social entrepreneurship vítor ferreira, ipleiria cândida loureiro , esenfc ’ joensuu , 2013

Dream > Believe > Pursue

Social Entrepreneurship

Vítor Ferreira, IPLeiriaCândida Loureiro, ESEnfC’

Joensuu, 2013


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Buenos DíasBon diaBonjour

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LabrītLabas rytasDzień dobry

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A Revolution

• 85% of the new jobs in small and start-up firms

• Product/service introduction rate higher than ever before

• Rate of wealth creation exploding• And it’s a global revolution


4 Types of entrepreneurship

• Schumpeterian• Knight’s

• Kirzner’s• Faultin’s

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Dream > Believe > Pursue 5

1. The Schumpeterian entrepreneur

• Schumpeter identified the creative combination as a basic element of economic growth and entrepreneurship (1911)

• New combinations do not substitute old combinations on the spot. They rather grow slowly and in niches, but after some times they would destroy their competiting combinations

• In most cases, innovative businesses are not based on old resources and forces

• Therefore entrepreneurial creativity of the Schumpeterian type creates an economic disequilibrium, or at least is contributing to it. „creative destruction“


Creative Destruction and social cost

• Schumpeter‘s entrepreneur by his creativity limits the permanent accumulation process of goods and wealth

• … makes production factors obsolete who seldom have the chance to be reintegrated in new production processes

• … does not pay for the social costs

• Consequences have to be handled by the welfare state


2. Knight‘s entrepreneur - RISK

• For H. P. Knight (1921), the ability of taking risks is crucial for the entrepreneur. Moreover, he has to deal with uncertainty that is incalculable in statistical terms („Knight‘s uncertainty“).

• This entrepreneurial ability requires a creative approach towards undefined and non-predictable situations, thus creating uncertainty for others. The social costs can be high.

• Global economy has become less predictable since the 1970s, so Knight‘s definition of the core of entrepreneurship has become up-to-date again

• Similar position: Peter Drucker (1970)


3. Kirznerian entrepreneurship

• For Kirzner (1978, 1989), markets are not given entities but they are created by the entrepreneur who creates information about potential production factors and seller‘s markets

• Markets have to be discovered and need to be shaped

• The Kirznerian entrepreneur is a discoverer of unused and inactive production factors that can be creatively recombined. (alertness)

• He is contributing to the market equilibrium by non-destructive entrepreneurship (famous examples: furniture from pest plants in Vietnam, export of chicken feet from Brasil to South East Asia) – Blue Ocean perspective

• A small niche entrepreneur.


4. Faltin‘s entrepreneur

• Faltin (2008) states that a modern entrepreneur needs only to combine existing services, knowledge or ideas that are already on the market, based on the internet economy

• This is easier in a network economy than in traditional economy: services can be provided at low cost and are saving fix costs. The creative idea is much more relevant than the resources owned by the entrepreneur („brain beats capital“)

• Faltin‘s Entrepreneur has to combine relations and resources around a value proposition in a business model generation matrix


Nevertheless, there has never been a society with more than about 30 % entrepreneurs

• Historical evidence (from Roman empire until today)

• But the social dimension?



So, is entrepreneurship basically entrepreneurship regardless of the context?

Or is “social entrepreneurship” something truly different?



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What is Social Entrepreneurship?


What Is Social Entrepreneurship?

Nonprofits making money




For-profits doing things to show they are not evil




For-profits doing things to show they are not evil

Process of creating value by bringing together a unique package of resources to exploit an opportunity, in pursuit of

high social returns



Process of creating value by bringing together a unique package of resources to exploit an opportunity, in pursuit of high social returns, for example:

•Opportunity: Underused human capital

•Endeavor: New businesses older people teaching skills to unemployed

•Social returns: Young people acquiring knowledge, peaceful neighborhood, less costs


What is the main difference between commercial and social entrepreneurship?

Denomination of the returns Social and commercial entrepreneurship have most of the same characteristics(though this is not consensual in the literature)


The Process of Social Entrepreneurship

1. Find an opportunity2. Develop a business concept3. Figure out what success means and how to

measure it4. Acquire the right resources5. Launch and grow6. Attain goals


Some problems arise

• What is profit in this case?• How do we count it?• Can we compare investments?


Three characteristics

• Social entrepreneurship meets needs unmet by commercial markets and (usually) the government

• Social entrepreneurship is motivated by social benefit

• Successful social entrepreneurship usually works with, not against, markets


Social Entrepreneurs “Look” Like Any Other Kind of Entrepreneur


Myths about Social Entrepreneurship

• Social entrepreneurs are anti-business• The difference between commercial and social

entrepreneurship is greed• Social entrepreneurs are nonprofit managers• Social entrepreneurs are born, not made• Social entrepreneurs are misfits• Social enterprises usually fail• Social entrepreneurs love risk


Why does social entrepreneurship matter?


Size of the Nonprofit Workforce

12.6

11.5

10.5

9.2

7.87.2

6.2

4.94.94.54.5

3.73.53

2.42.42.21.7

1.30.90.60.4

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Holla

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Irela

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Belg

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Isra

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USA

Aust

ralia

UK

Fra

nce

Germ

any

Spain

Aust

ria

Arg

enti

na

Japan

Fin

land

Peru

Colo

mbia

Bra

zil

Cze

ch R

epublic

Hungary

Slo

vakia

Rom

ania

Mexic

o

Perc

en

t of

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plo

yees


A Nation of Social Entrepreneurs

Human Capital with a high entrepreneurial orientation+ Faith in own abilities+ Vast ungovernable frontier

= Citizens willing to meet their own social needs, without an excessive reliance on the state



From theory to practice in ESEnfC

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The ESEnfC Office of Entrepreneurship (OE)


The ESEnfC OE

Team


The OE’s Mission• Boost entrepreneurship

Contributing


• Finding new opportunities in general and in health care in particular

The OE’s Mission

High level

Truly entrepreneurial behavior with an impact and visibility recognized by the community


The OE’s Values


ESEnfC’s OE

• Encourage undergraduate students to be dynamic and resourceful in seeking new professional activities, and if possible, the creation of self-employment;

• Make ideas and business opportunities emerge.

"Entrepreneurship in Health" "Social Entrepreneurship" "Incentives and Financing" "From Idea to Business"


The OE’s of ESEnfC Social Entrepreneurship

More Health for São Tomé

On Route World Catió - Guinea


Poliempreende Contest (2003)

Integrates all Portuguese polytechnics

Main objective :

•To help stimulate a research market directed towards the establishment of companies by innovating character with growth potential.

ESEnfC was integrated in 2008 with 12 business projects


AMP – Wound Care 1st place – 1500 euros

Examples of business plans

2008

4th year nursing students


Dignified Care 2nd place – 1000 euros


2008



Educate to Win 3rd place – 500 euros


2008



Easy4U 2nd place National

Prize winner “Best idea” 2011


2009

Young nurse


1st place Regional/ 7th place Nacional Medisegura


2010

Young nurses


Students develop device for patients with Alzheimer's

ALTEC


2010

2nd year nursing students


1st place Regional An Innovative Bedpan A technological point of view


2011

Young nurse


Shower Care Project Award for health 10 000euros from Bluepharma


2013

Team led by researcher and 4th year nursing studentDiana Santos


Remember?

We greatly appreciate the time that you have given us!

social entrepreneurship vítor ferreira, ipleiria cândida loureiro , esenfc ’ joensuu , 2013

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