Factors Affecting On The Social Entrepreneurship in Organization (Case Study)

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
AUGUST 2011
VOL 3, NO 4
Factors affecting on the social entrepreneurship in organization

(Case study)
Noor-Mohammad Yaghoobi
Islamic Azad University , Zahedan Branch , Zahedan , Iran
Esmaiel Tolue
Master of Public Administration, Iran.
Omolbanin Azadikhah
Islamic Azad University , Zahedan Branch , Zahedan , Iran
Abstract
Social entrepreneurship is one of the new fields that have been made in the field of
entrepreneurship. In fact, the aim of social entrepreneur is to identify social problems and
applying the principles of entrepreneurship through organize, create and manage a business
risk in order to achieve social change.
In this study were followed up to recognize influencing factors on the trend of social
entrepreneurship among the participants in entrepreneurship training in technical and
vocational organization of firouzabad city.
The research method in this research was descriptive- survey and tools for data gathering was
questionnaire. The studied statistical population were the trainees of technical and vocational
organization of firouzabad and among those, were selected the statistical sample of 123
people. For data analysis and review of the hypothesis was used spearman correlation
coefficient, kolomogorov-smirnov test and kruskal-wallis test. The results of this study
indicate that the three first hypothesizes are confirmed and the fourth hypothesis are rejected.
Ie, social skills of entrepreneur, confident of entrepreneur, social supporting of entrepreneurs
affect to the trend of social entrepreneurship. Also factors like age, gender and levels of
education no effect on the trend of social entrepreneurship.
Keywords: Social Entrepreneurship, Technical and vocational organization, entrepreneur
Introduction
While we have become into the twenty-first century that developed countries and developing
economies is alive again with cause life force. Nowadays participatory economics drawing on
the creativity and innovation is using continuously strategies and methods of efficiency to
take up entrepreneurship instead of traditional businesses. Glance at the status of the global
economy leads us to believe that entrepreneurship development and entrepreneurial culture
while combined with the culture, resources, abilities and preferences of local is the only way
to improve the disease of today's economy and prevent the deterioration of
tomorrow(Mahoshi, 2008: 2). The idea that different areas of entrepreneurship is the key
factor of development in different countries has been emphasized by prominent researchers
such as Schumpeter(1934), Stevenson and Jarrilo(1990)(Moghimi& Partner, 2008, 209).
Among different field of entrepreneurship, social entrepreneurship is a relatively new. Unlike
the economic entrepreneurship that will follow the creation of durable economic growth and
is often in ralated to survival and growth of a business organization; social entrepreneurship
pursue solve social problems besides the economic advantages(Alvord& others, 2001, 136).
The truth is that, today, the community and organization can have accelerative motion in
development way that with creation of the required fields, equip human resources to
entrepreneurship knowledge and skills and then they use this valuable capability to manage
COPY RIGHT 2011 Institute of Interdisciplinary Business Research
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and direct the other resources of the community and organizations in order to creation of
value and the development(Salgoghi, 2009, 58).
Technical and vocational training as entrepreneurial training plays an important role in
creation of human capital through training of skilled workers needed in the labor market in
different countries. These training in developing countries are not only responsible for
training the workforce needed by different sectors of the economy of these countries but by
creation of self-employment help to solve the problem of unemployment(Salimifar& Partner,
2005, 3). Also in Iran, One of the most important organizations that serves in the field of
entrepreneurship is technical and vocational organization that through providing the necessary
services and training plays an important role in the spread of entrepreneurship in society.
Expressing problem
Although, the term of productivity and entrepreneurship used for several hundred years, but
academic research in the field of productivity has started about the 40s and in field of
entrepreneurship has started early 70th century in US. These researchs was done afterwards
the changes in society and the social values and lead to changes in production, innovation and
creation of millions self-employed business(Mahoshi, 2008: 2).
On the other hand, the concept of social entrepreneurship is relatively new. In fact, social
entrepreneurs established organizations of innovation and do risky procedures that the mission
