ENTREPRENEUR

A person who sets up a business or businesses, taking on financial risks in the hope of
profit. An entrepreneur is an individual who creates a new business, bearing most of the
risks and enjoying most of the rewards. The entrepreneur is commonly seen as an
innovator, a source of new ideas, goods, services, and business/or procedures.
CHARACTERISTICS OF ENTREPRENEURS
1. Problem-solving: Entrepreneurs often start their businesses after identifying a
problem and then coming up with a way to address it. Entrepreneurs are also able
to figure out how to solve problems that will occur during the development of the
business.
2. Innovation: Entrepreneurs are innovators, and are often engaged continuously in
the process of conceiving new products and services, renewing and improving
current offerings, and developing new business processes.
3. Risk-taking: Entrepreneurs are not risk-averse. They are willing to risk their time,
money and even their reputation to get the business started and take their products
or services to market. Entrepreneurs are also willing to take risks even after they
establish a business, developing new products and approaches that can grow their
businesses.
4. Contrariness: Entrepreneurs are often people who are eager to question why and
how things are being done – even if these processes are clearly "industry-
standard." This doesn't mean an entrepreneur should ignore industry best practices,
but the entrepreneur is also willing to challenge these practices if she believes that
there is a better way to do them.
5. Persistence: Entrepreneurs are persistent. They aren't easily discouraged and are
willing to work through discouragement and challenges. Entrepreneurs are willing
to attend trade shows, meet with bankers, call on clients and do what it takes to get
the business started, and then to make it successful.
6. Leadership: Successful entrepreneurs are strong leaders. Leadership is an
essential entrepreneurial skill, as the entrepreneur will need to be able to cultivate
trust and support from the people who join his business as managers and workers.
Many new businesses are cash-poor and experience significant challenges – but a
 good leader can inspire loyalty in workers who may not yet be receiving high
wages, as well as in employees who are facing roadblocks in their efforts to build
the company.
FUNCTIONS OF ENTREPRENEUR
The following points highlight the top five functions of an entrepreneur. The functions
are: • Decision Making • Management Control • Division of Income • Risk-Taking and
Uncertainty-Bearing • Innovation.
1. Decision Making: The primary task of an entrepreneur is to decide the policy of
production. An entrepreneur is to determine what to produce, how much to produce, how
to produce, where to produce, how to sell and so forth. Moreover, he is to decide the
scale of production and the proportion in which he combines the different factors he
employs. In brief, he is to make vital business decisions relating to the purchase of
productive factors and to the sale of the finished goods or services.
2. Management Control: Earlier writers used to consider the management control one of
the chief functions of the entrepreneur. Management and control of the business are
conducted by the entrepreneur himself. So, the latter must possess a high degree of
management ability to select the right type of persons to work with him. But, the
importance of this function has declined, as business nowadays is managed more and
more by paid man-agers.
3. Division of Income: The next major function of the entrepreneur is to make necessary
arrangement for the division of total income among the different factors of production
employed by him. Even if there is a loss in the business, he is to pay rent, interest, wages
and other contractual incomes out of the realised sale proceeds.
4. Risk-Taking and Uncertainty-Bearing: Risk-taking is perhaps the most important
function of an entrepreneur. Modern production is very risky as an entrepreneur is
required to produce goods or services in anticipation of their future demand. Broadly,
there are two kinds of risk which he has to face. Firstly, there are some risks, such as
risks of fire, loss of goods in transit, theft, etc., which can be insured against. These are
known as measurable and insurable risks. Secondly, some risks, however, cannot be
insured against because their probability cannot be calculated accurately. These constitute
what is called uncertainty (e.g., competitive risk, technical risk, etc.). The entrepreneur
undertakes both these risks in production.
5. Innovation: Another distinguishing function of the entrepreneur, as emphasised by
Schumpeter, is to make frequent invention of new products, new techniques and
discovering new markets to improve his competitive position, and to increase earnings.

Social Entrepreneurs
Social Entrepreneurs are individuals who are willing to create positive changes in society
through their innovative ideas and efforts. They run their business or organization to
achieve the goals by helping society. Their motto to start a business venture is primarily
to help the society and have no great intention of making personal profits. Their success
is not always measured in terms of profit alone. A small change in the society out of their
efforts is a success too. Social entrepreneurship is also referred to as altruistic
entrepreneurship which translates to selfless concern for the well-being of others.
Examples of Leading Social Entrepreneurs
 Vinoba Bhave (India) was the leader and founder of the Land Gift Movement. He
led to the redistribution of around 7,000,000 acres of land that later on helped the
landless and untouchables of India.
 Dr Maria Montessori (Italy) – The Montessori approach to early childhood
education was developed by her.
 Elon Musk, Tesla Motors, Solar City and Space cause Musk to become an
explorer of social entrepreneurship in the modern era, as he pursued to create
solutions that are accessible to renewable energy and push the bounds on space
exploration for the human race.
Importance of Social Entrepreneurs
Social Impact and Inspiration: the origination of a social enterprise is an existing gap
or problem that an individual identifies and has a solution for. Social entrepreneur’s
works tackle the existing problem of society, they do not intend to create legacies and are
an inspiration to society.
Make the World a Better Place: Social entrepreneurs are obsessed and extremely
passionate about the initiative and work towards the goal against all odds, and can go to
any extent to see that the society is problem-free. It is the social entrepreneurs who can
bring drastic changes to culture, business and economy while they make a living out of it.
Generation of Social Capital: One of the most important values and powerful influences
created by Social entrepreneurs is the equation established by social groups through
interpersonal relationships, a shared sense of identity and a shared understanding in their
network that helps people to ‘get by, accept and get ahead’ with changes.

