Summary Of Social Entrepreneurship PDF

17 sustainable development goals = universal call for action to address global challenges 1. No poverty 2. 0 hunger 3. Good health and well-being 4. Quality education 5. Gender equality 6. Clean water and sanitation 7. Affordable and clean energy 8. Decent work and...

17 sustainable development goals = universal call for action to address global challenges 1. No poverty 2. 0 hunger 3. Good health and well-being 4. Quality education 5. Gender equality 6. Clean water and sanitation 7. Affordable and clean energy 8. Decent work and economic growth 9. Industry, innovation and infrastructure 10. Reduced ineaquality 11. Sustainable cities and communities 12. Responsible consumption and production 13. Climate action 14. Life below water 15. Life on land 16. Peace, justice and strong institutions 17. Partnerships for the goals Social enterprise = businesss with a primary mission to address social, environment, or cultural challenges while earning revenue ➔ Aims to create positive change in society Relevance: Tackles social issues Self sustaining Promotes innovation Supports local economies 1 Example BRAC: = non profit SE in Bangladesh ➔ Microfinance and social programs ➔ Aims to raise the standard of living for individuals living in subsistence conditions Example Solar Sister: = SE that empowers women in Africa to become entrepreneurs by selling affordable, clean energy products Entrepreneurship - Mindset that sees the possibilities rather than the problems - Mobilize the resourves of others - Undertakes a significant project or activity - Joseph Schumpeter: ‘innovators who drive the “creative destructive” process of capitalism’ - Peter Drucker: ‘entrepreneur always searcher for change, response to it, and exploits it as an opportunity’ Types of entrepreneurs 1. Conventional = creates new innovations and brings them to market for profit -> economic gain -> software developers 2. Institutional = mobilizes resources to influence or change institutional rules or systems -> institutional reform or development -> Edison, Apple, Kodak 3. Cultural = creates social, cultural, or economic value by introducing new norms or cultural ideas -> cultural enlightenment or diffusion -> museums 2  4. Social = applies business principles to solve social problems -> social change or well being -> Aravind eye clinic Social entrepreneurship as a concept: ➔ Not for profit initiatives in search of alternative funding strategies or management schemes to create social value ➔ Socially responsible practice of commercial businesses engaged in cross-sector partnerships ➔ Means to alleviate social problems and catalyze social transformation 4 key factors of SE (exam!) 1. Individual characteristics: o Opportunity recognition o Combine resources o Inspirational leadership o Tend to focus on individuals indentified as succesfull, skewing results 2. Operating sector: o Binding profit and service goals o Activities that enhance social wealth 3. Processes and resources: o Tax structure: profit vs. non profit o Social wealth creation vs. economic wealth creation o Social entrepreneurial activities vs. social service activities vs. social activism 4. Primary mission and outcomes: o Creating social value by providing solutions to social problems o Economic value may be a byproduct “social entrepreneurship is innovative, social-value creating activity that can occur within or across the non profit, business or government sector” 3 Individual level of analysis: entrepreneurial processes 1. Opportunity identification and exploitation 2. Resource mobilization 3. Innovative approach in delivering the social mission ➔ Entrepreneural influencing factors: personality, education, experience, skills, and judgement abilities Important difference social entrepreneur and social enterprise! Typology of SE - Social bricoleur = small scale, local solutions to immediate soial needs that are often overlooked by others -> help maintain social harmony - Social constructionists = develop alternative systems to address social needs at a larger scale -> fix gaps in current structures to maintain social equilibrium - Social engineer = large scale, transformative systems to replace outdated ones -> challege entrenched systems, pushing for significant social change by restructuring society Organizational level of analysis: organizational reflections Hybridity = dual nature of SE that balance both social and financial goals -> leads to conflicts and tensions that must be addressed effectively for the venture to thrive 1. What forms of social ventures exist? 2. What kind of conflict do they cause? ➔ Tensions emerge from attempts to maximize social and financial performance ➔ Conflicts in prioritizing resource allocation organizational identity stakeholder accountability 4 Spectrum of social entrepreneurship models - Non profit organizations: rely on: o Grants o Subsidies o Donations o Endowments of income - Non profit SE: blend traditional non profit models with some income from market driven activities - For profit SE: generating a majority of their income from market activities -> focus on social impact - For profit organisations: market driven income with primary focus on profit Institutional level of analysis: systems’ transformations ➔ Social transformation needs to happen in concert with social institutions and norms to bring about social change ➔ Insitutions play a crucial role in facilitating but also hindering the effects of SE ➔ How formal and informal instutions affect the emergence of social vs. commercial SE’s are inspired by various societal movements 1. Philantrophists, church and the state 2. Civil society initiatives and NGO’s 3. Social innovation 4. Social economy 5. Base of pyramid = targeting low income communities to improve livelihood 5 Social entreprise vs. social entrepreneurship Differences: Social enterprise: a business model/organization focused on generating revenue while pursuing social goals Entrepreneurship: focuses on profit and business growth, with NO required social missison Similarities: ➔ Both involve starting and running businesses ➔ Require innovation, risk-taking, and leadership ➔ Aim for sustainability and growth To which extent is the definition provided by Dees (2001) self-undermining? The definition of social entrepreneurship provided by Dees (2001) can be seen as somewhat self-undermining because while it attempts to establish clear boundaries for what constitutes social entrepreneurship, it also allows for significant flexibility. Dees emphasizes the importance of creating social value rather than personal or shareholder wealth, which can lead to challenges in distinguishing between social entrepreneurs and other types of social actors or non-profits. Additionally, the inclusion of innovation and a focus on entrepreneurial qualities can blur the lines between traditional business entrepreneurs and social entrepreneurs, making the definition broad and difficult to operationalize in practice. This tension between specificity and inclusivity could be seen as undermining the clarity of the definition. “social entrepreneurs play the role of change agents in the social sector, by: Adopting a mission to creae and sustain social value (not just private value) Recognizing and relentlessly pursuing new opportunities to serve that missoin Engaging in a process of continuous innovation, adaptation, and learning Acting boldly without being limited by resources currently in hand Exhibiting heightened accountability to the constituencies served and for the outcomes created” 6 Relevance of business models (exam!) 1. Planning of overal logic of organizational activities 2. Communicating tool of organiational activities to various stakeholders -> stakeholder: interest in or affected by the outcome 3. Explain how valye is generated for a variety of stakeholders 4. Identifying and validating business opportunities 5. Strategic enterpreneurial tool Business model vs. social enterprise Business model: ➔ How a company makes money ➔ Delivering value to society ➔ Generate profit and ensure long term viability Social enterprise: ➔ Entire organization ➔ Primary focus on addressing social or environmental issues ➔ Revenue to sustain the mission