Characteristics Of Social Entrepreneurship

I. Introduction

What is social entrepreneurship? Social entrepreneurship is a process by which citizens build or transform institutions to advance solutions to social problems, such as poverty, illness, illiteracy, environmental destruction, human rights abuses and corruption, in order to make life better for many. The social entrepreneur also helps others discover their own power to change by helping them envision a new possibility and recognize how it can be broken down into doable steps that build momentum for change.

What are the qualities of a social entrepreneur? Social entrepreneurship is a process involving a long-term commitment and continual setbacks. For this reason, social entrepreneurs share certain qualities, including the ability

Content

Part I focuses on defining social entrepreneurship not only as a field or movement but also as a mechanism for organizing social problem solving. It shows how it differs from other forms of social engagement and what it looks like on an individual level. While there is no universal definition, there are common qualities amongst successful social entrepreneurs and their organizations.

Part II looks at the challenges faced by social entrepreneurs. One major challenge is financing, and in particular, obtaining growth capital. Most social entrepreneurs have less trouble financing a new idea than financing the growth of their organization. Government funding is less than ideal because of the difficulty involved in complying with government reporting requirements. The current preferred funding source for most social entrepreneurs is philanthropy, but with so much fragmentation and little standardization, this method can be time consuming and not conducive to building great institutions. Impact investors, investors who seek financial goals as well as social impact, are an important source of capital for social enterprises, but markets for impact investing are still young and undeveloped. Many social entrepreneurs are also exploring earned revenues, through social enterprises, as a way to finance large scale

Fostering an innovating society will require a shift in mind sets that are commonly held across society, and social entrepreneurs will play a key role in helping enact these shifts. Members of society hold many pre-existing beliefs, and follow established patterns of behavior that are no longer suitable to today’s global society and that hinder advancement of certain groups based on their perceived deficits (e.g. the poor, the disabled). Social entrepreneurs shift mind sets by helping society to see trapped potential, and to appreciate the interconnectedness of our world. Similarly, social entrepreneurs help shift society’s viewpoint from "me‖ to us” and eventually to all of us. Building a stronger sense of connection builds empathy, and with empathy comes a stronger base for structural changes. Social entrepreneurs can also shift mind sets about what can be done on an individual basis. In so doing, social entrepreneurs expose how we systematically undervalue people with perceived deficits and simultaneously show how to bring out 17 group’s agency for change. Most importantly, social entrepreneurs can convince society that today’s toughest problems are