Students from Miriam College, Quezon City of the CBEA (College of Business Entrepreneurship and Accountancy) Department were given a task to interview a business/firm that is involved with social Entrepreneurship. Thank you for your kind consideration!
1. Define social entrepreneurship
A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.
Social entrepreneurs often work through nonprofits and citizen groups, many works in the private and governmental sectors.
The main aim of a social enterprise is to further its social and environmental goals. This need not be incompatible with making a profit - but social enterprises are often non-profits. Social enterprises are for ‘more-than-profit’.
2. What are concrete examples that make your business involved in social entrepreneurship?
The future success of our Company, Nestle is linked to the success of farmers gaining access to developed country markets and to the economic and social progress of the consuming public as a whole. As a responsible global corporation, Nestlé seeks financial returns, while also working toward social and environmental gains.
Working side-by-side, with Health Organizations, Health centers, Doctors and Red Cross societies, Nestlé staff trained youth educators, who provided information to young people; and counselors, caregivers, to provide voluntary counseling and testing and other services.
3. In your opinion, will the Philippines benefit from social entrepreneurs?
Yes, there will be business opportunities, even in a country with dysfunctional politics and political leadership, can arise if the micro-environment encourages a convergence of capital, labor, and technology in a setting of mutual trust and benefit.
4. How can you prove that social business firms’ profits are used for common good?
In social enterprises profits are used to create more jobs and businesses to use for the common good. If you are off for emotional reasons, they will do everything they can to support you.
5. What are the characteristic of a social entrepreneur?
“A social entrepreneur is any person, in any sector, who uses earned income strategies to pursue a social objective, and a social entrepreneur differs from a traditional entrepreneur in two important ways:
Traditional entrepreneurs frequently act in a socially responsible manner: They donate money to nonprofits; they refuse to engage in certain types of businesses; they use environmentally safe materials and practices; they treat their employees with dignity and respect. Social entrepreneurs are different because their earned income strategies are tied directly to their mission: They either employ people who are developmentally disabled, chronically mentally ill, physically challenged, poverty stricken or otherwise disadvantaged; or they sell mission-driven products and services that have a direct impact on a specific social.
Secondly, traditional entrepreneurs are ultimately measured by financial results: The success or failure of their companies is determined by their ability to generate profits for their owners. On the other hand, social entrepreneurs are driven by a double bottom line, a virtual blend of financial and social returns. Profitability is still a goal, but it is not the only goal, and profits are re-invested in the mission rather than being distributed to shareholders.
Distinguishing characteristics:
a. Grounded in an understanding of entrepreneurship that defines entrepreneurs as individuals who start their own businesses”
b. Focused on the generation of “earned-income” to serve a social mission
c. “Sector-bending,” blurring the lines between the business and social sectors
d. Experimentation with market-based solutions to social problems that seek to align economic and social value creation
e. Differentiates between innovation and entrepreneurship
6. Tips and advice you can give for putting up business venture that involves Social Entrepreneurship
Here are some basic ideas on some of these items that might provide you a starting point:
1. Establish CONTRACTUALLY Recurring Revenue. Develop a new “product” that complements your business and requires users to pay a monthly or annual rental, licensing, maintenance, or warranty fee. Start offering this product so you will be ahead of your competitors when sales pick up again.
2. Overcome the High Barriers to Entry. Now that you have time:
a. Do testing that qualifies you to get certain customers
b. Get a new license or certification that gives you more exclusivity
c. Add a new process that makes your product greater
d. Work on developing and patenting new intellectual property
3. Build a Great Website. These days, a website may be the first thing people see when they want to learn about your company. Make your first impression the best possible. Building an effective website takes a lot of your time to develop content, pictures, etc. So do it now if you don’t already have a great website.
4. Build a Management Team. Even though cash may be limited now, start small. With the management pool growing recently, find someone to handle more of your duties and test their capabilities and train them during this slower period.
5. Become an Expert in Your Industry. Being an expert is not as easy as knowing a lot. You have to make sure people know that you do know a lot. Writing press releases, writing blogs, calling editors and other industry leaders takes time. So why not do it now?
6. Find Simple Ways to Innovate. Get your sales people, technical people, and management together and brainstorm market needs and appropriate solutions for your customer base. Have one of your sales guys that may be low on work lead the project.
7. Diversify Your Product Mix. Integrate! Whether horizontally or vertically, why not use your existing fixed costs to increase your sales when the market picks back up or maybe even get back to your old revenue values right now with new products.
