Social Entrepreneurship: The Art

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Social EntrepreneurshipThe Art Science of
Business Developmentfor the Public Good
Craigslist Foundation Nonprofit Boot
Camp August 16, 2008

• Dr. David A. Jordan
• Adjunct Professor and Social Entrepreneur-in-Resid
  ence
• Clark University
• President/CEO
• Seven Hills Foundation

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Social EntrepreneurshipThe Art Science of
Business Development for the Public Good

• A thirty minute gorilla commentary on Social
  Entrepreneurship
• From Bake Sales to Social Entrepreneurship A
  10 Year Retrospective on the Seven Hills
  Foundation

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• business entrepreneurship

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• The concept of entrepreneurship has evolved
  over time and is often used to mean the starting
  of a for-profit businessa very limiting
  definition.
• Many business scholars studying the phenomenon of
  entrepreneurship now combine notion of
  innovation, catalyzing change, seizing
  opportunity, and demonstrating resourcefulness
  into the definition.

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• Entrepreneurs have been ascribed to have a
  particular psychological makeup, or mindset,
  exhibiting such traits as
• Single-Mindedness
• Drive
• Ambition
• Creativity
• Problem Solving Skills
• Practical
• Goal-Oriented
• What other traits, attributes, or
  characteristics would you ascribe?

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• Entrepreneurship is a creative process that
  pursues an opportunity to produce something new.
  Replicating an existing organization, activity,
  or process is an important managerial activity,
  but unless it brings on important new dimension
  or element, it is not very entrepreneurial.
  (James Austin in Mair, et. al., 2006, p. 22)

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• Susan Davis of the Ashoka Foundation asserts that
  What is traditionally considered business
  entrepreneurship is not bound by rigid concepts
  nor plagued by homogeneity. Entrepreneurs are
  diverse, found in every culture, class, race,
  ethnicity, gender, sexual orientation, physical
  ability and age.
• But how do we define the construct of
  entrepreneurship?

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• Peter Drucker asserted that starting a business
  is neither necessary nor sufficient for
  entrepreneurship. Not every small business is
  entrepreneurial or represents entrepreneurship.
  Innovation, seizing opportunities, and
  change-orientationaccording to Druckerare what
  defines entrepreneurship and entrepreneurs.
  (Drucker, 1985)

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Dimensions of Business Entrepreneurship (BE)

• Selected Traits of Business Entrepreneurs
• Single-mindedness
• Drive
• Ambition
• Creative
• Problem-Solving
• Practical
• Goal-oriented
• etc.?

Profitability/ Economic-Centric (economic motive
orientation)
Innovation/ Disruptive Creation of new/modified
models and technique

• Elements of BE
• Catalyzing Change (Say)
• Innovation (Shumpeter)
• Seizing Opportunity (Drucker)
• Resourcefulness (Stevenson)

Market Orientation
Source Adapted from Nicholls, A. (2006). Social
Entrepreneurship. New York Oxford
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The 10 Ds of Entrepreneurs Personal Attributes

• Dream Entrepreneurs have a vision of what the
  future could be like for them and their business.
  And, more important, they have the ability to
  implement their dreams.
• Decisiveness They dont procrastinate. They
  make decisions swiftly. Their swiftness is a key
  factor in their success.
• Doers Once they decide on a course of action,
  they implement it as quickly as possible.
• Determination They implement their ventures
  with total commitment. They seldom give up, even
  when confronted by obstacles that seem
  insurmountable.
• Dedication They are totally dedicated to their
  business, sometimes at considerable cost to their
  relationships with their friends and families.
  They work tirelessly. Twelve-hour days, and
  seven-day work weeks are not uncommon when an
  entrepreneur is striving to get a business off
  the ground.

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• Devotion Entrepreneurs love what they do. It
  is that love that sustains them when the going
  gets tough. And it is love of their product or
  service that makes them so effective at selling
  it.
• Details It is said that the devil resides in
  the details. That is never more true than in
  starting and growing a business. The
  entrepreneur must be on top of the critical
  details.
• Destiny They want to be in charge of their own
  destiny rather than dependent on an employer.
• Dollars Getting rich is not the prime motivator
  of entrepreneurs. Money is more a measure of
  their success. They assume that if they are
  successful they will be rewarded.
• Distribute Entrepreneurs distribute the
  ownership of their businesses with key employees
  who are critical to the success of the business.

