By mobilizing social capital the SE has the potential to reduce transaction costs which are associated with lack of trust. For Coleman (1990) and Putnam (1993) the social capital is a set of resources that center on organizational operations, networks, norms and trust and further coordination and cooperation thus providing mutual benefits. In this way the social capital in SE leads to increased trust and reduces the motive to behave in an opportunistic manner which in turn decreases transaction costs. Besides the boost of trust the social capital in these organizations improves the productivity of production factors (Laville J. et al, 2010) and thus the return on financial capital. SE demonstrates ability to be innovative and to mobilize social capital by transferring it from the private to the public sphere.
Such organizations attain a successful change in underlying issues in the community through feedback and innovations towards solving the social problem. By constituting commercial, public issues, and ventures, social entrepreneurship greatly contributes towards Vision 2030. Components of Social Entrepreneurship Social entrepreneurship includes a combination of social and commerce issues used to enhance the lives of individuals connected to some community problems. Particularly, commercial matters are met to raise money that is used by the entrepreneurship to work towards eliminating the matter negatively affecting people. In fact, the sole focus of this business is to improve the world condition and not to make profits, unlike other forms of business existing nowadays (Phillips, Lee, Ghobadian, O’Regan, & James, 2015).
If this was the case, valuable talent and energy would be at risk because the activities would fail to address their social mission. On the other hand, the answer lies in finding a resource strategy that is not only effective but also sustainable in the long run. Most social entrepreneurs conduct innovative programs, organizational structures, and resource strategies to improve the likelihood of attaining deeper, wider, lasting, and cost-effective impact on society. An example of this is how Habitat encourages their volunteers to use their time typically allocated for recreational activities to help build a house. Another example is how Teach for America encourages college graduates (even those without an education major background) to spend two years of their careers teaching in schools who are in urgent need for teachers (but lack the time and resources).
2.2 Social capital theory An important interpretation of social capital recognized by Adler & Kwon (2002) is that the goodwill others have towards a person or company is a valuable resource . In order to understand social capital theory and comprehend how social capital theory can be applied to buyer-supplier relationships - in the field of supply chain management or business context in general - it is important to clarify the patterns and definitions that have emerged from earlier work regarding social capital in different fields of study. After reviewing and discussing social capital in comparison to other forms of capital and different conceptualizations of social capital theory, the definition used in this study will be provided. 2.2.1
Theoretical challenges in the process of defining socially innovative entrepreneurship include the following: aligning market dynamics with social outcomes in terms of commercial and social purposes and the process of internalization of social costs and benefits; analyzing the strengths and limitations of different economic strategies with respect to sustaining innovation and promoting systemic change; achieving competitive advantage of the social orientation and the social impact relative to potential profit seeking enterprises; the degree of existing market discipline to guarantee high level of performance of the socially innovative enterprises and cost effectiveness in the social value creation process; the degree of efficiency of the capital markets to direct capital to most optimal social and economic
Social entrepreneurship is an organization because it takes careful planning, organizing, and forming a group’s identity. Lastly, social entrepreneurship is a society because entrepreneurs look to help a society in an area. Also in the first chapter, there are many stories that the authors used as an example to motivate us readers. Social Entrepreneur for Dummies tackles all the requirements in putting up a social business. It is a step by step process that the book thoroughly explains, everything from if social entrepreneurship is calling for you to planning, strategizing, organizing, and implementing to creating one’s own brand to how to manage a social business to the mistakes one social entrepreneur should avoid when starting a social business.
scarce resources to empower all segments of the population, often through collective bargaining power. SE are not exclusively motivated by financial interests; rather, they are driven by the objective to provide goods or services to the community, particularly minority populations (i.e., a social purpose). This process further enhances the generation of collective externalities which may be leveraged for communal wellbeing. The founder of the Ashoka Fellowship, William Drayton (Leviner N. et al, 2012), first coined the phrase “social entrepreneurship” being a process in which an entrepreneur conceives and explicitly seeks new solutions to entrenched social issues. SEs are multi-stakeholder enterprises which combine the ownership interests
The first chapter in this book entitled Social Entrepreneurship discusses about the areas that have already been discussed in the field of social entrepreneurship and provides recommendation for future research and new theoretical directions. First, they defined what social entrepreneurship is and thus paving way to the proposal of three avenues for future research and these are the comparative, corporate and collaborative avenues. The first chapter of this book greatly covers what has already been discussed in other books and other research materials and thus creating new ideas for future topic or areas to discuss on the future books that will be published. Having this kind of strategy/agenda makes this book exceptional because their objective is to create a book that has contents that are entirely new, and has fresh and updated analysis and research on social entrepreneurship. Also, with this kind of agenda, this will be able to create an opportunity to discover new information on the said area and avoid discussing topics that has already been elaborated in other books repeatedly.
Social Entrepreneurship: Social entrepreneurship can be interpreted as measure to apply practical, innovative and sustainable approaches to benefit the society as a whole. The measure would give adequate importance to the down trodden and sections of the society that are marginalized. It can be looked at as an approach to solve economic and social problems which cuts across sectors and disciplines. This approach that a social entrepreneur takes, emerge to be distinct and this sets himself apart from the crowd of other entrepreneurs. Such entrepreneurs possess an innate capability to strongly pursue an identified opportunity and turn it into a favourable outcome for the society.
The purpose of this paper is thus to inquire into the incorporate between entrepreneurship and social capital as reflected in mutual trust and a rationality based on care. Learning and knowledge creation come from hands-on experience, but also from telling stories to others, sharing experiences. Repeated reflections on one's own action enforce self-identity and willingness to act again. The understanding of the roles of entrepreneurship and social capital in a case of emergency that even threatens a welfare economy like Sweden, in spite of its elaborate institutional structure. The empirical findings and associated conceptual reflections suggest that (natural) catastrophes initiate processes that produce or reproduce both the entrepreneurship and social capital that remain invisible when "business as usual" rules in society.