A need to understand the complex and integrated phenomenon of a social entrepreneurial ecosystem, particularly if its city-specific is vital. One can still find it a challenge to obtain information about the nature of social entrepreneurship in today’s world as well as the sort of environments that support the entrepreneurial system.
Worldwide the relevance of Social entrepreneurship in business, society, and politics is rising further.
This can be attributed to the increasing environmental and health crises, a rising economic inequality, the institutionalization of NGOs and the state’s inefficiency to deliver public services. Inevitably, these issues are creating a high call for higher per capita wealth, access to education and improved communication.
Yes, welfares may vary depending on each country. Noticeably developed economies can allocate public goods better than emerging economies. Though if we take a look at developed nations and compared them, one can notice a difference between their welfare systems. For instance, a Scandinavian welfare system from any of its countries can be said to be well developed, if, compared to Britain.
It is important to note that overall social entrepreneurship is shaped by diverse challenges and social problems. Geographically speaking, the business and scaling models of social enterprises range from local or regional to international and global approaches. These socioeconomic changes happen in an evolutionary or revolutionary way.
If we, for instance, consider a regional economy to be progressing, then these socioeconomic changes happen in an evolutionary or revolutionary form. Let us say a social entrepreneur tackles something that already exists and makes it bigger, better and faster, then this is considered evolutionary social innovation which seeks to adapt new ideas to the existing world. On the contrary, a social entrepreneur that tackles an activity that once operated in one way and has us look at it in a totally different manner then its considered a revolutionary social innovation that seeks to adapt the world to new ideas. However what is clear up until now is that our Y generation wants to make a difference that does not see the dividers between work and social impact and responsibility. Therefore, social enterprises are mostly developed to target various areas that include but not exclusive to poverty, economic inequality, crime, crises, climate changes and corruption from either the private sector or the government.
Importantly interesting is what can encompass a social entrepreneurial ecosystem? Social Entrepreneurship depends on a framework with essential elements and key stakeholder, but most importantly needs dimension to push the movement forward.
Firstly, Social Entrepreneurship depends on economic characteristics and conditions but may also require a structure that includes the legal, political, socio-cultural, ecological and technological factors.
Secondly, it is vital to understand the synergy that occurs between the social/public sector, the private sector, and how identified societal problems give rise to the opportunity of creating something innovative and meaningful.
Thirdly, if we are to identify the social entrepreneurial ecosystem in a city, it is essential to be conscious of its society, economy, politics, and culture (including ethics, norms, and values) and most importantly the existing regulatory frameworks established by the institutions.
Who are the key stakeholders of the social entrepreneurial ecosystem?
Employees who are giving the vital jobs, suppliers who are providing the tools and resources for the social entrepreneurs, media outlets, investors whether they provide public or private funds, competitors between social entrepreneurs who provide similar services or products, network organizations and incubators/co-working spaces, customers who can both provide insights into their habits and the reasons for consuming products or services that deliver impact. Moreover, both the public and third-party sector (i.e. NGO’s and NPO’s, volunteers) play a key role and of course without forgetting the indispensable role of the state.
The benefits of a social entrepreneurial system help reduce a structural disequilibrium; creates value; solves a social problem; assumes risks; deals with asymmetric information; allocate resources; creates new jobs and generates tax revenue (reduces informal sector).