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Social Entrepreneurship
Introduction
Masarykova Univerzita, Brno
October 6th, 2017
Martin Hölz, M.A. (modified by V. Hyánek)

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•Introducing
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•https://www.youtube.com/watch?v=shbcHtvqHus

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http://www.gartenbista.de/wp-content/uploads/2012/07/Fisch-Onkelchen-Fotoliaid14231759.jpg
•A new fish in the water?

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•.what is social entrepreneurship all about?

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•Working on and solving social problems…
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•… with innovative ideas. So is social entrepreneurship the research and development department of
society?
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•… with entreprenuerial, often market-based approaches: So does social entrepreneurship overcome
market failure?
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•… in many thematic fields: education, social services, care taking, environment, green energy,
economic development on a regional scale, fairtrade etc. So does one size fit all?
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The European Union´s point of view:
•...an operator in the social economy whose main objective is to have a social impact rather than
make a profit for their owners or shareholders.
It operates by providing goods and services for the market in an entrepreneurial and innovative
fashion and uses its profits primarily to achieve social objectives.
It is managed in an open and responsible manner and, in particular, involves employees, consumers
and stakeholders affected by its commercial activities.
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•https://ec.europa.eu/growth/sectors/social-economy_en
•https://ec.europa.eu/growth/sectors/social-economy/enterprises_en
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The Commission uses the term 'social enterprise' to cover the following types of business:
•Those for who the social or societal objective of the common good is the reason for the commercial
activity, often in the form of a high level of social innovation •Those whose profits are mainly
reinvested to achieve this social objective •Those where the method of organisation or the
ownership system reflects the enterprise's mission, using democratic or participatory principles or
focusing on social justice •There is no single legal form for social enterprises. Many social
enterprises operate in the form of social cooperatives, some registered as private companies
limited by guarantee, some are mutual, and a lot of them are non-profit-distributing organisations
like provident societies, associations, voluntary organisations, charities or foundations.
•

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Social enterprises mainly operate in  4 fields:
•Work integration - training and integration of people with disabilities and unemployed people
•Personal social services - health, well-being and medical care, professional training, education,
health services, childcare services, services for elderly people, or aid for disadvantaged people
•Local development of disadvantaged areas - social enterprises in remote rural areas, neighbourhood
development/rehabilitation schemes in urban areas, development aid and development cooperation with
third countries •Other - including recycling, environmental protection, sports, arts, culture or
historical preservation, science, research and innovation, consumer protection and amateur sports
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The European Union´s point of view:
•What is Social Enterprise?
•https://www.youtube.com/watch?v=5PKBL4C4TJQ
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Thus to SE belong:
· businesses providing social services and/or goods and services to vulnerable persons (access to
housing, health care, assistance for elderly or disabled persons, inclusion of vulnerable groups,
child care, access to employment and training, dependency management, etc.); and/or
· businesses with a method of production of goods or services with a social objective (social and
professional integration via access to employment for people disadvantaged in particular by
insufficient qualifications or social or professional problems leading to exclusion and
marginalisation) but whose activity may be outside the realm of the provision of social goods or
services.

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Market? State? Civil Society?
Market
Family/ Community
NGO’s
NPO’s
Informal
networks
CIVIL SOCIETY
State
Social Entrepreneur
Organization
(social economy)
•Social Entrepreneurs as hybrids that combine several institutional logics

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Market? State? Civil Society?
(Quelle: Alter 2004)
Civil Society     Market

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Stability… tability
•…the social economy has emerged from the economic and financial crisis largely unscathed. Today,
the sector provides paid employment to 6.3% of the working population in the EU-28, compared to
6.5% in 2012…
• http://www.ciriec.ulg.ac.be/wp-content/uploads/2017/10/RecentEvolutionsSEinEU_Study2017.pdf
•

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a …& broader context much broader context
•…activities undertaken by Social Economy entities have a much broader context, namely the building
of both participatory democracy and social capital. This applies in a special way to the Member
States, which have joined the EU since 2004. Most of them were until 1989/1990 socialist countries
under the domination of the Soviet Union with non-existing or very limited activities by civil
society. •…while the paid employment rate in the social economy is 6.3% in the EU as a whole, the
same rate in the "new" Member States amounts to an average of 2.5%
•
•http://www.ciriec.ulg.ac.be/wp-content/uploads/2017/10/RecentEvolutionsSEinEU_Study2017.pdf