is social change and improve the target group rather than the pursuit of
profit(Weerawardena&Mort,2006:24). Technical and vocational organizations as one of the
centers of entrepreneurship in Iran is a long time that teach entrepreneurial skills with purpose
of raising empowerment entrepreneurs.
Now, according to the all told, the main question is "what factors can affect the trend of social
entrepreneurship among trainees in entrepreneurship courses at the technical and vocational
organization of Firouzabad city as one of the main centers of entrepreneurship in Iran?"
The necessity and importance of research
Undoubtedly, entrepreneurship has a direct impact on economic development and social of
communities. What a society participate further in entrepreneurial activities, achieve rather to
economic and social development. Modern society needs people who determined to achieve
success and those who able to transform dream to reality and have the spirit of independence
to explore new opportunities. If be considered the social and economic effects of
entrepreneurship will be clear role of professionals and graduates in respond to different needs
of community and community development
(Melito, 2001, 23). Unlike business
entrepreneurs, most of social entrepreneurs are supporting the efforts of each other. They are
skilled in analysis, forecasting, communication, empathy, supporting and mediate and are able
to organize and empower the wide range of different people(Sherrill, 2000: 25).Given that
most social institutions are face with low productivity and inefficiency and many
humanitarian activities have stayed away from government expectations and programs, It is
essential that entrepreneurs pay more attention to social issues(Talebyan, 2002, 12).
Considering the importance of social entrepreneurship in community development and this
that the technical and vocational organization is one of the main centers of entrepreneurship in
Iran, It is necessary to be a scientific research about factors affecting on social
entrepreneurship and hereby lead to expansion of this emerging phenomenon in society.
Theoretical background and literature research
the concept of social entrepreneurship is relatively new initiative that is used entrepreneurial
capacity for solving social problems(Alovard et.al, 2001, 136). This emerging phenomenon is
derived from human interaction and states benefits of social institutions with a picture of
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discipline, innovation and social dependence(Talebyan, 2002, 15). The concept of social
entrepreneurship means different things to different people and entrepreneurship. One group
of reasearchers refers to social entrepreneurship as not-for-profit initiatives in search of
alternative funding strategies, or management schemes to create social value. A second group
of entrepreneurship understand it as the socially responsible practice of commercial
businesses engaged in cross-sector partnerships. And a thirth group views social
entrepreneurship as a means to alleviate social problems and catalyze social
transformation(Mair & Marti, 2006, 37). Providing clarity Thompson(2002) identifies social
entrepreneurship as possibly occurring in profit seeking business that have some commitment
to doing good, in social enterprise set up for a social purpose but operating as businesses and
in the voluntary or nonprofit sector.However, he concludes the "main word of the social
entrepreneur is the voluntary[NFP] sector(Weerawardena&Mort,2006, 22).
Social entrepreneurship may be expressed in vast array of economics, educational, research
and welfare, social and spiritual activities engaged in by various organizations. Given the
wide scope of activities, researchers have attempted to conceotualize the social
entrepreneurship construct in a number of context, including public sector, community
organizations, social action organizations and charities. However, the majority of literature on
social entrepreneurship has evolved within the domain of non-for-profit organizations(the
same, 22).
Features and elements of social entrepreneurship
A number of authors emphasis on non-profit nature of the social entrepreneurship activities as
a unique feature. However, social entrepreneurship can well be par with a profit activity. For
this reason that is determined establishing of a activity by social needs, the amount of required
resources, return of capital and ability of economic investment(Mair & Marti, 2006, 39).
Other features social entrepreneurship including excessive thinking and seeing opportunities
where others do not see; risk taking and encourage the judgments and reasoning; decoding
problem; creation of practical prospect by ideas that will improve people's lives; rotating work
hours(flexible) and willing to the aim of social(Talebyan, 2002, 35).
Social entrepreneurship is made up of six components. These elements include:

