Unit 3

Social Marketing

Social marketing seeks to develop and integrate marketing concepts with

other approaches to social change. Social marketing aims to influence
behaviors that benefit individuals and communities for the
greater social good.Think about some of the biggest challenges that face
the world today: health issues like obesity, or environmental problems
like climate change. These issues are often caused by human behaviour,
and so can only be tackled if people change their lifestyles and habits.

To give an idea of what is involved; here are eight features of social

marketing.

1. Behaviour
Social marketing involves trying to change people’s actual behaviour – not
just their attitudes or awareness.

2. Customer orientation
As social marketers, we must stand in the shoes of the people whose
behaviour we are trying to change. We need to understand their lives and
their behaviours from their perspective, not based on what we might
think or experience.

3. Theory
We use behavioural theories to help us understand behaviour and to
inform the interventions that we develop.
4. Insight
We conduct research into the behaviours of the people we are interested
in to develop actionable insights that inform the development of
interventions to change their behaviour.

5. Exchange
Changing behaviour usually involves people giving something up (costs)
to gain something else (benefits). We need to understand how people
perceive rewards, benefits, costs and barriers associated with both desired
and problem behaviours. We can then consider what might be done to
incentivise the desired behaviour and disincentivise the problem
behaviour.

6. Competition
In designing behaviour change interventions, we need to consider what
else competes for our audience’s time, attention, and their tendency to
behave in a certain way.

7. Segmentation
Not everyone is the same, so a ‘one size fits all’ approach is rarely best.
Good customer insight allows us to identify audience segments, grouping
together people with common characteristics, and to tailor interventions
accordingly.

8. Methods mix
Social marketing – like commercial marketing – involves using all of the
Marketing Mix i.e. the ‘7Ps’: Product, Price, Place, Promotion, Process,
Physical Evidence and People. It’s about much more than just raising
awareness.
What social marketing is not
Social marketing shouldn’t be confused with social media marketing, for
example using Facebook and Twitter. Social media is simply a tool or
channel that is sometimes used within social marketing.

According to Philip Kotler - Social Marketing is "the

design, implementation, and control of programs seeking to increase the
acceptability of a social idea or practise in a target group"

According to W. Smith, Academy for Educational Development - "Social

Marketing is a process for influencing human behaviour on a large scale, using
marketing principles for the purpose of societal benefit rather than commercial
profit."

Social marketing is based on tools and techniques of commercial

marketing, it uses principles of commercial marketing for the purpose of
societal benefit. In social marketing, advertising campaigns are designed,
implemented, and controlled by using the principles of commercial
marketing. The key features of social marketing are taken directly from
commercial marketing, but the purpose of social marketing differs form
the purpose of commercial marketing. The purpose of commercial
marketing is to increase sales and revenue, but it is not so in the case of
social marketing.
The purpose of social marketing is societal benefit rather than commercial
profit. Its purpose is to bring about positive health and social change. Its
ultimate outcome is behavioural change rather than increased sales.

Social advertising campaigns are advertising tools that attempt to

influence attitude and behaviour related to social cause. For example,
social advertising campaigns have been used to influence behaviour
related to energy conservation, pollution, tobacco prevention, family
planning, breast cancer screening, and etc.

How Social Responsibility in Marketing Works

Recyclable packaging, promotions that spread awareness of societal
issues and problems, and directing portions of profits toward charitable
groups or efforts are examples of social responsibility marketing
strategies. For example, a clothing company's marketing team may launch
a campaign that encourages consumers to buy a bundle of its socks versus
one pair; for every bundle sold, the company donates a bundle of socks to
military personnel overseas or to local homeless shelters. As a result of
these donations, the company brands itself as socially responsible and
ethical, which ultimately attracts customers who are engaged in socially
responsible commitments and who want to support the welfare of the
community.

Social platforms help you connect with customers, increase awareness

about your brand, and boost your leads and sales. With more than three
billion people around the world using social media every month, it's no
passing trend.

Social marketing examples

Implementation: child car seats. Social marketing enables you to develop
products, services and communications that fit people's needs and
motivations. ...

Policy: water rationing. ...

Strategy: lung disease strategy. ...

Child car seats in Texas. ...

Water rationing in Jordan. ...

Consider the four “Ps” of marketing when designing your interventions.

The 4 P’s

Product: Think about a tangible object or service you can provide to

support or facilitate behaviour change. Can you offer a new
product/service or adapt one that already exists? Product examples
include in-home blood pressure monitoring kits, improved HIV tests,
journals to plan and track food intake, cessation counselling.

Price: Consider interventions that would decrease the costs to the

individual of taking the desired action (not only monetary cost, but
emotional, psychological and time costs). List out the “price” or barriers
for your audience segment to carry out the desired behaviour, then
brainstorm interventions to diminish those barriers. For example,
instituting a walking club program at the workplace for those who cite
lack of support and lack of time as barriers to regular exercise.