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.overlapping semantics
•Social entrepreneur
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Social entrepreneurship
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Social entrepreneurship organization
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Social Entrepreneurs – some examples
•A list to distinguished social entrepreneurs:
•Germany: http://germany.ashoka.org/fellows
•International: https://www.ashoka.org/fellows ; http://www.schwabfound.org/entrepreneurs
•15 Social Entrepreneurs and Their Crazy Ideas https://www.youtube.com/watch?v=nlXKcpgPP6M
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Muhammad Yunus
Quelle: moralheroes.org
Muhammad Yunus
Grameen
Andreas Heinecke_color-copyright maxlautenschlaeger
Quelle: entrepreneurship.de
 Anderas Heinecke Dialog im Dunkeln
Katja Urbatsch
Quelle: arbeiterkind.de
Katja Urbatsch
Arbeiterkind.de

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… and some „unknown“ examples:
AWO-Logo Bild in Originalgröße anzeigen Diakonie Deutschland
•Entrepreneurial ideas and incentives in the social service sector, by municipalities, by
cooperatives:
•à Bias in the media: only few social entrepreneurs with a high „glamour“ are in the focus

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An elite phenomena?
(Quelle: MEFOSE Studie (Jansen et al. 2013), Grafik erschienen in Enorm, Wirtschaft für den
Menschen)

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versteinerter Fisch, Dastilbe elongatus
•.new or fossils?
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Quelle: www.fossilien.de

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Robert Owen,
1771-1858; entrepreneur and co-founder of cooperative system
Friedrich Wilhelm Raiffeisen 1818 - 1888; official, micro credit, cooperative bank system
Florence Nightingale,
1820 - 1910; nurse, founder of modern nursing
Maria Montessori,
1870 - 1952; physician, founder of Montessori educational institutions
Social Entrepreneurs are not a new phenomenon
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•How does it work?
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http://images.mtvnn.com/527e9476006efc2d0bff58447547522b/622x350%3E
© national geopgrahic

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Verbavoice (München)
Direct SE approach of value creation
VerbaVoice
Field of activity:
services for hearing-impaired people
Approach:
providing mobile, ICT-based interpreters services that allows hearing-impaired to participate in
society (education, events, public authorities, media)
Income structure:
service fees via public social service systems; growth capital from impact investment fund
Legal form:
limited liability company (GmbH)
Bildungskongress in Wien mit Live-Text Studentin mit VerbaVoice App
Case Studies

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Case Studies
Home
Dialogue in the Dark / Dialogue Social Enterprise
Direct-indirect SE approach of value creation
Field of activity:
Work integration for visually-impaired people; awareness enhancement
Approach:
Visually impaired people serve as guides or coaches in public exhibitions and team building and
leadership workshops in the dark; international franchise system
Income structure:
service fees, consultancy fees for franchisees, license payments, donations
Legal form:
limited liability company, association
http://www.dialog-im-dunkeln.de/NEW2011/wp-content/startpics/50.jpg

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Case Studies
Regionalwert AG
Indirect SE approach of value creation
Field of activity:
Regional agricultural / economic development
Approach:
Local shareholders invest in fund; fund facilitates local value chains by buying and leasing farms
and related businesses and emphasize social and ecological production conditions
Income structure:
Rents, equity interest
Legal form:
public company / stock corporation
Logo Regionalwert AG

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Resources
•à Hybrid financing (revenues, grants, subsidies, etc.)
•à Varies over time
Volunteering and volunteers are
often mobilized        ß
Only seldom SE resolves market failure
(Quelle: MEFOSE Studie (Jansen et al. 2013), Grafik erschienen in Enorm, Wirtschaft für den
Menschen)

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Resources
•Optional:
•5 Keys to Success For Social Entrepreneurs: Lluis Pareras at TEDxBarcelonaChange
•https://www.youtube.com/watch?v=Pl8c5ooHfWs
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http://www.klassewasser.de/content/language1/img_636/wasserwissen-biologie-oekosysteme-visual-koral
lenriff.jpg
•…and the environment
Quelle: www.klassewasser.de

