Lecture 1: Overview of

Social Entrepreneurship
EPPK6323 Keusahawanan Sosial

Dr. Ahmad Raflis Che Omar

Definition of Social Entrepreneurship
• Classical definition of SE (Dess 1998): Social entrpreneurs play the role of change
agents in the social sector by adopting a mission to create and sustain social value
(not just private value), recognizing and relentlessly pursuing new opportunities to
serve the mission, engaging in a process of continuous innovation, adaption and
learning, acting boldly without being limited by resources currently at hand, &
exhibiting a heightened sense of accountability to the constituencies served and for
the outcomes created.
• Martin and Osberg (2007): Social entrepreneurs are those who target underserved,
neglected or highly disadvantages populations (eg. low income workers, less educated
persons etc), aim at large-scale, transformational benefits that accrue either to
significant segment of society OR to society at large.
• Ashoka Founder (Bill Drayton – The Nobel Prize for Leadership Recipient) definition:
Innovation for the public, a citizen-sector organization, identifies and support
leading social entrepreneurs who are considered to be engines of social change and
role model for the citizen sector, help them to achieve maximum social impact.
Social Entrepreneurship (SE) vs.
Social Business (SB) - Both aim at solving societal issues
Concept SB SE

• Social Business – promoted by Professor Dr. Business aimed at solving a Entrepreneurial

Muhammad Yunus, the founder of Grameen specific social problem and activities aimed at
Bank Bangladesh (banker to the poor via not for profits. The impact achieving a positive
microcredit financing program) – also the Nobel of the business on people or social change either
Prize Winner environment, rather the by employing

• SB is a cause-driven business. In a social 1

amount of profit made in a processes, principles
business, the investors/owners can gradually given period. and operations
recoup the money invested, but cannot take any towards solving
dividend beyond that point. Purpose of the cultural,
investment is purely to achieve one or more environmental or
social objectives through the operation of the
social issues.
company, no personal gain is desired by the
investors. The company must cover all costs and
make profit, at the same time achieve the social Measure profits based on
objective, such as, healthcare for the poor, monetary returns for the
housing for the poor, financial services for the
benefit of society Measures profits by
poor, nutrition for malnourished children,
2 solving a particular
providing safe drinking water, introducing
renewable energy, etc. Sustainability of the problem
company indicates that it is
running as a business.

can seek and receive

Domension of
Social
Entrepreneurhsip
ESG and SE
SDGs and SE
Thank you