Place: Think about where and when the audience will perform the
behaviour or access the new or adapted product/service. How can you
make it convenient and pleasant (even more so than the competing
behaviour)? Examples include placing condom vending machines in bar
restrooms, offering help lines that are available 24 hours a day, having
breastfeeding consultants check-in on new mothers after they leave the
hospital. Also think about your “sales force” – the people that will take
your program to the audience. Consider the need for peer educators,
counsellors or others who can make your program or its activities more
accessible.

Promotion: Use your market research to determine the communication

channels and activities that will best reach your audience to promote the
benefits of the desired behaviour. What advertising or public relations
media do they pay attention to (e.g., radio, newspaper, postcard racks)?
What special promotional items would they use (e.g., water bottles,
refrigerator magnets, notepads)? What special events do/would they
attend (concerts, health fairs, conferences)? How can you include
influencing audiences? Be sure to promote the Product, Price and Place
features that you want the audience to know about.
Social Entrepreneurship

Social entrepreneurship is all about recognizing the social problems and

achieving a social change by employing entrepreneurial principles,
processes and operations. It is all about making a research to completely
define a particular social problem and then organizing, creating and
managing a social venture to attain the desired change. The change may
or may not include a thorough elimination of a social problem. It may be
a lifetime process focusing on the improvement of the existing
circumstances.

While a general and common business entrepreneurship means taking a

lead to open up a new business or diversifying the existing business,
social entrepreneurship mainly focuses on creating social capital without
measuring the performance in profit or return in monetary terms. The
entrepreneurs in this field are associated with non-profit sectors and
organizations. But this does not eliminate the need of making profit. After
all entrepreneurs need capital to carry on with the process and bring a
positive change in the society.

Along with social problems, social entrepreneurship also focuses on

environmental problems. Child Rights foundations, plants for treatment
of waste products and women empowerment foundations are few
examples of social ventures. Social entrepreneurs can be those individuals
who are associated with non-profit and non-government organizations
that raise funds through community events and activities.
In the modern world, there are several well-known social entrepreneurs
who have contributed a lot towards the society. The founder and manager
of Grameen Bank, Muhammad Yunus is a contemporary social
entrepreneur who has been awarded a Nobel Peace Prize for his venture
in the year 2006. The venture has been continuously growing and
benefiting a large section of the society.

Rang De is another brilliant example of a non-profit social enterprise.

Established in the year 2008 by Ramakrishna and Smita Ram, it is an
online platform from where rural and urban poor people in India can
access micro-credits with an interest rate of as low as 2 percent per annum.
Lenders from all across the country can directly lend money to borrowers,
track investments and receive regular payments online.

The George Foundation is one more nationally recognized social

enterprise. The Women’s Empowerment Program creates awareness
among women by providing them education, vocational training,
cooperative farming, business development and savings planning. By
employing the principles of social entrepreneurship, these organizations
are addressing the social problems and bringing a positive change in the
society.

There are several other organizations that are considered as a positive

changemakers in the society. Echoing Green, The Canadian Social
Entrepreneurship Foundation, Schwab Foundation for Social
Entrepreneurship, The Skoll Foundation, NIKA Water Company,
Newman’s Own and Ashoka: Innovators for the Public are such
organization that aim for bringing social change and continuously
improving the existing conditions in the society.
The field of social entrepreneurship is rapidly growing and attracting the
attention of numerous volunteers. It has now become a common term in
university campuses. The reason behind the increasing popularity of this
product is that individuals get to do what they have been thinking for
long. The extraordinary people put their brilliant ideas and bring a change
in society against all odds.

Social Entrepreneurship – History

Social entrepreneurship is a kind of entrepreneurship initiative that aims

at taking up a social problem for bringing about a transformation in the
same. The person who takes up the challenge is called a social
entrepreneur and he / she uses principle of entrepreneurship with the
intent of creating social capital and not being essentially profit centered.

The aim of social entrepreneurship is to promote the cause of social and

environmental goals that have an impact in either in the present or the
times to come. Such entrepreneurs are generally a part of or associated in
some way with some nonprofit organizations (NGO’s). Although profit
making is also as aspect of this concept but it may not be the sole purpose
of the organization.

Andrew Mawson worked extensively upon the concept of social

entrepreneurship and extended the same to bring about reform in the
community structure. He also laid the foundation of the Bow center in
east London. For this he was conferred upon the peerage of Lord Mawson
and he works for developing partnerships for regeneration work initiated
by him.
Social entrepreneurship is a relatively new term. It came in to notice
just a few decades ago. But its usage can be found throughout the
history. In fact, there were several entrepreneurs who established social
enterprises to eliminate social problems or bring positive change in the
society. Vinoba Bhave, the founder of India’s Land Gift Movement,
Robert Owen, the founder of cooperative movement and Florence
Nightingale, founder of first nursing school and developer of modern
nursing practices might be included in this category. They had established
such foundations and organizations in 19th century that is much before
the concept of Social Entrepreneurship used in management.

