Analysis of Social Entrepreneurship Motivators and Challenges

This essay delves into the multifaceted realm of social entrepreneurship, commencing with a comprehensive introduction that defines the concept and its evolution. The main body of the essay explores the concept of social entrepreneurship and its emergence, highlighting its growing significance across public, private, and non-profit sectors. It then meticulously outlines the key motivators that drive social entrepreneurs, including good intentions, compassion, and the desire to address societal issues such as poverty and unemployment. Furthermore, the essay critically analyzes the challenges faced by social enterprises, such as securing funding, managing human resources, and navigating resistance to change. The essay concludes by synthesizing the key arguments and offering insights into the future of social entrepreneurship. The essay provides a valuable resource for students seeking to understand the principles, practices, and complexities of social entrepreneurship.

Entrepreneurship
(Topic: Social Entrepreneurship -
Motivators and Challenges)

Table of Contents
Topic: Social Entrepreneurship- Motivators and Challenges..........................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Concept of social entrepreneurship and its emergence..........................................................1
Motivators for social entrepreneurship...................................................................................2
Challenges for social entrepreneurship..................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

Topic: Social Entrepreneurship- Motivators and Challenges
INTRODUCTION
Social entrepreneurship can be referred to as the integration of activities ranging from
personnel who intend to instil their time, efforts and resources in creating a social difference to
NPO's which revise their functioning on the basis of learnings gained from corporate
environment (Social Entrepreneurship: The Case for Definition, 2019). In other words, it can be
said that social entrepreneurship is a comprehensive approach undertaken by start-ups,
organisations or entrepreneurs with a view to create, finance and execute solutions in response to
cultural, social or environmental challenges faced by society as a whole. The application of this
concept ranges within different companies on the basis of their objectives, sizes and ideologies.
Social entrepreneurship functions in the form of 2 ways, namely, as non-profit entities or for
profit entities which are aimed at generation of affirmative returns for society.
MAIN BODY
Concept of social entrepreneurship and its emergence
With the passage of time, social entrepreneurship can be seen as a concept that has
widely grown and emerged for the welfare of people at large. This seeks to create social value
for individuals who are a part of society. This idea is recently emerging within the confines of
public, private and non profit sectors and is gaining the attention of entrepreneurs in all the 3
sectors (Social Entrepreneurship: The Case for Definition, 2019). At present stage, the non profit
sector has been encountering aggravating demand for improvement of business efficiencies as
well as attainment of sustainability as the organisations belonging to this sector are not getting
funds from conventional sources and face extensive level of rivalry. Simultaneously, constantly
enhancing accumulation of wealth within the confines of private sector has inflated the demand
for organisations pertaining to it to invest in CSR activities. This is so because such CSR
practices tend to represent effective response to immensely complex social issues. The prime
motive of government within all the nations across the globe is currently on resolution of
challenges faced by society so as to ensure their welfare as well as empowerment. The
government is obligated towards people as it procures funds from public at large.
In context of the above challenges rising within the confines of private, public and non
profit, the need to promote the concept of social entrepreneurship has inflated to a great extent.
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Over the course of years, such kind of entrepreneurship has emerged as an innovative as well as
unique approach which provides assistance in tackling social needs of complex level. The focal
point of this is upon problem solving by way of leveraging social innovation (Why Social
Entrepreneurship Is The New Business Model, 2019). In this regard, it is seen that social
entrepreneurship bridges the gap underlying between non profit, public and private sectors by
putting focus over hybrid model of profit as well as not for profit practices. Promotion of
cooperation among all the sectors is implied within the confines of social entrepreneurship.
Motivators for social entrepreneurship
There are a number of motivators for social entrepreneurs to undergo entrepreneurship.
