• Posted on December 9, 2022
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Assignment Sample on UG02-SSC-02 Study Skills and Communication

TOPIC – ANALYSIS OF EFFECT OF SOCIAL ENTREPRENEURSHIP

Introduction

Social entrepreneurship is an outlook of individuals, associations, start-up companies or businesses where they grow funds and carry out the solutions to environmental issues along with social issues. Social entrepreneurship has collected a remarkable amount of attention over the last few decades; this new surge in charitable and communal activity from social entrepreneurs has created an effective means for doing business. The negligence from the government and many commercial businesses often led to inadequate awareness of the environment because they give more importance and value to the economic and financial return.

According to David Bornstein the term social innovator can be used interchangeably with social entrepreneurs because of their creative and non-traditional strategies that are used by many social entrepreneurs.

This research paper analyzed social entrepreneurship and its impact on various factors including social value creation, social networks and culture, and storytelling.

Concept of social entrepreneurship

The concept of Social entrepreneurship is important for most countries where it helps in development and also to solve social and environmental issues, it can be both profitable and charitable and can be owned by any multinational or local organization. All these organizations balance revenue growth along with a motivation that has a significant impact on society, economy and environment. These organizations also focus on cooperative strategies rather than competition; they are committed to serving society and also resolving social and environmental problems (Aydogmus, 2021).

According to Dr. Joe Johnson, social entrepreneurs can be of four types which are:

• Community social entrepreneur,
• Non-profitable social entrepreneur,
• Globally social entrepreneur and,
• Transformational social entrepreneur (Sahasranamam and Nandakumar, 2020).

In the opinion of many experts, social entrepreneurship is a kind of  entrepreneurship were entrepreneurs:

• Mix the social issues and commerce.

 For example- Elon Musk, who created an accessible solution to renewable energy by taking a risky journey with SpaceX and Tesla (Shahverdi, Ismail and Qureshi, 2018).

• Introduce or create new methods for social and environmental effects.

 For example-Tom Szaky made it possible that anything and almost everything is recyclable by launching his Terracycle project.

• And also play as a catalyst for environmental and social impact.
• For example- Greta Thunberg, who made the whole world more aware of the current climate change in our environment and made everyone realize that we must take enough precautions to control this climate change (Ayob, 2018).

As studied by Agustina et al. (2020), social entrepreneurship has many different terms that represent various businesses that have a social influence in many different ways. After analyzing it can be said that social entrepreneurship can be categories in three different ways that are:

• Social Bricoleur: It is a type of entrepreneur who has acquired and has implicit knowledge to intercede particular local situations. In order to resolve a particular situation with scarce resources.
• Social Constructionist: It can be described as a social group that builds and creates things for one another while maintaining the actual meaning of society. The social constructionist seeks remedies for the social problems in a border way.
• Social Engineers: it is a type of entrepreneur who has resources to construct, deconstruct and reconstruct the engines of society to achieve broader goals (Muralidharan and Pathak, 2018).

Opportunities of social entrepreneurship  

The term Social Entrepreneurship is a current trend, the shareholders play a crucial role in a market economy and always helped and harbored a positive desire for enterprises to signify the desired problems that are faced by the society and build a positive value for them.

According to Ghatak, Chatterjee and Bhowmick (2020), it is quite visible the increasing number of networks of organizations is hugely inclined towards praising social and environmental efforts of an organization. The activities that are performed by the social enterprises are risk-taking and as they serve the financially backward population so the organizations are unable to gain many profits. However, in certain industries like microfinance, there is a never-ending debate about whether a private enterprise can function and fulfill the needs of the financially backward clients and group more successfully than modified the NGO model. Some examples of social entrepreneurship enterprises are micro- clinics in low-income zones and providing inexpensive irrigation tools to low-paid farmers (Aydogmus, 2021).

In the market, there are a vast variety of products that provide benefits to the environment but are not fully commercially or economically competitive. There are numerous environmental-friendly sectors of industries that are absolutely commercially workable, also there must be some certain aid and services which should be assigned by the state such as providing counseling services to the people who are dealing with HIV+ or socially insignificant classes, etc. Therefore, as studied by Newey (2018), the crux of social entrepreneurship lies in identifying any form of social issue and initiating products and services that entail to solve the prevalent issue in market.

