Social Entrepreneurship and Motivation: Setting up a Social Enterprise

This document discusses social entrepreneurship and the motivation behind setting up a social enterprise. It explores the benefits and examples of social enterprises and their impact on society.

Managing
Entrepreneurship,
Innovation & Creativity

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
Social entrepreneurship and motivation behind setting up a social enterprise............................3
TASK 3............................................................................................................................................6
CONCLUSION..............................................................................................................................11

INTRODUCTION
Entrepreneurship is defined as the process of designing, launching and running a new
business venture at a smaller ground. It is also understood as the capacity or willingness of
investor where whole of risk and profit is needed to be beard by investor. It is necessary that all
of the decisions which are taken by the investor should be based on the points where pros and
cons have been analysed. In context of the file, it has been divided into different task. In second
task, research question will be explained where chosen question is related with society. While
talking about the third task, new innovative idea will be introduced in which the choice concept
is all about “Kidzz House”, were it will be easy for children to buy the products of their
willingness. Business plan will be discussed in detail.
TASK 2
Social entrepreneurship and motivation behind setting up a social enterprise
Social entrepreneurship is considered as an effective approach which is espoused by
entrepreneurs and start-ups companies, in which they give their focus on developing, funding
and implementing solutions for social, cultural and environmental issues. These concepts are
beneficial in broad organizational range whose has several objectives, belief and broad in size.
The main motive behind establishment of this type of organizations is to cater the society so as to
resolve all the issues which are coming in development of social people. Other, these enterprises
are mainly concern for developing and implementing appropriate, innovative and sustainable
solutions to betterment of society and environmental changes (What is Social Entrepreneurship,
2019). These solutions include provide products and services for profit or non-profit. It is a long
life procedure which needs to carry out in order to improve current circumstances and enhance
the lifestyle of people.
In the present world scenario, popularity of social enterprises are increasing day by day
as the main emphasis of these enterprises on bringing effective changes within the society
without making any concern for earning profit or any other monetary benefits. Along with this,
social enterprises also give their contribution in solving social problems like environmental
issues (Parkman, Holloway and Sebastiao, 2012). In this aspect, social entrepreneurs plays an

important role as these are those individuals who comes together with non-government and non-
profit organizations which are collecting their funds through community activities or events.
In the modern era, many people are desirably taking participation in social enterprises in
terms to serve the society. Like, Bill Drayton who is one the most famous social entrepreneur
which is give his main focus on the rising the phrase of “Social entrepreneur”. He is the founder
of Ashoka that is related to innovators for public that mean which leading their activities for
social development. There are several social enterprises in the present world which are concern
for social development. Here are defining some examples of these type of enterprises. For
example, TOMS, although it is a private organization and leading their activities for making
profit but apart from this, they have give their focus on social development which can be seen by
their concept “one for one” which define that when a person will purchase TOMS shoes then
company will donate a pair to a needy child (ABOUT TOMS, 2019). This organization is also
expanded this concept in coffee, eye wear and tote bags. Other, Echoing USA, that is also work
on non-profit basis which is carrying its operations for motivating youngsters to convert its ideas
into organizations so that they can contribute in developing society (ECHOING GREEN, 2019).
Another example of social enterprise is Cawthrone Children's Centre which is situated in the
heart of Cawthrone's rural community, it provides higher quality care for the child for those
people who are local working families.
These type of social enterprises have huge advantage for the social people as well as
economy. As the main purpose of them is to operate their activities with the aim of creating

value among the social people and also generate revenue. Other, the main objective is to help the
social people to overcome from all the issues and conflicts. In this aspect, they are majorly
concern for raising funds from donations, charity, etc. and also taking help from government to
getting huge amount of incentives and schemes. As these are included in social and ethical
category due to which it is essential for them to raise their capital at lower rate of markets. Also,
they does not needs to spent their funds on promotional and advertisement activities as because
they are already able to make their presence in world as they are operating their activities for
social welfare. In case if any of the social issue is occurring then it needs to be tackle in limited
period of time so as to maintain the proper attention and interest of society within the
organization. It also helps them in snatching attention of social media as because as because they
are working for the development of the society (Ünay and Zehir, 2012). Moreover, it is become
more easy to take garner support form each personal who are concern for social development.
For these enterprises, it also become easy for them to bring these people at on board on the
lower salaries as compare to other organizations.
Motivation is a most effective factor within the organization as it allows the managers in
encouraging individuals to give their best efforts towards achieving the organizational goals and
objectives. Although, Social enterprises are working on the basis of non-profit terms so that does
mean they does not required any kind of motivation behind establishing a social enterprise
(Social Enterprise Motivations, 2019). In order to set up a social enterprise, that will accomplish
the needs of the society various motivational factors plays an essential role. These are describing
below:
Employment- This is the main motive behind establishing a social enterprise to provide
employment opportunities to the people so that they can get a specific income and can live a
healthy life as well as can support in rising the economy level. Also, they are giving their focus
on rendering effective training and development programs the people who does not have good
conditions so that their skills can be raised and they can perform their job in well manner
(Cajaiba-Santana, 2014).
Profit Distribution- As it can be identified by its name that social enterprises are not
operating their business activities for earning profit but also it can not be neglected that the profit