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Eco system - promotion agencies
ASHOKA.png Schwab Logo.png Schwab.jpg SKOLL II.jpg

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Eco system – social spaces
•Networking and support: hubs, labs, moocs, etc.
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http://ec.europa.eu/internal_market/social_business/docs/conference/agenda.jpg

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Eco system – financial support
•Financing: Social Investemt Funds, Foundations, Fellowship Programmes
• - adapted to specific needs (e.g. duration until break even, due to innovation
costs, etc. )
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Startseite Logo Regionalwert AG

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Eco system – education and research
•Education: universities, private or non-profit institutes
(from student to executive level)
Social Entrepreneurship Akademie Soziales Unternehmertum

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Eco system – politics and policies
•Policy:
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•EU Level: http://ec.europa.eu/internal_market/social_business/index_de.htm
• Single Market Act – Social Business Initiative
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•National Level: http://www.bmwi.de/DE/Mediathek/publikationen,did=714908.html
• Engagement Strategy of National German Government
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•à The potential of social entrepreneurs and social entrepreneurship as model of solving problems
is recognized [over-estimated?]

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http://www.simfisch.de/wp-content/uploads/2013/08/vmc-haken.jpg
•…where is the catch?
Quelle: www.simfisch.de

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Problems
•What does „social“ mean? à is subject to societal negotiation processes
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•Impact and scaling: How influential are social entrepreneurship organizations in huge social
service markets? How is it possible for good approaches to be spread?
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•Trade offs between social and economic goals: where do they emerge / how are they tackled and
solved?

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Selection of problems
(financing, surroundings, organizational development)
•High local rooting with complex stakeholder structures: How is it possible to replicate / transfer
this into different contexts?
•Lack of qualified staff and professionals: specific demands for and in social entrepreneurship
organizations, low salaries, entrepreneurial risk
•Status Quo preference and competitive thinking: established actors in administration and welfare
state organizations might be reluctant towards / avoid change
•Organizational development and quality cntrol: Are good innovators / social entrepreneurs good
managers, too?
•A question of scaling: Yes? No? If yes, who is responsible?
•

Kurze verbale Ausführungen zu den einzelnen Punkten inc Beispiele – ggfs auch unterscheidung
zwischen SE und SI

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Problems of financing
•Structural barriers of connectivity to public funding and social security systems, as social
entrepreneurs act across sector boundaries and often support preventive work
•Limited offers on the free capital market barrier for non-profit organizations
•Lack of broad share or competition among impact investors
•Buereaucratic barriers regarding applications, reporting and monitoring
•„Fear of contact“  between social and economic sector

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Symbolbild: Fischschwarm, bald eine Seltenheit?
. further readings
Quelle: www.stohl.de

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•Alter, K. (2004). Social enterprise typology. Virtue Venures (Vol. 2004). Virtue Ventures LLC.
http://rinovations.edublogs.org/files/2008/07/setypology.pdf
•Achleiter, A.K. & Spiess-Knafl, W. (2010). Social Entrepreneurship. Eine Einführung für Studenten.
TU München,
http://socent.e-learning.imb-uni-augsburg.de/files/Social%20Entrepreneurship.%20Eine%20Einf%C3%BChr
ung.pdf
•Hackenberg, Helga, Empter, Stefan (Hrsg.). (2011). Social Entrepreneurship - Social Business: Für
die Gesellschaft unternehmen. Wiesbaden: Springer VS
•Jansen, Stephan A, Heinze, Rolf G., Beckmann, Markus (Hrsg.) (2013). Sozialunternehmen in
Deutschland - Analysen, Trends und Handlungsempfehlungen. Wiesbaden: Springer VS
•Kopf, Hartmut, Müller, Susan, Rüede, Dmonik, Lurtz, Kathrin, Russo, Peter (2015). Soziale
Innovationen in Deutschland. Wiesbaden: Springer VS
•Nicholls, A., & Murdock, A. (2011). Social Innovation: Blurring Boundaries to Reconfigure Markets.
(A. Nicholls & A. Murdock, Eds.). Hampshire, UK & New York: Macmillan.
•Mair, J., Robinson, J., & Hockerts, K. (2006). Social Entrepreneurship. (J. Mair, J. Robinson, &
K. Hockerts, Eds.). Basingstoke: Palgrave Macmillan.
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