Marketeros: While there is no universally accepted definition of a social entrepreneur, the term generally applies to an individual who uses market-based ideas and practices to create “social value,” the improved well-being of individuals, communities, and the environment. ambient Israel Email Lists
Unlike ordinary commercial entrepreneurs who base their decisions solely on financial returns, social entrepreneurs incorporate the objective of creating social value in their business models.
Digital Business – The Tom Shoes Case
Social entrepreneurship has become extremely popular in recent years and several prestigious business schools have created specific academic programs in the field. It is often said that social entrepreneurs are changing the world. They are praised for their ability to achieve far-reaching social change through innovative solutions that disrupt existing patterns of production, distribution and distribution.
Prominent social entrepreneurs are celebrated on magazine covers, praised at the World Economic Forum in Davos, and awarded millions of dollars in seed capital from “angel” investors, and applauded as “forerunners of new ways of doing business.”
Social entrepreneurs are often hailed as heroes, but are they really making a positive social change?
Undeniably, social entrepreneurship can arouse a surprising level of enthusiasm among consumers. Blake Mycoskie, social entrepreneur and founder of TOMS Shoes, tells the story of a young woman who boarded him at an airport, pointing to his pair of TOMS while shouting: “This is the most incredible company in the world!” Founded in 2006, TOMS Shoes immediately attracting followers with its innovative use of the so-called One to One model, in which each purchase of a pair of shoes by a consumer activates the gift of a pair of shoes for an impoverished child in a country in process of development.
The enthusiasm associated with social entrepreneurship is perhaps emblematic of a greater global social awareness, which is evidenced by the increase in charitable donations throughout the world.
A 2012 study showed that 83 percent of Americans want brands to support causes.
41 percent have bought a product because it was associated with a cause (a figure that has doubled since 1993).
94% said that, given the same price and quality, it was likely that the brands would change to one that represented a cause.
More than 90 percent believe that companies should consider giving in the communities in which they do business.
Currently, TOMS has expanded its business model to include medical treatments and prescription lenses that restore sight, as well as to clean water initiative to provide clean water in countries where this is a real problem. The brand started its own line of glasses in 2011, following the same “one for one” concept as with their shoes, donating medical attention and glasses for each pair of glasses they sell.
Despite the enthusiastic reception of consumers, critics of social entrepreneurship have expressed concern about the creation of social value in a for-profit context. Therefore, TOMS is sometimes confused with a charity because it donates shoes to children in developing countries, but it is also business to sell shoes.
The company earns approximately $ 300 million a year and has made Mr. Mycoskie a wealthy man. The companies begin to look like charities, nonprofits also increasingly depend on business principles to survive in an uncertain economy in which donors expect to see tangible results from their charitable contributions.
Our understanding of social entrepreneurship is complicated by the absence of a consensus on ways to measure social outcomes. As a result, there are few concrete statistical data available on the impact of social entrepreneurship. In fact, there is not much consensus on a precise definition of social entrepreneurship, it is difficult to say to what extent to given company is an example of social entrepreneurship.
TOMS Donate Director Sebastian Fries recently told The New York Times that the company “is not in the business of alleviating poverty.” Does this mean that the increase in social value is simply a happy by-product of the business of selling shoes? If so, what makes Blake Mycoskie a social entrepreneur?
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