but profits are often reinvested into social causes Value business model - Focus on how all the elements of the system fit into a working whole - Outlines how a company offers value to create sustainable and profitable renevue streams 1. Value identification: understanding customer value 2. Value delivery: providing value 3. Value capture: generating revenue from that value “a business model… “helps to capture, visualize, understand and communicate (… and to) improve measuring, observing and comparing” 7 Business model canvas 1. Customer segments: different groups of people a business serves 2. Value propositions: products or services that create value for each customer segment 3. Channel: way of delivering value proposition to customers 4. Customer relationship: how a company interacts with customers 5. Revenue streams: sources of income from each customer segment 6. Key resources: assets required to offer the value proposition 7. Key activities: essential actions a company must take 8. Key partnerships: external organizations that help the business function 9. Cost structure: major costs involved in operating the business “a sustainable business model focuses on how an organization ‘captures economic value while maintaining or regenerating natural, social and economic capital beyond its organizational boundaries” Sustainable business models vs. complex SE business models Sustainable business models Complex SE business models Multiple value creation due to intrinsic Customers and beneficiaries drivers Visionary leadership Employees and volunteers Basic logic Owned and “borrowed” resources Transparant TBL measurement Various income streams -> TBL = triple bottom line People – Planet - Profit Strategic choice Hybrid goals and logics Value network Multistakeholders demands Cooperatively organising 8 SE business model canvas 1. Activities: key actions the enterprise performs to deliver its value 2. Partners: organizations or entities that collaborate to enhance impact 3. Employees & volunteers: the workforce and support that drive operations 4. Resources: assets necessary for the enterprise to function 5. Competences & capabilities: skills and abilities that differentiate the enterprise 6. Value propostion: the social and economic benefits offered to beneficiaries 7. Customers & beneficiaries: people who pay for services or products and those who benefit from them 8. Costs the main expenses involved in running the enterprise 9. Income sources of revenue 10. Social impact the measurable positive change the enterprise aims to create in society SE business model blocks – key questions 1. Key Activities: what actions resolve social and environmental problems? 2. Key Resources: what resources are needed to develop activities? 3. Key Partners: which partners can help further develop activities? 4. Value Proposition: what value do activities generate for beneficiaries/customers? 5. Beneficiaries/Customer Segments: who are the target beneficiaries/customers? 6. Distribution Channels: how can beneficiaries/customers best be reached? 7. Customer Relationships: how do you serve beneficiaries/customers? 8. Costs: which costs are associated with activities? 9  9. Revenue Streams: what are the revenue sources and social/environmental impacts? What is mission drift? occurs when an organization gradually shifts away from its original goals or purpose, often due to external pressures like funding or expansion -> misalignment between actions and core mission Mobile school/Streetwize ➔ Mobile blackboard to help children globally ➔ Initially funded by philantrophy -> later: development business model SE business model typology 1. Entrepreneur support model: helps individuals or organizations sell their products 2. Market intermediary model: offers services to help others find markets for their products 3. Employment model: provides jobs and training to disadvantaged groups 4. Fee-for-service model: develops and sells services, charging those they aim to help 5. Low-income client as market model: targets disadvantaged communities as customers 6. Cooperative model: run by and for its target group members 7. Market linkage model: develops services that help disadvantaged groups connect to useful products or markets 8. Service subsidization model: sells services to fund social activities 9. Organizational support model: develops and sells products or services, using profits to support the mission 10 Making hybrids work? How to align profit-generating activities with impact-generating activities (exam!) Market hybrid: Clients = beneficiaries with automatic value spillovers. Bridging hybrid: Clients ≠ beneficiaries with automatic value spillovers Blending hybrid: Clients = beneficiaries with contingent value spillovers Coupling hybrid: Clients ≠ beneficiaries with contingent value spillovers Typology Description Mission drift Financial Models & Structure risk sustainability practices MARKET Close to pure Very low Easy ∾ BOP Board HYBRID commercial commercial initiatives for members – models nature basic market services discipline BLENDING Additional High risk Hard ∾ Microfinance Business HYBRID intervention additional initiatives and social eeds actions expertise BRIDGING Integrates Intermediate Moderate ∾ Integrated Focus HYBRID clients and automatic business groups and beneficaries spillover model advisory boards COUPLING Most Very high Moderate ∾ WISE with Creating HYBRID complex contingent dual chain separate business spillover services legal entities model BOP = base of pyramid 11 “ Social or commercial businesses create value spillovers for society beyond what they deliver to customers. These spillovers can be automatic or require additional efforts. When clients (those who pay) and beneficiaries (those who benefit) differ, a key market discipline is lost: the feedback from paying clients that drives competition and innovation.” Entrepreneurial non-profits vs. social cooperatives vs. social businesses (defourney et al) Legal form Usage of Usage of Stakeholder Number of Governance market market participation employees model income prices in boards and activities volunteers ENTREPRENEURIAL Typically, Low Less likely High High Democratic NON-PROFITS non-profits SOCIAL Typically, High Highly likely High Medium democratic COOPERATIVES cooperative SOCIAL Typically, High Highly likely Low Low independent BUSINESSES for-profit Triple layered business model Economic Layer: Traditional business aspects like key partners, value propositions, customer relationships, cost structure, etc. Environmental Layer: Focuses on environmental factors like supplies, production, life cycle, and impacts/benefits to the environment. Social Layer: Highlights governance, stakeholders, social value/impact, and benefits to society. ➔ horizontal coherence: aligning each layer across value chains ➔ vertical coherence: connecting sustainability aspects with business logic 12 Social business model canvas Implementation: - Partners, Delivery, Sales & Marketing. Social Value Proposition: - Difference Making (impact you create) and Social Impact (how it’s measured). Market: - Customer Segments, Macro Economic Environment, Competitors. Finance: - Cost of Delivery, Surplus, Revenue. Trends - Trend watchers - Marketing officers - Designers - Commercial functions - News - Specialised and free of charge -> demographic, customer and technology trends 13 Social entrepreneurship: class 3 Primary needs in terms of resources and direct support - Funding - Attracting and managing HR - Professional management - Networking Strengthening and improvement of business models - Acquiring legitimacy - Impact measurement -> how do you build your legitimacy? - Mission drift - Scaling social impact Challenges according to the literature Challenges related to primary needs in terms of resources and direct support: 1. Funding: -> challenging due to complex business models -> challenging due to reliance on limited income sources, such as donations -> threaten sustainability 2. Attracting and Managing Human Resources: -> often depend on volunteers -> face difficulties in retaining talent -> can't match the compensation packages of other employers 3. Professional Management: -> limited managerial skills and leadership capabilities -> hinder the ability to effectively manage SEs + adapt to changes 4. Networking: -> challenging due to a lack of recognition and the complexity of Ses -> limiting access to resources and partnerships 14 Challenges related to strengthening and improvement of business models 1. Scaling Social Impact: -> struggle with scalability and adaptability of solutions -> may not fully fit the social context or be supported by local partners 2. Impact Measurement: -> challenging due to the subjective nature of indicators and reliance on qualitative methods -> hard to quantify results. 