Following factors make stronger Social Entrepreneurship

How the Project contributes to the Economy: Having known social entrepreneurship is
for the society or environment, it also means there is or has been a demand for the
product or service. Most entrepreneurial initiatives contribute to the economy, by creating
job opportunities and wealth. The social enterprise thus establishing must aim at
generating enough wealth that can contribute to society.
Responsibility towards Society: The primary intention of social enterprise is to identify
gaps in the environment and society that are not working efficiently and create a social
value out of those. Aimed at bringing in a change and something new to solve a certain
problem, these objectives can vary from industries health services, education, energy-
saving, etc. A lot of corporate entities form a small trust to implement these objects in the
form of Customer Social Responsibility (CSR) projects.
Effective Utilization: As discussed, earlier social entrepreneurs are not aimed at making
personal profits, their profits are often re-invested in the business to achieve the goal,
personal profits are hence supervised and are limited. However, depending upon the
status of the project, the entrepreneur can decide how much is to be reinvested to achieve
the goal.
Efficiently Managed: Unlike the standard entrepreneurship framework, social
entrepreneurship can involve a group of people working together with the same intention
of bringing a change to society. Hence, the decision making, execution of tasks, etc. are
all shared and are done with the active participation of all experts at different levels.
Here, making use of participation efficiently is the key.
https://www.vedantu.com/commerce/meaning-and-concept-social-entrepreneurship
What is Social Entrepreneurship?

When any entrepreneurs, individuals or group develop and implement solutions to

environmental and social issues, it is termed as social entrepreneurship. This type of
concept applies to many organizations. Social entrepreneurship takes care of the
development of the community and health care and also helps in the alleviation of
poverty. Often they are associated with the civic or social sector of the non-governmental
organizations. These sectors are also termed as the third sector.

What are the Challenges Faced in Social Entrepreneurship?

Since social entrepreneurship is new to the world, there are several challenges faced by
them. Few of the challenges are listed below:
 In every business set up, there come several times when the financial conditions
are disturbed. During such instances, raising funds becomes very difficult. Most of
the investors look forward to the short term investments that can benefit high.
Sometimes, the businesses are impacted due to the reduced global economy. At
this time, the social entrepreneurs face difficulty in raising funds.
 A better business plan serves as the base for achieving higher milestones. Being a
social entrepreneur, they lack in setting up better business plans. Due to this
reason, the profit margin of the business gets reduced leading to low raise of
funds.

 Investing in the right business or people also plays its part.

