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Some Models of Social Entrepreneurship

Some Models of Social Entrepreneurship. Roger Spear Chair Co-ops Research Unit & ICA RC 6yrs Founder member of EMES network Joint Coordinator of Third System in Europe Project EMES Network Projects and Book See www.emes.net Social entrepreneurship projects

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Some Models of Social Entrepreneurship

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  1. Some Models of Social Entrepreneurship • Roger Spear • Chair Co-ops Research Unit & ICA RC 6yrs • Founder member of EMES network • Joint Coordinator of Third System in Europe Project • EMES Network Projects and Book • See www.emes.net • Social entrepreneurship projects • EMES: Work Integration - PERSE Project • EMES: Childcare project

  2. Outline of Presentation • Entrepreneurship fields of study • New fields of entrepreneurship • Social enterprise/entrepreneurship • USA and Europe • EMES European, and UK perspectives • Some models of entrepreneurship from social enterprise and social economy • Institutional context (entrepreneurship)

  3. Entrepreneurship: fields of study • Entrepreneurship Theory • Methodological Issues • Entrepreneurial Opportunity Recognition + Information Search • Finance for Entrepreneurs (Venture Capital) • Entrepreneurial Careers • Types of Entrepreneurs • Environments for Venture Creation and Development • Venture Growth and Performance • Organization Closure (survival/failure) • Internationalization • Corporate Venturing • Family Firms • Technology-Based Firms • Franchising ref. Advances in Entrepreneurship 2000 Westhead & Wright

  4. New fields of entrepreneurship • The political entrepreneur • Schneider and Teske, Am.Pol.Sci.Rev 1992) • The moral entrepreneur • Hunter and Fessenden, 1994 • The civic entrepreneur • e.g. U Penn course • The social entrepreneur • Numerous refs.

  5. Differing perspectives on social entrepreneurship Social entrepreneurship as creating social enterprise • “USA perspective” now developing in many parts of Europe • “European perspective” linked to social economy traditions

  6. Social enterprise “US perspective” • Social purposes through commercial activity • Venture philanthropy • Third world NGOs • Embracing business practices • Unconcerned about business form

  7. Opportunity Context Deal People PCDO Framework (Austin et al)

  8. “US perspective” • People • internal/external stakeholders: skills/expertise • Context • diverse markets (incl philanthropic) • Deals • Resources mobilising, legitimacy, rights • Opportunities • opportunity structures for socio-econ returns • Ref. Austin, Stevenson, Wei-skillern, 2003. Informed by conventional entrep approaches

  9. US Social Entrepreneurship • Social entrepreneurship creates innovative solutions to immediate social problems and mobilizes the ideas, capacities, resources, and social arrangements required for sustainable social transformations. • Social entrepreneurship focuses on solutions that are not only effective but also sustainable, and ideally, replicable in a variety of contexts around the world. • Social entrepreneurs share characteristics and techniques with traditional business entrepreneurs, such as utilizing time-tested business theories and practices, and their focus on innovation. • However their work and impact spans across the private, non-profit and governmental sectors. (Harvard University Website)

  10. The concept of social enterprise as a bridge between traditional approaches ? Non-profit organisations Co-operatives Advocacy Oriented NPO's Production Oriented NPO's NPO's transformed into social enterprises

  11. => social enterprise is both: • Social enterprises are new organisations • And existing organisations refashioned by new dynamics INSIDE THE THIRD SECTOR

  12. The term social enterprise • Different definitions - SEL, DTI, USA • EMES – third sector organisations: • with enterprise characteristics • (trading in the market or contracting, employing people – 25%/50% income) • But with social goals • (participation, user involvement, community benefit).

  13. Social enterprises in the UK • 15,000 social enterprises in the UK. • Total turnover £18bn • Workforce of 775,000 people including • 300,000 volunteers. • Ref. Small Business Service Survey 2005

  14. What is social entrepreneurship in this European perspective? What models of entrepreneurship can we find leading to social enterprises? • Individual vs collective dimensions? • Institutions role? • Civil society actions (advocacy vs enterprise: opportunity structures have changed – but elements of both?) • Social movements as source of new social enterprise? • NGOs (sponsoring entrepreneurship - contradictions? Smothering indigenous civil action?) • Political dimensions: e.g. Worker buyouts “The Take”