3. Acquiring Legitimacy: -> challenges in gaining recognition and resources compared to for-profit organizations, which are perceived as more focused on profitability 4. Mission Drift: -> focus on their social mission is difficult when SEs shift towards commercial activities -> impacting their long-term strategy and governance. Financial life cycle of SEs (exam!) 15 Financial challenges of SEs (exam!) Access to funding: Fragmented financial market Need to understand the process and needs of the main actors in the market Complexity of the BM (= business model): Need to understand the complexity of customers, employees, resources, income, legal structure and balance between social and economic objective Predominant focus on social impact: Idealism Paradox: financial-commercial performance = increasing social impact Challenge 1: access to funding ➔ Ses often do not have a solid financial background o Acquire internally or externally financial skills ➔ Fragmented financial markets o Variety of funding actors: individuals, corporations, government agencies, foundations, banks, investors and crowdfunding platforms o Variety of fudning logics: quid repayment or not? ➔ Financial markets with relatively low assest under management: o 443 billion EUR vs 66 trillion EUR assets of the top 400 investment funds o Impact investment < 1% of conventional investment 16 Challenge 2: complex BMS ➔ Complexity at the level of customers: customers vs. beneficiaries ➔ Complexity at the level of employees: employees vs. volunteers -> no tradition of using consultants ➔ Complexity at the level of income: recurrent sales vs. adhoc income and donations ➔ Complexity at the level of the legal structure: NGO vs. limited liability company with social mission ➔ Complexity at the level of social vs. commercial objectives -> mission drift Challenge 3: predominant focus on social impact ➔ SEs are portrayed as “idealistic” -> funding opportunities might be difficult to materialize ➔ Funding is not provided for the ideals of resolving social and environmental problems but for the ability to execute those solutions ➔ Importance of efficiency and effectiveness for marked source activities -> financial independence for SEs and using it as a mean to reach goals ➔ Social value and economic values should be balanced Pilars Stakeholders Social pillar Financial pillar pillar social goals financial goals beneficaries activities activities customers outcomes outcomes team members KPIs KPI's partners evaluate and evaluate and volunteers adapt adapt investors KPI = key performance indicator 17 Case study: goods to give: Goods to Give = NGO aimed at bridging businesses and social sectors to address poverty -> redistributes products to meet basic needs, fostering solidarity and rethinking product life cycles A broad network of support 1. Founding partners: -> provided initial support or funding -> Corelio, Puilaetco, Capital at Work, Partena, Carrefour foundation, and GBL 2. Pro bono partners: -> offering services without charge -> MCQ-lawyers, EY-accountancy, Mediahuis partners 3. Project partners: -> providing additional funding or resources for specific projects -> AG Insurance, BNP Paribas Fortis, Nationale Loterij, Fonds Venture Philanthropy 4. Product partners: -> providing products or services to support the initiative -> Colruyt Group, Yves Rocher, Mustela, P&G, Henkel, L’Oréal, Beiersdorf, Unilever, VF coporation, Reckitt Benckiser Case study: Diversicom: Diversifcom = SE focusing on integrating people with disabilities into the job market -> collaborates with companies to include them in their workforce -> funding: subsidies, consultancy services and donations Succesfull communications is centered around Identity Image Reputation 18 Identity: how do I see the organization = internal representation of a brand -> how organization or individual views themselves and wants to be perceived - DNA of brand o who are we? o what do we do? o why do we do it? - SEs: attributes not only of the social problem but ALSO of the communities in which they operate - Associated with positioning of a SE among other SE and other organizations Branding elements Messaging Values Overal culture of the organization -> IMPORTANT: should align with the brand’s image and authentic to maintain trust and credibility Image: how do others see the organization = the way the organization or individual is perceived by the public -> sum of impressions and opinions people have about you or your brand - Construct of attributes, characteristics, and values that organizations consolidate through their work and supporters o Vision, mission and tasks - Perception depends on the projected identity and through the market, society, between their competitors and environment Advertising Public relations Customer experiences Social media interactions 19 -> IMPORTANT: essential to manage the touchpoints carefully to ensure a positive and consistent image Brand = more than just a logo or name -> ecompasses the entire set of perceptions and associations that people have with a product, service, organization or individual - Emotional + psychological connection that people make with what you present Logo Color scheme Tagline (= reiterated phrase identified with an individual, group, product) Mission statement Quality of products or services -> IMPORTANT: consistent and cohesive to convey a clear message to the audience Reputation = the message that audiences receive -> reflects power, credibility, character, leadership style, performance and fulfillment of distinctive actions - Image and reputation: construct owned by the publiv, something located in the receiver within the overall communication process - Reflects recognitions of SEs identity, traits, behaviours, actions, … during crucial moments that identify the actions of the venture “brand, image, and identity are interconnected and essential components of effective communication. To build a strong and positive reputation, it’s crucial to ensure that these elements are aligned, consistent, and authentic. Succesful communication strategies involve managing these aspects carefully to convey the desired message to the audience and build trust and loyalty” 20 Key aspects of building the communication strategy for SEs (exam!) Communication pillar: - Identity: what the company stands for -> based on mission and vision -> affects image and reputation - Image: how the company is perceived by others -> reflects brand, values, attributes -> can change quickly - Reputation: how others evaluate the company’s actions -> focus on credibility and power -> built over time Operationalizing the strategy: - Communication plan o Internal audiences o External audiences - Communication plan key tasks: o Designing messages o Using narratives o Developing channels o Using appropriate materials o Engaging media o Having social media presence 21 General aspects – SE comms strategy What is done? How is it done? ➔ Good communication strategy: can lead to identifying potential funding opportunities and partners -> formulating the strategy to access such funding sources ➔ SEs need to balance all key management elements that can maintain and sustain not only their businesses but a good reputation related to their social and environmental impact ➔ Executing communication plan: lead to developing and strenghtening relevant networks and partnerships -> to secure the funding of SEs Tips improve communication strategies - Update regularly your website and printed material - Identify all your stakeholders and assess valuable funding and market opportunities - Adapt the narrative to each of the relevant stakeholders - Communicate with visuals - Define what your social mission is (why/how/what) and how you want to communicate about it - Define clear KPIs in terms of communication - Establish clear communication channels - Balanced relationship with local media - Train your team in the usage of social media “the focus of a social entrepreneurial communication strategy should be centralized on two aspects. On the one hand, an authentic story. On the other hand, a valid set of KPIs” What is crucial to convince partners to collarborate with you as a social entrepreneur? ➔ clearly communicate your mission and the social impact you're striving to achieve, ensuring alignment with their values ➔ demonstrate how the partnership can bring mutual benefits, including financial returns, visibility, or shared goals ➔ build trust through transparency, a track record of success, and a well-defined plan for impact 22 “a Social Impact Assessment is a process of research, planning, and managing social change or consequences (positive and negative, intended and unintended) arising from policies, plans, developments and projects” Social Impact Assessment 1. Theory of change 2. Social impact value chain -> both derive from vision and mission ➔ Describes intended social impact of the venture ➔ Becomes heart of the venture’s strategy ➔ Encompasses venture’s mission and values ➔ Outines short and long-term intended outcomes, the means for achieving them, and a description of what success will look like ➔ Dynamic -> may change over time Social Impact Assessment & TOC What actions will lead to the results the SE wants to achieve? Theory of change: Way of thinking about how the activities of your venture lead to the ultimate desired social outcomes Detailed theory of change analysis can be a handy tool for entrepreneur deciding on key social indicators If-then statement ➔ First step in developing social impact theory of the organization ➔ Must encompass the firms’ vision, mission, and values ➔ Must give a hint toward what social impacts will be measured 23 Theory of change: step 1 -> helps to present achievements + keep track of their evolution Helps with various indicators: Goals: clear specificatio of social and environmental goals -> specify which are short-term, intermediate and long-term -> prepare alignment Rationale: explain why these goals are important Activities: identify activities that can lead you to the achievement of the above-mentioned goals Stakeholders: identify relevant stakeholders, essential for the achievement of the above mentioned goals KPI: identify key performance indicators that help you to monitor the activities and outcomes related to the goals The three pillars of SEs theories of change Social pillar Financial pillar Stakeholders pillar Social goals Financial goals Beneficaries Activities Activities Customers Outcomes Outcomes Team members KPIs KPIs Volunteers Evaluate and adapt Evaluate and adapt Investors 24 Step 2: impact value chain - Allows the entrepreneur to think about the venture’s ultimate social outcomes and how its activities relate to them - Differentiates between outputs and outcomes Every definition of impact needs to distinguish: INPUTS -> ACTIVITIES -> OUTPUTS -> OUTCOMES What is put Primary activities Measurable results Changes to into venture? social systems Investments Procedure Revenues Economic benefits Time Provide Employees Improved lives IP Deliver Services given Social impact indicators ➔ The resources used (input) can include human, financial, and organizational resources needed so the action/program/venture can meet its goals ➔ The activities (concrete actions implemented by the action/program/venture) -> produce, provide, deliver, etc ➔ The measurable quantity of goods/services produced (output) -> direct result of the activities done ➔ The results in the direct beneficiaries (outcome) -> specific changes to the direct participants in the action/program/venture o Short-term outcomes: 1-3 years o Long-term outcomes: 4-6 years ➔ The changes generated in the indirect beneficiaries and the population (impact) are the societal changes that happen over time as a result of the action/program/venture 25 Steps of ToC/ impact measurement Early/experimental ToC Association with key players Self-developed metrics and indicators Verified reporting and metrics by others ➔ Iterative process of stakeholder engagement “any group or individual who can affect or is affect by the achievement of an organization’s purpose” “stakeholders are persons or groups that have, or claim, ownership, or interests in a corporation and its activities, past, present or future.” Primary stakeholders: without whose continuing participation the corporation cannot survive as going concern -> shareholders and investors, employees, customers, suppliers, government and proiders of infrastructure and markets) Second stakeholders: influence(d) or affect(ed) (by) the corporation -> not essential for its survival -> media, interest groups 26 Hart & Sharma (2004): Core Stakeholders= -> e.g., employees, customers -> directly involved with the firm Fringe Stakeholders: -> e.g., NGOs, competitors -> have less influence but can still impact the firm Mendelow’s Matrix (1991): Categorizes stakeholders by Power and Interest: Manage Closely: high power, high interest Keep Satisfied: high power, low interest Keep Informed: low power, high interest Monitor: low power, low interest Agle et al. (1997): Uses Power, Legitimacy, and Urgency to classify stakeholders: -> helps identify which stakeholders require immediate attention and which ones can be deprioritized, based on the combination of attributes Dormant (Power only): have potential power but lack legitimacy or urgency -> influence is limited unless activated Discretionary (Legitimacy only): have legitimate claims but no power or urgency 27  -> may be engaged at the firm’s discretion Demanding (Urgency only): require immediate attention but lack legitimacy and power -> influence is low Dominant (Power and Legitimacy): hold significant influence as they have both power and legitimacy Dependent (Legitimacy and Urgency): require advocacy -> lack power but have legitimacy and urgency Dangerous (Power and Urgency): can pose a risk if unmanaged -> have power and urgency but lack legitimacy Definitive Stakeholders (Power, Legitimacy, and Urgency): are highly influential -> should be given top priority Nonstakeholder: -> no power, legitimacy, or urgency Primary vs. secondy stakeholders Primary stakeholders: directly affected by the actions and decisions of the organization -> often have significant influence on the organization’s success -> closely involved in operations -> ex.: customers, employees, investors Secondary stakeholders: indirectly affected by the organization’s acctions and decisions -> may have less influence and involvement compared to primary stakeholders -> ex. government agencies, media, general public 28 Internal vs. external stakeholders Internal stakeholders: individuals or groups within the organization -> employees, managers, shareholders External stakeholders: individuals or groups outside the organization -> customers, suppliers, regulatory agencies, community organizations Core vs. periphery stakeholders Core stakeholders: most essential stakeholders for an organization -> often closely linked to its core activities and mission -> high level of influence and interest in organization’s success Periphery stakeholder: less direct influence -> less essential to organization’s core operations -> lower level of interest or involvement Salience model Combines attributes of stakeholders, such as: Power Legitimacy Urgency -> to determine the level of salience -> categories: Dormant Discretionary Demanding Dominant Dangerous Dependet Definitive Nonstakeholder 29 Influence-interest matrix Categorizes stakeholders based on their level of influence and their level of interest in the organization’s activities. High influence/high interest High influence/low interest Low influence/high interest Low influence/low interest Good measures What are your costs? What are the incomes? How is the social issue resolved? How does the social enterprise work Quid competitors/coopetitors? Quid benchmarking? Quid scaling social