Lecture on Social Entrepreneurship

Introduction

• Social entrepreneurship is often misunderstood and not easily defined.
• The focus is to transform the concept of social entrepreneurship into something tangible.

Story of Ashley

• The story illustrates the divide between the "haves" and "have-nots."
• Questions of benevolence vs. perpetuating inequality.
• Benevolence underpins charity and social development but may perpetuate inequality.

Current State in South Africa

• South Africa shows stark inequality between the rich and the poor.
• Economic indicators are strong, but social development indicators are weak.
• Economic growth cannot solely uplift social development.
• South Africa ranks poorly on the Human Development Index.

Counter to Benevolence: Profit

• Profit can be an equalizer in social development.
• Introducing profit shifts the relationship from benevolence to choice.

For-Profit vs. Not-For-Profit

• For-profit generates economic value while not-for-profit generates social value.
• Social entrepreneurship blurs the line between these two.

Understanding Social Entrepreneurship

• No clear definition as it spans a spectrum.
• Social entrepreneurs are seen as catalysts of change, not world changers.
• They are not driven by financial excess but balance social and economic rewards.
• Social entrepreneurs thrive in constrained environments, seeing opportunities where others see challenges.

Two Myths about Social Entrepreneurship

1. Myth: Social enterprises are small and survivalist.

   • Reality: They can be large, global organizations with significant budgets.

2. Myth: Social entrepreneurship is a new concept.

   • Reality: Has historical roots, e.g., Unilever's origins, 1790s Scottish clergy insurance.

Social Entrepreneurship in Different Cultures

• Examples include cooperatives and stockfells in South Africa.

Conclusion

• Not asking to stop charitable giving or consumer shopping.
• Encourages exploration of the middle ground in social entrepreneurship.
• Suggests recognizing social enterprises as formal organizations to foster change.

Final Consideration

• How can we foster social entrepreneurship to enhance social and economic development in South Africa?