which are earning by them is distributed among all the social services, programs and charitable
activities.
Community Need- The main motive of these enterprises is to accomplish the needs of
community. As the organizations which are carrying their operational activities under this
category are mainly concern for providing a range of products and services to society so that
their needs and wants can be accomplished. All these activities are conducting by them on the
basis of non-profit.
Bringing up a change- It is the another motive behind establishing these enterprises is to
come up with an effective change within the society in order to give the people a happier and
healthy lifestyle (Edwards-Schachter and et. al., 2015). For instance, Guildford Bike Project is a
most popular social enterprise which has considered the concept of Recycle, up cycle and reuse.
As this enterprise is collect unwanted bicycles from the people and give it to the local job seekers
to renovate the bikes by providing them free training and development programs so that they can
increase their incomes by selling these cycles in local community.
Personal satisfaction- Social enterprises are working without any self which enables
them to get higher support and attention of varies individuals in performing their role in a
significant manner. Like some of the social enterprises like Child Rights foundations and women
empowerment foundations are the main examples of this as they are giving their emphasis on
rising the lifestyle of each individual either a children or a women and provide them higher
satisfaction.
TASK 3
1 Introduction – Business Concept and Opportunities
The name of the chosen organization is “Kidzz House”. This will be one of the firm which will
sell the products which are of children. The main concept behind opening this respective firm is
that there are number of shop which delivers the product of children but they are limited to
sports, toys, health conscious product but the main concept which has been introduced within
this company is that all of this product will be available at single store only (Andersonm,
Potočnik and Zhou, 2014). This will be beneficial for the partners as they will not require to visit
different store to buy different products for children.

2 Objectives
The main objective behind opening Kidzz House is to enhance the comfort zone for
parents as they have number of other responsibilities which is needed to be completed on time.
3 Market Research – Primary and Secondary / competitors
Whenever any of the business is being setup, it is necessary for the firm to determine
about the eternal factor which can help company to accomplish the target within the short period
of time. Also, it is necessary for the company to determine about the competitors available in the
market which can create unnecessary problem for the business organization. Two types of
research will be used and they are primary and secondary. In primary research, Kidzz House will
look for directly try to take the help of public that are those products which they are willing to
see within the companies store (Dereli, 2015). In addition, in primary research it will be checked
that what are facilities can be added and for that certain number of respondent can be selected
who can easily answer to them. In case of secondary research, different articles, newspaper will
be used by the company for the purpose of finding the requirement of customers and even detail
information can be also collected about the rivalries firm.
4 Target Market/Customer

The main target that Kidzz House will like to focus more for the purpose of attaining the
personal goals will be related the products which can be available at economic price range. Also,
there be the target of company that how they can attract more number of children towards the
store in short period of time.
5 Marketing
In present market, it is necessary that any of the company should be able to do marketing
because that matters the most for attaining the goals of a company. If in any of the situation
company fails to do, then there is very less chance that business goals can be achieved. For the
purpose of doing marketing about the Kidzz House, the marketing team look for different field
such as they will take the help of social media which is one of the popular means of doing
marketing (Crumpton, 2012). Secondly, it is necessary for them to promote their product within
the market by using the process of digital marketing. It is necessary to understand that they are
not only the source which can be used for doing the marketing of product but company has the
option to take the help of newspaper, television, radio for increasing the sources of marketing.
6 Human Resource
Although company can be established easily but there are number of other activities which is
needed to conducted so that target can be accomplished easily. It is important to understand for
Kidzz House that they must hire the right candidate for the company who can perform their part
of work easily as the given guidelines from top level management. Also, it become crucial for
organization that they must go for those candidate in the company who have past experience in
the similar field as that can be one the way through which new idea can be used at the time of
taking any of the business decision (Gundry, Ofstein and Kickul, 2014).
7 Operations – Using the Business Model Canvas
Canvas Model is one of the modern approach which helps because to determine different factors
which are used within the company for the purpose of achieving the goals of a company within
the specific time period. In context of Kidzz House, they are required to use Canvas model for
attaining their goals. Some of the things which will be considered within this model are
explained below:

