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Toward a better understanding of social entrepreneurship: Some ...

Source: www.se-alliance.org
Topic: Entrepreneurship

Sort Desciption: of social entrepreneurship:. Some important distinctions. By Jerr Boschee and Jim McClurg. Social entrepreneurship is one of the most misunderstood ...

Content Inside: Toward a better understanding of social entrepreneurship: Some important distinctions By Jerr Boschee and Jim McClurg Social entrepreneurship is one of the most misunderstood phrases in the nonprofit sector today. Everybody it seems has a different definition of what it means. This is our attempt to bring some clarity to the discussion. Our perspective has been shaped by 50 years of experience in the field one as the head of a national consulting firm and the other as the CEO of a $15 million social enterprise. Twenty years ago the idea of nonprofits acting in an entrepreneurial manner was anathema to most people in the sector: The idea of merging mission and money filled them with distaste. But the phrase social entrepreneur is bandied about freely these days. British Prime Minister Tony Blair praises the emerging tide of social entrepreneurs that is changing the face of Englands voluntary sector and senior executives at INDEPENDENT SECTOR talk about social entrepreneurs in the United States who find new and exciting ways to attract contributions and government support for their programs. Both are right to praise the ingenuity of nonprofit organizations but most of what they are praising has nothing to do with entrepreneurship. Here is the gist of the problem: Unless a nonprofit organization is generating earned revenue from its activities it is not acting in an entrepreneurial manner. It may be doing good and wonderful things creating new and vibrant programs: But it is innovative not entrepreneurial. Why is the distinction so important? Because only earned income will ever allow a nonprofit to become sustainable or self- sufficient. Innovation is a precious resource and it served as the primary engine of nonprofit growth through the 1970s and 1980s. But innovation can take a nonprofit only so far. Its one thing to design develop and implement a new program -- and quite another to sustain it without depending on charitable contributions and public ...

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