  15. [Theories of emergence of social economy] • RESPONSE TO MARKET FAILURES • RESPONSE TO STATE CRISES (e.g. Multi-ethnic inner cities, social exclusion) • EXCESSIVE MARKET POWER, ASYMMETRIC INFORMATION AND OPPORTUNISTIC BEHAVIOUR • TRUST THEORIES (RELATIONAL CONTRACTS), LOW TRANSACTION COSTS • TERRITORIAL RELATIONS, SOCIAL CAPITAL, COMMUNITY SOLIDARITY AND CIVIL SOCIETY • SOCIAL ORIGINS THEORY (good/services + political/social coord) • HISTORICAL DYNAMIC APPROACH

  16. Models of social entrepreneurship • 2 studies • Collective dimensions • Religious dimension • Civic action & social movement • Institutional perspective

  17. Initial ideas on social entrepreneurship • Entrepreneurship problem? Niche growth • Institutions as focus of entrepreneurship • Mondragon, CDAs • Institutional configurations compensate for entrepreneurial deficiencies • Collective dimensions underplayed

  18. a study of 6 co-operative organisations • FT - small co-op merger • VS - asian video services • CS -EO buyout from public sector • TR south american translation services • LS - EO buyout public leisure services • CC - closure LA childcare services

  19. Findings of study • entrepreneurship not “heroic individualistic” • but collectivist: joint, leader + supporters, or team based; different model for social economy? • circles of entrepreneurial activity, wider group of external stakeholders (sometimes distributed across public/private boundaries); • in wider circle - social capital utilised, (subsequently reciprocated) • rationale for institutional choice: mediated through professionals, advisers, or support organisations; • (transitional dimension in all cases: involuntary ones from public to private)

  20. Social Entrepreneurship: 17 case studies • EMES Project : WISE • 5 countries: Belgium, Denmark, Germany, Italy, UK • three models of entrepreneurship predominated: • organisational entrepreneurship in 9 cases • organisations leading/sponsoring; incl partnership • citizens entrepreneurship in 6 cases • Groups of citizens (incl disadvantaged) • joint entrepreneurs in 2 cases • (individual-led merger, 3 managers)

  21. Institutional context • 3 types of institutional contexts that shape entrepreneurship: • New legal forms within structured public frameworks (Italy social co-ops) • Self/labelling forms and networks - isomorphism • Ad hoc constructed contexts (with new types of social enterprise) • Different levels of recognition, identity, public policy frameworks, support structures, professional advisers • Institutionalisation and evolution: German case

  22. Religious dimension? • Mondragon: Father Arizmendiarrieta • Irish CUs: Church support • Bromley by Bow • Godfathers/midwives?

  23. Entrepreneurship: social movement perspective • 19th C. Co-ops in Europe • Co-ops/social economy elsewhere • 70s WCs in UK • Irish credit unions • Carribean credit unions (from state sponsored nationalist populist movements to social/co-op movements)

  24. Institutional context: informal/formal networks • Civic action and social movements • Institutions: more formal networks • CDAs and LKOs (mainstreaming: issue of specialist advice) • Mondragon bank CLP • TU led EO bus companies in 80/90s • Inst role of state: contracts/development • Entrepreneurship at institutional level

  25. Summary: themes of social entrepreneurship • Collective dimensions • Religion • Institutions • Social movement • formal networks • legislation/policy • inst. entrepreneurship

  26. Social entrepreneurship vs entrepreneurship? • Is entrepreneurship more collective/organisational? (cf Cisco, Fairchild, Intel) • Religious dimension? (post-weberian) • Movement perspective? (ethical/ecological markets)

  27. Questions?

  28. Dimensions of Social Enterprise • The EMES criteria are: • Four factors have been applied to define the economic and entrepreneurial nature of the initiatives. • Five factors have been selected for the social dimensions of the initiatives:

  29. Dimensions of Social Enterprise • Four factors have been applied to define the economic and entrepreneurial nature of the initiatives. • a) A continuous activity producing goods and/or selling services • b) A high degree of autonomy (vs dependency) • c) A significant level of economic risk • d) A minimum amount of paid work

  30. Dimensions of Social Enterprise • Five indicators for the social dimensions of the initiatives: • i) An initiative launched by a group of citizens • ii) A decision-making power not based on capital ownership • iii) A participatory nature, which involves the persons affected by the activity • iv) Limited profit distribution • v) An explicit aim to benefit the community

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