Examples Of Social Innovation

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Stanford University defines social innovation as a novel solution to a social problem that is more effective, efficient, sustainable, or just than present solutions and for which the value created accrues primarily to society as a whole rather than private individuals. Social innovation is further described as a best construct for understanding and producing a lasting social change. An example in the recent history for social innovation was Muhammad Yunus and the Grameen Bank, which pioneered microfinance for social good. The creation of microfinance meant that the poor people, who lived below the poverty line and previously excluded from the formal banking sector, were now included and were actively allowed to participate in the economy. The micro-enterprises which previously did not exist due to lack of funding were created and now addressed people’s needs. The overall impact was profit made for the microfinance institutions as well as improvement in the lives of the community. Thus social innovation is not only for non-profit organization. Social innovation, unlike social entrepreneurship and social enterprise includes both profit and non-profit sectors. Social innovation can take place at any institution profit, non-profit and government alike. There is currently cross sector collaboration that has been introduced due to increases in social ills that have been experienced. This inclusive approach is important in recognizing that innovation can emerge in any different
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