Social Enterprise vs Social Entrepreneurship
The difference between social enterprise and social entrepreneurship is highlighted by the term of ‘being entrepreneurial.’ The notion of being entrepreneurial means capturing entrepreneurial opportunities in business initiatives as Shane & Venkataraman (2000) suggested. Also, being entrepreneurial captures the dimensions of risk-taking behaviors, innovativeness, and proactive behaviors. Provided that, social entrepreneurship refers to the entrepreneurial initiatives that focuses on social purpose (i.e. community problem) with an emphasis on entrepreneurial opportunities, risk taking behavior, and innovativeness. In the meantime, social enterprises refers to establishments intended to achieve social goals (i.e. environmental and human well-being) with no emphasis on being entrepreneurial.
What is Social Entrepreneurship?
As the term implies, social entrepreneurship refers to the entrepreneurial initiatives with an emphasis on social purposes. According to Christie & Honig (2006) the notion of social entrepreneurship develops in domains such as for-profits, not-for-profits, the public sector, or a combination of all and thus a clear definition has yet to emerge. But many of the authors (see Certo & Miller 2008) define social entrepreneurship as entrepreneurial initiatives implemented with a social goal. Overall, one can categorize entrepreneurship’s ultimate objective is to fuel the economy whereas social entrepreneurship intends to emphasize the quote of ‘making the universe a better place’ and to stimulate social capital.
Social entrepreneurship emphasizes on social purposes
What is Social Enterprise?
In the perspective of the social enterprise, the prime concern of the establishment is to practice social goals. Clearly, it is not a profit driven initiatives. Also, social enterprises mostly apply commercial strategies to enhance environmental and human well-being. The achievement of social goals in the perspective of social enterprises does not mean that profits are not generated. The establishment can have a revenue model and the generated revenue is reinvested to accomplish social objectives of the firm and not to enhance stakeholder wealth.
What is the difference between Social Enterprise and Social Entrepreneurship?
• Prime Concern:
• Social entrepreneurship pays attention to achieving social purposes (i.e. community problem) with an emphasis on capturing entrepreneurial opportunities, innovativeness, risk taking, etc.
• Social enterprise pays attention to achieving social goals (i.e. environmental and human well-being) with no emphasis on capturing entrepreneurial opportunities, innovativeness, risk taking, etc.
• Profit:
• Social entrepreneurial initiative may or may not have a profit motive.
• Social enterprises do not have profit motives.
References:
- Certo, S.T. & Miller, T., 2008. Social entrepreneurship: Key issues and concepts. Business Horizons, 51(4), pp.267–271.
- Christie, MJ & Honig, B., 2006. Social Entrepreneurship – New Research Findings. Journal of World Business, 41, pp.1–5.
- Shane, S. & Venkataraman, S., 2000. The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), pp.217–226.
Images Courtesy:
- Social Entrepreneurship via Wikicommons (Public Domain)
- Social Enterprise by Dion Hinchcliffe (CC BY-SA 2.0)