impact? Characteristics: Proving the intervention is worthwile and makes a difference -> cost with SE vs. cost without SE Showing efficiency of SEs to solve social problems with limited resources Showing unbiased manner on operations of SEs Taking away suspiciousness of drifts, greenwashing or incomprehensibly complex approaches to problems Contributes to accountability, communictions, partnerships and networking capacities 30 Building an ecosystem supporting social entrepreneurs What is an ecosystem? “habitat’ of which entrepreneurs are a part -> origins from the field of ecology Introduction Business ecosystem: companies coevolve capabilities around a new innovation -> work cooperatively and competitively to support new products, satisfy customer needs, and eventually incoporate the next round of innovations Entrepreneurship ecosystem: set of individual elements (leadership, culture, capital markets, and open minded customers) that combine in complex ways -> composed by a support domain including Non-governmental institutions Infrastructure Professional’s support o Investment bankers o Technical experts o Advisors Social entrepreneurship ecosystem: evolving composite community of varried, yet interdependent, actors across multiple levels -> collectively generates positive externalities that contribute to sustainable solutions to social problems 31 Business ecosystems The entrepreneurial dimension in ecosystems System-oriented research have often overlooked the involvement of entrepreneurship in economic development Systemic thinking behind entrepreneurial ecosystems differs from other systems in that the identification and exploitation of business opportunities are a key charachteristic Research has neglected the opportunity that such an ecosystem offers to promote sustainable societal development Domains of the entrepreneurship ecosystem 1. POLICY o Governement: ▪ Institutions (investment, support) ▪ Financial support (R&D, jump start funds) ▪ Regulatory framework incentives (tax benefits) ▪ Research institutes ▪ Venture-friendly legislation (bankruptcy, property rights, labor, contract) 32  o Leadership: ▪ Unequivocal suppport ▪ Social legitimacu ▪ Open door for advocate ▪ Entrepreneurship strategy ▪ Urgency, crisis and challenge 2. FINANCE o Financial capital: ▪ Micro loans ▪ Angel investors, friends and family ▪ Zero stage venture capital ▪ Venture capital ▪ Private equity ▪ Public capital markets ▪ Debt 3. CULTURE o Success stories: ▪ Visible successes ▪ Wealth generation for founders ▪ International reputation o Societal norms: ▪ Tolerance of risk, mistakes, failure ▪ Innovation, creativity, experimentation ▪ Social status of entrepreneur ▪ Wealth creation ▪ Ambition, drive, hunger 4. SUPPORTS o Non-government institutions: ▪ Entrepreneurship promotion in non-profits ▪ Business plan contests ▪ Conferences ▪ Entrepreneur-friendly associations 33  o Support professions: ▪ Legel ▪ Accounting ▪ Investment bankers ▪ Technical experts, advisors o Infrastructure: ▪ Telecommunications ▪ Transportation & logistics ▪ Energy ▪ Zones, incubation centers, clusters 5. HUMAN CAPITAL o Educational institutions: ▪ General degrees (professional and academic) ▪ Specific entrepreneurship training o Labor: ▪ Skilled and unskilled ▪ Serial entrepreneurs ▪ Later generation family 6. MARKETS o Networks: ▪ Entrepreneur’s networks ▪ Diaspora networks ▪ Multinational coporations o Early customers: ▪ Early adopters for proof- of- concept ▪ Expertise in productizing ▪ Reference customer ▪ First reviews ▪ Distribution channels 34 Different layers of an entrepreneurial ecosystem MICRO LAYER (Center Circle): Core of ecosystem: Business Creators and Buyers -> entrepreneurs, startups, and customers -> directly involved in creating and consuming products and services MESO LAYER (Middle Circle): Tetworks and support structures directly aiding entrepreneurs: o Support Structures: -> incubators (local, academic, scientific, corporate) -> private investor incubators o Support Networks: -> professionals like lawyers, consultants, accountants, employer unions, and notaries -> provide expertise and services o Education: -> universities, schools, and specialized programs (e.g., SATIs, PEPITE) -> offer entrepreneurial education o Entrepreneurship Networks: -> networks connecting entrepreneurs -> formal programs and peer groups o Funding: -> financial resources such as venture capital, business angels, crowdfunding platforms, and banks -> help startups access capital MACRO LAYER (Outer Circle): Broader societal and institutional influences: o Government Agencies: state institutions, policies, and regulatory bodies o European Union: broader regional policies and resources available within the EU framework o French Tech: national programs and initiatives specific to France. 35  o Territorial Collectives: local and regional government initiatives that support entrepreneurial activities Elements and outputs of the entrepreneurial ecosystem 1. Institutional Arrangements Formal institutions: regulations, policies, and legal frameworks -> influence entrepreneurial activities Culture: societal values, beliefs, and norms -> affect entrepreneurial behavior and risk-taking Networks: connections among entrepreneurs, investors, and other stakeholders -> facilitate resource exchange and collaboration 36 2. Resource Endowments Physical Infrastructure: facilities, logistics, and technology that support business operations Demand: the market needs and opportunities -> drive entrepreneurship Intermediaries: organizations like incubators, accelerators, and advisors -> support entrepreneurs Talent: skilled individuals -> capability to innovate and execute business ideas Knowledge: access to research, data, and expertise -> inform business decisions Leadership: strong and visionary entrepreneurs or business leaders -> drive the ecosystem Finance: access to capital and investment -> necessary for business development. 3. Entrepreneurial Ecosystem (P1) Interplay of institutional arrangements and resource endowments -> form the entrepreneurial ecosystem -> facilitates the conditions for entrepreneurship 4. Productive Entrepreneurship (P2) Output well-functioning entrepreneurial ecosystem = productive entrepreneurship -> characterized by successful and sustainable business ventures -> indicates positive transformation of resources and support mechanisms into real entrepreneurial activities 37 5. Feedback Loop (P3) The arrow P3: feedback loop where successful entrepreneurial ventures feed back into the ecosystem -> enhance resource endowments, improving institutions, and strengthening the overall ecosystem What are the main challenges in an ecosystem? Communicating and colaborations Fragmentation: numerous stakeholders may operate independently or with limited interaction, leading to fragmentation and isolation within the ecosystem Information assymetry: information gap can hinder decision-making and partnerships Lack of trust: effective collaboration requires trust among ecosystem participants Time: developing an entrepreneurial ecosystem take time – it’s a long term effort 2. Cultural and social factors Risk aversion: in some cultures, there is a strong aversion to risk 38  Entrepreneurial mindset: a culture that values traditional career paths and stable employment may not encourage the development of an entrepreneurial mindset Access to role models: prensence of succesful entrepreneurs and role models can inspire and motivate aspiring entrepreneurs 3. Resource availability and allocation Talent scarcity: attracting and retaining top talent is becoming more difficult Support and funding services availability: there are no supporting services and no funds Quality and quantity of entrepreneurial and innovative ideas Strategies and initiatives to overcome these challenges Networking Organize regular events: -> formal and informal -> conferences, barbecues, workshops, challenges, informal meetups -> bring together key stakeholders in entrepreneurial ecosystem Develop and maitain online platforms or communities: -> connect different key stakeholders -> share resources -> seek advice Encourage partnerships: -> between government agencies, universities and private organizations -> support