The Key Issues Facing Social Entrepreneurship Commerce Essay

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The Social Entrepreneur points out trends and brings innovative solutions to social and environmental problems, either by seeing a problem that is still not recognized by society and / or view it through a different perspective. Through their actions, it accelerates the process of change and inspires others to engage stakeholders around a common cause. Social entrepreneurs are individuals with innovative solutions to society's most pressing problems. They are very strongly committed and persistent, tackling the major social issues and offering new ideas for large-scale change.

Rather than leaving societal needs only to government or private enterprise, social entrepreneurs identify what is not working and seek to put into action solutions to the structural and systemic problems of society. In addition, undertake to disseminate these new solutions and to persuade all of society to take these new steps as well.

Social entrepreneurs often seem to be possessed by their ideas, dedicating their lives to change society. They can be visionary and realistic at the same time, concerned with the practical application of their vision above all.

According to Kanter , B. (2010) to defend each to Have a successful social organization must seek the rapid pace of change, in addition to present an agile structure to Be Able to operate in a globalized environment. To Become International, an organization must maintain a good social leadership, finances and Market Strategy, like any company. Furthermore, an organization needs a structure and culture with respect to extension of the market and seeking to serve society.

According to Wickham P. (2007) states that the growth of business and essential for entrepreneurial success. There are four perspectives of growth and development ventures, such as: financial growth, strategic-, structural and organizational.

There are many factors that are key to the growth of a social organization such as cash flow, the leadership and international expansion are the main facts faced in corporate social growth. There are also other problems that affect social organizations, such as technological change, which from the beginning of the century has challenged entrepreneurs to seek innovation and international growth of social enterprises.

The main factor of success of a venture entrepreneurs and leadership, the leadership and key to the success and development of a company. In addition to leadership, culture, cash flow, finance, international issues and other risk factors are keys to growth and development of a business. A social initiatives proposed are no different from an investment of a normal business, for profit, social entrepreneurship has the same characteristics and the same key factors of a regular business, but has its ultimate goal to serve society.

To maintain a strong position for growth and development, you need to understand that a social entrepreneurship or regular Organisation receives explicit or implicit acceptance of groups that are affected by its existence, in other words, results that pertain to leadership whether positive or negatives are tied to acceptance of people who relate to her. So that we can deploy, develop, conduct and manage effective leadership is needed to understand the same, since we have as a guideline, a leader, which will lead the other components of the organization, to succumb to the expectations previously exposed to them in order the goal, or target specific learning within a social entrepreneurship.

Entrepreneurial Characteristics

According to Gerber, M. (1996), the entrepreneur is the innovator, the great strategist, creator of new methods to penetrate or create new markets, is the creative personality, always dealing with the unknown, peering into the future, transforming possibilities into probabilities, chaos in harmony.

Schumpeter, J. (1987) highlighted the innovative features and promotion of entrepreneurial change that by combining resources in new and unique way, serves to promote development and economic growth. The same author described the entrepreneur as someone who takes the initiative to gather resources in a new way or to reorganize resources so as to generate a relatively independent organization whose success is uncertain.

The entrepreneur must, above all, the need for new things, to implement their own ideas, personality and behaviour that is not always easy to find. The entrepreneur, by definition, has to take risks, and its success lies in its ability to live with them and survive them. The risks are part of any activity, and we must learn to manage them. The entrepreneur is not unsuccessful in their business because they suffer setbacks, but because he cannot overcome them.

Social Entrepreneurial Characteristics

The social entrepreneur is a species of the genus of entrepreneurs. They are entrepreneurs with a social mission. However, because of this mission, they face some different challenges and any definition should reflect this. The concept of entrepreneurship has three key ideas - the value creation, innovation and the ability to seize opportunities. In order to grasp the dynamics of social enterprises as true of social entrepreneurship, and while not attempting to develop a theoretical framework, some aspects can be pointed in this direction: on one hand the issues surrounding the concept of social capital, contributing for grasping the specificity of the value created by social enterprises and, on the other hand, research results that point to an effective capacity for innovation and development of opportunities by social enterprises.

A realignment of resources comes naturally firms that fail to value creation can not get enough resources or funding capital. They come out of the market. Firms that create more economic value have the money to attract the necessary resources to grow.

Market rules do not work very well for social entrepreneurs. In particular, the laws of the market do not do a good job of valuing social improvements, public goods, damages and benefits to people who can not afford. These elements are often essential to social entrepreneurship. This is what makes social entrepreneurship. As a result, is much more difficult to determine whether a social entrepreneur is creating sufficient social value to justify the resources it uses to create such value. The survival or growth of a social enterprise is not proof of its efficiency or effectiveness in improving social conditions. It's just, at best, a weak indicator.

Social entrepreneurs operate in the market laws, but these laws do not always give the correct discipline. Many social-purpose organizations charge fees for some of its services. They also compete for donations, volunteers and other support. But the discipline of these "laws of the market" often is not closely aligned with the mission of social entrepreneurs.

key issues facing a social entrepreneurial business

Some factors may be key to development and growth of a social entrepreneurial, such as: leadership, innovation, risk, finance and cash flow, structure and culture, and international issues.


