Entrepreneurship Assignment 1 Social Entrepreneurship

Prepared By: Rohit Joshi EX-PGDM 2012-13 Roll no - 08 PRN No:12020468008

Abstract
This paper attempts to study the concept of Entrepreneurship along with the various types of Social Entrepreneurs & the businesses that they undertake. It touches the shifting contours of Entrepreneurship in the 21st century. The paper also tries to study the various characteristics associated with todays social entrepreneurs, which form an essential part of the development of society at large.

Table of Contents
Srno . 1 2 3 4 5 Topic What is Entrepreneurship Who is an Entrepreneur Characteristics of Social Entrepreneur Types of Social Entrepreneurs Successful Examples Social Entrepreneurship

What is Entrepreneurship?
Entrepreneurship comes from the French verb 'entreprendre' which means 'To undertake'. It is the art of being an entrepreneur or one who undertakes innovations or introducing new things, finance and business acumen in an effort to transform innovations into economic goods. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is related to describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations. Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. Angel investors generally seek annualized returns of 20-30% and more, as well as extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies, business incubators, science parks, and some NGOs. In more recent times, the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship have emerged.

Who is an Entrepreneur?
The term Entrepreneur is commonly used to describe an individual who organizes and operates a business or businesses, taking on financial risk to do so. The term was first defined by the IrishFrench economist Richard Cantillon as the person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while

consequently admitting the risk of enterprise. The term first appeared in the French Dictionary "Dictionnaire Universel de Commerce" of Jacques des Bruslons published in 1723.Jacques des Bruslons published in 1723. The ability of entrepreneurs to innovate is thought to relate to innate traits such as extroversion and a proclivity for risk-taking. According to Schumpeter, the capabilities of innovating, introducing new technologies, increasing efficiency and productivity, or generating new products or services, are characteristic qualities of entrepreneurs. Entrepreneurs are catalysts for economic change, and researchers argue that entrepreneurs are highly creative individuals with a tendency to imagine new solutions by finding opportunities for profit or reward. Largely due to the influence of Schumpeter's heroic conceptions of entrepreneurs, it is widely maintained that entrepreneurs are unusual individuals. In line with this view, there is an emerging research tradition investigating the genetic factors that are perceived to make entrepreneurs so distinctive. However, there are also critical perspectives that attribute these research attitudes to oversimplified methodological and/or philosophical assumptions (Gartner, 2001). For example, it has been argued that entrepreneurs are not that distinctive, but that it is in essence unrealistic preconceptions about "non-entrepreneurs" that maintain laudatory portraits of "entrepreneurs".

Characteristics of a Social Entrepreneur

1. Disciplined These individuals are focused on making their businesses work, and eliminate any hindrances or distractions to their goals. They have overarching strategies and outline the tactics to accomplish them. Successful entrepreneurs are disciplined enough to take steps every day toward the achievement of their objectives. 2. Confidence The entrepreneur does not ask questions about whether they can succeed or whether they are worthy of success. They are confident with the knowledge that they will make their businesses succeed. They exude that confidence in everything they do.

3. Open Minded Entrepreneurs realize that every event and situation is a business opportunity. Ideas are constantly being generated about workflows and efficiency, people skills and potential new businesses. They have the ability to look at everything around them and focus it toward their goals.

4. Self Starter Entrepreneurs know that if something needs to be done, they should start it themselves. They set the parameters and make sure that projects follow that path. They are proactive, not waiting for someone to give them permission. 5. Competitive Many companies are formed because an entrepreneur knows that they can do a job better than another. They need to win at the sports they play and need to win at the businesses that they create. An entrepreneur will highlight their own companys track record of success. 6. Creativity One facet of creativity is being able to make connections between seemingly unrelated events or situations. Entrepreneurs often come up with solutions which are the synthesis of other items. They will repurpose products to market them to new industries. 7. Determination Entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for success. They are determined to make all of their endeavors succeed, so will try and try again until it does. Successful entrepreneurs do not believe that something cannot be done. 8. Strong people skills The entrepreneur has strong communication skills to sell the product and motivate employees. Most successful entrepreneurs know how to motivate their employees so the business grows overall. They are

very good at highlighting the benefits of any situation and coaching others to their success. 9. Strong work ethic The successful entrepreneur will often be the first person to arrive at the office and the last one to leave. They will come in on their days off to make sure that an outcome meets their expectations. Their mind is constantly on their work, whether they are in or out of the workplace.

10. Passion Passion is the most important trait of the successful entrepreneur. They genuinely love their work. They are willing to put in those extra hours to make the business succeed because there is a joy their business gives which goes beyond the money. The successful entrepreneur will always be reading and researching ways to make the business better.

