The Nature of Entrepreneurship
Missouri Southern State University
The two keys to a sustainable social enterprise are the economic factors and the enabling technology. Economic factors are key to the social enterprise because when a social entrepreneur has the economic factors align with their mission it can be huge contribution to it’s success. Enabling technology provide many benefits to the social enterprise such as lowering cost or by creating innovative ways to complete thing that could not have been completed before. Some successful SABE have used the blended approach, which has use both the economic factors and enabling technology as a key factor to ...view middle of the document...
The text described the personality and traits of an entrepreneur as internal locus of control, high energy level, self-confident, tolerance for ambiguity, self-reliance and desire for independence, high need for achievement, flexibility, passion and action orientation (Schemerhorn & Bacharach, (2015). All of these personalities and characteristics are also key to the social entrepreneur, but social entrepreneurs can tend to be very passionate and action orientated. Schemerhorn and Bachrach (2015) describe passion and orientation as “entrepreneurs try to act ahead of problems; they try to get things done and not waste valuable time” (pg. 143). We can link this characteristic to the social entrepreneurship, because according to Schemerhorn and Bacharach (2015) they “take the risk and create social enterprises with the mission to help make lives better” (pg. 145).
Martin, R., & Osberg, S. (2015) states :
Social entrepreneurship has emerged over the past several decades as a way to identify and bring about potentially transformative societal change. A hybrid of government intervention and our business entrepreneurship, social ventures can address problems that are too narrow in scope to spark legislative activism or to attract private capital. (pg. 88)
This unique form of entrepreneurship dedicates their efforts to creating social enterprises with the mission to address social problems in the world. They are similar to all other entrepreneurship forms as they face risks with creating their social enterprise. Two ways in which a social entrepreneur operates a sustainable social enterprise are the using of economic factors and enabling technology.
Social entrepreneurs use economic actors to create sustainable financial models that can permanently shift the social and economic equilibrium for their targeted beneficiaries. An example of an economic factor can come in the form of customers power. Martin, R., and Osberg, S. (2015) gave the example of India’s hand-woven-carpet industry as a prime example of this dynamic, in this case children were sold to business owners who forced them to for long hours under brutal conditions (pg.89). Children activist Kailash Satyarthi saw the social issue and began a career in activism. He was successful in his raids, but he realized that his effort only freed a few number of children that were being exploited. He did not solve the pressing problem because more children would then come in to replace the ones that had been freed. Martin, R., & Osberg, S. stated “what made the difference was to enlighten consumers to refuse to buy carpet that were made by slave labor” (pg. 89). Martin, R., and Osberg, S. (2015) stated that this idea came to surface when an elderly woman discarded her rug after she found out it was made from child labor, Satyarhi realized that this lady could represent others who could be educated to shun products. The authors used this case to illustrate how customer power can...