The four W'S of social entrepreneurship
Four pillars were discovered which are referred to as the 4Ws, to capture the essence of social entrepreneurship. The first pillar, WHY, focuses on identifying a specific problem. It was found that social enterprises operate with the aim of earning a financial return, but their core driver is a social mission. The mission of a social enterprise is to solve a social problem through a creative business model, which may or may not generate a financial return. Unlike for-profit ventures, whose primary mission is financial gain, social enterprises prioritize their mission as the key differentiating factor.
The second pillar, HOW, delves into how social entrepreneurs intend to solve the identified problem. Social enterprises bring innovative solutions to social issues where public or market-based approaches have fallen short. Social entrepreneurs start by addressing a social problem and seek transformative changes that can be scaled. It's important to note that innovation in social entrepreneurship doesn't necessarily mean something completely ground-breaking; it can also involve extending, duplicating, synthesizing, or creating something entirely new. The ultimate goal is to address a social problem, find a solution, and scale it to benefit a broader segment of society. Such innovations are considered social innovations.
The third pillar, WHEN, examines the timeframe needed to solve the problem. One distinguishing characteristic of social enterprises is their capacity to earn revenue while pursuing their social mission. The financial aspect is a critical dimension in the discussion of social entrepreneurship. Scholars debate whether social enterprises should be non-profit or for-profit entities. The for-profit nature of social enterprises has sparked more controversy as it relates to social value creation. Some argue that social value creation and financial profit maximization should remain separate. For instance, when Bill Gates, a renowned social entrepreneur, engages in business activities alongside his social initiatives, it generates debate and disagreement. Similarly, when purely for-profit enterprises make charitable donations or engage in corporate social responsibility, it also sparks debate.
The fourth pillar, WHERE, addresses the target audience or the specific focus of the problem. Social enterprises have the ability to create social impact, which is a foundational element. However, there is no widely accepted definition or guideline for measuring social impact. It varies across different societies due to contextual factors. Generally, social impact can be measured based on an enterprise's action on the well-being of society, encompassing the community, environment, and economy. While commercial enterprises primarily measure impact in financial terms (single bottom line), social enterprises measure impact based on a triple bottom line (people, planet, and profits). The creation of social impact is intrinsically linked to the social enterprise's mission, which prioritizes social welfare over financial gain. The primary goal of a social enterprise is to make an impact by achieving its social mission, which forms the foundation of its existence.
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Activity: Exploring the Pillars of Social Entrepreneurship
Objective: To understand and analyse the four pillars of social entrepreneurship and their significance in addressing social problems.
Instructions:
Divide the participants into small groups and provide each group with a copy of the four pillars of social entrepreneurship: WHY, HOW, WHEN, and WHERE. Assign one pillar to each group and ask them to discuss and analyse its key components and implications.
Provide guiding questions for each group to facilitate their discussion:
WHY: What is the importance of identifying a specific social problem as the core driver of a social enterprise? How does it differentiate social enterprises from for-profit ventures? Discuss the role of the social mission in guiding the actions of social entrepreneurs.
HOW: How do social entrepreneurs approach problem-solving differently compared to public or market-based solutions? Explore the concept of social innovation and its various forms. Discuss the significance of scalability and the potential impact of social innovations.
WHEN: Examine the debate surrounding the financial aspect of social entrepreneurship. Discuss the differences between non-profit and for-profit entities in terms of social value creation. Explore examples such as Bill Gates and the corporate social responsibility practices of for-profit enterprises.
WHERE: Discuss the importance of creating social impact and its measurement. Explore the triple bottom line concept (people, planet, and profits) as a measurement framework for social impact. Discuss the target audience or focus areas of social enterprises and their role in addressing societal well-being
After the group discussions, reconvene as a whole and ask each group to present their findings on their assigned pillar.
Facilitate a group discussion to synthesize the information and encourage participants to reflect on the interconnections between the pillars and their implications for social entrepreneurship.
Conclude the activity by emphasizing the holistic nature of social entrepreneurship, where the four pillars work together to address social problems, create innovative solutions, ensure financial sustainability, and make a positive impact on society.
Note: Throughout the activity, encourage participants to share examples, personal experiences, and insights related to social entrepreneurship to enrich the discussion
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REFERENCES
http://socialgoodstuff.com/2019/02/the-four-cs-of-effective-social-entrepreneurship/
https://www.investopedia.com/terms/s/social-entrepreneur.asp