These are the principles which have a special emphasis upon resolution of issues faced by
society such as poverty, unemployment and many more. Such principles are explained in a
detailed manner as follows:-
Good Intentions and will: An individual needs to have good intentions and a free will to
work for the resolution of social problems. This facilitates the entrepreneur to start social
entrepreneurship and officially work upon the issues faced by society. A good intent is the key
which makes a person undertakes a number of measures through which the addressed societal
challenge can be combated and people can be relieved in a timely manner. One such example of
this principle behind rise of social entrepreneurship is the development of a free college by the
team of TSiBA South Africa for immensely poor black people as well as coloreds. This venture
was aimed at making affordable and quality education accessible to everyone (Saebi, Foss and
Linder, 2019).
Seeking motivation: Some of the visionaries attempt to take care of their own issues or
fill their life by making an attempt to take care of the issues faced by other individuals belonging
to the society. The inspiration hereby is to appear better or more extravagant by mediating in the
lives of others. This is aimed at making their lives better by generating unique and creative
solutions which have long lasting as well as positive impact over the lives of others. For
instance: Dr. Muhammad Yunus previously pertaining to Grameen Bank, worked with the least
fortunate of the poor ladies in rural Bangladesh to create a worldwide financial powerhouse,
claimed and drove by those ladies (Chell and et. al., 2016). His numerous supporters have
constructed flourishing microfinance banks worldwide that serve the poor first and then others
like investors or governments just with what might be left.
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To exercise compassion: It's excellent to think about the pain as well as suffering of other
individuals, however, it's just the initial phase in development of an effective social venture. A
guarantee to building an economical venture that proficiently utilizes limited funds as well as
assets is at the heart of a genuine social business person. John Wood of Room to Read, a
previous Microsoft official is a case of an exceptionally proficient and energetically minded
social business person. Another model is late Dr. Venkataswamy of Aravind Eye Care who
manufactured a "pay if you can" surgical ward for the visually impaired in India. It stays as a
revolutionary example for proficient empathy in cutting edge healthcare services (Rey-Martí,
Ribeiro-Soriano and Palacios-Marqués, 2016).
Listening others: A significant number of self-proclaimed social business persons
develop their own solution to an issue. The more successful approach depends on tuning in to the
individuals who experience the issue and find out about the possible ways to develop solutions
from living the issue. Blake Mycoskie did splendid work at TOMS Shoes, however his changed
strategic policies illustrate that he perceived that the appropriate responses originated from the
individuals who are served, not from one’s own picture of how they ought to be served. Warby
Parker and his eyeglass business (established by Wharton MBAs) is an evolution of TOMS,
engaging micro business persons while simultaneously executing sale of reasonable glasses
(What Motivates the Best Social Entrepreneurs?, 2019).
To create bottom up solutions: It is generally assumed that solutions are best devised and
executed by leveraging bottom up approach instead of top-down. This facilitates the emergence
of social entrepreneurship by entrepreneurs with a view to capitalise on the bottom up approach.
In the past, nobody has done this superior to Partners in Health under the supervision and
leadership of Dr. Paul Farmer. He built capacity within Haiti for treatment of HIV/AIDS and
different sicknesses of the poor (Kickul and Lyons, 2016).
Attainment of results: Esther Duflo at MIT's Jameel Poverty Action Lab and Dean
Karlan at Yale's Innovations for Poverty Action have both committed their development
economics work to finding ways to actually measure what works and what doesn’t work to
reduce poverty (Phillips and et. al., 2015). There’s little glamour in measuring and studying
programs, such as in developing randomized control trials for poverty work that mimic those for
drug testing. But, passion for finding the best ways to really help the poor help themselves
represents the next step in the development of social enterprises.
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Development of new ideas: There remains a lot of scope for development of completely
new thoughts in social undertaking, particularly in the financial advancement field. Willie Foote
established Root Capital to fill the "missing middle" of agricultural finance with a view to deal
with and reduce poverty in the confines of rural areas. Too enormous for microfinance however
unreasonably little for business banking, Root Capital meets the gap with extensive credits to
cooperatives composed of poor farmers ranchers which enable these individual to accomplish the
quality improvement significant for sale in worldwide markets. Additionally, Andrew Youn
made The One Acre Fund to enable the poor farmers within the rural areas to enhance their
output delivery and access to marketplaces, subsequently bringing a positive transformation in
lives of poor famers within the confines of East Africa (Huda and et. al., 2019).