Social entrepreneurs are required in the latest and challenging markets where it is essential to sustain heavy expenses to control the surge in demand and generate opportunities. However, there are other numerous business-line that are appropriate for hybrid-social entrepreneurship (Urban, 2020).

Social entrepreneurship and social value creation

The first and foremost and direct opportunity expressed through social entrepreneurship is a creation of social value. In some sectors, this is called creative destruction (Bloom, 2021) or the replacement of a prejudiced social equilibrium with more than one. Some common goals of social value creation are:

• Improving health, education in society.
• Supplying more resources.
• Helping hand for the financially backward classes by providing products and services to them.
• Providing business development assistant
• Capital provision and many more (Shahverdi, Ismail and Qureshi, 2018).

Social entrepreneurship existence helps to boost reorganize and innovate sustainable resources and empowerment over control and will have an impact on society and community.

According to Ashoka, half of the members in their network of social entrepreneurs have influenced national legislation within five years of their inception. Apart from that social entrepreneurs also lookup for creating sustainable solutions compared to sustainable advantages. This approach either looks forward to addressing the main cause of such problems directly or builds a system that will continuously address the problems. Lastly profitable enterprises majorly look forward to capturing the maximum market shares that suggest necessity and demand for control of the market and necessary resources. Social entrepreneurs rather seek to empower the stakeholders, instead of capturing some form of financial value for themselves. Thus building a long-lasting solution that creates positive externalities for every party (Ayob, 2018).

Social entrepreneurship and social value creation

Social entrepreneurship represents an individual’s attachment towards a cause which is valuable for the society. Social value creation has been a part of the larger aspects of social entrepreneurship (Scinecedirect.com, 2021). The idea of creating social value is just not confined to the limitations of any business organization and has a larger role to play in the uplift of society and community. The activities which are a part of social value creation extends to NGOs, businesses and the government authorities. Businesses which value these activities more than their financial gains are active participants of these socially beneficial causes. Though some experts level these activities as secondary achievements, for social entrepreneurs these activities are the main mission and they perform social value creation activities such as building a school, health care facilities and infrastructure such as roads and water resources for local communities (Gupta et al. 2020). Social entrepreneurs are committed to these social causes and aim towards solving one or more of the social or environmental issues and earn profit at the same time.

Social entrepreneurship and social networks

Businesses nowadays need to connect to the issue that is plaguing the local communities and organization activities must lead to greater sense of confidence, a greater number of choices as a result of the social value creation process. Social media provides a pathway for the business executives who are interested in this social cause to communicate with others. Individuals who share the same values in this regard as well as help the organization help in promote businesses. It is the preferred medium for many who want to extend their messages to wider audiences and expect better results for their long-term goals (Dwivedi and Weerawardena, 2018). Social entrepreneurship is focused on the marginalised communities and its goal is to make their lives better through these activities. It involves developing the business, creating new opportunities of education, making healthcare accessible to those who struggle to afford it and reducing the negative impact of environmental activities. Here the social entrepreneurs make the society better just like the business entrepreneurs who make the businesses better. Social media is the preferred way for social   entrepreneurs to connect with the individuals from different strata of the society (Rawhouser et al. 2019). Social media gives the freedom to organisations and individuals to convey their message in a more personalised way than ever before. In the modern world every business needs to have strong representation in all relevant online platforms. The same goes true for social   entrepreneurs who are responsible for running non-profitorganisations which work for the benefit of the society. Social media is cost effective and therefore social entrepreneurs use this medium to describe their works and publish any reviews on social networks such as Facebook, twitter, Instagram and personal blogs. This is a functional way to document their philanthropic activities through the social media channels and the viewers get an understanding about the kind of work these organisations perform and get attached to the cause as well (Entrepreneur.com,2021). Social   entrepreneurs use social media platforms to generate funds as well using it as a major avenue for communication. They need to make sure that the level of contact they are making is not excessive because it creates a negative impression for the organisation who are committed to this kind of social activities.