Source Bygrave Zacharakis (2004). The
Portable MBA in Entrepreneurship. San Francisco
Wiley, p. 6.
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• social entrepreneurship

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• Our best hope for the future of humanity lies in
  the power and effectiveness of socially
  motivated, highly empowered, individuals to fight
  for changes in the way we live, think, and behave.

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• Social entrepreneurs typically address areas of
  unmet social need or social opportunity creation
  that the public or private sectors have failed to
  address
• Poverty alleviation through employment, for
  example the microfinance movement.
• Health care, ranging from small-scale support for
  the mentally ill to large-scale ventures tackling
  the HIV/AIDS pandemic.
• Education and training, such as widening
  participation and democratization of knowledge
  transfer.

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• Environmental preservation and sustainable
  development, such as green energy project.
  (See Ecopreneurship and triple bottom line.)
• Community regeneration, such as housing
  associations.
• Welfare projects, such as employment for the
  unemployed or homeless and drug/alcohol abuse
  projects.
• Advocacy and campaigning, such as Fair Trade
  and human rights promotion.

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• Social entrepreneurs and their networks
  demonstrate an unrelenting focus on systemic
  social change that disregards institutional an
  organizational norms and boundaries they are
  disruptive change-agents. (Nicholls, 2006)
• For social entrepreneurs the social mission is
  explicit and central. This obviously affects how
  social entrepreneurs perceive and assess
  opportunities. Mission-related impact becomes
  the central criterion, not wealth creation.
• (Dees, 1998)

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• Social entrepreneurs are practical dreamers
  who have the talent and the skill and the vision
  to solve social problems to change the world
  for the better . . . Social entrepreneurs have
  a vision of the future and will stop at nothing
  to see that future come true. It is up to all
  of you to help them succeed in order to ensure
  that the failures of the past do not become the
  failures of the future.
• Jeff Skoll Founder, The Skoll Foundation
  

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Dimensions of Social Entrepreneurship (SE)

• Elements of SE
• Embodies a mission to create and sustain social
  value (not just economic value)
• Involves continuous innovation, adaptation,
  and learning
• Pursues bold social purposes without being
  limited by resources in hand
• Involves a heightened sense of accountability to
  constituencies served and for the outcomes created

• Selected Traits of Social Entrepreneurs
• Change agent
• Creative
• Desires widespread impact
• Entrepreneurial qualities (e.g. drive,
  single-mindedness, ambition, goal oriented,
  etc.)
• Possesses a strong ethical fiber

Innovation/ Disruptive Creation of new models and
techniques
Sociality (social purpose and value
creation)
Market Orientation
Source Adapted from Nicholls, A. (2006). Social
Entrepreneurship. New York
Oxford, p. 103.
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The Opportunity Creation Process in Social
Entrepreneurship
Change
Operating environment
Social Needs
Social impact theory
Promising ideas
Social impact
Opportunity
Operating model
Resource strategy
Social assets
Business model
Step 2 Developing promising ideas into
attractive opportunities
Personal Experience
Step 1 Generating promising ideas
Source Nicholls, A. (2006). Social
Entrepreneurship. New York Oxford, p. 284.
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The Leadership Characteristics of a Social
Entrepreneur What are they? Do we really know?

• Returning to our earlier Figure concerning the
  Dimensions of SE weve drawn from the limited
  amount of literature available and have suggested
  that certain attributes characteristics are
  imbued within a social entrepreneur. That
  iswhat drives them, what defines their
  character, how do they lead
• they are change agents
• they are creative (i.e. artists in the social
  real),
• they desire to make widespread impact,
• they possess entrepreneurial qualities (e.g.
  drive, single-mindedness, ambition, goal
  oriented, etc.), and
• they possess a strong ethical fiber

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• Jeffry Timmons (1999) suggests that research has
  developed a consensus around 6 dominant themes
  that describe what successful entrepreneursboth
  business and socialdo and how they perform
• Commitment and determination Timmons suggests
  this is the most critical of the 6 themes. For
  social entrepreneurs to be truly successful,
  their focus has to be almost totally on what they
  are trying to accomplish, often demanding great
  sacrifice of personal time and lifestyle.
• (Dees, et al., p. 301)

