2. UNIT IV: BUSINESS BEYOND
PROFIT
LESSON 11: WHY SOCIAL
ENTREPRENEURSHIP?
PREPARED & PRESENTED BY: MS. PAZ GODIOSA J. PLANTILLA, LPT
3. LESSON 11: WHY SOCIAL
ENTREPRENEURSHIP
• Business on its own is already a powerful force for
change. It gives employment to people, provides
goods and services that are critical for the economic
development of nations, and in some cases, even
spurs the government to improve its laws and
infrastructures.
• But when business and a desire for social justice
combine, the result can truly be life-changing. Social
enterprises are changing the way business is done in
order to take on social problems, improve
communities, and protect the environment.
• While commercial entrepreneurs might come out with
the same result (i.e. solving a social problem), as you
have seen in companies that practice corporate
responsibility, that is not its main goal. Social
entrepreneurs, on the other hand, will want to go
deeper into issues that speak to them, dissecting the
social, economic, political, and cultural context of the
problems that they are attempting to solve.
• So how is a social enterprise different from a
business? Likewise, are social enterprises just another
name for nonprofit/ charity organizations?
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5. BUSINESS BASICS
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• Crowdfunding is the practice of
providing funds for a project or
venture by pooling many small
amounts from a large number of
people. The transactions are
normally done through the internet
in platforms such as Kickstarter, The
Spark Project, and the like.
6. WHAT ARETHE ADVANTAGES OF CREATING A SOCIAL
ENTERPRISE FORTHE ENTREPRENEUR?
1. The ease of raising capital - Many
governments, special interest groups,
and the advent of technology and social
media have made it easier for social
entrepreneurs to raise capital. An
example of a company that supports
aspiring social entrepreneurs to rise is
the Philippine Islands Foundation (or BPI
Foundation), which recently held the
BPI Sinag Challenge
(http://sinag.bpifoundation.org/). The
company gave grants, mentoring, and
further access to financing to the
chosen social entrepreneurs.
• Through the internet and social media,
crowdfunding has also gained ground,
enabling social entrepreneurs to
explain their product or service to a
wider audience in the hopes of earning
their support.
• The Spark Project
(http://www.thesparkproject.com/) is
one such site wherein you can post
your proposal and engage ditterent
people to donate to your cause in
exchange for specific "rewards." BPI
Sinag 2019 sinag.bpifoundation.org
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7. WHAT ARETHE ADVANTAGES OF CREATING A SOCIAL
ENTERPRISE FORTHE ENTREPRENEUR?
2. The ease of marketing and
promotion- Since a social
enterprise is offering solution
to a social problem, it is easy
to attract people and the
media. Even governments are
very eager to support social
entrepreneurs because of the
positive mileage it garners.
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8. WHAT ARETHE ADVANTAGES OF CREATING A SOCIAL
ENTERPRISE FORTHE ENTREPRENEUR?
3. The ease of attracting talent
and like-minded individuals -
Because of the social side of the
enterprise, it is easier to get
support from talented
individuals who believe in the
enterprise's cause. Some would
volunteer their services for free
or accept projects at a lower rate
than they normally would.
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9. EXAMPLE
One such example is Rajo Laurel, well-
known style icon and designer. He was
approached by Rags2Riches president,
Reese Fernandez-Ruiz, to share his design
skills with the women of the Payatas
community who make the bags. He got on
board and with the pull of his popularity
and his talent for designing, Rags2Riches
was able to reach upscale fashion outlets,
thus making the products available to a
greater number of people. He continues to
serve the company as an adviser and lends
his expertise for free.
TOPIC 02 COMES HERE
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10. WHAT ARETHE ADVANTAGES OF CREATING
A SOCIAL ENTERPRISE FOR SOCIETY?
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• 1. The products/services offered
consider the needs of the community
being catered to, and the impact it has
on the environment.
• Unlike commercial businesses that have
a one-size-fits-all approach to creating
services and products social enterprises
have room to customize what they offer
because their main concern is not just to
create profit but to find an alternative
solution to a problem? Oftentimes,
social entrepreneurs consider all the
aspects of providing a service or product,
such as how it will be produced down
the line, whose livelihood it will impact,
and how it will affect the environment.
11. WHAT ARETHE ADVANTAGES OF CREATING
A SOCIAL ENTERPRISE FOR SOCIETY?
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• 2. The solutions offered by social
enterprises are more accessible
compared to the same service provided
by a for-profit organization.
• Microfinance institutions, some of which
operate as social enterprises, allow the
poorest-especially those that the big
banks will not lend to-access to capital.
12. WHAT ARETHE ADVANTAGES OF CREATING
A SOCIAL ENTERPRISE FOR SOCIETY?
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• 3. Social enterprises prefer to work
directly with individuals. Social
entrepreneurs often seek the direct
source of the product and bypass the
middlemen in order to give the
individual a better chance of earning
more for what or she/he produces.
• In working directly with individuals,
social entrepreneurs often impart
valuable training to improve the quality
of the product/service and educate the
community.