 Custom Segment: Here, company will decide that which customers will they target.
 Customers Relationship: In this segment, it will be important for the organization that
they must develop the relation with their customer and even it will be necessary for them
that how deal with them.
Channels: In this, it will be important for Kidzz House to use various channels which can be
helpful for attaining the goals within the specific time period. (Ahlin, Drnovšek and Hisrich,
2014)
 Key Activities: The Key Activities of your business/product are the actions that your
business undertakes to achieve the value proposition for your customers.
 Key Resources: Whenever any of the business transactions are conducted, it is necessary
to understand that what are resources that company will use for example: computers,
number of employees and many more.
 Key Partners: It is necessary for company to select the external companies/suppliers
who will help them to sell the products of a company.
 Cost Structure: Organization like Kidzz House will required to determine in which area
they will invest what sum of capital so that goals can be achieved.
This is the complete process which is needed to be followed by Kidzz House because canvas
model will allow them to utilize each and every area so that goals can be accomplished easily.
8 Legal Issues
There are number of legal formalities which is needed to be followed by the companies at
the time of staring the business. Firstly, it is important that law related to Companies Act must be
followed. Then, Employment law should be considered which will help to decide that what
should be the wages rate for employees. Whenever the setup of company is done, then there is
the requirement to understand that company will not involve in any of those activity which will
create unnecessary problem for children and public at large.
9 Financial

Every company requires the fund which will help to decide that what are the ways
through which company can attain the goals of a company. Here, company will try to manage the
fund through different ways such as they will look for Bank loan, government funding can be the
source. Even they have the option to add on some of the member with company who can help
them bring on additional amount of fund.
10 Risks, Contingency and Exit Strategies
There is always a two side of coin, in the same manner business have two side where
sometimes they will earn the profit and even sometimes there will be situation where company
will have to suffer from losses (Teece, 2016). It is crucial for Kidzz House that they must prepare
the strategies in which they will have to fix that matter that how they will sort out the issues.
Some of the process which can be adopted in the situation where company suffers from different
problem are explained below:
 Liquidation: Whenever debt of a company increases in a significant manner, then in that
situation the top level management of a company have to take the decision to sell out the
assets just to pay out the debt amount.
 Takeover: It is also one of the option through which company can easily avoid the risk
and take the exit. In this process, one of the company takeover the business activity
where they pay off the debt in it.
If in any of the situation company have to face the problem to conduct the business activity, then
in this situation Kidzz House can adopt the Liquidation process to take the exit.
11 Other issues
Some of the other problem which company might face will be related to the financial
issues because every time it is not necessary that company will get the bank loan due to which
company might have to face different problem. Secondly, legal law changes in very short period
of time which might create problem for the company in attaining the goals.

CONCLUSION
From the above file, it can be understood that innovation and creativity management is
very helpful for an organization as it assists in filling the gap between the theories and practices
of organizing imagination and innovation. This have huge focus on bringing effective innovation
within the organization and also intensify development in performance creativity of employees.
Moreover, it has huge focus on defining the importance of social enterprises in the development
of society people as well as whole economy. There are several motives which encourage to
establish a social enterprise which enables them to carrying out all their activities significantly.
Additionally, it also depicts that in order to convert an idea into actions then in this case
formulation of an effective plan is essential in terms to make proper coordination among the
resources and performance level of different departments.

REFERENCES
Books & Journal
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state-of-the-science review, prospective commentary, and guiding framework. Journal
of management. 40(5). pp.1297-1333.
Cajaiba-Santana, G., 2014. Social innovation: Moving the field forward. A conceptual
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Crumpton, M. A., 2012. Innovation and entrepreneurship. The Bottom Line. 25(3). pp.98-101.
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Online
What is Social Entrepreneurship. 2019. [Online]. Available through:
<https://www.managementstudyguide.com/social-entrepreneurship.htm>
ECHOING GREEN. 2019. [Online]. Available through:
<https://echoinggreen.org/>
ABOUT TOMS. 2019. [Online]. Available through:
<https://www.toms.com/corporate-responsibility/>

Social Enterprise Motivations. 2019. [Online]. Available through:
<https://www.socialtraders.com.au/about-social-enterprise/what-is-a-social-enterprise/
social-enterprise-motivations/>