Act of ‘Giving Back’: A number of times social entrepreneurship also emerges as a result
of measures being taken up by an individual to give back to the society from which it takes a
number of things and owes its accountability to. Bill as well as Melinda Gates pertaining to The
Gates Foundation developed "bet the house" for tackling the most concerning issues of the
world, from training to sustainable cultivation to reasonable medication (4 Things That Motivates
a Social Entrepreneur Beyond Creating Social Value?, 2019). They have driven others to do
likewise through their campaigning named "billionaire’s giving pledge". The absolute wealthiest
individuals on the planet like Warren Buffett or Mark Zuckerberg vowed to part with minimum
half of what they need to do to tackle the large issues faced by society. While people cannot
become rich like them, there is a scope for society as a whole to pursue their principle and
working and thereby work for the upliftment of society.
Challenges for social entrepreneurship
Apart from the motivators, there are also certain challenges that are faced by social
entrepreneurship and these are briefly explained as follows:-
HR: Employing quality workforce including ranking directors and junior level
implementers is perhaps the greatest challenged looked upon by a social business person. The
hidden hardship in holding and selecting quality HR lies in the way that the social business
persons are infrequently ready to pay market rates or investment options to them. Youthful and
capable people get alluring compensation bundles from corporate houses and thus not many
choose to accept a decrease in salary to join a Social venture (5 Last Mile Challenges faced by
Social Entrepreneurs, 2019). Social Enterprises, for example, the Gates Foundations remunerate
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workers aggressively. The other regular option is to get enthusiastic volunteers to do the
activities, keeping in mind that this has inestimable advantages, depending significantly on
volunteers who do not hold accountability to the association.
Funds: For the endeavors which don't have a self-supporting income stream, financing
and speculations keep on being perhaps the greatest test. Considerably in the wake of meeting
the early obstacle of getting the initial investment, acquiring development capital acts as a
constraint in effective execution of social entrepreneurship. Social Entrepreneurs are usually
financed by establishments, donors, or governments whose assistance is moderate. In any case, a
business that doesn't guarantee benefits within five to seven years won't draw significant
investment, regardless of intention behind the idea or overall thought being true and marker
disruptive (Rawhouser, Cumming and Newbert, 2019). To get government reserves, various
obstacles must be crossed, for example, protracted strategies, administration and redesigning to
fit the standard rules. Raising money isn't just tedious and costly, yet in addition social
associations are not generally compensated for good performance by way of inflated investment.
Social entrepreneurship doesn't compensate a social business person as promptly as the
commercial entrepreneurship. Thus, funding issues serve as one of the biggest challenges for
social entrepreneurs.
Resistance to change: Social Entrepreneurs now and then need to change individuals'
logics and practices to have a significant impact over the society. Since changing how
individuals act in the general public is exceptionally challenging, the process becomes extremely
time consuming. Likewise, people don't promptly have the confidence in new things until they
have had long encountered them (Challenges faced by Social Entrepreneurs, 2019). Changes at a
huge scale require traditional approaches to change, which is regarded to be yet another big
constraint. The individuals who get comfortable with the old conditions have a lukewarm
response to proceed onwards to the new working patterns. This gives rise to resistance posed by
a significant number of persons at the time of executing a relevant and considerable change at
national level. It gets even difficult to pick up trust and acknowledgment from personnel for the
proposed positive change. It takes time to witness the true impact of a change over the society
and its members. Owing to this, a number of times, social endeavors are referred to as
ineffectual.
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Execution challenge: Failure to develop and keep up the quality, hardships of having the
option to bear the cost of experienced individuals, reducing inspiration, outside obstacles, for
example, political change or resistance from different sources tend to serve as the most
significant execution challenges for social entrepreneurship (Calic and Mosakowski, 2016). The
Social Entrepreneur needs to have the resilience and patience to bear such situations as these are
central to the execution of a social endeavor.