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• Leadership Genuineas opposed to disingenuous
  leaders understand that they cannot be successful
  alone. Social entrepreneurs need to attract
  people who complement their strengths and
  weaknesses. Successful entrepreneurs have high
  integrity and trust, which inspires loyalty.
  They have high standards and a sense of urgency,
  while at the same time having patience. (p. 303)

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• Opportunity obsession Successful social
  entrepreneurs are obsessed with the process of
  searching for innovative ideas and opportunities
  that will create value for those they serve
  (clients, constituents, etc.), are market-driven,
  and are sustainable. (p. 303)
• Tolerance of risk, ambiguity, and uncertainty
  Social entrepreneurs are calculated risk-takers,
  realizing that change is constant, have the
  ability and tolerance for problem solving, and
  listen well to other people. (p. 303)

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• Creativity, self-reliance, and ability to adapt
  Social entrepreneurs have confidence in
  themselves and their ideas. They also have
  confidence in their ability to surround
  themselves with people smarter than they from
  whom they will learn. (Dees, et al., p. 303)
  SEs are restless with the status quo and are
  always looking for better ways to serve tier
  constituents. SEs consider failure as a
  learning experience from which new ideas will
  spring. SEs have the ability to conceptualize
  big-picture ideas and still sweat the details.

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• Motivation to excel Social entrepreneurs are
  action-oriented individuals who set high but
  realistic goals and devote themselves to
  achieving those goals. They are aware of their
  own strengths and weaknesses (i.e.
  self-awareness). SEs establish a culture of
  excellence within their enterprises and work
  with determination and are constantly motivated
  to improve. They have a healthy sense of humor
  and perspective. (p. 304)

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• What kind of leaderor more accurately
  statedwhat are the inherent attributes of
  individuals who are driven by, passionately
  concerned with, and have committed a significant
  portion of their lives to a social cause with the
  intent of stimulating innovation and creative
  disruption? Let me posit the following . . .

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• Social entrepreneurs are not content just to
  give a fish, or teach how to fish. They will not
  rest until they have revolutionized the fishing
  industry. - Bill Drayton,
  Ashoka

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• Joseph A. Banks (1972) first coined the term
  social entrepreneur in his seminal work on
  social reform (The Sociology of Social
  Movements), noting that managerial skills could
  be deployed to address social problems, as well
  as business challenges.

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• Amitai Etzioni (The Third Sector and Domestic
  Missions, 1973) suggested that neither the state
  (public sector) nor the market (private sector)
  alone could catalyze the necessary innovations
  and reforms of society but rather the source
  would be a third alternative.

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• Subsequent academic research into social
  entrepreneurship has largely been focused on
  defining what it is and what it does not have in
  common with private sector (business)
  entrepreneurship (Dees, 1994, 1996, 1998
  Brinckerhoff, 2000 Dees, Emerson, Economy,
  2002 Drayton, 2002 Austin, Stevenson
  Wei-Skillern, 2003).
• However, despite much work, a consensus over the
  boundaries of social entrepreneurship has not yet
  been reached.

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• The mismatch between resource () supply and
  demand for service has led social entrepreneurs
  to consider strategic moves into new markets to
  subsidize their social activities either through
  exploiting profitable opportunities in the core
  activities of their non-for-profit venture (food
  kitchens, restaurants, moving services,
  landscaping, etc.) or via for-profit subsidiary
  ventures and cross sector partnerships with
  commercial corporations.

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• From Bake Sales to Social Entrepreneurship
• A Case Review of the Seven Hills Foundation

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• The world cries out for repair and social
  entrepreneurs are called upon to play a central
  role in fighting against deep-seated problems of
  human misery. (Margolis Walsh, 2003)

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• UN Millennium development goals

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• Since the adoption by all United Nations member
  states in 2000, the 8 Millennium Development
  Goals have become a universal framework for
  development and a means for developing countries
  to work together in pursuit of a shared future
  for all.
• Ban Ki-Moon
• Secretary General
• United Nations, 2007

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Goal 1 Eradicate extreme poverty and hunger

• Reduce by half the proportion of people living on
  less than 1.00 USD/day
• Reduce by half the proportion of people who
  suffer from hunger