1 - Agents of change in the social sector: social entrepreneurs are development-oriented and
reformer with a social mission. They made fundamental changes in the social sector with
things to do. Their perspective is bold and emphasize to basic principles and problems
2 - Mission admission to create and sustain social value: for social entrepreneurs, social
mission is fundamental, creation of wealth and response to the desires of their customers are
part of their activities. However, these factor are a tool for achieving social goals
3 identify and encourage new opportunities: social entrepreneurs are oriented toward
understanding the social needs. When they encountered an obstacle, do more activities.
4 - Using a continuous process of innovation, adaptation and learning: entrepreneurs are
innovative and creative. They are pioneering to develop new models and works.
5 - Seriously and without fear act by available resources: They use the scarce resources
efficiently and provide its limited resources through synergies with its partners and others.
They are searching all the resources with the humanitarian nature for their business.
6 Provide an sense of accountability to the institutions and the resulting consequences:
Since market discipline automatically clear the social risks of non-efficient, social
entrepreneurs are taking steps to ensure that they are creating value. They ensure that
accurately identify people's needs and values. They intend to serve their communities with
things to do (the same, 35-36).
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Gucla&others(2002) presented the process of social entrepreneurship in the model consists of

two stages. First, a social entrepreneur generate a promising idea. Second, the social
entrepreneur attemps to develop that idea into an attractive opportunity.its natural to think of
the generation step as an act of pure creativity and the development step as purly analytic and
logical. However, both steps combine inspiration, insight and imagination with research, logic
and analysis(Guclu&others, 2002,1-2).
Figure 1: The Opportunity Creation Process
Change
Operating
Environment
Social Needs
Social impact
Theory
promising
ideas
Social Assets
Personal Experience
Step 1: Generating promising ideas
Social
Opportunity
Operatin
g Model
Resourse
Strategy
Bussiness Model
Step 2: Developing Promising Idea

into Attractive Opportunities
Theoretical framework for research

Variables related to the theoretical framework of this research formed through interview with
teachers and the number of active entrepreneurs and these variables identified based on their
opinions. The independent variables of the research are including social skills of entrepreneur,
confident of entrepreneur, social Supporting of entrepreneurs and the dependent variable is
the tendency to social entrepreneurship. The theoretical framework for research is Shown In
figure 2.
Figure 2: Theoretical framework for research
Social skills of entrepreneur
tendency to social entrepreneurship
Confident of entrepreneur
Social Supporting of entrepreneurs

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Research objectives
The main objective
Understanding the influencing factors on the trend of social entrepreneurship among the
participants at the entrepreneurship training in technical and vocational organization of
Firouzabad city is considered as the main objectives of research.
Secondary research objectives
In order to achieve the main objective is considered the following secondary objectives:
1. Understanding the impact of social skills of entrepreneur on tendency to social
entrepreneurship
2. Understanding the impact of confident of entrepreneur on tendency to social
entrepreneurship
3. Understanding the impact of social supporting of entrepreneurs on tendency to social
entrepreneurship
4. Understanding the impact of demographic factors (age, gender, education) of entrepreneurs
on tendency to social entrepreneurship
Research hypotheses
Hypotheses have been introduced based on the research objectives. there are as follows:
1. between social skills of entrepreneur and tendency to social entrepreneurship
is a significant relationship.
2. between confident of entrepreneur and tendency to social entrepreneurship
3. between social supporting of entrepreneurs and tendency to social entrepreneurship
4. between demographic factors(age, gender, education) and tendency to social
entrepreneurship is a significant relationship.
Methodology of research
The research method in this research was descriptive- survey; because the research variables
are described in the present and data gathering tool is questionnaire. To collect information
about the background and theoretical basis of research used the library studies and to collect
data to test hypotheses used the researcher made questionnaire with 14 questions that was
prepared based on the likert spectrum. expert options were used to assess the validity of
questionnaire. method of Krunbakh alpha coefficient was used to assess the reliability of
questionnaire and the amount obtained for the first, second and third hypothesis respectively
were 92%, 85% and 89% that is an acceptable level. For data analysis and review of the
hypothesis was used spearman correlation coefficient, kolomogorov-smirnov test and kruskalwallis test and by Using the software spss.
Statistical population and statistical sample
Statistical population as a whole group of individuals, events or things that the researcher
wants to engage in research about it(Sekaran, 2006, 294). Statistical population were 180
people and includes all the entrepreneurs engaged training in technical and vocational
organization of firouzabad city in different fields. From this statistical population, for
statistical sample, 123 persons with proportional random sampling method was selected and
studied.
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Research findings
In this research, men make up 64% of people studied statistical sample and women make up
36%. respondents in age range 20 -25 years had the highest frequency (57%) and 52% of
respondents were have diploma degree. based on spearman correlation coefficient test,
kolomogorov-smirnov test and kruskal-wallis test, research findings related to each of the
research hypothesis are as follows:
The contained information in table 2 show that in the three first hypothesis, significance level
is less than / 05. Therefore, null hypothesis of these three hypotheses are rejected and
alternative hypotheses are confirmed. Consequently, can be argued at the level of 95% is a
significant relationship between social skills of entrepreneur, confident of entrepreneur, social
supporting of entrepreneurs and tendency to social Entrepreneurship.
Table 1. The results of the spearman correlation coefficient test in the three first hypothesis
Number of
hypotheses
Null
hypothesis
Alternative
hypotheses
The first
hypothesis
Between
social skills
of
entrepreneur
and tendency
to social
entrepreneur
ship
Isnt a
significant
relationship.
Between
social skills
of
entrepreneur
and tendency
to social
entrepreneur
ship
Is a
significant
relationship.
The second
hypothesis
Between
confident of
entrepreneur
and tendency
to social
entrepreneur
ship
Isnt a
significant
relationship.
Between
confident of
entrepreneur
and tendency
to social
entrepreneur
ship
Is a
significant
relationship.
. Between
social
supporting
of
entrepreneur
s and
tendency to
social
entrepreneur
ship
Isnt a
significant
relationship
. Between
social
supporting
of
entrepreneur
s and
tendency to
social
entrepreneur
ship
Is a
significant
relationship
The third
hypothesis
Correlation
coefficient
test
Error level
Significant
level
Conclusion
of test
/387
/05
/016
Rejection of
null
hypothesis
/348
/445
/05
/05
/032
Rejection of
null
hypothesis
/005
Rejection of
null
hypothesis
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To investigate the fourth hypothesis(between demographic factors(age, gender, education)

