The of Dees (1998). Private entrepreneurship refers to

The third
lens focuses on social context and community. I will be drawing on Austin,
Stevenson & Wei-Skillen’s (2006) distinction between private and social
entrepreneurship to reflect on where I see my future career and entrepreneurial
aspirations. I will look at how the two different forms
of entrepreneurship have been defined in entrepreneurial literature by the
likes of Dees (1998).

 

Private entrepreneurship refers to
entrepreneurs aiming to create ‘profitable operations resulting in
private gain.’ (Austin, Stevenson &
Wei-Skillern, 2006). Social entrepreneurship
refers to entrepreneurs that to create a business providing a product or
service that will in some way have a positive social effect or benefit. ‘Social
entrepreneurship can include social purpose business ventures, such as
for-profit community development banks, and hybrid organizations mixing
not-for-profit and for-profit elements, such as homeless shelters that start
businesses to train and employ their resident.’ (Dees, 1998). The main goal for social entrepreneurship is to
generate a positive social effect or benefit for the community, rather than individual
benefit or gain. (Austin, Stevenson & Wei-Skillern, 2006). This is what
essentially differentiates social and private entrepreneurship.

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Social enterprises (which can be for-profit or not-for-profit
businesses) try to achieve certain social goals or objectives by offering their
product or service, to attain ‘financial sustainability independent of
government and other donors.’ (Di Domenico,
Haugh & Tracey, 2010). This means that they ‘share the pursuit of revenue generation with
organizations in the private sector as well as the achievement of social (and
environmental) goals of non-profit organizations.’ (Dees, 1998; Di Domenico, Haugh & Tracey, 2010). I think that as a possible
future entrepreneur looking to set up a business, this shows me the
difficulties that a social enterprise can face as they are not only having to
achieve their goal of delivering a social benefit, but they may also have to
compete against firms that are only focused on profits.

 

As mentioned earlier, the main goal of social entrepreneurship is to
deliver some sort of positive social benefit or effect for the community. Conversely, private
entrepreneurship is about establishing a profitable business, which results in
the entrepreneur benefiting by gaining more money. Austin, Stevenson & Wei-Skillern (2006) point out that this distinction is exaggerated and that
private entrepreneurship does in fact benefit society. They argue this by using
the example of ‘new and valuable goods, services, and jobs’ which they believe
‘can have transformative social impacts’ and that these transformations can encourage
or inspire the private entrepreneurs. (Austin, Stevenson &
Wei-Skillern, 2006). This point of view makes a good argument and shows me how
private entrepreneurs can benefit society. It also makes me think more clearly
of where I see my
future career and entrepreneurial aspirations. Learning about how private
entrepreneurship is not only about making profits, but how I could benefit
society as a private entrepreneur. This makes me believe that as a private
entrepreneur I could not only look to benefit society, but also make money at
the same time.

 

In their research on social entrepreneurship,
Marti & Mair (2006) mention how recently
many well-known entrepreneurs ‘have dedicated substantial resources to
supporting social entrepreneurship’. ‘Jeff Bezos, founder of Amazon, recently
announced a one million US dollar award for innovative approaches and
breakthrough solutions to effectively improve communities or the world at
large.’ (Marti & Mair, 2006).

 

In week 8 of
the module we explored the concept of social entrepreneurship and its role in
society. As part of the bootstrapping challenge, any
profits we made were donated to charity. Trying to see the distinction between private and social
entrepreneurship has helped me to see that there are similarities and differences between the two. (Austin,
Stevenson & Wei-Skillern, 2006). This was the most influential for me in
understanding entrepreneurship and where I see my future career and entrepreneurial aspirations as it
made me think that as a private entrepreneur I could not only look to benefit
society, but also make money at the same time.

 

Overall; In
terms of how I understand entrepreneurship, the main things I have come to
understand (through this module and the little experience that I have gained)
are the importance of connecting with customers and how customer value
proposition plays a big role in this. Customers will choose to come to you
based on the value proposition offered. One example is giving customers the
chance to personalise products which makes it more personal for them. Another thing
I have learned is that ‘entrepreneurship is a process of learning’ (Minniti & Bygrave, 2001) and that
it is better to experience something first-hand and
use the experience to learn and improve. I believe that the bootstrapping
challenge as well as the
lecture material have helped me to learn and improve. Austin, Stevenson & Wei-Skillern, (2006) make a good argument
about how private entrepreneurs can benefit society, which improved my
understanding and has made me more interested in a future entrepreneurial
career. The reason being that as a private entrepreneur I could not only look to benefit society, but
also make money at the same time.

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