Social Entrepreneurship

1768 Words8 Pages
Assess the importance of social entrepreneurship in the local context. 1.0 Definition of Social Entrepreneurship A social entrepreneur identifies and solves social problems on a large scale. Just as business entrepreneurs create and transform whole industries, social entrepreneurs act as the change agents for society, seizing opportunities others miss in order to improve systems, invent and disseminate new approaches and advance sustainable solutions that create social value. Unlike traditional business entrepreneurs, social entrepreneurs primarily seek to generate "social value" rather than profits. And unlike the majority of non-profit organizations, their work is targeted not only towards immediate, small-scale effects, but sweeping,…show more content…
4.0Fundings As the programs and projects of NGOs expand, the need for money to run their operations becomes all the more critical. NGOs have remained highly dependent on donor and external organizations such as UNDP, WHO, etc – in addition to some fundraising efforts from the private sector and general public. Funding for the majority of NGOs remains limited, as only a few have access to government grants. Financial weakness The majority of NGOs are not membership based, hence the opportunity to sustain core funding from membership contributions is lost to many. Other sources for sustainable financing are not yet fully explored, for example, long-term partnership with private sector (beyond fundraising), engagement in economic activities and social mobilization at community level. Competition for limited funding creates a negative environment for networking among NGOs, which in turn leads to duplication and loss of opportunities to pool knowledge, experiences and resources to a common cause 5.0 How local NGOs can become entrepreneurial and raise finance A success story of how NGOs can become entrepreneurial and raise its own finance and at the same time help the community would be the example of the Big Issue magazine in London. The Big Issue is a business. But it is a different kind of business, a social business, which provides a 'business solution to a social problem'. Although The Big Issue work as a business, their aim is not to make money for its own
Get Access