 Social entrepreneurs look to the world as an activist rather than a business person.
Merging proper vision with the business is also a challenge social entrepreneurs
need to face.
https://edurev.in/studytube/Social-Entrepreneurship-Dimensions-of-Entrepreneur
Advantages of Social Entrepreneurship
1. Diversity: business aficionados and revolutionaries all know the importance of
having an edge. Many social businesses today can benefit of their Unique Selling
Point of being social and impactful. A new international study by Unilever reveals
that a third of consumers (33%) are now choosing to buy from brands they believe are
doing social or environmental good (Unilever, 2017). People are slowly awakening
their consciousness and happily rather support something ethical than something is
not.
2. Change Piooner/First Mover Advantage: “it always seems impossible until it’s
done” said Nelson Mandela. To steer away from the crowd often makes one seem
crazy, but isn’t that where all revolutions begin? Moving first makes all risk taking
social entrepreneurs have the first mover advantage and effectively be the change
pioneers.
3. Positivity Magnet: good attracts good, and bad. When you are doing something
positive two things are likely to happen, good people will feel compelled to join you,
and when that happens bad people will also feel the need to change, or get in your
way. If you keep an open door and very transparent policies the world can look in and
eventually be amazed, if you are correctly measuring, tracking, assessing, and
showcasing your social impact.
Disadvantages Social Entrepreneurship
1. Lack of Success Cases: what do investors, talented people, investors, stakeholders,
and key players have in common? They want to be where they can succeed. For social
entrepreneurs to shift mindsets, they have to gain their trust. It is very hard these days
to show accountability and viability of the social business models due to the small
number of case histories.
2. Lack of Public Exposure and Recognition: truth to be told, more people don’t have
a clue about social entrepreneurship than not, hence how do you expect them to
support a social venture? Whether it’s online or offline, very little can be found about
them and hence the unexposed public when coming across social entrepreneurship
may misunderstand it. Moreover, people don’t trust what they don’t know and that
causes misconceptions.
3. Lack of Support Structure and Funding: when you begin a venture support is
needed. Unluckily, due to lack of regulations and recognition for social enterprises
around the world, the environment is not ideal. Social entrepreneurship is a new road
to be pavemented. Change makers need to struggle harder than regular entrepreneurs
and most of the times get stuck due to the lack of investors, regulatory structure, etc.
In the United Kingdom, luckily, we have C.I.C. which make the entrepreneurs job
easier when facing stakeholders’ and public’s validation thanks to mandatory asset
locks and public annual records but still, for example, the government hasn’t
regulated any tax incentives.
https://mbgiovanardi.medium.com/key-advantages-disadvantages-of-social-
entrepreneurship
Role of Entrepreneurs in Economic Development
Entrepreneurs create organizations that offer employment to millions of people. They
convert resources into useful products and services. They create goods and services and
improve the living standards of people in a country. They are, in fact, creators of wealth.
Through constant innovations, they try to cut down costs, improve quality and create
demand.
They are able to put local resources and talent to the best use. Rural entrepreneurship, if
handled well by the government through encouraging policies, can radically transform
the lives of people living in underdeveloped areas of a country. This way they can be
instrumental in preventing the concentration of economic power. Entrepreneurship also
helps in increasing productivity and capital formation of a nation. When they are able to
achieve success and are able to expand their operations, they would be laying a solid
foundation for the steady growth of a nation.
Entrepreneurs- What sets them apart
1. Exploit opportunities- They observe an opportunity and convert it into a rewarding
venture.
2. Create profitable businesses- They create goods and services that satisfy wants.
3. Innovate and deliver value- They improve existing products through constant
innovations.
4. Offer choice to consumers- Entrepreneurs provide choice; in fact they attack the
consumer with a clear variety of products and services.
5. Offer quality products at affordable prices- They offer quality at an affordable price.
Put resources to best use. This way they are able to put scarce resources to best use.
6. Offer novel solutions to problems- They design different approaches to familiar
problems. Their capacity to come out with approaches that have not been put to test is
amazing and this is what makes entrepreneurship a fascinating subject.
7. Create jobs- Entrepreneurs provide jobs. Millions of people all over the globe earn
their living because of successful entrepreneurs.
8. They consume resources, thus providing jobs in the industries that supply those
resources.
9. Help an economy to grow- Entrepreneurs help the economy grow steadily and
continually. If they taste success, they are able to inspire many more to join the ranks and
take the business further.

Role of Entrepreneurs in Economic Development – In Indian Economy

The importance of entrepreneurs in Indian economy arises on account of the
following reasons:
1. Entrepreneurs can help reduce unemployment:
Unemployment Rate in India averaged 7.32 percent from 1983 until 2013, reaching an
all-time high of 9.40 percent in 2009 and a record low of 4.90 percent in 2013.
Entrepreneurs are expected to provide employment opportunities to the unemployed. The
rural entrepreneurs and women entrepreneurs can play a very significant role.
2. Entrepreneurial initiatives can contribute to higher gross national product and
per capita income:
Gross National Product in India was Rs 56738.60 Billion in 2014. Entrepreneurial
initiatives and activities can enhance the level of gross national product as well as per
capita income of the people in a country leading to the economic development of the
economy.
3. Entrepreneurs can contribute towards capital formation:
The gross capital formation in India for the year of 2009-10 was 36.5% of the GDP and
35.12% of GDP 2012-13. Indian entrepreneurs can promote capital formation in the
economy. Entrepreneurs can increase the avenues for fruitful investments.
4. Entrepreneurial activities can significantly influence the standard of living:
According to the Human Development Index of 2015, India is ranked at 130th position
among 188 countries. Entrepreneurs can play a vital role in enhancing the standard of
living of the people by adopting latest innovations in the production of wide variety of
goods and services. They can make available the best quality products and services in
possible cheapest cost.
5. Entrepreneurs endeavour to promote balanced regional development:
The growth of industries and business in backward areas would lead to a large number of
benefits for the public like road transport, health, education, etc. The entrepreneurs can
contribute to balanced regional development. The Corporate Social Responsibilities
(CSR) of the established entrepreneurs can improve the backward regions. The CSR
activities have been made mandatory for the companies that come under the categories
recognized under Companies Act of 2013.
6. Entrepreneurial activities would lead to wealth creation and distribution:
Entrepreneurial activities guided by national interest would lead to generation of greater
wealth as well as its distribution.
7. Entrepreneurial initiatives can help in skill development:
The Indian entrepreneurs can play a vital role in skill development and thereby contribute
to the process of job creation and development of the economy. The entrepreneurs should
take the initiative of improving the skill of the semiskilled or unskilled labour force.