There were entrepreneurs during nineteenth and twentieth centuries who

made efforts to eradicate social evils. Apart from this, there are many
societies and organizations that work for child rights, women
empowerment, save environment, save trees, treatment of waste
products, etc. Apart from addressing the social issues, social
entrepreneurship also includes recognition and addressing the
environmental problems and financial issues for rural and urban poor.

These days, the concept of social entrepreneurship has been widely used
and that too in different forms. The establishment of Grameen Bank by
Muhammad Yunus, Ashoka: The Innovators for the Public by Bill
Drayton, Youth United by Jyotindra Nath, Rand De by Ramakrishna and
Smita Ram, SKS Microfinance by Vikram Akula and Roozi.com by Nick
Reder, Brent Freeman and Norma La Rosa has popularized the term.

In fact, all big brands and companies are adopting the concept of social
entrepreneurship and trying to address the issues in our society by
opening schools in far flung areas, educating women for family planning,
making it possible for farmers and poor individuals to access low interest
credits, establishing plants for waste treatment, planting trees and going
green.

The concept of Social Entrepreneurship has also been included as a

separate branch of management courses. Even youth is also looking
forward to volunteering their services and brilliant ideas to bring a social
change through social entrepreneurship.
Social Entrepreneurs
According to Greg Dees, co-founder of the Centre for the Advancement
of Social Entrepreneurship at Duke University and a
member of the Impact Entrepreneurs advisory board –

‘Social entrepreneurs are individuals with innovative solutions to

society’s most pressing social problems. They are persistent and
ambitious, tackle major social issues and offer new ideas for a wide-scale
change.’

Usually, people leave the societal needs to the government or the business
sectors. However, social entrepreneurs tend to identify areas that are not
working efficiently in the current system and solve the problem by
changing it, spreading the awareness about the solution, and persuading
people to be a part of the change.

As a common trait, social entrepreneurs are obsessed with their ideas and
commit their lives to change. They are visionaries since they envision a
society without the problems. Further, they are realists, since they concern
themselves with the practical implementation of their vision.

They also present ideas which are user-friendly, ethical, and easily
understandable and engage widespread support. This ensures that local
people stand up, grab their idea and implement it. In simple words, every
leading social entrepreneur is a mass recruiter of local change makers. He
is a role model who tells people that their action can do anything. In the
last two decades, social entrepreneurship has grown based on the
understanding that a new idea in the hands of a good entrepreneur is a
powerful tool.
Why Social Entrepreneur?
Like regular business entrepreneurs change the face of business, social
entrepreneurs work as the agents of change for the society. They seize
opportunities that others miss, improve systems, invent new approaches
and also create solutions to change society for the better. A business
entrepreneur can create an entirely new industry. Similarly, a social
entrepreneur can come up with new solutions to social problems,
implement them on a large scale and change the face of society. Here are
some examples of leading social entrepreneurs:

Susan B. Anthony (U.S.) – She fought for Women’s Rights in the United
States of America. Her fight included the right to control property and
helped spearhead the adoption of the 19th Amendment to the
Constitution.

Vinoba Bhave (India) – He was the founder and leader of the Land Gift
Movement. Under this movement, he caused the redistribution of more
than 7,000,000 acres of land to help India’s untouchables and landless.

Dr. Maria Montessori (Italy) – She developed the Montessori approach to

early childhood education.

Florence Nightingale (U.K.) – She was the founder of modern nursing.

Further, she established the first school for nurses and fought to improve
hospital conditions.

Margaret Sanger (U.S.) – She was the founder of the Planned Parenthood
Federation of America. Under this federation, she led the movement for
family planning efforts around the world.
John Muir (U.S.) – He was a naturalist and a conservationist. He
established the National Park system and also helped found The Sierra
Club.

Jean Monnet (France) – He was responsible for the reconstruction of the

French economy following World War II. Further, his work included the
establishment of the European Coal and Steel Community (ECSC).

How social entrepreneurs play the role of change agents?

They adopt a mission to create and sustain social value (not just private
value). Further, they recognize and relentlessly pursue new opportunities
which serve the mission.

Also, engage in a process of continuous innovation, adaptation, and

learning.

Further, act boldly without being limited by the resources in hand.

Finally, exhibit heightened accountability to the constituencies served and

also the outcomes created.
Social Enterprises

Social enterprises tend to operate with a purpose of creating value for the
society and also generate income (if not wealth). As a thumb rule, the
solutions they offer are supposed to be innovative, unique, people and
environment friendly; Cost effectiveness is also a huge consideration. All
of these are challenges to the sustainability of social enterprises, but the
ones that are able to scale these are the ones that are able to create a huge
impact! They are the enterprises that are advantageous to the society,
people and the environment.

Since social enterprises typically deal with people who live at the bottom
of the pyramid, therefore they are the ones who are benefited to benefit
hugely from the former. In other words social enterprises are beneficial to
the poor, generally by providing them with a means of livelihood.