Types of Social Entrepreneurs

Entrepreneurship is the best form of making money, especially for people with a business mind. There are several types of entrepreneurs and each and every one of them has their good traits and their bad traits. There are several types of entrepreneurs as outlined below: A. Based on functional characteristics o Innovative entrepreneur: Such entrepreneurs introduce new goods or new methods of production or discover new markets or reorganize the enterprise. EX: new product, new ways of product, new markets and reorganize the enterprise. o Imitative or adoptive entrepreneur: Such entrepreneurs dont innovate; they copy technology or technique of others. o Fabian entrepreneur: Such entrepreneur display grates situation and skepticism in experimenting with any change in

their enterprise. They change only when there is a serious threat to the very existence of the enterprise. o Drone entrepreneurs: Such entrepreneurs are characterized by a diehard conservatism and may even be prepared to suffer the losses. B. Based on development angle o Prime mover: This entrepreneur sets in motion a powerful sequence of development expansion and diversification of business. o Manager: Such an entrepreneur doesnt initiate expansion and its content in just staying in business. o Minor innovator: This entrepreneur contributes to economic progress by finding better use for existing resources. EX: minimum wastage maximum production. o Satellite: This entrepreneur assumes a suppliers role and slowly move towards a productive enterprise. o Local trading: Such entrepreneur limits his enterprise to the local market.

C. Based on personality traits

o The improver: They have unwavering to run these businesses with high integrity and ethics. o The advisor: Customer is right and we must do everything to please him because company is built by advisors and advisors become customer focused. o The superstar: All depends upon the charisma and on the high energy of the superstar CEO.

o The artists: Are highly creative type, very conscious about business. If feedback is constructive i.e. positive than also lets go with negative self-image. o The visionary: Too focused on dreams with little focused on reality. o The analyst: More focused on fixing problems in a systematic way. o The fireball: A business owned and operated by a fireball is full of life, energy and optimism. They have A get it done attitude in a playful manner. o The Hero: Have an incredible will and ability to lead the world and your business through challenges. o The healer: They provide nurturing harmony to their business, they have uncanny abilities to survive and persists inner calm. o The Opportunistic: take advantage of opportunities as they occur.

Successful Examples Social Entrepreneurship

Below are some examples of social entrepreneurs and social enterprises that have been successful in creating social change through commercial initiatives. Through persistence and boundless dedication, these individuals and organizations have proven that there is profit in integrating social patronage with your business goals. 1) SEKEM With a name that essentially means vitality from the sun, this Egyptian company has certainly lived up to its promise by continuously encouraging social, personal and environmental development. Since SEKEM was founded in 1977 by Dr. Ibrahim Abouleish, a pharmacologist, it has: Produced medicinal, herbal, gastronomical and aesthetically focused products that serve the needs of its customers Improved the environment through biodynamic farms

Built an educational establishment for children to emphasize creativity and analytical thought Instituted a healthcare center devoted to holistic medicine 2) Amul Founded in 1946, Amul was established initially as a reaction to unfair milk trade practices in India, inspiring local and marginalized farmers to form cooperatives independent from trade cartels. With the notable help of Tribhuvandas Patel and Verghese Kurien, the Amul cooperative model became so successful that it was eventually replicated all over India in 1965. Amul has since: Produced excellent value for money food products for customers Created a lucrative source of income for local dairy farmers in India 3) Fifteen Founded by English celebrity chef Jamie Oliver in 2002, Fifteen started out as an ambitious effort to offer disadvantaged youths (aged 18-24) a means of creating better futures for themselves through the art of good food. The restaurant initiative was named for the 15 young people who originally entered apprenticeships under this program. Since the first establishment opened, Fifteen has: Delivered delicious Italian food to patrons and opened two other restaurants in Amsterdam and Cornwall Trained 220 young locals in the art of cooking and hospitality and inspired many of its graduates to pursue successful careers in the restaurant business Reinforced the value of local produce and cooking techniques 4) Jaipur Rugs Starting out in Jaipur, India and currently operating from Atlanta, Georgia, Jaipur Rugs is a primarily focused on producing high-quality and socially responsible floor coverings. Founded by NK Chaudhary in 1978, this company elevated the art of knotted carpet weaving by nurturing it at the grassroots level and empowering local artisans by directly connecting them to the global market. Thus far, Jaipur Rugs has: Produced breathtaking, discerning customers well-crafted handmade rugs for

Continued to connect gifted rug makers to consumers Sponsored health, literacy, vocational, legal, financial and entrepreneurial initiatives to inspire progress in communities where their artisans work and live