Why Social Entrepreneurship Matters Arthur C' Brooks Louis A' Bantle Professor of Business and Gover

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Why Social Entrepreneurship Matters Arthur C.
BrooksLouis A. Bantle Professor of Business and
GovernmentMaxwell School/Whitman School,
Syracuse University
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An Entrepreneurial Revolution

• 1 million new ventures a year in U.S.
• 85 of the new jobs in small and start-up firms
• Product/service introduction rate higher than
  ever before
• Rate of wealth creation exploding
• And its a global revolution

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What Is Entrepreneurship?

• Process of creating value by bringing together a
  unique package of resources to exploit an
  opportunity

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The New BuzzwordSocial Entrepreneurship

• So, is entrepreneurship basically
  entrepreneurship regardless of the context?
• Or is social entrepreneurship something truly
  different?

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What Is Social Entrepreneurship?

• Nonprofits making money

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What Is Social Entrepreneurship?

• Nonprofits making money
• For-profits doing things to show they are not evil

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What Is Social Entrepreneurship?

• Nonprofits making money
• For-profits doing things to show they are not
  evil
• Process of creating value by bringing together a
  unique package of resources to exploit an
  opportunity, in pursuit of high social returns

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• The only big difference between commercial and
  social entrepreneurship
• Denomination of the returns
• Social and commercial entrepreneurship have most
  of the same characteristics

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The Process of Social Entrepreneurship

• Find an opportunity
• Develop a business concept
• Figure out what success means and how to measure
  it
• Acquire the right resources
• Launch and grow
• Attain goals

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Social Entrepreneurs Look Like Any Other Kind
of Entrepreneur

• Social concern, but also
• Innovativeness
• Achievement orientation
• Independence
• Sense of control over destiny
• Low aversion to risk
• Tolerance for ambiguity

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Social Entrepreneurs Also Face Risk and Failure
Ref. Cordes et al
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The Main Difference The Measurement Problem

• What is profit?
• How do we count it?
• What is social return o n investment for
  venture philanthropists?
• Can we compare investments?

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• So why does social entrepreneurship matter?

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A Country of Social Entrepreneurs

• Immigrant stock with a high entrepreneurial
  orientation
• Faith in own abilities
• Vast ungovernable frontier
• Citizens willing to meet their own social
  needs, without an excessive reliance on the state

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The Result Nonprofit Nation

• 1.5m registered nonprofits
• Something like 9m grassroots organizations
• 30 nonprofit links per citizen
• Lots of charitable giving

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A Giving Nation Is a Prosperous Nation

• High personal ROI on giving
• Happiness
• Health

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Giving and Economic Growth
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Social Entrepreneurship Is a National Priority

• Continued prosperity requires private solutions
  to social problems and unmet needs
• Social ventures
• Private support for these venture

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• Social entrepreneurship expresses American
  identity and keeps us richjust as commercial
  entrepreneurship does