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SOCIAL ENTREPRENEURSHIP

SOCIAL ENTREPRENEURSHIP. NAGARAJU L G ASSISTANT PROFESSOR REVA UNIVERSITY BENGALURU-64. Social entrepreneurship.

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SOCIAL ENTREPRENEURSHIP

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  1. SOCIAL ENTREPRENEURSHIP NAGARAJU L G ASSISTANT PROFESSOR REVA UNIVERSITY BENGALURU-64

  2. Social entrepreneurship • Social entrepreneurship as innovative, social value creating activity that can occur within or across the non-profit, business, or government sectors(James AustinHowardStevenson-2006),Social entrepreneurship  is process of creating sustainable social impact(R El Ebrashi -2013) Social entrepreneurship in modern society offers an altruistic form of entrepreneurship that focuses on the benefits that society.(Williams, John, and Tan, Teck-Meng- 2005).SE, “entrepreneurial activity with an embedded social purpose” (Austin, Stevenson, & Wei-Skillern, 2006)

  3. Social enterprise • SE encompasses the activities and process undertaken to discover, define and exploit opportunities in order to enhance social wealth by creating new ventures or managing existing organization in an innovative manner(Shakar A. Zahara 2009) • Social enterprises are predominantly for-profit private sector small businesses that engage with the low-income population to address challenges of access and affordability in critical needs sectors.(Indian social enterprise Landscape report)

  4. A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners“(G Giulia- 2002) Social enterprises” are a sub set of such activities in which commercial models are used as the vehicle by which social objects are achieved(Nicholls 2006b; Thompson 2008)

  5. Social innovation and social capital • Social innovation as “a novel solution to a social problem that is more effective, efficient, sustainable or just than existing solutions and for which the value created accrues primarily to society as a whole rather than private individuals.( Standford Innovation review-2012) “Social innovation is the process of developing and deploying effective solutions to challenging and often systemic social and environmental issues in support of social progress.(Soule, Malhotra, Clavier).

  6. Social Capital • Social Capital ,Networks together with shared norms, values and understandings that facilitate co-operation within or among groups.(OECD 2012) • Social capital ,those factors of effectively functioning social groups that include such things as interpersonal relationships, a shared sense of identity, a shared understanding, shared norms, shared values, trust, cooperation, and reciprocity

  7. Why social enterprises? • Most of the social enterprises in India are very young because 57% of SE are below five years old and according to survey there are 2 millions SE are currently operating in to different domains in India, 39% of Government policies relevant to SE and E among 26% policies framed by MSME and remaining by Ministry of Finance(National Skill Entrepreneurship Policy 2015). (British council report 2016).

  8. SE Statistics in India • Maharashtra, West India (16%) followed by Karnataka, South India (15%). Delhi and Telangana each accounted for 8% of the responses followed by Uttar Pradesh (7%), West Bengal (7%), Tamil Nadu (5%), Gujarat (5%), Bihar (4%), Odisha (4%), and Rajasthan (4%). The remaining 15% of the responses were spread across 12 states. • The social enterprises address many issues ( Creating Employment, Improving health, protecting environment, addressing social exclusion, supporting agriculture and allied activities, empowering women, promoting education and addressing Financial inclusion)

  9. 29.5% of India’s Population living below poverty line 33% of population without electricity in rural areas compared 6% in urban Areas, 16% of schools without functional girls toilet. 50 % employment in agriculture accounts only 14%of India GDP and 31% underweight children's under five years old, India is with 356 million young people also home to the world’s largest youth population. India receiving global global philanthropic money as per new companies act 2013 company spend nearly 2% of profit as CSR(SWISSNEX Report 2013) social enterprises also supporting to achieve sustainable development goals (Indian social enterprise Landscape study report 2018).

  10. Who promotes SE in India ? • Intellecap, Villgro, AshokaDeshpande Foundation Dasra, UnLtd, Shujog, Germany’s GIZ, the Asian Development Bank, the British Council, and Okapi have contributed significantly to the understanding and promoting of social enterprise in India these SE companies are registered as private limited companies, partnerships, and sole ventures. The above enterprises are supporting SE like access to funding, mentoring, conducting workshops and training, refining business models and Grassroots innovations, providing research support and Impact investment. The impact investors are provide fund in multi stages like Seed Funding(INR15 to l cr) Early stage funding(INR 1to 6.75cr) Growth stage Funding( above INR 6.75cr) year 2014 70% of impact investment in India concentrated on Micro finance and financial inclusions programmes. As per world Bank report(2015) The crowd funding and Philanthropy plays a vital role in booming of SE.

  11. How social enterprises differ from and NGO’s • NGO’s main funding is charity and donations ,its interests on alleviating immediate sufferings than deep social changes, redistributing income from have to have-nots, charity is not sustainable solution it just a donar funding like income redistribution • SE founded through business model, its improves social conditions, sustainable solutions, social entrepreneurship is not short-lived, social innovation.(Acs, Zoltan J.2010)

  12. Social enterprise ecosystem in India • Ecosystem includes Incubators, Accelerators, c0-working and Market- space, and policy makers. • As per Indian social enterprise landscape survey2018 majority of social enterprise ecosystem in India based on urban locations, mostly metros, to leverage better infrastructure, ease sourcing social enterprises, and provide access to other networks for funding and business development activities. However, with an increasing number of enterprises emerging from Tier II and Tier III cities and towns, enablers are expanding their services farther from the metros.

  13. According to NASSCOM report 190 active business incubators and accelerators in the country(90 established in academic institutions, 100 incorporate , government and private entities.) 40% located in Bengaluru and Mumabi, these incubators are adopted different models, the government also made many policies like Start-up India, Scheme to support MSME, Technolog Incubation and development of Entrepreneurs. Mahindra & Mahindra Financial Solutions funded SustainEarth (INR 2 million/€ 25,000) and FlyBird (INR 5 million/€ 62,500)

  14. Different domains of Social Enterprises

  15. SE in Agriculture Domain • Farmers in developing countries face tough challenges to their productivity, growth, and sustainability—including lack of access to affordable financial products, limited knowledge of high-quality inputs, low usage of technology and market data, and poor market links across the value chain. social enterprises are implementing innovative solutions in the agriculture sector to serve them. Social enterprises are defined as private for-profit, nonprofits, or hybrid organizations that use business methods to advance their social mission. In the case of agriculture, social enterprises often address a particular pain point in the value chain, with the intention that the cost of their services or products will be recuperated by the benefits and income gains that farmers will achieve.

  16. There are 230 agriculture social enterprises are operating India like, 31%-post harvest, 22%- Market linkages, 18%-cross-cutting, 15%-pre harvest, 11%-Harvest,3%- poultry and dairy sectors.(Ministry of Agriculture) • KrishiUnnatiYojana , National Agriculture market and state/ UT Agriculture Produce and Livestock marketing act, ParamparagatKrishiVikasYojana, Modified National Agricultural Insurance Scheme making policies in SE in AG sector.

  17. Social Enterprises and Incubators

  18. SE models in agriculture

  19. THANKS

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