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Goal 2 Achieve universal primary education

• Ensure all boys and girls complete a full course
  of primary education

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Goal 3 Promote gender equality and empower women

• Eliminate gender disparity in primary and
  secondary education

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Goal 4 Reduce child mortality

• Reduce by two thirds the mortality rate among
  children under 5

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Goal 5 Improve maternal health

• Reduce by three quarters the maternal ratio.
  Half a million women die each year during
  pregnancy and childbirth, almost all of them in
  sub-Saharan Africa and Asia

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Goal 6 Combat HIV/AIDS, malaria and other
diseases

• Halt and begin to reverse the spread of HIV/AIDS
• Halt and begin to reverse the incidence of
  malaria and other major diseases

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Goal 7 Ensure environmental stability

• Integrate the principles of sustainable
  development in country policies
• Reverse the loss of environmental resources
• Reduce by half the proportion of people without
  sustainable access to safe drinking water
• Achieve significant improvement in the lives of
  at least 100 million slum dwellers, by 2020

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Goal 8 Develop a global partnership for
development

• Develop an open trading and financial system that
  is rule-based, predictable and non-discriminatory
• Address the lease developed countries special
  needs (e.g. enhanced debt relief, more generous
  development assistance for countries committed to
  poverty reduction)
• In cooperation with the developing countries,
  develop decent and productive work for youth
• In cooperation with pharmaceutical companies,
  provide access to affordable essential drugs in
  developing countries
• In cooperation with the private sector, make
  available the benefits of new technologiesespecia
  lly information and communications technologies

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• World Bank Interactive Presentation
• http//devdata.worldbank.org/atlas-mdg/
• The United nations 2007 Millennium Goals Report
  Handout
• http//www.un.org/millenniumgoals/
• United Nations Summary Chart on the MDG Progress
• http//unstats.un.org/unsd/mdg/default.aspx
• Our Greatest Challenges
• http//www.msnbc.msn.com/id/s0912506/site/newswee
  k/

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• The hallmark of social entrepreneurship is its
  ability to combine social interests with business
  practices to effect social change social
  enterprise introduces a new paradigm for creating
  sustainable value for people and the planet
  (ecopreneurship). - Sutia
  Kim Alter

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• social entrepreneurship is best understood as
  a multi-dimensional and dynamic construct moving
  across various intersection points between the
  public, private, and social sectors employing
  for-profit, not-for-profit, and hybrid
  organizational forms (or a mix of all three) to
  deliver social value and bring about change.
  - Alex Nicholls
• Public sector adoption of business skills
• Socially affirmative businesses
• Not-for-profit sector adopting more
  entrepreneurial approaches

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Brief History Background of Seven Hills
Foundation
Seven Hills Foundation offers a full range of
services to support children and adults with
physical, emotional, developmental, social and
other significant life challenges. Through
school-based services, supported employment,
mental health and substance abuse counseling,
child care resources, HIV/AIDS services,
advocacy, residential and family services, we
empower people to live more autonomously and
participate more fully in their lives.
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• Seven Hills Foundation, a statewide organization
  with 2,000 professional staff, provides services
  and resources to 26,000 individuals at 125
  program sites across the Commonwealth, Cape and
  Islands.

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Seven Hills Foundation
Seven Hills Behavioral Health, Inc.
Seven Hills Clinical Associates, Inc.
Seven Hills Family Services, Inc.
Integrated Clinical Solutions, Inc.
Seaside Education Associates, Inc.
Seven Hills Community Services, Inc.
Childrens Aid Family Service, Inc.
Seven Hills Disability Resources Advocacy
Seven Hills Pediatric Center
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Key Financial Indicators
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Seven Hills Behavioral Health, Inc.

• Seven Hills Behavioral Health provides substance
  abuse services, psychiatric day supports,
  HIV/AIDS services, child psychiatry, family
  behavioral health, residential programs,
  educational enrichment, and related mental health
  clinical supports.

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Seven Hills Clinical Associates, Inc.

• Seven Hills Clinical Associates operates the
  Seven Hills Academy at Devens and provides
  services to children and young adults with
  behavioral challenges and autism spectrum
  disorders. Students can attend as day students
  or live in one of our residential homes.

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Seven Hills Community Services, Inc.