Impact of social entrepreneurship on culture and story-telling

Social entrepreneurship has affected the culture and has proven to be beneficial for society as well. It attracts investment as social entrepreneurs improve the living conditions and lifestyle of many who live in poor environmental conditions. The products created by the organization are often low in carbon footprint and open new opportunities for employment for many. Businesses which make social duties as part of their main business function need to understand the different aspects of how these organisations do socially beneficial work to successfully reach their objectives (Canestrino et al. 2020). As social   entrepreneurs while supervising an organisation they need to make sure their activities lead to positive social impacts. Businesses who are interested in working toward these objectives either make products or provide services which are advantageous for the society. Other businesses make their business production by applying social awareness approaches in manufacturing its products. The business needs to practice these methods in their own facilities but they need to cooperate with vendors and wholesalers and make sure that they are paid accordingly. Companies like Tesla have supported the transportation sector to adopt the use of electric vehicles extensible through its efforts and thus helped in making a positive impact on the environment (Bansal et al. 2019).

Storytelling is more effective than it seems since the stories told to others have a significant effect on them. Though analysis is helpful, storytelling is a more effective and easy way to connect with others as it helps them to understand a particular experience through vivid storytelling. Storytelling has a significant impact on the organisation as it benefits the business culture and it helps in increasing advocacy and making campaigns about important issues. Storytelling is motivational for individuals who want to take action and it facilitates changes in a meaningful and transformative way, prompting action from people who are capable of making the changes. Many organisations today use storytelling to promote awareness among others and it is an effective way to inspire others to make change. Social   entrepreneurs need to keep in mind that effective stories involve customers to be a part of the initiative. Storytelling must open up new pathways for possibilities and provide an emotional outlet for the audiences as well (Agarwal et al. 2020). In order to make meaningful change through storytelling businesses need to make sure that these stories need to have captivating power to engage the consumer therefore they receive these messages with open mind and participate willingly to the change.

Conclusions

Social entrepreneurship is beneficial for the underprivileged communities who are a part of the society and businesses which are adopting social entrepreneurship are aware of its positive impacts on the society and the wider environment. Organizations who invest in social value creation make living standards better for many who previously did not have those basic opportunities which makes a difference in their lives. Social media and storytelling are powerful tools for social entrepreneurs and organisations who want to participate in these charitable activities and support communities and society in general to shape transformative changes.

Reference List

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Agustina, T., Budiasih, Y., Ariawan, E.K. and Gorovoy, S.A., (2020). Role of social entrepreneurship in business management. Journal of critical reviews, 7(1), pp.257-262.

Aydogmus, M., (2021). Investigation of the effect of social entrepreneurship on professional attitude and self-efficacy perception: a research on prospective teachers. Studies in Higher Education, 46(7), pp.1462-1476.

Ayob, A.H., (2018). Diversity, trust and social entrepreneurship. Journal of Social Entrepreneurship, 9(1), pp.1-12.

Bansal, S., Garg, I. and Sharma, G.D., (2019). Social entrepreneurship as a path for social change and driver of sustainable development: A systematic review and research agenda. Sustainability, 11(4), p.1091.

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Dwivedi, A. and Weerawardena, J., (2018). Conceptualizing and operationalizing the social entrepreneurship construct. Journal of Business research, 86, pp.32-40.

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Ghatak, A., Chatterjee, S. and Bhowmick, B., (2020). Intention towards digital social entrepreneurship: An integrated model. Journal of Social Entrepreneurship, pp.1-21.

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Muralidharan, E. and Pathak, S., (2018). Sustainability, transformational leadership, and social entrepreneurship. Sustainability, 10(2), p.567.

Newey, L.R., (2018). ‘Changing the system’: Compensatory versus transformative social entrepreneurship. Journal of Social Entrepreneurship, 9(1), pp.13-30.

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.

Sahasranamam, S. and Nandakumar, M.K., (2020). Individual capital and social entrepreneurship: Role of formal institutions. Journal of Business Research, 107, pp.104-117.

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Shahverdi, M., Ismail, K. and Qureshi, M., (2018). The effect of perceived barriers on social entrepreneurship intention in Malaysian universities: The moderating role of education. Management Science Letters, 8(5), pp.341-352.

Urban, B., (2020). Entrepreneurial alertness, self-efficacy and social entrepreneurship intentions. Journal of Small Business and Enterprise Development.

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