Industrial Psychology & Collective Bargaining

1. Industrial Psychology & Collective Bargaining
Research Proposal
Air University, Multan Campus
Factors affecting social entrepreneurship in Pakistan
Introduction
Whether conducted by nonprofit organization or a profit organization, social entrepreneur has
vast potential for both positive social change and profit for sponsoring organization. This makes
it an interesting topic for research purpose because it is not only a business but also application
toward social change.

2. There is a need for social entrepreneur and it could be added in different fields to bring a positive
change in society. For this purpose, it is important to investigate the current status and structure
of social entrepreneurship in country. Whether social entrepreneur will be feasible in current
structures or it is necessary to make changes. There is always needed to take necessary step for
the implementation of an appropriate structure.
It appears to be a relative new concept but it is not a new one. It was first used in literature in
the 1960‟s and 70‟s.Due to its vast potential, world has started to give it proper importance by
looking for new models and methods for social entrepreneurs.
A saying of the prophet Muhammad, effectively endorsing entrepreneurial sustainable practices,
“Even when the day of judgement approaches, if anyone has a plant in hand, he should quickly
plant it.”
For a Muslim, rizq(livelihood) is granted by Allah. An entrepreneur should have trust in Allah. In
that way risk taking is made easier. On the financial site, it is even a form of obligation due to the
prohibition of interest.
There are a number of definitions for Social Entrepreneurship. A social change is very important
for social entrepreneurs which creates personal as well as shareholder value. (Austin, Stevenson
and Wei Skillern 2006).
Social Entrepreneurship is more than the usual business entrepreneurship. Unlike business
organizations social enterprises give importance to their social aspects through Corporate Social
Responsibility departments. Social enterprises value their social responsibilities as their prime
business responsibilities.
Theseinitiatives can change with time and capacity of their organizations and ranges from simple
to international level projects.
Most of social entrepreneurs get inspiration from local issues. They have experiences and take
considerable time to plan to resolve these issues. They focus on all of their resources to analyze
and provide a better solution for the people in need.

3. Problem Statement
The gap identified for this proposed model is up to what extent Islamic values, social structure of
the society and financial resources of organization have an impact on social entrepreneurship in
Pakistan.
Particularly, there is a need to explain how and under what condition these factors (Islamic
values, financial resources, social structures) are affecting social entrepreneurship in Pakistan.
Objectives
● To examine the impact of social structure of the society on social entrepreneurial activity.
● To examine the impact of financial resources of the entrepreneur.
● To investigate impact of Islamic values on social entrepreneurial activity.
Research Question
Does social structure of the society have positive impact on social entrepreneurial activities?
Literature Review
For understanding purpose, it is better to divide social and entrepreneurship separately.
The word “entrepreneur” originates from a thirteenth century French verb, “entrependre”,
meaning “to undertake” or “to do something” (Cunningham & Lischeron, 1991; Sobel, 2008).
This term was used for individuals who used to manage important financial activities.
Academically, it was first used by economist Richard Cantillon in the 18th century. According to
Cantillon an entrepreneur is an individual who willingly bears the financial risk which appears by
buying at certain prices and selling atuncertain prices.(Carton, Hofer, & Meeks, 1998; Hull, 2005;
Sobel, 2008).

4. So, we have the conclusion that entrepreneur is an individual who is the risk bearer. According
to economists Jean and Stuart Mill, entrepreneur transfer resources out of an area with low
productivity into an area with higher productivity and takes out greater yield, simply means
entrepreneur creates value.
They also interpret entrepreneurs as a forecaster, appraiser and risk taker. Effective
entrepreneurs should have qualities of judgment as well as knowledge of the world.
Business entrepreneurs are always aware of their business risk and management of business.
(Dees, the Meaning of Social Entrepreneurship, 2001; Hull, 2005; Sobel, 2008).
According to another definition an entrepreneur always search for change and respond to it as
an opportunity. According to another definition, carrying out of different and new combinations
is called an enterprise and the individuals who carry them out are called entrepreneurs” (Carton,
Hofer, & Meeks, 1998; Harfst, 2005)
In the late 19th century entrepreneurs were considered as engines of economic growth.
Governments shifted from large manufacturing companies towards promoting entrepreneurship
(Hull, 2005; Sobel, 2008).
As the primary purpose of the business is creating value (Sirmon et al., 2007) Kang et al. (2007)
defines value as the difference between benefits derived and costs incurred. (Sirmon et al.,2007).
Bowman and Ambrosini (2000) explain there is a difference between use value and exchange
value. Use value is the value assessed by the customers who can be individual, group,
organization or at society level (Lepak et al. 2007).
Economic value refers to the total exchange value offered by costumers and is only realized at
the point of sale.
It is very important to get insight in the economic value of social entrepreneurial organizations;
Analysis’s areinterested in the use value of these firms. According to socialenterprises, our focus
is to analyze the social benefits which are generated by these social enterprises for individuals,
organizations and society as a whole.
Brickson (2007) refers to social value which increases wellbeing of the Earth and its living
organisms.
CSR have two important challenges.
First, there is no agreement on the assumption that CSR is a responsibility of firms beyond their
wealth generation (Aguilera et al., 2007; Barnett, 2007; Wheeler et al., 2003).
The result of social entrepreneurship is different from traditional entrepreneurship and
measurement tools are also different. Social entrepreneurs’ creation of social value focuses on
measuring the benefits acquired by people whose mandatory needs are not being met by any
means (Young, 2006) There are ways through which social entrepreneurs use to assess their
social impact is the logic model which explains the relationships among inputs, processes,
outputs, outcomes and impact (Zappala and Lyons, 2009).
Hypothesis
(H1): There is a positive relationship between financial resources and social entrepreneurship.

5. Dyer (1994) and Douglas and Shepherd (2000) researched on different economic factors, they
explained that entrepreneurial objectives are effected by external conditions like if residents
believe that economic and political conditions are stable, then they will have highest intentions
for entrepreneurship.
H2: There is a positive relationship between Islamic values and social entrepreneurship.
It is clear by various hadiths and verses of Quran emphasis on entrepreneurship. For a Muslim,
rizq(livelihood) is granted by Allah. Means an entrepreneur needs to have trust in Allah. In that
way risk taking is made easier. On the financial site, it is even a form of obligation due to the
prohibition of interest.
H3: There is also a positive relationship between social structure and social entrepreneurship.
Research on entrepreneurship presents those social networks affect opportunity recognition
(Singh 2000), entrepreneurial intention (Hmieleski and Corbett 2006)
Figure 1: Research proposal Model
RSSocial Structu
h
Research Design & methodology
Social entrepreneurial organizations working in Pakistan has been selected for imperially testing
the proposed model. In this research convenience sampling will be used and selection of
respondents from selected social entrepreneur enterprises.
Sample of the study comprise of 100 to 5 respondents irrespective of their gender and location.
Cross sectional data will be collected from respondents.
References
There are a large number of social enterprises working in Pakistan.
FINANCIAL
RESOURCES
SOCIAL
STRUCTURE
SOCIAL
ENTREPRENEURSHIP
ISLAMIC
VALUES

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