Since social enterprises do not work typically the way corporate setups
or private firms work, they offer flexible working environment which
is as per the liking of many people groups. This employment may be
both short term and long term in nature or it may specially targeted to a
specific workgroup or a geographic community or to people with
disabilities. Self Employed Women’s Association (SEWA), for example,
offers various kinds of assistance to self employed poor women.

There are advantages of a social enterprise that are entrepreneur

specific like:

Social entrepreneurs find it easier to raise capital. There are huge

incentives and schemes from the government for the same. since the
investment industry here is ethical, it is easier to raise capital at below
market rates.

Marketing and promotion for these organisations is also very easy. Since
a social problem is being tackled with a solution, it is easier to attract
attention of the people and media. The degree of publicity often depends
on the degree of uniqueness of the solution.

It is easier to garner support from likeminded individuals since there is a

social side to the enterprise. It is also easier to get people onboard at lower
salaries than compared to other industry.

Similarly there are advantages that are specific to the environment,

society and the people concerned. Some of them are as under:

Services in whichever section they may be offered are customized better

to suit the needs of the individual or the problem. This is also designed in
harmony with all other systems like the environment, society or the
people.

Cost effectiveness is another advantage of a social enterprise. The

solutions offered by these organisations in the form of either products or
services are reasonable than compared to the same service provided by a
profit making organisation. No wonder basc amenities like healthcare,
education etc have become very affordable to people world over with the
help of these institutions. Micro finance, for example, today caters not to
the poor but to the poorest!

Although lots of organisations have also made corporate social

responsibility an integral part of their business functioning but not many
actually mean to create a difference. It is just a means to achieve more
profits; there is an increasing need to watch out for the same and help and
advocate those who really aim to add value.
Social Business

Social business is a business that is aimed at addressing a social cause. The

investment made by the investors is entirely with a vision of contributing
to the social welfare and not profit entirely. The investor may however
get back his money after a certain time and cover all the operational costs
of the organization.

Although social business may be carried out in any area but sectors like
healthcare, housing, nutrition, education, financial services to the poor
and the down trodden remain the priority. Unlike profit making
organizations, success in the field of social business is governed by the
amount of impact it is able to create or the positive change it has been able
to bring in the existing scheme of things.

As mentioned earlier, profit takes a back seat, but organizations into

social business are not necessarily disallowed to make profits.
Sustainability after all, of both the organization and the investor, is
important and profit makes it possible. There is essentially, but, a cap on
the amount of profits the organization can make and the profits are to be
utilized in the business again. Generally, social businesses cannot make
profits in excess of the actual investment.

In fact in Social Business, the line between profitability and social

contribution is very difficult to maintain and it often so happens that
social businesses become profit making organizations after a few years of
operation. It therefore calls for renunciation of the corporate ways of
thinking, because what may start as a mole may end up becoming a
mountain, 5 – 6 years down the line.
The term social business is often confused with social enterprise. Both
are similar in many ways, yet distinct in others. In fact social business
may be called as a component of social enterprise or one of the ways by
which a social enterprise expresses itself. Moreover a social enterprise
may receive funds from people, through grants or from the government,
a social business cannot.

The concept of Social business was given by Muhammad Yunus, who

essentially presented as an alternate model to capitalism. It was meant to
overcome the shortcomings and failures of capitalism that focuses only
on profit making and ignores or fails to address other sides of business.
He created a new system where profit making and social businesses exist
simultaneously. Also, the social businesses are not prevented from
making profits. They are however not allowed to take dividends and
reinvest the money earned as profit in the business to scale operations and
give maximum benefit to maximum people.

As opposed to devising means to alleviate poor or a trickle down

economic system to alleviate the poor, the concept of social business
emphasizes an action based system where the poor participates in his /
her growth. Prof. Muhammad Yunus used this to create Grameen Bank
and disburse money to poor in the form of micro – credit without the
condition of giving a property or asset as mortgage. This created
opportunity for the poor and allowed for his participation in the free
market thereby relieving him of the handicap of relying on the
government for grants.

Finally there are two types of social businesses. The first type is the one
that purely exists for tackling a social problem. The second type is the one
that is owned by the poor and can make profits. The profits can then be
distributed between the poor (those who run the business).
The Role of Technology in Social Entrepreneurship

Social entrepreneurs are those who use innovative approaches to social

problems such as poverty, lack of access to healthcare in the rural areas,
difficulties in bridging the gap between employability and unemployed
youth, and problems such as lack of access to credit for women. In these
and other cases, technology plays a prominent role as not only is
technology inherently innovative but increasingly, it has become cost
effective to deploy technology to solve social problems.

Examples of How Technology Powers Social Innovation

For instance, in many Third World countries, farmers need real-time
updates on weather patterns as well as sowing schedules so that they can
plan their harvest accordingly. Further, fisherpersons in coastal areas
need to be intimated of approaching storms and hence, mobile based apps
that can do this job are preferred. Apart from this, there are other
examples such as having IT (Information Technology) enabled kiosks in
rural areas in India wherein those people and the teenagers and the youth
in particular can pick up valuable IT skills which would enhance their
employability in future. Moreover, through the use of mobile apps,
microcredit institutions and the people they finance can keep in touch
with each other leading to better credit utilization as well as repayment.

