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1、TheMeaningof“SocialEntrepreneurship”J.GregyDees1EntrepreneurinResidenceKauffmanCenterfEntrepreneurialLeadershipEwingMarionKauffmanFoundationMiriamPeterHaasCentennialProfessinPublicServiceGraduateSchoolofBusinessStanfdUni

2、versityOctober311998Theideaof“socialentrepreneurship”hasstruckaresponsivecd.Itisaphrasewellsuitedtoourtimes.Itcombinesthepassionofasocialmissionwithanimageofbusinesslikedisciplineinnovationdeterminationcommonlyassociated

3、withfinstancethehightechpioneersofSiliconValley.Thetimeiscertainlyripefentrepreneurialapproachestosocialproblems.Manygovernmentalphilanthropicefftshavefallenfarshtofourexpectations.Majsocialsectinstitutionsareoftenviewed

4、asinefficientineffectiveunresponsive.Socialentrepreneursareneededtodevelopnewmodelsfanewcentury.Thelanguageofsocialentrepreneurshipmaybenewbutthephenomenonisnot.Wehavealwayshadsocialentrepreneursevenifwedidnotcallthemtha

5、t.Theyiginallybuiltmanyoftheinstitutionswenowtakefgranted.Howeverthenewnameisimptantinthatitimpliesablurringofsectboundaries.Inadditiontoinnovativenotfprofitventuressocialentrepreneurshipcanincludesocialpurposebusinessve

6、nturessuchasfprofitcommunitydevelopmentbankshybridganizationsmixingnotfprofitfprofitelementssuchashomelesssheltersthatstartbusinessestotrainemploytheirresidents.Thenewlanguagehelpstobroadentheplayingfield.Socialentrepren

7、eurslookfthemosteffectivemethodsofservingtheirsocialmissions.Thoughtheconceptof“socialentrepreneurship”isgainingpopularityitmeansdifferentthingstodifferentpeople.Thiscanbeconfusing.Manyassociatesocialentrepreneurshipexcl

8、usivelywithnotfprofitganizationsstartingfprofitearnedincomeventures.Othersuseittodescribeanyonewhostartsanotfprofitganization.Stillothersuseittorefertobusinessownerswhointegratesocialresponsibilityintotheiroperations.Wha

9、tdoes“socialentrepreneurship”reallymeanWhatdoesittaketobeasocialentrepreneurToanswerthesequestionsweshouldstartbylookingintotherootsoftheterm“entrepreneur.”iginsoftheWd“Entrepreneur”Incommonparlancebeinganentrepreneurisa

10、ssociatedwithstartingabusinessbutthisisaverylooseapplicationofatermthathasarichhistyamuchmesignificantmeaning.Theterm“entrepreneur”iginatedinFrencheconomicsasearlyasthe17th18thcenturies.1TheKauffmanCenterfEntrepreneurial

11、Leadershipprovidedthefundingfthispaper.ThispaperhasbenefitedtremendouslyfromcommentssuggestionsbythemembersoftheSocialEntrepreneurshipFundersWkingGroupparticularlySuzanneAisenbergMganBinswangerJedEmersonJimPitofskyTomRei

12、sSteveRoling.Howeverthisisstilladraft.Thedefinitionproposedherehasnotbeenfmallyadoptedbythegroup(yet)shouldnotbeunderstoodasrepresentingtheviewsofthegroupanyofthenamedindividuals.InFrenchitmeanssomeonewho“undertakes”nota

13、n“undertaker”inthesenseofafuneraldirectbutsomeonewhoundertakesasignificantprojectactivity.Mespecificallyitcametobeusedtoidentifytheventuresomeindividualswhostimulatedeconomicprogressbyfindingnewbetterwaysofdoingthings.Th

14、eFrencheconomistmostcommonlycreditedwithgivingthetermthisparticularmeaningisJeanBaptisteSay.Writingaroundtheturnofthe19thcenturySayputitthisway“Theentrepreneurshiftseconomicresourcesoutofanareaoflowerintoanareaofhigherpr

15、oductivitygreateryield.”Entrepreneurscreatevalue.Inthe20thcenturytheeconomistmostcloselyassociatedwiththetermwasJosephSchumpeter.Hedescribedentrepreneursastheinnovatswhodrivethe“creativedestructive”processofcapitalism.In

16、hiswds“thefunctionofentrepreneursistorefmrevolutionizethepatternofproduction.”Theycandothisinmanyways:“byexploitinganinventionmegenerallyanuntriedtechnologicalpossibilityfproducinganewcommodityproducinganoldoneinanewwayb

17、yopeningupanewsourceofsupplyofmaterialsanewoutletfproductsbyreganizinganindustrysoon.”Schumpeter’sentrepreneursarethechangeagentsintheeconomy.Byservingnewmarketscreatingnewwaysofdoingthingstheymovetheeconomyfward.Itistru

18、ethatmanyoftheentrepreneursthatSaySchumpeterhaveinmindservetheirfunctionbystartingnewprofitseekingbusinessventuresbutstartingabusinessisnottheessenceofentrepreneurship.Thoughothereconomistsmayhaveusedthetermwithvariousnu

19、ancestheSaySchumpetertraditionthatidentifiesentrepreneursasthecatalystsinnovatsbehindeconomicprogresshasservedasthefoundationfthecontemparyuseofthisconcept.CurrentTheiesofEntrepreneurshipContemparywritersinmanagementbusi

20、nesshavepresentedawiderangeoftheiesofentrepreneurship.ManyoftheleadingthinkersremaintruetotheSaySchumpetertraditionwhileofferingvariationsonthetheme.FinstanceinhisattempttogetatwhatisspecialaboutentrepreneursPeterDrucker

21、startswithSay’sdefinitionbutamplifiesittofocusonopptunity.Druckerdoesnotrequireentrepreneurstocausechangebutseesthemasexploitingtheopptunitiesthatchange(intechnologyconsumerpreferencessocialnmsetc.)creates.Hesays“thisdef

22、inesentrepreneurentrepreneurship—theentrepreneuralwayssearchesfchangerespondstoitexploitsitasanopptunity.”Thenotionof“opptunity”hascometobecentraltomanycurrentdefinitionsofentrepreneurship.Itisthewaytoday’smanagementthei

23、stscaptureSay’snotionofshiftingresourcestoareasofhigheryield.Anopptunitypresumablymeansanopptunitytocreatevalueinthisway.Entrepreneurshaveamindsetthatseesthepossibilitiesratherthantheproblemscreatedbychange.FDruckerstart

24、ingabusinessisneithernecessarynsufficientfentrepreneurship.Heexplicitlycommentsthat“noteverynewsmallbusinessisentrepreneurialrepresentsentrepreneurship.”Hecitestheexampleofa“husbwifewhoopenanotherdelicatessensteanotherMe

25、xicanrestaurantintheAmericansuburb”asacaseinpoint.Thereisnothingespeciallyinnovativechangeientedinthis.Thesamewouldbetrueofnewnotfprofitganizations.Noteverynewganizationwouldbeentrepreneurial.Druckeralsomakesitclearthate

26、ntrepreneurshipdoesnotrequireaprofitmotive.EarlyinhisbookonInnovationEntrepreneurshipDruckerasserts“NobettertextfaHistyofEntrepreneurshipcouldbefoundthanthecreationofthemodernuniversityespeciallythemodernAmericanuniversi

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