The Philosophy of Social Entrepreneurship
The ability to recognize a need for change and to instigate it is at the heart of social entrepreneurship, but how does a potential entrepreneur succeed when faced with the often conflicting worlds of social activism and wealth creation? The term ‘entrepreneurship’ originating from the original French economics term meaning to ‘undertake’ has evolved into a word insinuating economy-driven practices, using the market to estimate value. Social entrepreneurship, in contrast, places value on the social mission and while the market must be utilized to succeed, social entrepreneurs must remain mission-driven and carefully choose the market in which they operate.
Essentially social entrepreneurs use the language and practices of business in order to solve social issues. But is it always necessary to utilize business techniques (and engage in the market) in order to succeed in the social enterprise? Matthew Bishop from The Economist argues yes, referring to the high profile social entrepreneurs as “philanthrocapitalists”. Examples such as Bill Gates, Michael Bloomberg and even Richard Branson are pertinent as those applying the language of business to the social sector.
The case of unlikely ‘rebel’ Virgin billionaire Richard Branson exemplifies philanthropy with a strong business model at its heart. With the aim to ‘build better working models’ for social entrepreneurship, Virgin established its own not-for-profit foundation, Virgin Unite. Using the business model he was familiar with, Branson’s success is based on creating ‘a more benevolent’ use for capitalism.
But can the business-model work on a micro level? Utilising the technologies of economics and business for non-profit is a sector often not explored by social entrepreneurs on a smaller scale. Often however, transporting the simplest ideas from business management can often be successful in improving the potential of social entrepreneurship. A simple and related example is the utilization of a website to make it easier for the public to donate to a cause.
On a local level, GOCampaign is an example of a platform that is adapted from traditional business CRM tools (Customer Relationship Management) and can be utilized to assist not-for-profit and volunteer organisations. Simply making management easier for institutions, including communication with volunteer staff, receiving and making donations, and tracking potential areas for improvement are only some of the ways that a traditional business oriented CRM can be adapted through GOCampaign.
Co-founder of GOCampaign, Chris Eigeland, stands as an example of a social entrepreneur interested in investigating the potential of adapting the business model. After developing a volunteer program for Griffith University students, and working on the Schoolbag Project (a not-for-profit effort to provide school supplies to students in Haiti), Chris understands the difficulties faced when directing volunteer efforts.
After looking at the rewards for adapting business-models for social entrepreneurship, it’s still clear that there is presently a divide between a more economics based approach or a social-driven one. However as the language and philosophies of social entrepreneurship evolve, there is the possibility for synthesis between the two.
