Social Entrepreneurship and Social Business

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1 Christine K. Volkmann Kim Oliver Tokarski Kati Ernst (Eds.) Social Entrepreneurship and Social Business An Introduction and Discussion with Case Studies fya Springer Gable r

2 Editors' Preface V Part I: The Field. 1 1 Background, Characteristics and Context of Social Entrepreneurship Introduction The Role of Social Entrepreneurship in Societies, Economies and Politics The Story of Social Entrepreneurship in Academia Concepts and Typologies of Social Entrepreneurship Social Entrepreneurship and Social Entrepreneur Social Enterprise Case Study Further Reading Bibliography 27 2 Social Entrepreneurship: Definitions, Drivers and Challenges Introduction Social Entrepreneurship Defined What Social Entrepreneurship is Not Not a Discrete Sector Not a Synonym for Social Business Not a New Form of Corporate.Social Responsibility Not the Only Model of Social Innovation The Drivers of Social Entrepreneurship The Size and Scope of the Field of Social Entrepreneurship Conclusion and Future Research Exercise: Using Case Studies to Discuss Definitional Issues Further Reading Bibliography 45 Part II: The People 49 3 Social Entrepreneurs and their Personality Introduction ' Personality in Entrepreneurship Studies Elements of the Social Entrepreneurial Personality Entrepreneurial Personality Prosocial Personality The Social Entrepreneurial Personality Case Study Further Reading Bibliography 63

3 VIII Table of Contents 4 Human Resource Management and Volunteer Motivation Introduction Personnel Work in Social Enterprises The Person Who Volunteers Motivation of Volunteers Volunteer to Serve: The Altruism Debate." Theories of Altruism Motives of Altruism Volunteer to Meet the Own Needs: The Egoism Debate Egoism Theories Motives of Egoism Implications for Volunteer Management Case Study Further Reading Bibliography 81 5 Collaborations and Partnerships Introduction Reasons for Crafting Collaborations Different Collaboration Partners Collaborating with the Private Sector Collaborating with the Public Sector Collaborating with the Civil Sector Designing a Collaboration Different Dimensions of Collaborative Value Chain Integration Specific Types of Collaborations Potential Risks and Challenges Guidelines to Establish a Collaboration Preparation Phase Planning Phase Developing Phase Renewing Phase Case Study ' Further Reading ' Bibliography 100

4 IX Part III: The Business Business Models in Social Entrepreneurship Introduction Opportunities for Social Entrepreneurs The Nature of Social Entrepreneurial Opportunities Opportunity Recognition in Social Entrepreneurship Examples: How Social Entrepreneurs Translate Problems into Opportunities Distinct Features of Business Models for Social Enterprises Design Principles of Social Entrepreneurship Business Models Addressing the Root Cause of a Societal Problem Empowerment of Beneficiaries Co-Creation Price-Differentiation and Cross-Subsidization Replication and Scaling-Up Case Study Further Reading Bibliography Selling Good: Tfie Big Picture of Marketing for Social Enterprises A Introduction Why is Marketing Important for Social Enterprises? Peculiarities Concerning Marketing for Social Enterprises Elaborating a Marketing Conception The Elements of a Marketing Conception - Basic Framework Market Analysis Marketing Coals Competitive Strategy Measures - Planning & Implementation Procurement- Fundraising Sales Marketing to Beneficiaries Controlling Conclusion Case Study Further Reading Bibliography 155

5 8 Financing of Social Entrepreneurship Introduction Financing Instruments Donations Equity Capital Debt Capital Mezzanine Capital Hybrid Capital Financing Institutions Value Banks Social Investment Advisors Social Stock Exchanges Venture Philanthropy Funds Social Investment Funds Funding Consultancies Case Study Further Reading Bibliography Performance Measurement and Social Entrepreneurship Introduction Why Accountability in Social Entrepreneurship is Crucial Impact Measurement Measuring Outputs and Outcomes Approaches to Measuring Social Impact Data Captured Use of Data Application Techniques Involved Issues in Measuring the Performance of Social Enterprises Case Study Further Reading Bibliography 189

6 XI 70 Strategies for Scaling in Social Entrepreneurship Introduction Theory on Scaling Prerequisites Scaling Strategies ' Dissemination Affiliation Social Franchising Branching Choosing the Appropriate Scaling Strategy Scalability from the Perspective of Investors Implications of Scaling: Barriers and Solutions Financing Internal Financing External Financing Human Resources Founder Level Staff Level Quality Control and Management Difficulties Concerning Quality Management Approaches to Ensure Quality Outlook Case Study Further Reading Bibliography 208 Part IV: The Market Social Entrepreneurship in the Market System Introduction The Function of Social Entrepreneurship in the Market System The Socio-Institutional Context of Social Entrepreneurship The Legitimacy of Social Enterprises The Scope for Social Entrepreneurship in the Market Economy Case Study Further Reading Bibliography 232

7 XII Table of Contents 72 The Impact of Social Entrepreneurship on Societies Introduction A Societal Perspective on Impact Static Impact and Social Entrepreneurship Static Impact of Charitable NGOsand Aid vs. Social Entrepreneurship Static Impact of For-Profit Companies vs. Social Entrepreneurship Static Impact of Government Provision vs. Social Entrepreneurship Social Entrepreneurship as a Second-Best Solution in Terms of Static Impact Dynamic Impact and Social Entrepreneurship Dynamic Impact of Charitable NGOs and Aid vs. Social Entrepreneurship Dynamic Impact of For-Profit Companies vs. Social Entrepreneurship Dynamic Impact of Government Provision vs. Social Entrepreneurship Conclusion Case Study Further Reading Bibliography Critical Reflections on Social Entrepreneurship Introduction Problematising Social Entrepreneurship: Typology of Critical Endeavours Myth Busting: Testing Popular Ideas and their Assumptions Critique of Power Effects: Denormalising Discourses, Ideologies and Symbols Normative Critique: Marking Moral Foundations Critique of Transgression: Resisting and Re-appropriating Prescribed Routes Interventionist Critique: Opening More Radical Trajectories Introduction to Critical Reflection Further Reading Bibliography 273 The Authors 277 Index 283

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