The Mobile Revolution

The instances quoted above are just a fraction of how technology can help
alleviate social problems. It is for these reasons that in recent years, social
entrepreneurs have been stressing on using technology as part of their
efforts at social innovation. Indeed, the fact that the mobile revolution has
empowered the poor and the underprivileged more than others has been
acknowledged by the UN (United Nations) which recently stated that
there are more number of mobiles in the world than toilets or in other
words, there are more chances of a person owning a mobile than he or she
having access to toilets and sanitation. This means that technology can
indeed enable, empower, and encompass the masses in their quest for a
decent income and a healthy life.

Bringing together all the Stakeholders

To continue the points made above, it has been common in many
countries for drivers, handypersons, traders, and small businesspersons
to use technology to connect with their customers as well as the other end
of the spectrum which are their suppliers, owners, and middlepersons. In
this way, technology allows the coming together of all stakeholders in the
value chain so that everyone ultimately benefits. Though there have been
concerns in recent months about technology also leading to safety and
security concerns because of the anonymity and the potential for misuse,
it needs to be mentioned that technology per se is value neutral meaning
that it can be used both for good and bad purposes and it is up to the
regulators and the users to monitor and regulate.

Synergies and Economies of Scale

Considering the enabling and empowering role that technology plays,
many non-profits are focusing exclusively in building and creating an
ecosystem for innovators, funders, thought leaders, influencers, and the
regulators on one hand and the beneficiaries, the intermediaries, the
users, and the owners to come together in a giant electronic and digital
umbrella where social innovation can take place and value created for all
and society in general. The power of technology in these cases is such that
it creates synergies wherein the sum of the value created at each link in
the value chain is greater than the parts. Further, technology allows social
entrepreneurs to enable and empower the underprivileged to rapidly
scale up thereby leveraging the benefits of the efficiencies provided by
economies of scale. The twin aspects of synergy and economies of scale
mean that innovation and innovative solutions can reach more people and
create value that individually would take time and more resources.

Email as an Example
For instance, before the advent of email, if you had to contact hundred
people for a promotional campaign, you had to send hundred letters
which even when they are typed or printed need to take into account the
costs of sending them. However, with technology, all you need to do is
customize the headers and the names of the persons and then with a
single click of the mouse, all the people can be reached effortlessly and
efficiently. In addition, you can reach anyone anywhere in the world
anytime as well as everyone and everywhere and every time. This is just
a basic example of how technology enables synergies and actualizes
economies of scale.

Society Benefits
Now consider if such use of technology comes to the aid of an
underprivileged person setting up his or her own venture. Using mobile
and internet technologies, not only can he or she aspire to reach a global
audience thereby cashing in on the scale aspect but also offer a solution
that is potentially cheaper and creates more value on a per unit of cost
basis. Indeed, the example of entrepreneurs such as the Nobel Laureate
and Bangladeshi social entrepreneur, Mohammed Yunus who
empowered rural women in his country to finance their small businesses
by extending them microcredit who in turn formed groups and reached
scale and leading to innovation creating value point to how a combination
of technology and social innovation can feed into each other and
ultimately benefit society.
Types of Social Entrepreneurs

Social entrepreneurs represent an exceedingly diverse cross-section of

businessmen, both in the ways that they conduct business and in the goals
that they’re seeking to accomplish with their enterprises. They also differ
both in the various means that they employ to enhance social wealth and
the strategies that they utilize to facilitate those means. Social
entrepreneurs work exceptionally hard to produce lasting solutions that
will effect permanent change in the lives of the people they hope to
impact. The following four are the most common types of social
entrepreneurs:

The Community Social Entrepreneur

This sort of social entrepreneur seeks to create ventures meant to serve
the social needs of a community within a relatively narrow geographical
area. These enterprises are generally structured around the active
participation of people living within the served community.

This sort of entrepreneur has an advantage in that his ventures become

ever more sustainable over time, as there are vested interests for all
parties. One sometimes significant associated disadvantage is that
decision-making may be a slower process due to the larger numbers of
people involved.

The Non-Profit Social Entrepreneur

These social entrepreneurs are more focused on social wealth than
material wealth. Consequently, any profits made are reinvested into the
business to facilitate the further expansion of services offered. For this sort
of social entrepreneur, the social goal(s) are always more important than
mere profit.

While the social entrepreneur is frequently better able to meet his social
goals due to the more ready availability of funds, the very motivation to
generate those monies may be correspondingly lower.

The Transformational Social Entrepreneur

Here, the focus extends to the creation of an enterprise able to meet those
social needs not adequately being met by governments and other
businesses. These businesses occasionally evolve into institutions and the
involved social entrepreneur must have the skills and capacity to
administer a large team.

One advantage of being a transformational social entrepreneur is that it

can be easier to recruit excellent volunteers. A not insignificant
disadvantage is that it can be far more challenging to comply with an
ever-larger web of interrelated rules, regulations, and politics.