8. Entrepreneurs can improve India’s global competitiveness:

In the Global Competitiveness report 2015-2016, published by World Economic Forum,
India is ranked at 55th position among the 140 countries enlisted in the report. The
entrepreneurial class has to take up the challenge and contribute towards improving the
competiveness of Indian economy.
9. Entrepreneurs can increase the country’s share in global export trade:
India’s share in Global Merchandise exports is very low. The entrepreneurs have to track
the avenues for export and concentrate to improve the share of Indian economy in global
export trade.
10. Entrepreneurs ensure overall development of an economy:
The activities of the entrepreneurs can influence all the sections of the economy. They
can reduce the negativity and pessimism of a society. Their activities generate enthusiasm
among the followers. A new level of development is dreamt by the entire economy and
the Indian entrepreneurial class can contribute a lot in ensuring overall development of
the country.

Role of Entrepreneurs in Economic Development – 11 Roles for Economic Growth

of the Country
The entrepreneur is supposed to create ideas and put them into effect in fostering
economic growth and development. Entrepreneurship is one of the most important input
in the economic development of a country. The entrepreneur acts as a trigger head to give
spark to economic activities by his entrepreneurial decisions.
Actually, he is the person who identifies the opportunity, creates and arranges resources
and is ultimately responsible for the performance of the business enterprise. He plays a
pivotal role in each and every sector of the country.
An entrepreneur has been assigned following roles for economic growth of the
country:
(1) Creation of Innovative Change:
An entrepreneur is a person who always looks for changes. Continuous dreaming helps in
idea creation. Idea creation facilitates creativity innovations which are the direct result of
creative ideas. Viable innovations lead entrepreneurial behaviour. Entrepreneur is
responsible for combining the factors of production in an effective way to enlarge the
production base.
He also introduces new ideas and new combination of factors. He always tries to
introduce newer and newer techniques of production of goods and services. An
entrepreneur brings economic development through continuous innovations.
According to Meir and Baldwin, development does not occur spontaneously as a natural
consequence when economic conditions in some sense are right. A catalyst is needed
which results in entrepreneurial activity to a considerable extent. The diversity of
activities that characterises rich countries can be attributed to the supply of entrepreneurs.
(2) Promotion of Capital Formation:
Entrepreneurs promote capital formation by mobilising idle savings of public.
Compensating investment risk through adequate rate of returns is the basic function of
entrepreneur, with this approach entrepreneur motivates the public for more savings.
Business ideas creativity and innovation are the important conditions for developing
entrepreneurship is the country.
Actually, he is responsible for channelising savings for production purposes which in turn
gives a multiplier effect to the process of capital formation. They employ their own as
well as borrowed resources for setting up their enterprises. Such type of entrepreneurial
activities lead to value addition and creation of wealth, which is very essential for the
industrial and economic development of the country.
(3) Creation of Employment Opportunities:
Most of the economies especially developing countries like India are facing acute
problems of growing unemployment. Entrepreneurs provide employment to the
unemployed persons. With the setting up of more and more service units by
entrepreneurs, indifferent sectors like tiny/small, medium and large sectors of the
country, job opportunities are created for others.
Thus, through setting up industrial units, he creates job for himself and to the
unemployed persons in the society. Besides, these enterprises grow, providing direct and
indirect employment opportunities to many more. In this way, entrepreneurs play an
effective role in reducing the problem of growing unemployment in persons in the
country which in turn clears the path towards economic development of the nation.
(4) Promotion of Balanced Regional Development:
The basic function of entrepreneur is to identify opportunities in the prevailing
environment, Entrepreneurs help to remove regional disparities through setting up of
industries in less developed and backward areas. The Government of India and the state
governments both are providing different types of incentives and subsidies for backward
area districts and zero industries district.
The growth of industries and business in these areas leads to a large number of public
benefits like road development transport, health, education, entertainment, and social
endowments etc. Setting up of more industries lead to more development of backward
regions and thereby promoting balanced regional development.
(5) Increase in Per Capita Income:
Each and every country has its own natural and other resources. There is need to optimise
the use of these available natural resources. In this context, entrepreneurs convert the
latent arid idle resources like land, labour and capital into goods and services resulting in
increase in the national income and wealth of a nation.
With the help of increasing space of entrepreneurial activities owners of factors of
production get their price as income as these owners put their resources for productive
purposes. Generally, available resources motivate and provide opportunities to the
entrepreneurs for the establishment of viable ventures.
They explore and exploit opportunities, encourage effective resource mobilisation of
capital and skill, bring in new products and services and develop markets for growth of
the economy. In this way, they help in increasing gross national product as well as per
capita income of the people in a country. The increase in gross national product facilitates
further economic growth.
(6) Wealth Creation and Distribution:
There is direct relationship in entrepreneurial activity and creation of Job opportunities.
People were unable to get job because there was no job and they were poor. Due to
entrepreneurial activity unemployed people are getting job as a base for income. Now
with the help of job, entrepreneurs can ensure more wealth creation by utilising untapped
natural and human resources.
Entrepreneurial activity enables factors of production to fetch better price. This process
stimulates equitable redistribution of wealth and income in the interest of the country to
more people and geographic areas, thus giving benefit to larger sections of the society.
Entrepreneurial activities also generate more activities and give a multiplier effect in the
economy.
(7) Promotion of Export Trade:
Import substitution and export proportion both are important dimensions of favourable
balance of trade. Favourable balance of trade is an important ingredient of economic
development. Entrepreneurs produce goods and services in large scale for the purpose of
earning huge amount of foreign exchange from export.
Entrepreneurs through innovation also create new products which are quite helpful for
export promotion and import substitution. Thus, import substitution and export promotion
ensure economic independence and development of the country.
(8) Encourages Backward and Forward Linkages:
Innovation helps in effective entrepreneurship. With the help of latest innovations,
entrepreneurs produce huge production, increase product variety, ensure cost
effectiveness, improve product demand and sales volumes and also facilitate earnings and
profit growth.
When an enterprise is established in accordance with the latest technology, it induces
backward and forward linkages which ultimately encourages better utilization of
available resources. Thus, it stimulates the process of economic, development in the-
country.
(9) Improvement in Standard of Living:
Entrepreneurial activity, creates generation employment opportunities. This process leads
to increase in income and purchasing power which can be used for consumption
expenditure. Increased demand for goods and services boost up industrial activity. Large
scale production will result in economies of scale and low cost of production.
Marketing process involves creating a demand and then filling it. Entrepreneurs are also
responsible for making further innovations. It creates opportunity for production of wide
variety of goods and services. It also enables the people to avail better quality goods at
lower prices which results in the improvement of their standard of living.
(10) Facilitates Overall Development:
Entrepreneurs act as catalytic agent for change which results in chain reactions. Once an
enterprise is established, the process of industrialisation is set in motion. This unit will
generate demand for various types of resources and there will be so many other units
which require the output of this unit.
Vertical and horizontal establishment of industrial units optimise the use of resources
available in that particular area. This leads to overall development of an area due to
increase in demand and setting up of more and more units. In this way the entrepreneurs
multiply their entrepreneurial activities, thus creating an environment of enthusiasm and
conveying an impetus for overall development of the area.
(11) Economic Independence:
It is a basis for political and social independence. So each and every country is required
to make necessary efforts for ensuring economic independence. Development of
agriculture sector and industrial sector is quite necessary for economic independence.
Both these sectors are complementary to each other and accelerate economic growth.
Multidimensional economic growth facilitates economic independence.
Thus, it is assumed that entrepreneurship is important for getting economic self-reliance.
Export of goods and services on a large scale help in the process of earning of scarce
foreign exchange for the country. Efforts for import substitution also facilitate the
production of goods and services in the country which ultimately control the imports.
Moreover, import substitution efforts serve the foreign exchange for other urgent needs.
In this way, import substitution and export promotion help to ensure economic
independence of the country.