Misalignment of Goals: For social entrepreneurs, ineffective strategic planning or
misalignment of goals tends to serve as yet another constraint which restricts the development of
social endeavor. Specific time needs to be given by entrepreneurs to deal with this kind of
challenge. Maneuvered with the responsibility of rapid development and expansion may push the
social business person away from the social objective (Durkin and Gunn, 2016). It is important
for the entrepreneur to devise effective strategies through which the goals can be aligned with the
activities of venture, thereby assisting it in accomplishing the overall objectives for which the
endeavor is developed.
CONCLUSION
On the basis of above discussion, it can be said that social entrepreneurship is an
important and significant part of any society as this is aimed at resolution of the issues faced by
people at large. In this regard, there are several motivating factors for social entrepreneurship
while at the same time there are also certain challenges linked with this concept that need to be
considerably taken into account by an entrepreneur in a timely manner.
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REFERENCES
Books and Journals
Huda., M and et. al., 2019. Towards Cooperative with Competitive Alliance: Insights into
Performance Value in Social Entrepreneurship. In Creating Business Value and
Competitive Advantage with Social Entrepreneurship (pp. 294-317). IGI Global.
Rawhouser, H., Cummings, M. and Newbert, S. L., 2019. Social impact measurement: Current
approaches and future directions for social entrepreneurship research. Entrepreneurship
Theory and Practice, 43(1), pp.82-115.
Chell, E. and et. al., 2016. Social entrepreneurship and business ethics: Does social equal
ethical?. Journal of business ethics, 133(4), pp.619-625.
Phillips, W. and et. al., 2015. Social innovation and social entrepreneurship: A systematic
review. Group & Organization Management, 40(3), pp.428-461.
Rey-Martí, A., Ribeiro-Soriano, D. and Palacios-Marqués, D., 2016. A bibliometric analysis of
social entrepreneurship. Journal of Business Research, 69(5), pp.1651-1655.
Saebi, T., Foss, N. J. and Linder, S., 2019. Social entrepreneurship research: Past achievements
and future promises. Journal of Management, 45(1), pp.70-95.
Durkin, C. and Gunn, R. eds., 2016. Social entrepreneurship: A skills approach. Policy Press.
Calic, G. and Mosakowski, E., 2016. Kicking off social entrepreneurship: How a sustainability
orientation influences crowdfunding success. Journal of Management Studies, 53(5),
pp.738-767.
Kickul, J. and Lyons, T. S., 2016. Understanding social entrepreneurship: The relentless pursuit
of mission in an ever changing world. Routledge.
Online
Challenges faced by Social Entrepreneurs. 2019. [Online]. Available Through:
<https://medium.com/@charushekhar/challenges-faced-by-social-entrepreneurs-
ce28edd69cb>.
What Motivates the Best Social Entrepreneurs?. 2019. [Online]. Available Through:
<https://www.northeastern.edu/sei/2013/02/what-motivates-the-best-social-
entrepreneurs/>.
4 Things That Motivates a Social Entrepreneur Beyond Creating Social Value?. 2019. [Online].
Available Through:<http://www.yourarticlelibrary.com/entrepreneurship/4-things-that-
motivates-a-social-entrepreneur-beyond-creating-social-value/14199>.
5 Last Mile Challenges faced by Social Entrepreneurs. 2019. [Online]. Available Through:
<https://centricbrandadvisors.com/5-last-mile-challenges-faced-by-social-entrepreneurs/
>.
Social Entrepreneurship: The Case for Definition. 2019. [Online]. Available Through:
<https://ssir.org/articles/entry/social_entrepreneurship_the_case_for_definition#>.
Why Social Entrepreneurship Is The New Business Model. 2019. [Online]. Available Through:
<https://www.forbes.com/sites/meimeifox/2016/08/08/5-reasons-why-social-
entrepreneurship-is-the-new-business-model/#6a96f6d944ca>.
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