entrepreneurship and innovation 39 Education and mentoring Promote entrepreneurship eduction: -> to instill an entrepreneurial mindset -> to reduce the stigma associated with failure Establish mentorship programs: -> connect experienced entrepreneurs with aspiring ones -> to provide guidance + share experiences Policies and incentives Promote policies and incentives: -> support entrepreneurship + innovation -> tax breaks, grants, subsidies Attract and maintain local, national, and international human and financial capital -> talent programs, investor incentives, etc The social entrepreneurship support ecosystem Being systematic: -> focus on the entire environment in which entrepreneurs operate Emphasize networking: among key players in the environment Thinking and active action Infrastructure: provides financial, human, physical and social capital to the context’s entrepreneurs 40 What does support mean? 1. DNA: Entrepreneurial Culture: -> focus on fostering a culture of entrepreneurship -> references to various studies highlighting its significance Policies: -> government and institutional policies -> support entrepreneurship and innovation Visibility: -> importance of visibility in the ecosystem -> public awareness and media representation 2. Fuel: Availability of Resources: -> financial resources, physical assets, and access to essential inputs -> business growth Variety of Actors: -> diversity of stakeholders such as entrepreneurs, investors, government bodies, and support organizations Human Capital: -> skills, knowledge, and expertise of the workforce within the ecosystem 3. Hardware: Research and Development: -> role of R&D in fostering innovation and business growth Infrastructure: -> physical and technological infrastructure that supports business operations 41 Creating an ecosystem Is it possible to create an ecosystem for social entrepreneurs? ➔ Are the needs of social entrepreneurs distinct enough that they require their own ecosystem? ➔ Can the same ecosystems that support entrepreneurs support social entrepreneurs? “the ecosystem is defined by the alignment of the multilateral set of partners that need to intereact in order for a focal value proposition to materialize” Design the ecosystem structure: Alignment structure Multilateral Elements of structure o Activities o Actors o Positions o Links 42 Establishment of ecosystems - Ecosystems are the result of intelligence evolution - Social enterepreneurs enable the ecosystem because of their social motivation, opportunity identification, need to access to capital and funding and their interaction with multiple stakeholders - Establishment vary from historical (genetic) and institutional and environmental (epigenetic) factors and different organizational forms (phenotypes) - Lifecycle of ecosystems: o Birth o Expansion o Leadership o Self renewal Evolution of an ecosystem The evolutionary stages of a business ecosystem Cooperative challenges Competitive challenges Birth Work with customers and Protect your ideas from others who suppliers to define new value might be working toward defining proposition around a seed similar offers. Tie up critical lead innovation customers, key suppliers, and important channels Expansion Being the new offer to a large Defeat alternative implementations market by working with suppliers of similar ideas. Ensure that your and partners to scale up supply approach is the market standard in and to achieve maximum market its class through dominating key coverage market segments Leadership Provide compelling vision for the Maintain strong bargaining power in future that encourages suppliers relation to players in the ecosystem, and customers to work together to including key customers and valued continue improving the complete suppliers offer Self-renewal Work with innovators to bring new Maintain high barriers to entry to ideas to the existing ecosystem prevent innovators from building alternative ecosystems. Maintain high customer switching costs in order to buy time to incorporate new ideas into your own products and services 43 Social capital dimensions of the university business entrepreneurial ecosystem Structural Dimension: -> focus on the network's configuration and stability. Ties: connections between individuals or entities Configuration: overall structure or pattern of these ties Stability: persistence and reliability of the network over time Cognitive Dimension: -> emphasizes shared understanding within the network Shared Goals and Language: common objectives and terminology that facilitate communication Shared Narratives: collective stories or experiences that help align members’ perceptions Relational Dimension: -> concerns the quality of interpersonal relationships Trust: belief in the reliability and integrity of other members Norms: established standards of behavior Members’ Obligations: responsibilities held by individuals towards the group Identification: sense of belonging or shared identity among members 44 What is a social entrepreneurship incubator? What should it do? Why is it different than a normal one? Incubators: - One of the most popular forms of support for SEs - Considered as tactic strategy to foster community economic development -> through nurturing the creation and growth of small for profit businesses - Services: o Space for business operations that can be expanded or reduced based on need o Shared or private business services -> reception, internet, photocopy, coffee o Business development services -> access to information, counseling, training, coaching o Assistance in finding financing o Opportunity to network among entrepreneurs operating within the incubator facility What is a social entrepreneurship accelerator? What should it do? Why is it different than a normal one? Business accelerator = incubator that attempts to speed up a start-up’s development process -> intensively fusing resources, such as venture capital -> mostly used by high technology business that require substantial early investment to support research and development What is a network for social entrepreneurs? What should it do? Why is it different than a normal one? Networks: bring like-minded people together to support one another by fostering long-term personal and professional relationships -> forum for joint creation and/or sharing ideas -> facilitating sharing of resouces -> greater voice to social entrepreneurship actions Examples: - the social entrepreneurship meetup group - impact hub - RSA fellowship social entrepreneurs network - … 45 Philanthrophy - Organizations that use venture capital model in making investments in SEs and their ventures - Also offer technical assistance, mentoring, access to their networks, expertise on boards of directors - Social return on investment (SROI): only return on investment most of social venture philanthropy are interested in 46 Social entrepreneurship: class 5 How can you describe the role of social enterprises in society? What are their contributions, functions and limitations? Social enterprises address social, environmental, or economic challenges using business strategies. Contributions: Provide solutions to societal issues (e.g., poverty, education, healthcare) Create employment and promote economic inclusion Drive innovation for sustainable development Functions: Combine profit generation with social impact Reinvest profits to support their mission Foster community development and empowerment Limitations: Financial sustainability can be challenging Limited access to funding and resources Balancing social impact and profitability can create conflicts “scaling is the process of expanding or adapting an organization’s output to better match the magnitude of the social need or problem being tackled” Why seek growth? “expansion of organizational output to meet social needs” - The purpose of scaling: grow social impact to match the magnitude of the need or problem a social venture seeks to address - High-impact social entrepreneurs and philanthropists are expected to use venture capital models that focus on maximizing social return on investment (SROI) - The emerging paradigm for non-profit, for-profit, or hybrid ventures is to strive to expand the bottom line (social impact, positive environmental