Introduction to Social Entrepreneurship Dummies

Social Entrepreneurship Dummies Guide – Before going into the details about how

social entrepreneurship can bring about change in society. We first need to understand

what a social entrepreneur is and what do we mean by social entrepreneurship.

Who is a social entrepreneur?

Social entrepreneurs are visionaries who try to bring about positive change in society by

practically applying their social entrepreneurship ideas and strategies to resolve social

problems in the society. These problems are vast and diverse in nature. They are threats

not only limited to a particular community or region, but they are global in nature; some

of the common social issues and problems are-inadequate education and health facilities
and system, environmental threats, declining and inefficient political systems and

governance, poverty, unemployment, inequality based on gender, caste and creed;

increase in crime rates and so on.

A social entrepreneur is an individual who works with an initiative to develop pioneering

ideas and solutions for the existing social problems and issues faced by society. They try

to resolve these problems by changing the system of working and mindset of people, by

spreading awareness about how to tackle these problems and issues, and developing

social entrepreneurship resources to empower the community. They try to convince

society as a whole to think on different dimensions and directions. Social entrepreneurs

develop simple, comprehensible ideas that people can understand and use to better and

develop society. They aim to identify and create efficient change makers or role models

who will, in turn, motivate the masses to develop their own ideas, solutions and strategies

to resolve these social issues. In short, a social entrepreneur is an agent or mediator who

thrives on bringing about positive change in society.

Social entrepreneurs function

They firstly analyse the social problem/issue to be tackled. Try to find out the underlying

causes and roots of the problem; this is done through thorough social entrepreneurship

research, field analysis findings, surveys and observation methods. Then they study and

link them in terms of the existing societal patterns and emerging social entrepreneurship

trends in society. Then, ideas and strategies are developed to change the people’s

mindset, bringing change in their lifestyle and attitude. They try to identify and develop

change-makers from the society itself; these change-makers work as role models,

motivators and leaders to bring about positive, progressive changes in the entire system.
These change makers form a team, social entrepreneurship network, and a platform for

people with similar goals and objectives. This platform allows the interchange of ideas,

feedbacks and development of effective strategies to resolve the problem. This platform

also associates the funders who want to associate themselves with bringing about positive

change in society and the change-makers. The social entrepreneurs collaborate with

social innovators, funders, grass-roots leaders, social workers, and community

organisations to bring about effective, long-lasting social changes in society.

What does social entrepreneurship mean?

