! !

!
!
!
Assignment!on!Social!Enterprise!
! !
!
! !
!
!
!
!
!
!
!
!
2S.Anjali!Daisy!
!!!!! !
!
!
!
!
!
!
!
!
11AC05! !
!
Social!Enterprise:!
Social'enterprises'are'businesses'operated'by'non2profits'with'the'dual'purpose'of'generating'income'by'
selling' a' product' or' service' in' the' marketplace'and' creating' a' social,' environmental' or' cultural' value.'
Social'enterprises'are'social'mission'driven'organizations'which'apply'market2based'strategies'to'achieve'
a'social'purpose.'
Entrepreneurship:!
Process'of'creating'value'by'bringing'together'a'unique'package'of'resources'to'exploit'an'opportunity'
Social!Entrepreneurship:!
Process'of'creating'value'by'bringing'together'a'unique'package'of'resources'to'exploit'an'opportunity,'in'
pursuit'of'high'social'returns.'
'
The'only'big'difference'between'commercial'and'social'entrepreneurship:'
Denomination!of!the!returns.!
!
Social'and'commercial'entrepreneurship'have'most'of'the'same'characteristics.'
!
!The!process!of!social!Entrepreneurship!
!
1.
Find'an'opportunity'
2.
Develop'a'business'concept'
3.
Figure'out'what'success'means'and'how'to'measure'it'
4.
Acquire'the'right'resources'
5.
Launch'and'grow'
6.
Attain'goals'
!
The!Difference!Between!Nonprofit!and!Social!Enterprises'
Most'non2profit'organizations'rely'on'donations'and'sponsorship''which'often'gives'the'organization'a'
short'lifespan;'it'seems'the'NPO'model'is'simply'less'than'functional'in'our'economic'model.'
Here,' the' social' entrepreneur' is' different' because' they' are' able' to' bring' in' a' number' of' additional'
resources.' Most' importantly,' they' are' able' to' generate' capital' by' incentivizing' investment' from'
individuals' and' businesses.' This' approach' allows' a' social' entrepreneur' to' compete' directly' with'
standard'organizations,'giving'them'increased'viability'in'the'modern'world.'
We'are'entering'a'time'where'entrepreneurial'spirit'must'be'redefined.'Those'who'continue'to'pursue'
profits'above'all'else,'not'pausing'to'consider'their'impact'on'resource'sustainability'or'the'people'they'
serve' and' employ,' will' continue' to' face' a' declining' reputation.' Meanwhile,' in' stark' contradiction,' the'
social'entrepreneur'shows'us'what'innovation'and'business'sense'can'do'in'the'modern'era.'
'
INDIA'
A'social'enterprise'in'India'is'primarily'NGOs,'who'raise'funds'through'some'services'(often'fund'raising'events'
and' community' activities)' and' occasionally' products.' Despite' this,' in' India' the' term,' Social' Enterprise' is' not'
widely' used,' instead' terms' like' NGOs' and' NPOs' (Non2profit' organizations)' are' used,' where' these' kind' of'
organizations'are'legally'allowed'to'raise'fund'for'non2business'activities.'Child'Rights''and'Youth'United'are'
such'examples'of'social'enterprise,'who'raise'funds'through'their'services,'fund'raising'activities'(organizing'
events,'donations,'and'grants)'or'sometimes'products,'to'further'their'social'and'environmental'goals.'

'
Another'area'of'social'enterprise'in'India'and'the'developing'world'is'bottom'of'the'pyramid'(BOP)'Bottom'of'
the'pyramid'businesses'which'was'identified'and'analyzed'by'CK'Prahahalad'C.'K.'Prahalad'in'"Fortune'at'the'
Base' of' the' Pyramid"' This' seminal' work' has' been' a' springboard' for' a' robust' area' of' both' innovation' and'
academic'research.'
'

Examples:!!

!
Husk!Power!systems:It'has'installed'60'mini2power'plants'that'power'~'25,000'households'in'more'than'250'
villages'and'hamlets'and'impact'lives'of'approximately'150,000!people'in'rural'India.'On'average,'each'power'
plant' serves' about' 400' households' and' replaces' ~' 42,000' litres' of' kerosene' and' 18,000' litres' of' diesel' per'
year.'As'of'August'2010,'HPS'has'already'sequestered'50,000'tons'of'CO2'

!
Selco! solar:Sold,'serviced,'and'financed'135,000+!solar'home'lighting'systems'in'15'years.'SELCO'currently'
employs'about'170'employees'in'Karnataka'and'Gujarat'spread'across'28'energy'service'centers.'

First!Energy:Approximately'500,000'Oorja'stoves'have'been'sold'to'BoP'households'since'2006.'
!
Agriculture/Rural!Services'

ITC! eChoupal:' As' of' 2011,' there' were'6,500'e2Choupal' installations' reaching'4! million!
farmers'across'40,000!villages'in'10'states.'
!
A!Little!World(ALW):'3'million'customers'on'the'Zero'Platform'for'Branchless'Banking'across'20,000'
villages' in' 18' states.' 25' banks' on' the' Zero' Platform.' The' Zero' accounts' are' used' for' biometrics'
identity,' cash' disbursal' of' social' security' pensions' and' wages' under' NREGA,' small' value' credit,'
domestic'money'remittances'by'migrants,'recurring'deposits,'insurance'premium'payments.'
!
!
SUSTAINABILITY!AND!VIABILITY:!
!

Building' viability' and' sustainability' in' social' enterprises' is' a' very' challenging' matter' ' and'
the'difficulties'should'not'be'underestimated'
We'must'begin'to'see'the'establishment'of'social'enterprises'as'a'process'and'a'journey''
they'are'not'going'to'be'able'to'achieve'all'social,'environmental'and'financial'objectives'at'
once' nor' from' the' beginning.' Running' a' social' enterprise' is' hard,' hard' work.' Yes' its'
rewarding' sometimes,' but' most' of' the' time' its' a' difficult' balancing' of' social' and' business'
imperatives,' whilst,' at' least' in' Australia,' operating' in' an' environment' that' is' not' yet' as'
supportive' or' enabling' as' it' possibly' could' be.' Lets' not' put' too' much' of' a' burden' of'
perfection'on'social'enterprise.'It'is'not'the'single'silver'bullet'for'addressing'all'the'social,'
cultural'and'environmental'ills'that'befall'us'at'this'present'time.''
!