are reasons why businesses are successful. And although I sometimes do not like to admit it (and sometimes do not support the most “profitable businesses”, since some businesses/corporations engage in exploitation, etc.), at the end of the day, money a one of the most key factors in a business. But this is why a social business makes perfect sense to me:

Cliff Prior, chief executive of social enterprise funding body UnLtd, believes persistence is key. “It’s tougher for social entrepreneurs because they’ve got to watch a double or even triple bottom line rather than solely cash and profit,” he explains. “They will face some obstacles and lack of understanding from potential investors or business partners so they must have an extra degree of resilience to tackle it.”

So, at the end of the day, the conclusion is the same one I arrived at last year, when I found and realized that starting a social business is my life calling – that not only do I have to be great, I have to be exceptional. Now the question is – do I have what it takes?

Sometimes I feel like I do, and most other times I feel completely inadequate. I always feel as if I have no experience, no knowledge of just what “social benefits” I’d want to target and provide. I see so many problems in the world — even just in the Bay Area or even back home in Orange County — but I don’t seem to know where I’d ever start to tackle the problems. I also feel as if me being in school doesn’t help much either, because although I’m living in a community where hunger and homelessness is a prevalent and serious issue, I don’t feel involved enough in attempting to alleviate the problem. My work with the hunger and homelessness campaign I co-ran last year, along with my experiences volunteering at a youth shelter, and even my participation in planning a hunger & homelessness conference don’t seem enough. I only feel as if I am just on the outskirts of fulling understanding the issue.

I think what I really need to do is get out there and allow myself to experience full immersion into a community, with the real locals, for me to even begin to understand the underlying problems of a greater issue, but I don’t think me being in school will really allow me to do that. Or am I just making excuses for myself? There is a time for “book learning” as they call it, and there is also a time for “real-world application,” and right now I’m only getting a small dab of each. I think I’m going to look into some programs or “travel scholarships” (read: The Fulbright Program) to further enrich my knowledge, so that I actually have a clue about what I’m talking about and then one day (hopefully not too far in the future) start a social business.