So we know who a social entrepreneur is, now we need to understand what social

entrepreneurship means. It is a process through which we try to resolve its problems and

issues using social entrepreneurship business techniques. Here, the entrepreneur aims to

improve the performance and profit of his own organisation and aims to provide positive

profits to society. There is no concrete definition of social entrepreneurship, as people

from diverse fields are associated with it- philosophers, social activists, environmentalists

and socially oriented professionals. Social entrepreneurs have different strategies for

bringing about change in society; some provide contracted work to public establishments;

others provide social entrepreneurship funding in the form of grants and donations and

develop social and economic assets and resources for the community.

Social Entrepreneurship focuses

It focuses on gaining an understanding of how a social problem develops and how an
entrepreneur, with the use of his innovative, practical ideas and business strategies,
develop solutions to resolve the problem; and motivates him to utilize the available social
entrepreneurship resources to overcome the problem to benefit the society as a whole.
Social entrepreneurs focus on utilising the various available resources to create a better
and progressive society. As social entrepreneurship does not have a concrete definition,
groups focused on social entrepreneurship can be categorised into:
  Community-based enterprises; are based on societal ventures. The community as a
whole utilises the capital to empower itself.
 Socially conscientious enterprises; these enterprises focus on sustainable

development through social gains.

 Social service organisations and professionals; these work to expand social capital

for individuals, community and organisations,

 Socio-economic enterprises focus on bringing about profits to the individuals

and non-profit social change in the community.

Apart from these, some organisations focus on social entrepreneurs’ empowerment; they

create a platform to connect these social entrepreneurs with like-minded people, mentors,

and funding agencies. They help in further strengthening and fortification of the various

social entrepreneurship model.

Growth of Social entrepreneurship

Social entrepreneurship’s success depends on the social entrepreneurship skills, talent,

and qualities present in a social entrepreneur. With their inborn talents and skills, these

social entrepreneurs can bring about major positive social changes in society. To bring

about this change, they need to:

 Identify the social issue/problem.

Social entrepreneurs are passionate about solving the problem in society. They have an

support to take positive steps to resolve these issues using social action and resource

development. This may include bringing in change in the working pattern of the system,

changing people’s mindset and attitude, creating awareness or pulling in resources for

better social entrepreneurship and education, health or livelihood facilities.

 Developing a social mission

The focus should be on social ventures. These ventures should attempt to improve the

community infrastructure, the people’s livelihood, improve the standard of living of the

individuals, and facilitate improvement in the environment. The social entrepreneur

should always focus on how the organization’s profits can be utilized for the benefit of

the community and the environment.

 Develop support
Every social entrepreneur should develop plans and strategies which would determine the

efficient management of the problems. He will have to identify the resources which

would make the mission a success. This may require him to seek support from like-

minded people, experts in the field and funders who would support him financially to

achieve the goals and objectives. He will also require local help from people to identify

prospective change-makers, who would act as role models to for the masses to persuade

them to bring in social change through a positive mindset and action.

 Develop sustainable models

The entrepreneur’s aim should be to develop such a business that would bring in a profit

for his organisation and benefit society as a whole. They need to develop such future

strategies to provide a sustainable livelihood, income, and resources to the community’s

people.

 Impact assessment
For successful social entrepreneurship, one needs to assess the results and outcomes

regularly. This can be done through monitoring and evaluation of the social impact

developed through the venture. Example of social entrepreneurship has the venture

resulted in developing any kind of employment, if yes how many people have benefitted

from it, has there been any change in the standard of living of the people in the

community, has it been able to increase and develop social and economic resources in the
community. This information needs to be recorded, firstly for future comparison of the

social entrepreneurship development process, and to make the masses aware of the

mission’s achievements and how it has impacted in bringing around positive social

change. Recording or documentation will further help in developing efficient strategies

and plans for future advancement and improvements. This will also help identify what

more resources and support systems are required to make the venture more successful

and effective.

In this process, one needs to generate a support system in the form of prospective change-

makers, role models, leaders and funders who would assist in bringing about the required

social change. The process of positive social change in society through social

entrepreneurship will influence, benefit, and enlighten many other fields. Donors and

patrons will find an avenue to invest their grants and funds; policymakers will get an idea

of developing a similar problem-solving model which will benefit the nation as a whole,

professionals will find new employment and career platforms, the youth will get

inspiration and motivation to become prospective change-makers and will be encouraged

to participate in the change-making process.

Characteristics

 It should be based on the values of equality and justice.

 Its objectives should focus on investing the surplus in developing resources for the

community and not just making economic profit.

 The organisation structure and composition should be based on collective and joint

principles.
Social entrepreneurs develop employment and livelihood opportunities; they provide on

the job training and other types of the social entrepreneurship training program to the

unemployed, disabled and vulnerable youth. They develop practical strategies to

overcome social problems; for example, through microfinance policies, they provide

livelihood and economic security to the unemployed, women, and the community’s

underprivileged section. They create social capital for poverty alleviation and economic

development. They strive to create equality and justice in society.