The leader of a team or an organization and individual that motivates and that seeks to tackle the company's goals. The leader seeking to use the strengths and weaknesses of their team and motivates them to seek the best team result. However, the leader should seek only the strengths of employees and trying to develop the weaknesses. Within the different styles of leadership, the rational model of organizational behaviour and orientation to results should always be applied.

In the context of innovation and change, the leader's main role is to lead your team to develop and implement changes and also encourage the process of innovation within teams. During the change, the leader's role is essential to develop strategies to seek always to promote the change and continuous improvement of processes, products, strategies and projects.

Within the process of innovation the leader should seek to encourage the process of learning and development for innovation and change are an ongoing process within the company, without abandoning the effectiveness and efficiency of resources.

According to Drucker, P. (1986) the concept of globally responsible leadership was developed by influential leaders, concerned about the challenges faced by the current and future generation of leaders.

The leadership is the most important key issue of the entrepreneurship. The most important and relevant social entrepreneur is Prof. Muhammad Yunus, founder of Grameen Bank. The main purpose of Professor. Yunus was and is to extend services credit to the poor by eliminating the action of speculators, give job opportunities and income for the destitute and develop a strong sense of citizenship and self-esteem among the poor.


A social enterprise may include risks as any other business. Social entrepreneurs always seek the most effective methods of serving their social missions. Risk identification into question the manager's perception of the sources of uncertainty and its translation risk, which depends on a systematic and on-going effort. Like any business faces risks entrepreneurship a social planning, strategic risk, risk contracts, market risk and external risks and financial resources.

In particular, there are two distinct sources of uncertainty in entrepreneurial ventures: 1) uncertainty regarding market demand, and 2) uncertainty regarding one's own entrepreneurial ability. In addition, propose that entrepreneurs display risk a version with respect to demand uncertainty, but exhibit overconfidence or "risk seeking" with respect to ability uncertainty. Accordingly while entrepreneurs are risk-averse in the classic sense of preferring a certain payment to an uncertain payment with equivalent expected value, their overconfidence predisposes them to bear economic risk under a given set of circumstances.

In a social entrepreneurship, the financial risk and external risk are the most important, because they are the main sources of livelihood of the company. Such as the Grameen Bank, has a high financial risk and also suffers from the external market risks.

Structure and culture

Organizational structure is the ordered set of responsibilities, authorities, communications and decisions of the organizational units of a company that defines how tasks are divided, grouped and coordinated within a social organization.

Moreover, the informal components of organizational culture are those most often focused on the definitions of organizational culture. Manifestations are tangible or intangible values ​​shared by members of the organization and very specific range of values ​​for those involved to those that are general guides to behaviour, mainly found in social entrepreneurship.

Thus, one realizes that the strategy, structure and culture are influenced each other. For example, according to the value system, an organization may identify a particular environmental situation as an opportunity or threat and devise strategies in accordance with this perception. In addition, in a social organization, structure and culture must be aligned so that the company can act at the international level, like any other organization.

Just as the organizations of the Second Sector seek to professionalize its management, the Third Sector also seek to structure better, in order to stay in a competitive and globalized environment. Therefore, the institutions feel the need to organize their activities, allocate resources, guide the work, in order to adequately plan its organizational structure to better understand and contribute to its mission. Therefore, a social entrepreneurship must maintain an organized structure with any other company, and develop a social culture of learning and help to grow and develop at international level.

Finance and cash

According to Berger, A. and Udell, F. (1998) invest in a new venture takes a risk, and this factor and more critical to the growth of a company. According to knight, F. (2002) argues that in a process of development and growth and also the financial limitation on cash flow. The cash flow and such a factor that any business must manage, for the good management of cash flow makes the organization more open to international growth and expansion.

Working capital for the company and provides a major advantage of competition, especially in social organizations, because the working capital for new investment comes berth and also assist in business expansion. The new social enterprises do not face financial problems if the company assets and provide liquidity to invest in the expansion of business.

First idea to fundraising is the inflow of money. Although the financial issue is the main factor in the negotiations of any organization, the non-profit sector that quest also involves technology resources, assignment of personnel, equipment, infrastructure, etc. Fundraising is one of the biggest challenges non-profits face today. Is directly linked to established communication with our stakeholders, facilitated when it implements an appropriate plan of marketing because the success depends on the relationship between donor and institution. It requires planning, research and strategy.

In the case of non-profits, financial management requires specific skills, which should follow, often, special rules established by the supporter. One of the issues that generate the most questions in the management of third sector organizations is the "no profit motive," which means applying the achievements in the organization.

So, any organization survives if no positive results over time, making enough for it to perform activities related to its mission and for investment growth. Thus, a major concern of financial management is to ensure that available resources are used the most appropriate way possible, with minimum waste and maximum return.

