Professional Documents
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Topic 1 - Enrepreneurship
Topic 1 - Enrepreneurship
Overview
Definitions of Entrepreneurship and Social Entrepreneurship Creativity & Innovation Opportunity identification Resources How does this relate to the Third Sector? Social Entrepreneurs and Social Enterprise Social Innovation- how to deliver services and meet the social needs of end beneficiary Need as Opportunity Identifying and Accessing Resources The challenge
Contemporary definitions
continued
Classic view of entrepreneurship: acting in an enterprising way to identify and exploit an opportunity by assembling the resources to start a new organisation. Contemporary views of entrepreneurship emphasise opportunity and action entrepreneurship is a process that involves the application of creative thinking and enterprising skills to identify opportunities and to develop new ideas and concepts (innovative products and services) and exploit them through new venture creation.
Direct provision of services: e.g. childcare, personal care, education and training. Production and sale of goods which strive to meet unmet needs Employment provision, training and skill development: seeking to enhance employability and skills either directly or indirectly through their commercial activities: (i) social firms employment for people excluded from the workforce; (ii) intermediate labour organisation a bridge for social excluded people to get into the labour market .
Challenges
Environment is complex Challenge of achieving financial sustainability whilst remaining true to the social orientation of your organisation. Most third sector organisation have a portfolio of funding It is competitive funding environment.
How do you stand apart from the other organisations who are active within your area and who are chasing the same funding?
Entrepreneurial Qualities
Dynamism Efficiency Innovativeness High Performance Leadership Economic Sustainability
Creativity
Being open minded to new ideas is essential in any venture whether it is commercial or social. BUT Generating ideas does not necessitate that there is an opportunity worth exploiting in an economic or social sense. However, creativity and being open minded allows you to explore and consider alternative ways of working and / or delivering a service or product that meets a need.
Innovation
Creativity can lead to Innovation. Innovation is the practical application of creativity. Innovation can lead to technological change and new product development Innovation often involves doing new things or doing established things in a new way- process innovation. Innovation is rarely about invention
An Example
Why Innovate?
Organisations (& therefore economies) with the ability to innovation have a distinct advantage in local, regional, national & global competitiveness. A lack of innovation can lead to stagnation, and challenge the ultimate survival of the business: if you dont innovate someone else will!
Increasing competition Scarce resources, funding restrictions & perceived lack of autonomy.
Indications that innovative activity in the sector has declined by 50% in last decade.
Opportunity Identification
Commercial Entrepreneurship Breakthroughs Social Entrepreneurship Serving a long standing social need more effectively through innovative approaches Recognised social need, demand or market failure
Pursue ventures that are economically viable Pursue ventures that requires subsidy Social needs (opportunities) often outstrip the resources available to address them.
One challenge is that often the end beneficiary is unable or unwilling to pay for the costs of the good or service.
Leveraging Resources
Becomes more and more important in organisations ability to: Be creative but be innovative! Maximise opportunities Maximise Resources Maximise social return Create a sustainable business model.
Finally..
Entrepreneurship Matters