and tendency to social entrepreneurship is a significant relationship) and in related to impact
of gender of entrepreneurs on tendency to social entrepreneurship was used kolomogorovsmirnov test and to investigate impact of age and education of entrepreneurs on tendency to
social entrepreneurship was used kruskal-wallis test. the results is shown in table 2, 3 and 4.
According to the table results, significance level of all three test is greater than the level of
error. Therefore, between demographic factors(age, gender, education) and tendency to social
entrepreneurship is not a significant relationship.
Table 2. Results of two-dimensional Kolmogorov-Smirnov test about the relationship between
gender and tendency to social entrepreneurship
Social
entrepreneurship
.249
.036
-.249
1.269
.080
Absolute
Most
Extreme
Positive
Differences
Negative
Kolmogorov-Smirnov Z
Asymp. Sig. (2-tailed)
Table 3. Results of kruskal-wallis test about the relationship between age and tendency to
social entrepreneurship
Social entrepreneurship
7.246
4
.123
Chi-Square
df
Asymp. Sig.
Table 4. Results of kruskal-wallis test about the relationship between education and tendency
to social entrepreneurship
social entrepreneurship
5.519
3
.138
Chi-Square
Df
Asymp. Sig.
Conclusion
The results of investigations and analysis of data reveals that the three first hypothesis was
confirmed and the fourth hypothesis was rejected. results of hypothesis has been investigated
in the following:
The first hypothesis:
The results of statistical analysis indicated that between social skills of entrepreneur and
tendency to social entrepreneurship is a significant relationship. Ie, any size social skills of
entrepreneur including pleasure of working with others, lack of concern for face with others,
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oratory skills to others, pleasure of talking with others be higher tendency to social
entrepreneurship is more.
The second hypothesis:
The results of statistical analysis indicated that between confident of entrepreneur and
tendency to social entrepreneurship is a significant relationship. Ie, any size confident of
entrepreneur including accepting responsibility for their work, do the right thing If others
disagree, accepting criticism, express opinions without fear of others, self-confidence and
imagination of self-respect be higher tendency to social entrepreneurship is more.
The third hypothesis
The results of statistical analysis indicated that between social supporting of entrepreneurs
and tendency to social entrepreneurship is a significant relationship. Ie, any size social
supporting of entrepreneurs(family support and government support) be higher tendency to
social entrepreneurship is more.
The fourth hypothesis
The results of statistical analysis indicated that between demographic factors(age, gender,
education) and tendency to social entrepreneurship is not a significant relationship. Ie, factors
including age, education level and gender of entrepreneurs does not impact on tendency to
social entrepreneurship.
According to the results of research and to enhance the willingness of individuals to social
entrepreneurship have been offered the following suggestions:
1.It is necessary to placed on the agenda of technical and vocational centers special training
programs, including training to increase confidence and improve social skills to take shape
in trainee other skills related to social entrepreneurship alongside of technical training .
2.It is necessary to support trainee family from entrepreneur in financial and spiritual
dimensions and this will be when be institutionalized people tend to social entrepreneurship
in society. Therefore. It is suggested to used cultural tools to promote a culture of
entrepreneurship in society.
3.It is necessary to the government will contribute in development of social entrepreneurship
in society, through direct and indirect support of entrepreneurs.
4.It is necessary to be done further research in relation to impact of other dimensions on
tendency to social entrepreneurship.
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References
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Guclu,j, Ayse&Dees, Gregory& Anderson Beth Battle(2002), center for the Advancement of
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Mahoshi, Afshin(2008), Impact of entrepreneurship in developing culture of productivity,
Proceedings of International conference on RD, ministry of industries and mines.
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Mair, Jojanna& Marti, Ignasi(2006), Social Entrepreneurship research: A sourse of
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Melito, Salazar(2001), ntroduction to Entrepreneurship, Translated by siamak nottagh,
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Moghimi, Mohammad & Pordariany, Ahmad(2008), Teaching of entrepreneurship in small
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693
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