Social Entrepreneurship: Understanding the New Strategic Space for Social Value Creation (HEC 2004)

Abstract

Social entrepreneurs draw on market-based mechanisms to create positive change in the domains of education, the environment, fair trade, health, human rights and other social issues. Combining their passion to solve social problems with an entrepreneurial outlook on life, they find innovative ways to leverage scarce resources in the pursuit of social value. This course was developed by Maximilian Martin for the HEC DEA program for the 2004 spring semester, and co-taught by Pamela Hartigan and Maximilian Martin. Part one sets the stage. Before getting into the intricacies of the plot of a Greek drama, one must develop a basic understanding how actors, chorus, and stage relate to each other. Likewise, to pace our work effectively, the course first sets the stage by introducing social entrepreneurs and the actors they routinely interact with: corporate citizens and philanthropists. We also examine the broader field of forces that contributes to the rise of social entrepreneurship. Part two highlights select social entrepreneurs. To provide a practical introduction, the course looks at examples of social entrepreneurship through a variety of case studies. To ensure rigor, four thematic threads structure the discussion. (i) Innovation. Social entrepreneurs are innovators who create systemic change. Which factors do they rely upon to accelerate the diffusion of their innovations? (ii) Performance. Measuring outcomes is very important. Which are the tools available to measure the impact and effectiveness of social enterprises? (iii) Leadership. If it were not for their leadership skills, social entrepreneurs would never manage to overcome seemingly insurmountable obstacles. What are the characteristics of social entrepreneurs' leadership? (iv) Identity. Social entrepreneurship provides a new identity for social sector leaders who do not fit into any of the existing boxes. What is distinctive about social entrepreneurs' identity? Social entrepreneurs increasingly benefit from a growing number of organizations whose mission it is to specifically support their work. Part three examines new trends in the foundation landscape as well as corporate and individual philanthropy. We first analyze the niches and strategic choices of players in the intermediary space such as Acumen, Ashoka, and the Schwab Foundation. Two subsequent sessions look at dynamics in two capital transmission channels which social entrepreneurs can access to raise funds, corporate and individual philanthropy.