Dear Entrepreneurship Colleagues:
I recently gave a speech in Singapore to help launch a new service-learning program for business students at Singapore Management University. The program-called Students for the Advancement of Global Entrepreneurship (SAGE; http://sageglobal.org ) – -l inks secondary school students with university students. The university students become "consultants/mentors" to the younger students through service-learning. The program helps high school-age youth learn about starting their own commercial and social enterprises while also learning the difference between social enterprise and social responsibility.
Part of my speech cited the work of Muhammad Yunus and Bill Gates regarding social enterprise. I agree with Yunus, who said, "We need to reform the capitalist system to make room for social enterprise." He also said, "Generating ideas for social businesses is the most important, immediate challenge of today's business thinkers." (citation: Creating a World Without Poverty: Social Business and the Future of Capitalism, Copyright 2007). Gates echoed Yunus's call when he said "We have to find a way to make the aspects of capitalism that serve wealthier people serve poorer people as well." (citation: Wealth of Ideas: Bill Gates Issues Call for a Benevolent Capitalism, January 25-27, 2008, Wall Street Journal Asia).
I target youth through the SAGE program, because they are not yet jaded by political, religious, and cultural intolerance. Many of them are inclined to pursue a career that doesn't provide for extreme wealth; instead, many of them indicate a desire to seek a balance between economic security while, at the same time, doing something to make their communities stronger.
In Singapore, and in many other places, I hear people using the terms and "social responsibility" and "social enterprise " interchangeably . I try to explain the difference as follows :
A. Humanitarian Capitalists
· People starting companies, or working for companies , that seek financial profit first and foremost
· Social value is important, but secondary
· If there are no financial profits, it is difficult to aggressively pursue social value
· This is where corporate social responsibility (CSR) "fits".
B. Capitalistic Humanitarianists
· Social value first
· Financial profits secondary
· This is where social enterprise "fits"; financial profits, while not primary, are necessary to maintain the enterprise as a going concern (i.e., sustainability).
My questions to subscribers:
1. Does my differentiation between social responsibility and social enterprise make sense?
2. Do you think it's important to make this distinction, or is it just a matter of semantics?
3. Should a new form of enterprise-social enterprise-be given more attention in business schools?
4. If so, can service-learning programs (such as SAGE) be an effective tool to accomplish this?
Have a good day.
Sincerely,
Curt
Dr. Curt DeBerg, CPA
Center for Entrepreneurship
California State University, Chico
Chico, CA 95929-0011
Founder: SAGE, http://sageglobal.org
530.898.4824 (w)
cdeberg@csuchico.edu
skype id: cdeberg
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