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 HYPERLINK
"http://www.facebook.com/"Facebook and HYPERLINK
"http://www.twitter.com/"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.