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Social Entrepreneurship And Strategic Management Essay

Social entrepreneurship is a relatively new term that refers to the application of sound business practices and effective strategic management to bring about “potentially transformative societal change,” (Osberg & Martin, 2015, p. 1). One of the ways social enterprises differ from standard nonprofits is that they tend to focus on niche issues, capitalize on the use of crowdfunding and social media, and “address problems that are too narrow in scope to spark legislative activism or to attract private capital,” (Osberg & Martin, 2015, p. 1). However, social enterprises also differ from traditional nonprofits in their strategic management principles: they not only have a social mission guiding their business and investment strategy but also aim to remain financially viable (Stevens, Moray & Brunel, 2014). Obviously, though, social entrepreneurship differs strikingly from typical strategic management because of the overarching importance of the social mission itself.

Social entrepreneurship shares some features in common with social innovation, but the two are also quite different from one another. Social innovation is a broader term that encompasses a wide range of activities ultimately dedicated to solving important social, environmental, or political problems. While I strongly support both social entrepreneurship and social innovation, the former offers greater focus and long-term pathways to success. Social innovation can also be built into the overall business strategies of social entrepreneurship. The good thing about social entrepreneurship is that the leader of the start-up can hand off the legacy to others in the organization, or expand the enterprise.

This week’s learning resources have broadened and changed my perspective on social entrepreneurship. I have learned that social entrepreneurship is not a fuzzy concept, but a concrete one involving sensible and evidence-based business strategies. Similarly, I have seen the ways social entrepreneurship is actually necessary, to change the tenor of the business community, promote ethics and social justice as normative behaviors, and to transform the ways all businesses operate.

References

Osberg, S.R. & Martin, R.L. (2015). Two keys to sustainable social enterprise. HBR. May 2015. Retrieved online: https://hbr.org/2015/05/two-keys-to-sustainable-social-enterprise

Stevens, R., Moray, N. & Bruneel, J. (2014). The social and economic mission of social enterprises. Entrepreneurship Theory and Practice 39(5): 1051-1082.

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