“Social Innovation” and “Social Enterprise”: A Powerful Combination

When we use terms like social entrepreneurship, social innovation and social enterprise, terminologies and definitions can be vexing and it can get overwhelming with the numerous debates and discussions around the same. In his article, “Social Innovation” and “Social Enterprise”: A Powerful Combination, author Jerr Boschee tries to present his insights in a concise commentary that presents the definitions out for debate while proposing a strategic framework of combining social innovation with social enterprises as the sustainable way forward.

His commentary makes it easy to break down the issues of social enterprise and innovation for social entrepreneurship into three basic aspects:

Firstly, theory and academic research in this sector and the correlations with field practitioners- the chicken and egg story.

Boschee agrees with recent thought leadership on framing theories for social entrepreneurship and abandons the typical academic approach of “building management practice from theory” for this sector. The proposal is to adopt instead the approach of building management theory from practice and to have an academic approach rooted in practical experiences. Boschee also applauds recommendations for further research to be conducted at the interface of innovation and enterprise as this intersection seems to be the only practical solution for viability as gleaned from learnings of on-field practitioners.

Secondly, Boschee looks at the opposing views in traditional definitions of social entrepreneurshi.

The crucial need for defining the domain in a felicitous way is emphasized and Boschee brings to the fore that the best way of framing this new field lies at the intersection of the two dominant schools of practice and thought: the Social Enterprise School and the Social Innovation School.

It is the opposing perspectives of these two dominant schools of thought that have led to the contrary definitions for the sector leading to a sort of status-quo where one mandates social good through innovation and adaptation where entrepreneurs serve as change agents for creating and sustaining social value. While on the other hand, the other side argues that earned revenue is the sine qua non of social entrepreneurship because only earned income will ever allow a non profit to become sustainable and that the entrepreneurial component comes from ensuring financial viability which is essential to effect social good in a self sufficient manner.

Thirdly, Boschee takes a look at the powerful combination of innovation and enterprise as the way forward for achieving social impact in a self sufficient sustainable way.

Boschee believes he has finally found common ground and describes a migration from innovation to entrepreneurship as the way for non profits to move towards sustainability and self- sufficiency which he further describes in his book carrying the same title. He describes how he sees innovation and enterprise to be like siblings or flip sides of the same coin- different yet very deeply interlinked.

Boschee gives insights into the frustrations and operational struggles and inherent uncertainties experienced by innovators and hence requiring the enterprise approach for scaling up and to bring in the viability component to ensure sustenance. This he believes is the true differentiator between initiating new projects (innovation in concept and design) and sustaining the projects for ongoing social impact which is the underlying mandate for the social entrepreneurship sector. He perhaps implies the need for moving away from donor driven projects to self sufficient market driven initiatives as the solution for sustainability for the future.

Boschee believes social innovators are vital to any hopes we have to address the ills of the world and commends their chutzpah which is inspiring. Nonetheless, he also strongly believes that social enterprise is the tool that can move social innovators towards financial viability.

Summing up, Boschee urges the need for working together to create a harmonious eco system of innovators, entrepreneurs, academics and practitioners. He formulates a three step process for success in the social entrepreneurship sector:

• Start with practitioners
• Build theory from their experiences
• Create a strategic framework of innovation and enterprise for the next generation of practitioners to enable sustained impact.

Read Boschee’s entire article here.

This abstract has been contributed by Yeshesvini Chandar, a Villgro Fellow 2010.