They act as role models to motivate the youth to initiate action to bring positive social

change in society. Social entrepreneurs address global problems such as poverty,

unemployment, gender inequality, inadequate education and health facilities and policies,

inefficient governance, etc. They create a global platform for like-minded people who

work as a team to fight these issues.

https://www.educba.com/social-entrepreneurship/?source=leftnav
Global Entrepreneurships
Global enterprises are the companies that operate around the world. There are categories
based on their huge size, a large number of products, advance in
technology, marketing, strategy and network of operations all over the world.
Through a network of their branches in several countries, global enterprises extend
their industrial and marketing operations. Their vision to work across many global frontiers
to earn in international currencies of many countries. These organizations have books of
accounts of various countries, which at the end of financial year of respective countries
being consolidated together, according to its usage.
Global Business Services
Instead of operating numerous shared service centres and managing outsourcing vendors
independently, they are:
 implementing global business services,
 providing integration of governance, locations and business practices to all shared
services and,
 Outsourcing activities across the enterprises.
A global enterprise is one which owns and manages the functions in two or more countries.
for example- Unilever Ltd, Coca-Cola, Samsung etc.
Features of Global Enterpreneurship
Huge Capital Resources
These enterprises have huge financial resources. They have the ability to raise funds from
different sources. Funds are raised by the issue of issuing equity shares, debentures, etc to
the public. The investors of the host countries are always willing to invest in them because
of their high credibility in the market.
Foreign Collaborations:
With companies of the host countries, these enterprises enter into agreements. These
agreements are made in respect of the sale of technology, production of goods, patents,
resources, etc.
Advanced Technologies
These enterprises use advanced technology for production, hence goods/services provided
by the MNCs conform the international standard and quality specifications.

Product Innovations
These enterprises have efficient teams doing research and development at their own R &D
centres. The main task is to develop new products and design existing products into new
shapes in such a manner as to make them looks and new and attractive and also creates
satisfies the demands of the customers.
Expansion of Market Territory
They expand their market territory when the network of operations of these enterprises
extends beyond their existing physical boundaries. They occupy dominant positions in
various markets by operating through their branches, subsidiaries in host countries.
Centralized Control
Despite the fact the branches of these branches of these enterprises are spread over in many
countries, they are managed and controlled by their Head Office (HO) in their home country
only. All these branches have to work within the broad policy framework of their parent
company.
https://www.toppr.com/guides/business-studies/private-public-and-global-enterprises
The Global Entrepreneurship Institute, a global entrepreneur is someone that “seeks out
and conducts new and innovative business activities across national borders. These
activities may consist of exporting, licensing, opening a new sales office or acquiring
another venture.”
In the modern world, most of the key aspects of business are highly globalised. While
companies used to start out small and expand to incorporate international services into
the business over a period of time, they are now often classed as ‘global’ from the
moment they begin trading. This is because entrepreneurs have all the information they
need at their fingertips to source the best suppliers, manufacturing locations, investors
and employees. It is no longer the norm to automatically opt to use the products and
services of individuals and businesses in the local area.
Globalisation has not only drastically changed the way businesses operate, but also
the impact that entrepreneurs can have across the entire world. Thanks to advances in
technology, one person’s light bulb moment can be used to transform business operations
overnight and be incorporated into international companies’ strategies the very next day.
Advantages of Global Expansion
Becoming a global entrepreneur is typically regarded as a positive and profitable career
move. Those that hold the title can be extremely wealthy, powerful and treated as a role
model. So, what are the advantages of expanding a business across geographical borders?
Global entrepreneurs can:
 Grow their business in new markets
 Find new talent
 Find new customers
 Increase the business’ brand awareness, giving it a competitive edge in the
domestic market
 Increase the business’ purchasing power, making long-term savings
  Lessen the impact of seasonal trends
Global expansion is a particularly attractive proposition for small businesses looking to
boost their talent, brand awareness, customer base and profit potential. But any
entrepreneur that takes their brand to international markets has the opportunity to impact
the selected territories in a positive way. They can do this by encouraging economic
growth and creating new jobs, which could result in real social change.
Global Entrepreneurs
For this reason, it is vital that global entrepreneurs maintain a thorough and up-to-date
understanding of the regions where aspects of the business’ operations are carried out.
They must also have the vision and leadership skills to take the company to new markets,
as well as the ability to identify lucrative opportunities, negotiate deals and set up
advantageous partnerships.
An example of global entrepreneurship
In order to get a sense of the benefits of expanding into international territories, we can
look at Starbucks’ rise to fame.
In the mid-1980s, Howard Schultz, Starbucks’ Director of Retail Operations and
Marketing, encouraged the then coffee bean retailer to trial a café model that sold coffees.
He had been inspired by a recent trip to Italy, where he noticed Milan’s popular and
convenient espresso bars. As Starbucks began work on this, Schultz opened his own
coffee shop called Il Giornale in Seattle, which used Starbucks coffee beans.
In 1987, Schultz gained financial support from local angel investors and was able to buy
Starbucks’ assets and change its name to Starbucks Corporation. By the end of the year,
there were 17 Starbucks outlets, one of which was in Vancouver, Canada.
The business continued to expand and, in 1995, rolled out Starbucks to Japan, as a result
of a joint venture between the newly created Starbucks Coffee International and
SAZABY Inc. Just a few years after this, the company acquired the Seattle Coffee
Company in the UK, which gave it control of more than 60 retail locations.
Statistics demonstrate that, through international expansion and lucrative business
partnerships and acquisitions, Starbucks has been able to hugely increase its reach, brand
awareness and profitability. Let’s take a look at the figures:
 In 1987, Starbucks had 15 stores and 100 staff members. Ten years later, it was
generating $1 billion in sales income. By 2003, it had grown to comprise over 65,000
employees, and served more than 22 million customers across the world every week.
Today, Starbucks is a household name and a hugely influential brand. While it has
developed 14,000 outlets in the US, it has also launched an additional 14,000 stores
across the world, located in almost 80 different countries. These 28,000 Starbucks stores
have enabled the brand to reach global revenue of over £24 billion. This makes it the top
coffee chain in the world in terms of revenue, according to Franchise Food & Drink – an
impressive feat in the competitive coffee retail sector.
https://www.pointfranchise.co.uk/dictionary/global-entrepreneur-definition-68/
Benefits Global Entrepreneurship
There are many benefits for entrepreneurs participating in global business activities. We
group them in three categories: strategic, financial, and production related.
Examples of strategic benefits are:
 enhancing domestic competitiveness
 reduction of dependence on existing markets
 capitalizing on the growth potential of the new country market and neighboring countries
 protecting foreign markets
 stretching and building marketing capability
 global brand building and awareness
 finding new talent
 transferring competitive information and new product ideas from those markets to other
markets, or what we call “learning local and share global” activities
Examples of financial benefits include:
 finding new customers
 increasing profits and sales
 earning a greater return from set of core competencies
 increasing the universe of potential investors
 capitalizing on tax advantages
 minimizing impact of seasonalities in local markets
Production-related benefits include:
 guaranteeing supply of raw materials
 acquiring technology and R&D capabilities
 cutting costs through global outsourcing
 improving purchasing power for customers buying locally
 realizing greater experience curve economies in production
 extending lifecycle for current products or services
 selling excess production capacity
https://news.gcase.org/global-entrepreneur/
Impetus for Entrepreneurship
Entrepreneurs are known for their tenacity and commitment – to lofty ideals, long hours,
and success. They are hard workers who go into a project passionately and find success
because they can convince other people of the value of their ideas. A key factor in
sustaining this kind of energy, creativity, and drive is motivation. The role of motivation
in entrepreneurship is foundational to their ultimate success.