impact, and/or profits) 47 Scaling strategies Relevance of social impact? academics and practitioners focus on the size, depth, and reach of social impact, which mainly refers to the assessment of how many people are helped and in what manner Growth strategies: Scaling up Franchising Types of strategies: Scaling up: increasing activities or operations to reach more people o Aim: increasing market share with innovative solutions o Focus: business model’s operational growth Franchising as a scaling strategy: o Opted when resources are limited for independent expansion o Involves anoter party replicating the franchisor’s business model and name o Subtype of scaling across, involving partnerships and network creation Scaling across: o Sharing social innovation with external partners o Establishing networks of joint ventures and affiliations o Includes less structured approaches like sharing knowledge openly Other scaling stragegies: o Scaling down: reducing activities or services to focus on fewer issues o Scaling deep: improving efficiency or quality over time (= capacity building) o Scaling out: targeting a new social problem with existing experience and networks o Diversification: expanding geographically or diversifying services offered 48  Scaling strategy Cost Control Dissemination Low Low Affiliation Moderate Moderate Branching High High Hybrid (social franchising) Moderate High 1. Dissemination: o Making services and intellectual property widely available for use o Advantages: ▪ Cost effective ▪ Quick adoption ▪ Maximizes mission accomplishment ▪ Fosters relationships with social sector players o Disadvantages: ▪ Limited control over qualitty ▪ Loss of IP rights 2. Branching: o Growth by establishing multiple offices beyond headquarters o Attractive for maximizing control over operations o Inefficient in terms of resource requirements -> need for additional facilities, staff, and management 49  3. Affiliation: o Growth through loosely connected, locally managed offices o Cost-effective due to local self-sufficiency o Provides a balance between central guidance and local autonomy 4. Social franchising o A hybrid of branchising and affiliation with a parent venture (franchisor) and affiliated ventures (franchisees) o Enables faster scaling at lower costs o Maintains control over quality and brand identity How would you categorize the recently discussed strategies in the aformentioned figure? Dissemination: Fits under scaling across: involves sharing social innovations and knowledge with external partners -> it’s about making services and IP widely available, similar to scaling across where the focus is on spreading and sharing innovations Branching: Aligns with scaling up: branching, which involves creating multiple offices or locations, is a direct way to increase activities and operations, aiming to reach more people and increase market share Affiliation: Fits under scaling across: like dissemination, affiliation involves creating a network, but with a looser connection -> it’s about establishing relationships with locally managed offices, which aligns with the concept of sharing and networking in scaling across Social francishing: can be seen as part of both scaling up and scaling across: involves replicating the business model across different locations (scaling up) and creating a network of partnerships (scaling across) -> social franchising, being a hybrid of branching and affiliation, encompasses elements of increasing operational reach and establishing collaborative networks 50 Challenges Inertia-based resistance: staff and board of the social venture do not see the urgency for growth Threat-based resistance: internal culture feels growth would detract from its mission Venture’s board of directions does not support entrepreneu’s vision for growth Stakeholder community does not support the entrepreneur’s impetus for change The venture cannot demonstrate measurable success in achieving its mission The venture lacks the necessary human resources and skill sets to support growth Lack of strong and visionary sustainability leaders, or champions, driving the cultural and structural changes The cause and effect between social and economic value creation activities and (intended) social and economic results are ambiguous and seem disconnected There is a laco of a system’s perspective or theoretical outlooks on societal changes A lack of systemic consideration of a wide set of stakeholders who have a stake and responsibility in the value creation system 51 Challenges of social entrepreneurs Individual level Divergent goals and logics Mission drift Identity tensions Long decision-making process Variety of stakeholder expectations Organizational level Human resources (attraction and retention) Competences and skillsets Financial resources Legal form Performance measures Organizational, legitimacy, moral, and structural pressur Implementing negotiation and herding spaces Institutional level Sociocultural and political barriers Institutional void Political and isomorphic pressures Which are the growth capacities and limitations for social entrepreneurial business models? Growth Capacities of Social Entrepreneurial Business Models: Scalability: ability to expand impact through innovative solutions Sustainability: profits are reinvested to ensure long-term mission fulfillment Adaptability: flexibility to address changing social and market needs Partnerships: collaboration with governments, NGOs, and private sectors boosts growth Limitations: Funding Constraints: difficulty accessing capital and investments Profit-Impact Balance: tension between generating revenue and maintaining social goals Resource Limitations: scarcity of skilled labor, infrastructure, or technology Market Competition: competing with traditional businesses for customers and resources 52 Managing social enterprises’ objectives and growth 1. SEs must manage conflicts between social and commerical objectives in social enterprises -> requires attention at individual and team levels of analysis 2. Four bridging mechanisms lead to two iterative social enterprise management processes of alignment and reflection: o Fit of values o Agile structure o Partnerships o Communications 3. Mechanisms & processes o Communications: support fit of values by aligning individual focus on shared goals -> essential in recruitment and discussion efforts for aligning social and commercial objectives o Fit of values: relevant for both internal and external stakeholders -> partnerships based on aligned values offer mutually beneficial relationships and resource support o Partnerships: enhance SEs communications reach and credibility -> help maintain balance between social and commercial objectives -> reinforce SEs values and objectives tangibly o Role of agile teams: facilitate discussions on objectives, procedures and responsibilities -> reduced power distances enhance collaboration and focus 53 Need for sustainable societies Goal: climate-neutral Europe by 2050 under the European Green Deal Different innovation strategies for efficient resource use, waste reduction, and ecological as well as social sustainability Need for transformation from traditional linear models to systematic innovations Role of collaborative efforts between businesses, governments, and civil society Sustainable partnerships Partnership: process involving autonomous, collaborative, functional, invisible rules and norms, to share information and take flexible actions Sustainable partners: focus on addressing social and environmental problems long-term goal Involve all relevant stakeholders for a successful social transformation Sustainable partnerships for circular economies 1. “Vision” in SPs o Shared mindset or approach is essential for long-term goals o Stewardship philosophy: emphasizes social and empathetic motivations, fostering collectivism and reliability in stakeholder relationships o Motivational drivers: encourages stakeholders to transcend their organizational boundaries, focusing on ethical and business imperatives for sustainability o Circular principles: CO and scaling strategies -> aimed at macimizing resource efficiency 54 2. Role of stakeholders in SPs o Integration of various helices to form