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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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