Social entrepreneurship focuses on creating organizations that contribute solutions to social and/or ecological problems. Social entrepreneurs may structure their organizations as for-profit private or public companies (including BCorporations), or as non-profit organizations. However, the common theme is that performance is measured by a positive return to society and/or ecological benefit, in addition to traditional financial metrics such as revenue, profit, or share price. Social entrepreneurs may consider the “triple bottom line” and their organization’s impact on a variety of stakeholders, instead of being motivated solely by shareholder profit.
There is a long tradition of questioning the role of business in providing well-being for society. In The Wealth of Nations (1776), Adam Smith argues that an individual’s need to fulfill their self-interest guides them to make decisions that result in societal benefit. In the words of Adam Smith, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest.” In short, a baker is motivated to support his family financially. To do this, the baker produces a quality product that feeds and nourishes others, potentially benefiting hundreds of people. The corporate social responsibility (CSR) model suggests that responsible business is good business because an organization that commits to responsible practices will have better outcomes in long-term profitability. Relatively small investments in the near-term may help the organization avoid embarrassing and/or costly mistakes that may tarnish their reputation and/or negatively affect their profitability later. For example, a consumer goods company may decide against releasing a dangerous product that potentially injures customers, resulting in costly lawsuits. An organization may place a strong emphasis on educating employees about sexual harassment and workplace equity in order to create a culture of inclusion. A company that relies on natural resources may consider the long-term sustainability of those resources in order to avoid a situation depicted in “the tragedy of the commons.” A self-regulating CSR approach may lessen the likelihood of external government regulation and costly fines for bad behavior.
Innovative entrepreneurs may seek transformation from a more traditional philanthropic model of business providing well-being for society to a social entrepreneurship model of performing societal well-being. During the Gilded Age of the late 19th century, titans of industry including Andrew Carnegie, John D. Rockefeller, and Leland Stanford amassed vast fortunes while engaging in questionable (environmental, equity, labor, monopoly) business practices. Then, they pursued philanthropy, almost as an afterthought, building hospitals, libraries, and even universities with their vast wealth. Today, social entrepreneurs view their profitgenerating activities and their positive societal and environmental contributions as simultaneous, interrelated goals operating in harmony. The reasons for this shift are numerous and involve many stakeholders. Conscious consumers desire transparency and commitment to responsible practices (e.g. fair trade). Companies want to build long-term relationships with suppliers and ensure their well-being (e.g. creating shared value). Qualified employees in a seek out extraordinary workplace culture. Investors seek transparency and risk-reduction as environmental, social, and governance (ESG) investing gains mainstream popularity. Another factor is a decline in services traditionally provided by government entities, as well as an ideological shift towards a preference for applying the efficiency, innovation, and selfsufficiency of entrepreneurship to addressing social problems. Social entrepreneurs may pursue a variety of goals including community economic development, ecological restoration, education, financial inclusion, health care, housing, internet connectivity, poverty alleviation, rural electrification, sanitation, water purification, etc. The following three social enterprises utilize different models to achieve their goals. The Delancey Street Foundation in San Francisco operates a public restaurant that serves as a selfhelp program that provides employment, housing, and training for at-risk, formerly homeless program members. The Grameen Bank, created by Muhammad Yunnis, provides small business (microcredit) loans to underserved populations in developing countries. The company Seventh Generation focuses on producing products that have a reduced environmental impact and donates ten percent of pre-tax profits to funding nonprofits focused on environmental and social issues.
You will be responsible for developing a business plan for a new venture that will have a positive benefit for society or the natural environment.
In general, a business plan should address:
1. The market, including existing competitors and your proposed niche
2. A description of your planned product or service
Given that the venture needs to focus on responsible business, you will want to provide:
3. An overview of the social or environmental issue to be addressed
4. A description of the stakeholders involved
5. A critical discussion of how the new venture addresses the problem
BUSINESS PLAN IDEA: Organic Spa
Harsh chemicals are bad for your skin just as they are for the environment.
The organic spa not only will provide body and facial treatment, massage, waxing, nail and hair services but will also sell the organic products at an affordable price.
P.S: The business would be located in San Francisco California, that said your research about competition, etc, should be in this area.
MAKE SURE THAT YOUR WRITING HAS:
Clear and logical organization and structure.
Outstanding literature review including a synthesis of relevant academic and expert sources.
Excellent presentation of evidence, including quantitative analyses.
Strategic plan, timeline, use of quantitative forecasts.
Good grammar, and please do not repeat word and sentences many time just to fill space.
PLEASE SEE DOCUMENT “5 PAGES STRUCTURE” AND FOLLOW IT!!
(one page for executive summary, one page for problem, one page for solution…)
I NEED AT LEAST 3 SOURCES, AND PLEASE USE QUALITY SOURCES.
OTHERWISE I WILL SEND IT FOR REVISION