The Global Social Entrepreneur

The global social entrepreneur works toward complete transformation of
a social system in order to meet major social needs and to change the very
fabric of society worldwide. The scope of the global social entrepreneur is
international and his aim is to create an enterprise that will stand the test
of time.

If he’s successful, the net advantage will be that neglected or

inadequately-addressed social needs are met. The disadvantage is that
there will be far more scrutiny on the business and how it conducts its
affairs. If the enterprise fails to win the necessary support of the global
community, all of its efforts will be for naught.
Impact of Social Entrepreneurs in society
Entrepreneurs are risk takers. Earlier entrepreneurship was confined to
wealthy few but with the start of digital age entrepreneurship has become
more of a vocation than a lifestyle choice. There are different kinds of
entrepreneurs some are those who bring radical change in the
conventional business that we see around us and some are those who
through their effort bring changes in the society they are called social
entrepreneurs. They are the people who start business with an aim of
solving social problems rather than building huge conglomerate to
maximize profits. They work on a grass root level of the problem and
come out with innovative solutions that can be used by the society. They
integrate latest technology to develop products or services and make it
affordable so that people with low income can easily afford them. Young
people in developing countries like India are becoming more aware of
social causes and how some of the pressing problems can be solved
through social enterprises. With government of India bringing some
favorable policies for social start-ups in its annual budget 2016 the social
start-ups will further grow and flourish. In recent years many
international trusts, billionaires have come forward to provide seed funds
and mentorship to social enterprises who are engaged in building
products and services that can change lives of rural populations.

Some of the most important issues that social Entrepreneurs can

address globally to bring about real transformation are mentioned
below.
1. Food scarcity
The United Nations Food and Agriculture Organization estimates that
about 795 million people of the world population are undernourished in
2014-2016. Though globally food produced every year is sufficient to feed
everyone yet there is food scarcity at city, state, national and global level.
There are many reasons for food scarcity like drought, extreme weather,
uneven distribution of food, wastage of food due to lack of proper storage
facilities etc. Social entrepreneurs and innovators across the world are
working on solutions to face the issue head-on. They are taking help of
latest technologies to accurately predict weather condition so that farmers
can sow seeds at right time and also can protect their crops from extreme
weather. They are also developing new water harvesting method to
provide water in drought-stricken areas. A social start-up in India has
developed solar conduction dryer that allows framer to dry fruits and
vegetables and preserve it for longer duration. These are some of the ways
social entrepreneurs can help solve reduce global food scarcity problem.

2. Healthcare

In a 2015 report "Tracking universal health coverage" released by World

Health Organization and The World Bank estimate that 400 million
people globally do not have access to even basic healthcare services. Most
of the people are from developing countries residing in rural areas.
Essential healthcare services like child immunization, antiretroviral
therapy, tuberculosis treatment, access to proper sanitation and antenatal
care are not in the reach of poor people. Social entrepreneurs can help in
offering basic healthcare services by using technology. From building
auto-disabled syringe, providing nutritious meals, free medicine and
better sanitation social enterprises are coming up with cost effective
innovative solutions. Aravind Eye Hospital and Narayana Health are
great example of social enterprise where poor patients can afford world
class medical facilities at a very nominal cost.

3. Education
According to UNESCO at present there are 775 million adults and 122
million youth who are not literate. They lack basic education skills. Social
entrepreneurs are making inroads in the education sector through their
innovative approach. Many entrepreneurs are using technology to reach
masses and empower them with necessary education skills. Some of them
are forming a team of highly enthusiastic people who are passionate
about education. Teach for India is one such initiatives that has helped
scores of Indian children by imparting education. Some of the social
enterprise in education sector is taking help of technology by providing
mobile devices like tablet and laptop embedded with course content that
can be accessed by people even without internet. Some are starting labs
where children can have fun learning new things they can keep
themselves engaged by practically doing things they see and read in
books. Today social entrepreneurs are defying all odds to reach students
and adults to educate them.

4. Financial services
One of the most fundamental issues of the developing economy is
availability of finance and financial services in the rural areas. There are
no proper banks or financial institutions that can help poor people with
loans. Some of the reasons why these people cannot procure loan include
lack of collateral, lack of necessary documents and lack of money to open
bank account. Social entrepreneurs are solving this problem by starting
Microfinance companies and reaching to poor. These companies provide
basic loans and insurance to farmers, poor women, artisans at a very low
interest rate and give them flexible payment option. This Microfinance
scheme has given lease of life to many small time entrepreneurs in rural
areas by helping their business, and creating job opportunities for local
population. Technology has helped entrepreneurs to reduce cost, improve
efficiency and reach more people with their services.

The way forward

Today's social entrepreneurs are highly motivated and are ready to go
that extra mile to come up with innovative solutions for the betterment of
society. The technology will remain an indispensable part of future social
enterprises. Timely funding, mentorship and favorable policies will help
the social enterprise of the future to grow and flourish.

