Entrepreneurship with Social Development

Topics: Sociology, Joseph Schumpeter, Entrepreneurship Pages: 5 (1544 words) Published: March 29, 2013


In the recent years there has been strong growth in the studies of social entrepreneurship on the level of business administration and microeconomics. This has been especially the case since Muhammad Yunus, founder of the Grameen Bank and a renowned example of a social enterprise, won the Nobel Peace Price in 2006. However, the increase in academic interest has largely been confined to case studies or efforts to find a common definition of social entrepreneurship (Pariyar and Ward, 2005, p.1). What the current academic literature does not provide is a link between social entrepreneurship and economic development policies. How important are social entrepreneurs for economic development and what are the policy implications?

After defining the term social entrepreneurship as dealing with organizations at the intersection of non-profit and business enterprises this essay analyses the importance of social entrepreneurship for economic development policies. It will be demonstrated in four paragraphs that the social entrepreneur sector is increasingly important for economic development policies because it creates social and economic values:(1) Employment development, especially significant for the disadvantaged segment of societies; (2) Innovation and the creation of new goods and services, often for unmet social needs; (3) Social capital, critical for sustainable social and economic development, and (4) Equity Promotion, in view of the addressing of the needs of disadvantaged people.

Therefore, economic development policies should consider not only the needs of entrepreneurs in general, such as instituting bankruptcy laws and working institutions and reducing regulatory burden, but also especially foster social entrepreneurs by providing specific education and tax-incentive programmes and, most importantly, easier access to funding.

What is entrepreneurship?
An entrepreneur is a person who develops a new idea and takes the risk of setting up an enterprise to produce a product or service which satisfies customer needs. All entrepreneurs are business persons, but not all business persons are entrepreneurs. Let us now think of why all business persons are not entrepreneurs. Think of a woman who sits by the roadside leading to your home and who has been selling the same type of food, from the same size of saucepan or pot, from the same table top, and may not have been able to change her standard of living to any appreciable extent. Such a woman may be a business person but not an entrepreneur. The entrepreneur, on the other hand is the business person who is not satisfied with his/her performance and therefore always finds ways to improve and grow. Now let us consider the characteristics or some special qualities and strengths which make an entrepreneur different from a business person. It is important for us to note that a successful entrepreneur possesses the following characteristics. Advantages of self-employment

Self-employment has several advantages. Can you think of some of them? Your list may include any of the following. Being self-employed enables a person to: 1. Lead rather than follow
2. Be creative and implement ideas
3. Have the potential for increased...
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