Is All Entrepreneurship Social?

In all the talk of social entrepreneurship, we often forget the social value that regular entrepreneurs hold. While their enterprise, or innovative product may not be designed specifically for, or with the explicit need for to solve a social need, the benefits derived can not be ignored.

In an article in Standford Social Innovation Review, Carl Schramm, CEO of the Ewing Marion Kauffman Foundation, walks us through why we shouldn’t ignore the contributions of regular entrepreneurs.

He builds his thoughts around the process of development and entrepreneurship that the United States of America went through. For example, he points to how delivering improvements in health care are always perceived as being social value that the government or non-profits add. However, as in the case of the U.S, private entrepreneurs and businesses have contributed significantly to improvement in health standards as government health programs.

These private sector contributions came in the form of improved quality of services that contributed significantly to overall improvement of living standards. For example, the development of the rail network lead to more movement of goods and services across the country, which in turn enabled cash-strapped Americans to earn a higher wage, and live better lives. Another example he sites is that of the growth of industry that lead to better quality clothing and shelter – two other goods that Americans in the mid-19th century did not have access to. Improvements in these three areas lead to unprecedented rates of change in the 19th century.

Schramm moves on to draw a parallel to 21st century development efforts. Case in point: cell phones. While disease still plauges much of the world today, as it did 19th century America, the power of the cell phone to overcome these difficulties has been remarkable. While cell phones themselves can not cure disease, Schramm points out that they have been and can be instrumental in developing new business models, companies and technologies, and as a consequence have a direct bearing on economic growth.

In conclusion Schramm does not belittle the efforts of social entrepreneurs, or even programs targetted at improving development indicators. Rather the point he reiterates that in the years to come larger social change will be had as a result of the work of regular entrepreneurs. And therefore, they must also be lauded in their role in improving society.

Read the complete article here.