SOCIAL BUSINESS MODEL CANVAS

The Social Business Model Canvas is a tool used to design, analyze, and
communicate business models with a social or environmental mission at
their core. It adapts the traditional Business Model Canvas, popularized
by Alexander Osterwalder and Yves Pigneur, and adds elements
specifically relevant to social enterprises and organizations that aim to
create positive impact alongside profitability.

Detailed breakdown of the Social Business Model Canvas components:

1. Customer Segments (Beneficiaries):

 Identify the specific groups of people or communities that will directly
benefit from your social business. These are the primary beneficiaries of
the positive change your enterprise aims to create.

2. Value Proposition (Social Impact):

Clearly articulate the social or environmental problem you intend to

address and the value your business offers to solve it. Describe the
positive impact you seek to achieve.

3. Channels (Delivery and Distribution):

Determine the channels through which your product or service reaches

the beneficiaries. This could include distribution networks, partnerships,
or direct delivery methods.

4. Customer Relationships (Beneficiary Engagement):

Define how you will engage with your beneficiaries and build a
relationship based on trust and collaboration. Highlight any community
involvement or participation in the business model.

5. Revenue Streams (Financial Sustainability):

Outline the various sources of income for your social enterprise,

including sales, grants, donations, or any other financial streams.
6. Key Resources (Social Impact Drivers):

Identify the critical assets and resources needed to deliver your social
impact. This may include skilled workforce, partnerships, technologies,
or unique methodologies.

7. Key Activities (Impact Delivery):

List the key activities your organization will undertake to create and
deliver the intended social impact. These could include training,
education, awareness campaigns, etc.

8. Key Partnerships (Collaborations):

Specify the external organizations, governments, NGOs, or other

stakeholders you will collaborate with to enhance your social impact and
business performance.

9. Cost Structure (Social Value Costs):

Outline the costs associated with creating and delivering your social
impact, including both monetary expenses and non-monetary resources.

10. Impact Measurement (Metrics and Indicators):

 Develop a system to measure and track the social or environmental
impact of your business. Identify the key metrics and indicators that
demonstrate your progress and success.

By using the Social Business Model Canvas, social entrepreneurs and

organizations can better understand their social impact, identify potential
challenges, and design a sustainable and effective business model to
achieve their mission. It also aids in communicating the essence of the
social enterprise to stakeholders, investors, and supporters, fostering
greater collaboration and support for the cause.

The Social Business Model Canvas, developed by Alexander Osterwalder

and Yves Pigneur, is a valuable tool for social entrepreneurs and
organizations looking to create positive impact while maintaining
financial sustainability. Like any framework, it comes with its set of
advantages and disadvantages:

Advantages:

1. Focus on Social Impact: The Social Business Model Canvas places a

strong emphasis on social or environmental impact. It helps organizations
clearly define their social mission and align all business elements to
achieve that mission effectively.
2. Integration with Business Model Canvas: The Social Business Model
Canvas is an adaptation of the traditional Business Model Canvas. This
means that businesses can use it in conjunction with the original canvas,
making it easier to transition from a traditional business model to a social
enterprise or combine both elements in a hybrid model.

3. Holistic Approach: It provides a holistic view of the social enterprise,

enabling entrepreneurs to understand how each component contributes
to the overall impact and financial sustainability. This comprehensive
perspective helps in strategic decision-making.

4. Engagement and Collaboration: The canvas fosters engagement and

collaboration among stakeholders, including beneficiaries, partners,
investors, and employees. It encourages dialogue and participation in
achieving the social mission.

5. Clarity in Communication: The visual nature of the canvas simplifies

communication, making it easier for stakeholders to understand the
business model, social impact, and how the enterprise operates.

6. Adaptability: The canvas is adaptable and can be customized to suit

the needs of different social enterprises, regardless of their size, sector, or
geographic location.
Disadvantages:

1. Simplicity vs. Complexity: While the simplicity of the canvas is an

advantage, it may also be a limitation for more complex social enterprises.
Certain business models may have intricate social impact mechanisms
that can't be fully captured in the canvas.

2. Limited Prescriptive Guidance: The canvas is a framework, not a

step-by-step guide. Some social entrepreneurs may struggle with
translating the canvas components into specific actions, particularly if
they are new to the field.

3. Impact Measurement Challenges: Though the canvas includes an

impact measurement component, defining and measuring social impact
can be challenging for many social enterprises. There is no one-size-fits-
all approach to measuring social impact.

4. Overlooking Ethics: While the canvas emphasizes social impact, it

may not explicitly address ethical considerations in the business model.
Some social enterprises might need to supplement the canvas with ethical
frameworks to ensure responsible practices.
5. Risk of Oversimplification: Attempting to fit a complex social
enterprise into a one-page canvas might oversimplify certain aspects,
leading to important elements being overlooked.

In conclusion, the Social Business Model Canvas offers a practical and

concise tool for social entrepreneurs to design, analyze, and communicate
their business models effectively. However, it's essential to recognize its
limitations and complement it with other tools and methodologies when
necessary to address specific challenges and complexities.

