A Reliable
Voice in the
Community

Volume 6
Issue 34
Nov. 4 - 10, 2009

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What is social entrepreneurship?

By Mel and Pearl Shaw

Social entrepreneurship is a new buzzword amongst people who want to make positive social changes locally and/or globally. But what does it mean?

To find out, we talked with C.J. Hayden, the author of three books and more than 300 articles on marketing, entrepreneurship and social change. She serves as a social venture advisor to entrepreneurs, nonprofits and activists.

Mel and Pearl Shaw: How do you define social entrepreneurship?

C.J. Hayden: There are probably as many different definitions for this term as there are people who use it. Some define a social entrepreneurship venture as one operated by a nonprofit organization that earns a substantial portion of its income by selling products and services. Others define social entrepreneurship more broadly as any enterprise dedicated to the public good that uses business methods to generate revenue, regardless of whether the entity is for-profit or nonprofit. And some define the term more broadly still, labeling a social entrepreneur as anyone who uses innovative strategies to address social problems on a replicable scale, regardless of whether they are using an income-earning model at all.

This last definition is the one that I favor. Just as a business entrepreneur creates monetary value by applying creative solutions to problems in the marketplace, a social entrepreneur creates social value by introducing changes with the potential to produce a lasting benefit to society.

Mel and Pearl Shaw: Can you share some examples of individuals or organizations that are social entrepreneurs?

C.J. Hayden: Examples of well-known social entrepreneurs in history include Florence Nightingale, who established nursing as a respected profession and launched the first-ever nursing school. Another example would be conservationist John Muir, who established the National Park System and helped found the Sierra Club.

Social entrepreneurs active today include:

• Muhammad Yunus, winner of the Nobel Peace Prize for founding the Grameen Bank, which provides collateral-free micro-loans to impoverished people in Bangladesh;
  
  
• Wendy Kopp, founder of Teach for America, which brings new college graduates into low-income schools as full-time teachers;
  
  
• Fabio Rosa, whose innovations have brought affordable electric power to rural Brazil; and
  
  
• Nicholas Negroponte, founder of One Laptop per Child, which provides durable, solar-powered laptops to children in the developing world.

Mel and Pearl Shaw: What resources are available for people who want to learn more about social entrepreneurship?

C.J. Hayden: Ashoka, www.ashoka.org, provides resources and support for social entrepreneurs and people who wish to assist their efforts.

SocialEdge, www.socialedge.org, a project of the Skoll Foundation. Their Web site and newsletter provide a wealth of free information.

“How to Change the World: Social Entrepreneurs and the Power of New Ideas,” a book by David Bornstein.

Find out more about C.J. at www.cjhayden.com.

Mel and Pearl Shaw are the principals of Saad & Shaw – Comprehensive Fund Development Services and the authors of “How to Solicit a Gift: Turning Prospects into Donors,” available at www.saadandshaw.com or by calling (510) 834-4310. Saad & Shaw provides clients with a unique brand of fundraising that combines marketing with fundraising fundamentals. Clients include hospitals, colleges and nonprofit organizations.

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