effective SPs o Role determination: identifying and defining the unique role of each stakeholder o Partner activities: collaboration and contributino specifics tailored to each stakeholder’s strengths and capabilities o Partner capacities: harnessing the collective resources, expertise, and potential of all partners 3. Process for developing SPs o Intricately linked with 3 key mechanisms o Procedural phases/stages: systematic steps like initiation, implementation, and stabilization o Management instruments: tools and technologies for performance tracking, decision-making facilitation, and effective administration of partnerships o Governance methods: strategies for inclusive and efficient governance, ensuring stakeholder engagement, resource allocation, and innovative solution development in SPs 55 Fostering principles 1. Trust: fundamental for reliable and positive relationships among stakeholders -> encourages openness and collaboration -> foundation of mutual respect and confidence 2. Recognition of contributions: acknowledging the efforts and inputs of all involved parties -> creates a sense of appreciation and equality -> important in managing power dynamics among diverse stakeholders 3. Complementarity: understanding and leveraging the unique value and synergies between different stakeholders -> focus on strenghts and contributions of each partner -> collaborative > competitive relationships 4. Transparency: open and clear communication of relevant information -> builds trust and prevents misunderstandings 5. Equality: treating all stakeholders fairly and without bias -> promotes justice and balance 6. Inclusivity: ensuring that all relevant stakeholders are involved and feel represented in decision- making processes -> creates diverse and comprehensive perspective 7. Pragmatism: adopting a practical and realistic approach to problem-solving and decision-making -> focus on achievable goals and tangible results 8. Flexibility: ability to adapt to changing circumstances and needs -> essential for navigating the dynamic environments and challenges 9. Collegiality and system thinking: promoting cooperative and supportive atmosphere -> emphasizes understanding the bigger picture and interconnectedness of actions 56 Key principles for effective partnerships 1. Fostering principles and culture: build trust, transparency, and collaboration while ensuring open communication, stakeholder involvement, and progress monitoring 2. Collective Vision: develop a shared vision, values, and goals with scaling principles for sustainable partnerships 3. Stakeholder Expectations: align roles, contributions, and create clear policy frameworks 4. Ecosystem Constellation: define flexible roles, responsibilities, and link them to resources for support 5. Partnership Oversight: use governance methods, collaborative processes, and tools (e.g., ICT) for efficient management 6. Scalability and Replicability: focus on expanding and adapting successful models 57 Ecosystems in support social enterprises ➔ Issues of complex and interconnected nature -> require addressing various rout causes such as o Education o Employment o Healthcare o Systematic inequalities “we have to creatively rethink the rationale behind how companies create, deliver and capture value. We have to ask new questions, develop new solutions and find new ways to do business” Triple bottom line 1. People: social responsibility, focusing on the well-being of individuals and communities 2. Planet: environmental protection to ensure ecological sustainability 3. Finance: economic prosperity to support financial growth and stability The overlap of these three areas represents the Triple Bottom Line, where social, environmental, and economic goals align for sustainable development. Social entrepreneurship = the process of identifying, evaluating and exploiting opportunities to create social value by using innovative approaches to solve social problems 58 Social enterprises: a sustainable type business model Purposeful mission: prioritizing social or environmental impact alongside financial gain, integrating their mission into their business model Innovation and adaptability: employing innovative approaches to address societal challenges Community engagement: emerging from the communities they serve, leading to a deep understanding of local needs and fostering community involvement Long-term sustainability: sustainable practices, aiming for long-term positive impact rather than short-term gains Value creation: balancing financial success with societal or environmental benefits, they create holistic value by considering diverse stakeholder interests Social enterprises and sustainability - Resource recovery and recycling: social enterprises often engage in recycling programs, developing innovative methods to recover and recycle materials, reducing waste and promoting the reuse of resources -> ex. PlasticWhale - Product lifecyle extension: initiatives focus on repairing, refurbishing, and remanufacturing products, extending their lifespan and reducing the need for new resources -> ex. Fairphone - Sharing and collaborative consumption: social enterprises create platforms and networks that facilitate the sharing of resources, encouraging collaborative consumption models to minimize individual ownership and waste -> ex. peerby - Sustainable supply chains: social enterprises work towards establishing ethical and sustainable supply chains, emphasizing transparency, fair trade, and environmentally friendly practices -> ex. Tony’s chocolonely 59 SE’s main challenges identified Primary needs in terms of resources and direct support: - Funding - Attracting and managing human resources - Professional management - Networking Strengthening and improvement of business models: - Scaling social impact - Impact measurement - Acquiring legitimacy - Mission drift Definition of EE in the literature 1. Leadership roles: ecosystem leaders align investments and guide shared visions 2. Sustainability: focus on sustainable development and ventures 3. Interconnected actors: includes entrepreneurs, start-ups, supporting organizations, and communities 4. Support components: Professional support (e.g., investment bankers, technical experts, advisors) Supporting organizations (e.g., incubators, accelerators, banks, co-working spaces, mentoring programs) 5. Systemic conditions: networks of leadership, finance, talent, knowledge, and support services 6. Geographic and regional focus: limited regions that support start-ups and existing businesses 7. Social, political, economic, and cultural elements: foster development and growth of start-ups 8. Risk support: encouragement for high-risk ventures through funding and assistance 9. Public and private support: includes funding agencies, business incubators, research organizations, and consortiums 10. Collaborative environment: interaction between various elements determines ecosystem success 60 Elements of ecosystems (Adner, 2017) Main elements of support in the ecosystem for social enterprises Critical & strategic thinking! 61 SEs and entrepreneurial ecosystems for a greater social impact Actors and Positions: various entities like governments, incubators, industry, universities, and support organizations interact with SEs Links: these actors provide financial and non-financial resources, as well as knowledge and information Activities: SEs benefit from infrastructure, mentoring, networks, funding, education, and professional services Outcome: this interaction and support lead to entrepreneurial growth and increased social impact 62 Support function within the ecosystem for social enterprises What support do you find in an ecosystem for social enterprises? ➔ Research and development Universities as central actors in the ecosystems for SEs “universities are great allies for the development of SEs initiatives” 63 Corporate social innovation compass Direct Engagement: o Mentoring o Social procurement o Resource and communications support o Product and distribution partnerships Ecosystem Support: o Policy and advocacy o Network growth o Verification and certification Business Integration: o Supply-chain policies o Workforce and human capital o Business strategy and incentive mechanisms 64