• Seven Hills Community Services provides
  residential, individual, community-based day
  services, and family support.

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Seven Hills Disability Resources
Advocacy

• Seven Hills Disability Resources Advocacy is
  the advocacy information affiliate of Seven
  Hills.

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Seven Hills Family Services, Inc.

• Seven Hills Family Services provides recreational
  and leisure opportunities, shared living, adult
  day health and day habilitation programs, as well
  as the off-site employment and CareerSource
  programs to individuals with disabilities.

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Seven Hills Pediatric Center

• Seven Hills Pediatric Center is a pediatric
  skilled nursing community providing care to
  children and young adults with complex medical
  and developmental needs.

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Childrens Aid Family Service, Inc.

• Childrens Aid Family Service provides child
  care, social and mental health services to
  income-eligible families.

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Integrated Clinical Solutions, Inc.

• Integrated Clinical Solutions provides quality,
  evidence-based, creative clinical services to
  individuals with disabilities who have complex
  clinical profiles and reside in community
  settings.

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Advancement Initiatives Activities

• Annual Fund
• Capital campaigns

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• Grants-private and federal
• Planned Giving

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• Special Events
• Longwood Symphony
• Dignity Dash
• Groundbreakings
• Anniversaries
• Major Gifts

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Advancement Office Results
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The Future Non-Profit Fundraising Belongs to
Social Entrepreneurs

• The union of social value and economic value.
  Practices which combine the pursuit of financial
  objectives with the pursuit and promotion of
  social mission and outcomes.
• Social entrepreneurs are individuals with
  innovative solutions to societys most pressing
  social problems. (Ashoka Foundation)
• Group 7 Design, Inc. Equity Ownership
  (www.group7design.net)
• Sequest Technologies, Inc. Equity Ownership
  (www.sequest.net)

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• leadership

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Seven principles of leadership . . .

• Self reflection and awareness are crucible
  disciplines for a leader. Each invariably leads
  to humility.

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• To acquire knowledge, one must study but to
  acquire wisdom, one must observe.
• Marilyn vos Savant

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• Our individual actionsbe they ethical, or self
  servingserve as our lifes signature. Lead
  ethically.

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• All human actions have one or more of these
  seven causes chance, nature, compulsion, habit,
  reason, passion, and desire.
• Aristotle

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• Leadership is fundamentally about . . .
• relationships.

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• If you have built castles in the air, your work
  need not be lost that is where they should be.
  Now put the foundations under them.
• Ralph Waldo Emerson

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• To envision and pursue with enthusiasm a yet
  unrealized future is the essence of the art of
  leadership.

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• Go confidently in the direction of your dreams!
  Live the life youve imagined. As you simplify
  your life, the laws of the universe will be
  simpler.
• Henry David Thoreau

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• Our characterhow we exhibit our valuesis our
  lasting legacy.

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• Character is higher than intellect . . . A
  great soul will be strong to live, as well as to
  think.
• Ralph Waldo Emerson

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• Deeply held core values are what directs and
  sustains a leader.

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• The future belongs to those who believe in the
  beauty of their dreams.
• Eleanor Roosevelt

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• A leader is first . . .
• a servant.

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• A leader who walks in the shadow of the temple,
  among his followers, gives not of his wisdom but
  rather of his . . . faith and lovingness.
• Kahlil Gibran

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• Of all the jobs of leadership, being a steward
  is the most basic. Being a steward means
  recognizing that the ultimate purpose of ones
  work is others and not self that leaders do
  what they do for something LARGER than
  themselves that their lifes work may be the
  ability to lead but that the final goal of
  this talent or craft is other directed.
• Al Gini (1996) Referencing the work of Peter
  Senge (1990)

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• Education is an ornament in prosperity and a
  refuge in adversity.
• Aristotle

Albina Ruiz
David Green
Dina Abdel Wahab
Dr.Govindappa Venkataswamy
Fabio Rosa
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• Do not go where the path may lead, go instead
  where there is no path and leave a trail. Ralph
  Waldo Emerson

Inderjit Khurana
Kailash Satyarthi
Maria Teresa Leal
Martin Fisher
Moses Zulu
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Challenge convention . . . Change our
world!
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• THANK YOU!
• - Dr. David A. Jordan -