International Issues

In the past, the main concern of these organizations was the effectiveness and outcomes, and most of its officials sought anonymity, currently, the new scenario and its consequences cause the need for greater disclosure not only of actions but also the actors involved, in order to give greater credibility institutional, social validation, and therefore have greater numbers of supporters that legitimize

McDougall, P. and Oviatt, M. (1996) found that the risk affects mainly large international organizations, they are social or not. Recently the social organizations are seeking to act as International, are seeking competitive advantage in other countries, and also due to the stagnation of domestic or highly competitive. Furthermore, organizational performance and growth comes through international tenders and new market approaches, such as the case of the Grameen Bank that seeks to extend credit services to the poor by eliminating the action of speculators, to job opportunities and income to deprived and develop a strong sense of citizenship and self-esteem among the poor.

From the year 1990, researchers began to examine the emergence of companies that became international very young, so-called Born Global. These companies compete directly with those already established in the international market and, unlike the others, the Born Globals are founded and become more international in a short time interval. On average, companies become more international in less than two or three years after the foundation and without being consolidated in the domestic market.

The study of the Born Global is recent, having its beginning from the year 1990. However, it is important that authors who study this new category of business has not yet defined, accurately, some of their general characteristics, such as the length of time that must involve the onset of globalization and the importance of exports in the revenue of the regular organisations and social entrepreneurship.

In general, the Born Globals only emerged due to favourable environmental factors, such as the emergence of the Internet and the globalization process. Born Global is a company to act quickly on the international market and, like the Uppsala Model, these social and regular companies seek to export as a mode of entry into international markets. The resources available in the enterprise and consumer needs are key factors for success of a "Born Global" in foreign markets. Thus, a Born Global firm is the result of market changes that affect the business environments and delimited the criteria of time and space. These changes to the company the ability to exploit new market conditions, although at risk uncertain.

The international development of born global firms is caused by trends such as the considerable increase in niche markets, advances in technology and communications; advantages inherent to the small companies (fast response time, flexibility, adaptability), means institutions that facilitate internationalization and a global trend the networks. The network is very important in the internationalization of the "born global", but not necessarily has to exist before the process of internationalization, but quickly built shortly after the process started, this process can happen to social entrepreneurship as well, such as Grameen Bank and Ashoka.

The main features seen as critical success factors in companies are born global, global view of the administration since the beginning of the company; high degree of prior international experience of senior managers; senior management engaged in the process of internationalization, strong use of personal network and business process, knowledge and involvement with the market; unique assets based on knowledge management, high value creation through product differentiation, technology, technological innovation and leadership in quality

Several theories focus on the phenomenon of internationalization with patterns and approaches that propel the company into the international market for their achievement. Internationalization approaches based on economic criteria that would be intended to maximize profits and financial returns; internationalization approaches based on behavioural evolution where the process of internationalization would be more related to the attitudes, perceptions and behaviours of decision makers, which would be targeted by the search for risk reduction.

The internationalization of business, or social and not seen as a learning process in which the company invests resources and gradually acquire knowledge about a particular international market incrementally. This brings us to the concept of chain establishment, where the company develops gradually in a given market, depending on the existing knowledge about business and market. Adopting this approach would reduce the risks and uncertainties. The authors illustrate the concept of chain establishment proposes four stages of gradual, irregular export activities, export activities through five representatives, sales offices and production site. According to McDougall, P. & Oviatt,. P. (1996), recognize that not all companies follow the four stages of chain establishment.

The second feature observed by McDougall, P. & Oviatt, P. (1996), is the psychic distance, defined as the perceived differences between values, management practices and education of both countries. Soon, companies conduct business with countries culturally closer. A very large cultural distance would make the conduct of international business. Accordingly, the company tends to reduce the uncertainty inherent in internationalization processes, solving problems in the surrounding environments. This model can be approached both as social enterprises as companies seek profits.

Discussion / Conclusion

In Conclusion, a social organization should be seen and observed as a normal organization, are differentiating themselves in the proposed delivery of value. For a normal business seeking profit, develop and grow, delivering maximum value for its shareholders and customers. The social entrepreneurship aims to help society in the process of social development.

Leadership is not only essential in private organizations, but also in social organizations. For example, Steve Jobs and a good example of good leadership and role in the process of development, growth, innovation and entrepreneurship. Moreover, in social entrepreneurship Bill Drayton, founder of Ashoka, and a good example of the importance of leadership in the process of internationalization of social entrepreneurship. The Ashoka is a global, non-profit, pioneered the field of social innovation, work and support of social entrepreneurs, people with innovative ideas reactive and capable of causing changes with wider social impact

The main challenges faced by social entrepreneurship are leadership, structure, culture, finance, cash flow and international issues. Since the most important factor in the process of growth and development of leadership and international, through the leadership for the organization can design and plan strategies for solid performance in the market and also the management of financial and human capital. Through leadership, social entrepreneurship can to can become global, as for example in the case of the Grameen bank, the leadership of Muhammad Yunus, founder of the bank was crucial for development, growth and internationalization