Applying the Social Business Model Canvas developed by Alexander

Osterwalder and Yves Pigneur involves a step-by-step process to design,
analyze, and communicate your social business model. Here's a guide on
how to use the tool effectively:

1. Understand Your Social Mission:

Clearly define the social or environmental problem your business aims

to address. Understand the impact you want to create and the
beneficiaries you seek to serve.

2. Familiarize Yourself with the Canvas:

Get acquainted with the different components of the Social Business

Model Canvas. Understand how each section contributes to the overall
picture of your social enterprise.
3. Gather a Diverse Team:

Bring together a diverse team of stakeholders, including employees,

beneficiaries, partners, and investors. Collaborative input from various
perspectives will enrich the canvas and improve the overall business
model.

4. Start Filling Out the Canvas:

Begin filling out the canvas, section by section. Start with the Customer
Segments and Value Proposition, as these form the foundation of your
social business model.

5. Identify Beneficiaries:

Clearly define the target beneficiaries of your social enterprise. Be

specific about who will directly benefit from your product or service.

6. Define Your Social Impact:

Articulate the social or environmental impact your business aims to

create. Describe the positive change you seek to achieve and how it aligns
with your social mission.

7. Identify Revenue Streams:

 Determine the various sources of income for your social enterprise.
These could include sales revenue, grants, donations, or other financial
streams.

8. Describe Impact Delivery:

Outline the key activities your organization will undertake to create and
deliver the intended social impact. This could involve providing training,
education, awareness campaigns, or any other impact-related activities.

9. Identify Key Partnerships:

Specify the external organizations, stakeholders, or partners you will

collaborate with to enhance your social impact and business performance.
Highlight any community or beneficiary involvement in these
partnerships.

10. Determine Cost Structure:

Identify the costs associated with creating and delivering your social
impact. This includes both monetary expenses and non-monetary
resources required to achieve your social mission.

11. Engage in Impact Measurement:

 Develop a system to measure and track the social or environmental
impact of your business. Identify the key metrics and indicators that
demonstrate your progress and success in achieving your social goals.

12. Iterate and Refine:

The canvas is not a static document; it should evolve as your social

enterprise grows and learns. Continuously review, iterate, and refine
your business model based on feedback, data, and changing
circumstances.

13. Communicate Your Model:

Use the completed canvas to communicate your social business model

to stakeholders, investors, employees, and partners. The visual nature of
the canvas makes it easier to convey your mission and strategy concisely.

Remember that the Social Business Model Canvas is a tool to guide your
thinking and decision-making. It should be supplemented with detailed
business plans, impact assessments, and ethical considerations to create a
comprehensive and sustainable social enterprise.

Certainly! Let's consider an example of a social enterprise that aims to

provide clean and affordable drinking water to rural communities in a
developing country using a decentralized water purification system.
Here's how the Social Business Model Canvas for this enterprise might
look:

1. Customer Segments (Beneficiaries):

- Rural communities in the developing country without access to clean

and safe drinking water.

2. Value Proposition (Social Impact):

- Provide clean and affordable drinking water to improve the health and
well-being of the rural population.

- Reduce waterborne diseases and infant mortality rates in these

communities.

3. Channels (Delivery and Distribution):

- Establish water purification kiosks in key locations within the target

communities.

- Use community health centers and local NGOs to distribute and

promote the service.

4. Customer Relationships (Beneficiary Engagement):

 - Conduct community engagement workshops to raise awareness about
the importance of clean drinking water and the benefits of the water
purification system.

- Foster a sense of ownership and involvement among community

members by including them in decision-making processes.

5. Revenue Streams (Financial Sustainability):

- Charge a nominal fee for the purified water, making it affordable for
the community members.

- Seek funding from grants, impact investors, and corporate social

responsibility initiatives.

6. Key Resources (Social Impact Drivers):

- Water purification technology and equipment.

- Skilled operators and technicians to maintain and operate the

purification systems.

- Partnerships with local NGOs and community health centers.

7. Key Activities (Impact Delivery):

- Set up and maintain water purification kiosks.

- Train community members to operate and maintain the purification

systems.
 - Monitor water quality and ensure adherence to safety standards.

8. Key Partnerships (Collaborations):

- Partner with local NGOs and community leaders to understand the

specific needs and challenges of the target communities.

- Collaborate with government agencies for regulatory support and

potential funding opportunities.

9. Cost Structure (Social Value Costs):

- Water purification equipment and technology costs.

- Staff salaries and training expenses.

- Marketing and outreach costs.

10. Impact Measurement (Metrics and Indicators):

- Number of people with access to clean drinking water.

- Reduction in waterborne diseases and related healthcare costs.

- Community satisfaction and feedback.

By using the Social Business Model Canvas, this water purification social
enterprise can strategically plan its operations, assess its social impact,
and communicate its business model to stakeholders, potential investors,
and supporters. This canvas helps align the organization's efforts with its
social mission while ensuring financial sustainability for long-term
success.