definition of social entrepreneurship and traditional entrepreneurship

1. 402.472 SOCIAL ENTREPRENEURSHIP IN URBAN & REGIONAL CONTEXT
Social Entrepreneurship
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Definitions & Concepts
27/03/2012 Sophie Golinski & Malena Rottwinkel

2. CONTENT
1. Definition Entrepreneurship
2. Entrepreneurship and Social Entrepreneurship (SE)
3. Origin and History of SE
4. Definition Social Entrepreneurship
5. Concept of SE
6. References

3. 1. Definition Entrepreneurship
• French economist Jean Baptiste Says (1767- 1832):
“The entrepreneur shifts economic resources out of an area of
lower and into an area of higher productivity and greater yield.”
• Austrian economist Joseph Schumpeter (1883- 1950):
entrepreneurs as innovators who drive the ‘creative-destructive’
process of capitalism
• American economist Peter Drucker (1909-2005):
“The entrepreneur always searches for change, responds to it
and it exploits it as an opportunity.”

4. 1. Definition Entrepreneurship
“Entrepreneurship is the action of mobilizing resources to launch
projects and create firms whose products and services meet the needs
of society.” (Gasse, 2007 in WÜSTENHAGEN)
4 Paradigms in Entrepreneurship theory (Verstraete & Fayolle, 2005 in
WÜSTENHAGEN):
• opportunity recognition
• business creation
• value creation
• innovation

5. 2. Entrepreneurship &
Social Entrepreneurship (SE)
Entrepreneurship Social Entrepreneurship
Financial profits Financial profits NOT essential
Forces of demand and supply Not always clear defined products
& prices
Difficult to measure additional
social value
Social mission
Often in form of start-up companies or SMEs
Innovation
Personal commitment
Visions

6. 3. Origin and History of SE
• SE is NOT a new phenomena
• There have always been dedicated entrepreneurs:
Friedrich von Bodelschwingh
Henry Dunant
• Newer initiatives address challenges within society that
cannot be solved by governments, administration or NGOs
• Now: SE as a buzzword for change, sustainable
development & social corporate responsibility

7. 4. Definition Social Entrepreneurship
Social commitment
Social Activist Social Entrepreneurship Social Service
social entrepreneurship = Gesellschaftliches Unternehmertum
social business = Sozialunternehmen

8. 4. Definition Social Entrepreneurship
• lack of clear-cut definition
“deals with a start-up of a very innovative company supplying
environmentally or socially beneficial products and services”
Schaltegger & Wagner (2008), p. 31
Characteristics:
• mission to create and sustain social value
• wealth creation is not at the core
• agents of change: reformers and not “best practice”
• continuous adaptation, learning and innovation
• often act locally but potential for global change

9. 5. Concept of SE
• importance of SE for changing society and for achieving social and
environmental goals within market framework
• different concepts: sustainable entrepreneurship, social corporate
responsibility, corporate environmental responsibility
Concept of A. Nicholis & A.H. Cho: Sociality Market
Orientation
Innovation

10. 6. References
DEES, J.G. (2011): The Meaning of Social Entrepreneurship. In: Ed. HAMSCHMIDT, J. & PIRSON,
M. (2011): Case Studies in Social Entrepreneurship and Sustainability. Sheffield. p. 22-30.
FALTIN, G. (2011): Social Entrepreneurship – Zwischen Entrepreneurship und Ethik. In Ed.
JÄHNKE, P.; CHRISTMAN, G.B. & BALGAR, K. (2011): Social Entrepreneurship. Perspektiven für
die Raumentwicklung. Wiesbaden. p. 75-85.
HACKENBERG, H. & EMPTER, S. (2011): Social Entrepreneurship und Social Business:
Phänomen, Potenziale, Prototypen – Ein Überblick. In: Ed. HACKENBERG, H. & EMPTER, S.
(2011): Social Entrepreneurship Social Business: Für die Gesellschaft unternehmen. Wiesbaden. p.
11-26.
NICHOLIS, A. & CHO, A.H. (2006): Social Entrepreneurship: The Structuration of a field. In: Ed.
NICHOLIS, A. (2006): Social Entrepreneurship: New Models of Sustainable Social Change. Oxford.
p. 99-118.
SCHALTEGGER, S. & WAGNER, M. (2008): Types of sustainable entrepreneurship and conditions
for sustainability innovation: from the administration of a technical challenge to the management of
an entrepreneurial opportunity. In Ed. WÜSTENHAGEN, R. et.al. (2008): Sustainable Innovation
and Entrepreneurship. Cheltenham. p. 27-48.
SPENCE, M.; GHERIB, J.B.B.; BIWOLE, V.O. (2008): A framework of SMEs`strategic involement
and sustainable devolopment. In Ed. WÜSTENHAGEN, R. et.al. (2008): Sustainable Innovation
and Entrepreneurship. Cheltenham. p. 49-66.