Académique Documents
Professionnel Documents
Culture Documents
Entrepreneurship
Lecture 8: Launch, Growth attainment
By:
Amrit Bista
BE, MBPM
Date: 27/01/2019
1
Five competitive forces model
Substitutes
Ease of entry
Market power of buyers
Market power of sellers
Competitive pressure from current rivals
2
What are parallel threats acting on
social enterprises?
Substitutes ways for clients to meet their needs
Competition for donors who support other non-profits
Competition with other groups serving the same clients
Socio-economic or demographic changes in client needs or
interest
Public policy changes in regulation or funding levels
Bargaining/market power of paid workers, lenders, land
owners, and third-party payers
Figure 8.1 illustrate these forces
3
Figure 8.1: The threats to social value
creation
Socio-economic and
demographic changes Ability to create social
value
Public policy shifts
Bargaining power of
sellers and buyers 4
Social Entrepreneurship process
5. Goal Attainment
6
Key challenges of social enterprise
7
Key challenges of social enterprise
8
Key challenges of social enterprise
9
Key challenges of social enterprise
10
Key challenges of social enterprise
11
Key challenges of social enterprise
12
Key challenges of social enterprise
13
Key challenges of social enterprise
14
Key challenges of social enterprise
15
Key challenges of social enterprise
16
Key challenges of social enterprise
17
Key challenges of social enterprise
18
Key challenges of social enterprise
19
Key challenges of social enterprise
20
Key challenges of social enterprise
21
Key challenges of social enterprise
22
Key challenges of social enterprise
23
Key challenges of social enterprise
24
Key challenges of social enterprise
25
Key challenges of social enterprise
26
Key challenges of social enterprise
27
Key challenges of social enterprise
28
Key challenges of social enterprise
29
Key challenges of social enterprise
30
Key challenges of social enterprise
31
Key challenges of social enterprise
32
Key challenges of social enterprise
33
Key challenges of social enterprise
34
Launch and growth
35
Social enterprise growth strategies
Product-driven growth
Additional activities or programs
Market driven growth
Finding new consumers for existing services
36
Table 8.1 Social enterprise growth
strategies
37
Merging as a growth strategy
38
Myths about social growth
39
Figure 8.2: The growth of various
social sectors, 1977-97
40
Problems to anticipate during growth
41
Creating an intrepreneurial
environment
Encourage action
Use informal meetings
Understand that failure is a part of learning
Be persistent in implementing ideas
Make innovation a goal
Encourage informal communications in the workplace
Encourage the development of new ideas
Assign people to think about the future
Encourage ways to work around bureaucracy
Reward innovation
42
The intrapreneurial process
43
Figure 8.3: A model of
intrapreneurship
Organizational
Idea
characteristics favourable
quality
to innovation
Personnel with
entrepreneurial Resources
characteristics
44
The intensity of social
entrepreneurship
It is characterized by degree and frequency
Degree can be revolutionary or incremental
Frequency can be continuous or sporadic
Figure 8.4 shows these dimensions of intensity
45
Figure 8.4 A model of entrepreneurial
intensity
High
Continuous and
Continuous and
revolutionary
incremental
Frequency of
social
entrepreneurship
Degree of social
Low High
entrepreneurship
46
Understanding risk factors for social
entrepreneurs
Leadership risk
Staff and volunteer risk
Funding risk:
Current financial situation
Effect on future funding
Diversification – one business or more?
Enterprise concept risk – is it really a good idea?
Marketplace volatility – exposure to broad economic and
social factors
47
Managing and reducing risk
48
The end of the social
entrepreneurship process
Attaining goals is the last stage of entrepreneurship
And then what – how to harvest the gains?
Nonprofits do not provide the opportunity to divide or
distribute wealth
The needs for social enterprise is likely to exist even in the
face of success
49
Some enterprise end in failure
50
Interpreting failure
51
Figure 8_6 Organizational
disappearance
Rate of organizational disappearance within first four years of operation in
seven non-profit sub-sectors, 1992-1996
52
Goal attainment is a critical point of
decision
Shut down
Redefine
Stabilize and continue
Integrate into another venture with purpose
53
THOUGHT FOR CHANGEMAKERS
54
THOUGHT FOR CHANGEMAKERS
55
THOUGHT FOR CHANGEMAKERS
56