Why is Motivation Important?

Motivation services as the reason, or reasons, that compel someone to continue striving
and working. It provides hope and clarity when circumstances become hard and
discouraging. Entrepreneurial motivation, then, is fundamental in someone’s decision to
embark on the journey of creating a business.
Motivation is also important to those that entrepreneurs work with and interact with.
Entrepreneurs need to understand, tap into, and sustain their own motivation for starting a
business, but they also need to be able to motivate others to buy into their idea. Whether
it’s motivating investment groups to provide startup funding or motivating eventual
employees during the early days, motivation is key to keeping everyone on the same page
about the mission of the new business and working towards fulfilling that.

What are Motivational Influences on Entrepreneurship?

Every entrepreneur and business owner is different; therefore, many entrepreneurial
motivation factors will also be different. But there are similarities among successful
entrepreneurs in where they find motivation and inspiration. Here are some of the things
that not only motivate entrepreneurs to go into business for themselves but keep
motivating them to continue even during difficult parts of the process.

 Greater Freedom
Entrepreneurship often appeals to people who want to work for themselves. Whether they
no longer want to report to a supervisory structure or simply want to be able to create
their own hours, entrepreneurship gives people more freedom and flexibility in how they
structure their careers. And while there is inherent anxiety in entrepreneurship, as there is
a lot of unknown about the possible success of a startup, it also can be freeing to know
that your employment is secure in the sense that you are able to define your own
parameters of success, salary, and so on.

 Greater Income
Some workers feel that all the work they put into a business owned by someone else
ultimately goes to help add to that owner’s wealth. While employees receive a salary for
their work, they are limited in how much they are able to earn when compared to C-suite
level employees, owners, and shareholders. Starting your own business creates the
possibility of increased wealth over time.

 Greater Influence
Relatedly, some employees disapprove of the direction that the company they work for is
taking, or they want to have a more direct hand in some of part of the business. Wanting
to have a greater influence over a product’s development, marketing, or customer base is
a significant motivator for some people to break away from a business or career path and
start their own company or product line. It can also appeal to people who want to have a
lasting impact or legacy in an industry, as starting a company sets them apart.

 Control and Creativity

Many entrepreneurs have an idea they want to share with the world or that they think
could influence people’s lives for the better. Wanting a greater creative control over the
product and business process is a driving motivation that launches the career of many
self-made business people and can help create focus and provide inspiration throughout
the entrepreneurial process.
https://www.techfunnel.com/martech/role-of-motivation-in-entrepreneurship/

https://www.gyankovandar.com/2021/05/Entrepreneurial-Motivation.html