Models of Social Entrepreneurship Profit Maximization and Social Value Creation 公开

Bharwani, Shehzad (2012)

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How do you save the world? "Treat It Like a Business," writes NY Times
columnist Emily Eakin. Although entities called social entrepreneurships may do just
that, understanding how these entities can combine profit maximization and social value
maximization goals to generate profit and create social change is what this paper will
investigate. Although some literature may disagree, a social entrepreneurship is a profit
maximizing entity that simultaneously aims to create social value, generally through
innovative methods that rely on the primary good or service that produces a profit. My
research is focused on uncovering the fundamental principles that lead to the success of
social entrepreneurships in the market (Austin, 2000). The Community Wealth Ventures
found that there has been a steady growth in the number of social entrepreneurships in the
past four decades, going from around 10,000 to over 70,000 internationally (Common
Wealth Ventures, 2008). My research concentrates on the social entrepreneurship
phenomenon with the aim of understanding the core economics that enable them to
compete and create increased profit and social value. Therefore, the question that my
research is trying to answer is what has led to the emergence of social entrepreneurships
and how do they continue to compete and thrive in the market (Dave and Woods, 2005).

The approach I take breaks down social entrepreneurships into two separate parts for analysis. The first is supply and second is demand. The supply modification that social entrepreneurships induce is caused by synergies that occur uniquely in social entrepreneurships. The demand modification that social entrepreneurships create derives from image enhancement and philanthropic signaling, which again is unique to social entrepreneurships. Analyzing how social entrepreneurships deviate from the traditional business from these two perspectives will allow me to determine some of the economic reasons for their competitive success in the market.

Table of Contents

Table of Contents
1. Introduction

2. Literature Review

2.1 The Problem and Solution Development
2.2 What are Social Entrepreneurships
2.3 Why Are Social Entrepreneurships Important
2.4 Conventional Wisdom

3. Distinguishing Social Entrepreneurships

4. Assumptions/Definitions

5. Supply Modification
5.1 Economies of Scale
5.2 Economies of Scope
5.3 Margin Reduction
5.4 Model of Supply Modification

6. Demand Modification
6.1 Positive Image/Reputation Enhancement
6.2 Philanthropic Signaling

7. Bundling

8. Implication/Results

9. Conclusion

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