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Cairo University Dr. Sherifa Fouad Sherif SOCIAL ENTREPRENEURSHIP WHAT IS ENTREPRENEURSHIP? Entrepreneurship is the act and art of being an entrepreneur. One who undertakes innovations or introducing new things, finance and business acumen in an effort to transform innovations into economic goods. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting a new business referred to as startup company. DEFINITION OF SE Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change. Rather than leaving societal needs to the government or business sectors, social entrepreneurs find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to take new leaps. DEFINITION OF SE Social entrepreneurs often seem to be possessed by their ideas, committing their lives to changing the direction of their field. They are both visionaries and ultimate realists, concerned with the practical implementation of their vision above all else. DEFINITION OF SE Each social entrepreneur presents ideas that are user-friendly, understandable, ethical, and engage widespread support in order to maximize the number of local people that will stand up, seize their idea, and implement it. Every leading social entrepreneur is a mass recruiter of local changemakers—a role model proving that citizens who channel their passion into action can do almost anything. DEFINITION OF SE A term that captures a unique approach to economic and social problems, an approach that cuts across sectors and disciplines. Key areas of focus have been education, health, welfare reform, human rights, workers' rights, environment, economic development, agriculture. The organizations they set up are non-profit or for-profit entities. SOCIAL ENTREPRENEURS ARE CHANGEMAKERS “Changemakers” are everyone that solve problems in an entrepreneurial way, who have the ideas, initiative, leadership skills, empathy and team skills to create new opportunities and respond to challenges in society. Also called pioneers of change. DEFINITION OF SE Just as 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. DEFINITION OF SE Social entrepreneurs drive social innovation and transformation in various fields including education, health, environment and enterprise development. They pursue poverty alleviation goals with entrepreneurial and, business methods and the courage to innovate and overcome traditional practices. A social entrepreneur, similar to a business entrepreneur, builds strong and sustainable organizations, which are either set up as not-for-profit or for-profit companies. COMPONENTS OF SOCIAL ENTREPRENEURSHIP There are 3 key components that emerge out of these definitions of Social Entrepreneurship: * Problem Recognition * A sustainable solution * Social change WHAT IS THE DIFFERENCE BETWEEN A ENTREPRENEUR AND A SOCIAL ENTREPRENEUR? A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change (a social venture). Business entrepreneur typically measures performance in profit and return. The main aim of social entrepreneurship is to further social and environmental goals. WHAT IS A SOCIAL ENTERPRISE? Social enterprises are social mission driven organizations which apply market-based strategies to achieve a social purpose. The movement includes both non-profits that use business models to pursue their mission and for-profits whose primary purposes are social. EUROPEAN UNION DEFINITION OF SE Social enterprise means an enterprise whose primary objective is to achieve social impact rather than generate profit for owners and stakeholders. It operates in the market through the production of goods and services in an entrepreneurial and innovative way. It is managed in an accountable and transparent way, by involving workers, customers and stakeholders affected by its business activity. ‘ SOCIAL ENTERPRISE Their aim is to accomplish targets that are social and/or environmental as well as financial: is often referred to as the triple bottom line. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose remains central to their operation. TRIPLE BOTTOM LINE DEFINITION OF THE EUROPEAN UNION Social Enterprise: means an enterprise whose primary objective is to achieve social impact rather than generate profit for owners and stakeholders. It operates in the market through the production of goods and services in an entrepreneurial and innovative way, and uses surpluses mainly to achieve social goals SOCIAL ENTREPRENEURS ARE: Ambitious: Social entrepreneurs tackle major social issues. They operate in all kinds of organizations: innovative nonprofits, social-purpose ventures, and hybrid organizations that mix elements of nonprofit and for-profit organizations. SOCIAL ENTREPRENEURS ARE: Mission driven: Generating social value —not wealth—is the central criterion of a successful social entrepreneur. While wealth creation may be part of the process, it is not an end in itself. Promoting systemic social change is the real objective. SOCIAL ENTREPRENEURS ARE: Strategic: Like business entrepreneurs, social entrepreneurs see and act upon what others miss: Opportunities to improve systems, create solutions and invent new approaches that create social value. And like the best business entrepreneurs, social entrepreneurs are intensely focused and harddriving in their pursuit of a social vision. SOCIAL ENTREPRENEURS ARE: Resourceful: Operate within a social context rather than the business world Have limited access to capital and traditional market support systems. Must be skilled at mobilizing human, financial and political resources. SOCIAL ENTREPRENEURS ARE: Results oriented: Social entrepreneurs are driven to produce measurable returns. These results transform existing realities, open up new pathways for the marginalized and disadvantaged, and unlock society’s potential to effect social change. A SOCIAL ENTREPRENEUR IS A LEADER OR PRAGMATIC VISIONARY WHO: Achieves large scale, systemic and sustainable social change through a new invention, a different approach, a more rigorous application of known technologies or strategies, or a combination of these. Focuses on the social and/or ecological value creation and tries to optimize the financial value creation. Innovates by finding a new product, a new service, or a new approach to a social problem. Continuously refines and adapts approach in response to feedback. Combines the characteristics represented by Richard Branson and Mother Teresa. SOCIAL ENTREPRENEURS SHARE COME COMMON TRAITS INCLUDING: An unwavering belief in the capacity of all people to contribute meaningfully to economic and social development A driving passion to make that happen. A practical but innovative stance to a social problem, using market principles and forces, coupled with determination, that allows them to break away from constraints imposed by ideology or field of discipline, and pushes them to take risks that others wouldn't dare. EXAMPLES OF SOCIAL ENTREPRENURS Maria Montessori (Italy) - Developed the Montessori approach to early childhood education. Florence Nightingale (UK) - Founder of modern nursing, she established the first school for nurses and fought to improve hospital conditions. Ibrahim Abouleish (Egypt) - Founder of SEKEM, a biodynamic agricultural corporation, alternative medicine, and educational center located outside of Cairo. EXAMPLES OF SOCIAL ENTRPRENURS Muhammad Yunus (Bangladesh) - Founder of microcredit and the Grameen Bank. He was awarded the 2006 Nobel Peace Prize. Bill Drayton (U.S.) - Founded Ashoka, Youth Venture, and Get America Working! Jamie Oliver (U.K.) - TV chef who campaigned to improve children's diet at school. He also trained disadvantaged young people to become chefs. He created a restaurant - a social enterprise - called Fifteen which employed these newly trained youngsters. Fifteen is now a global chain of restaurants. SEKEM SEKEM – With a name that essentially means “vitality from the sun,” this Egyptian company has certainly lived up to its promise by continuously encouraging social, personal and environmental development. Since SEKEM was founded in 1977 by Dr. Ibrahim Abouleish, a pharmacologist, it has: Produced medicinal, herbal, gastronomical and aesthetically focused products that serve the needs of its customers Improved the environment through biodynamic farms Built an educational establishment for children to emphasize creativity and analytical thought Instituted a healthcare center devoted to holistic medicine GRAMEEN BANK Reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. Credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit. Muhammad Yunus, the founder, if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, “these millions of small people with their millions of small pursuits can add up to create the biggest development wonder.”