Social entrepreneurship: concepts, models, and impact

Social Entrepreneurship

The social value proposition of the Social Entrepreneurship Corps (SEC) is to enable communities by providing them with the means to improve in terms of their economy and quality of life. The key theory of change is that intelligent development assistance will provide people with the means to overcome the obstacles that stand in the way of their development. The SEC has identified that communities often receive relief assistance but that true change is substantively different. The mechanism of change they propose is to bring outside knowledge to help the community find a new equilibrium. At SEC, they define this equilibrium as having revolutionized ways of doing things, shepherding the community through an evolutionary leap, rather than making incremental changes.

To achieve these ends, the SEC marshals student volunteers for the bulk of their labor. They derive logistical support from a host NGO, Community Enterprise Solutions and are partnered with a number of universities to provide the labor pool. The SEC does not have a balanced budget. It derives income from donations, but also from a share of profits derived from the entrepreneurship activities of its programs. As yet, however, it still relies on donations to survive. The portfolio can be improved mainly through continued development of entrepreneurial activities. These represent an earned income activity. They not only help finance the organization but they also are the core business - the money comes from profits earned in the local businesses that SEC volunteers have helped to start.

The SEC is likely to face a budget crunch. The present economic situation is likely to result in a decrease in donations. Already, they are expecting to contract their budget in 2009. Cost reductions are the only real solution that can be enacted in the short run. The key strength of the organization is the skill of its principles, which have been leveraged to deliver genuine solutions and secure a supply of volunteer Western labor. This organization is an example of social enterprise because it moves beyond mere aid and works to create entrepreneurship that will spur social and economic development within the community.

The Robin Hood Foundation has the mission to be a more efficient charity. They believe that the limited pool of charitable donations can work more efficiently, and thereby bring more benefit to the recipients. The main mechanism of change is professional assistance - Robin Hood brings more than money to the table, they corral the skills of corporate partners to donate professional assistance to projects that would without it be less effective. In doing this, Robin Hood seeks to fight poverty by pulling people out of it. Their corporate partners donate time and skills in order to provide the management assistance that many charitable projects lack. Robin Hood also acts as a fundraising arm, securing donations from corporate backers.