The Process of Social Value Creation

This chapter elaborates the concept of social entrepreneurship in Indian and global contexts, within the existing theoretical knowledge and empirical evidence. The chapter starts with a discussion on theories of entrepreneurship and their development. Then, it explores the concept of social entrepreneurship. It also critically reviews social entrepreneurship literature, which is categorised into two major parts: first, content (social element and entrepreneurial element), and second, methodological review. The critique and research gaps, which are summarised towards the end of the review of literature, lead to the research questions.

This chapter presents the conceptual framework for describing the phenomenon of social value creation in social entrepreneurship. Following Gartner’s behavioural theory (Acad Manag Rev 10(4):696–706,1985; Entrep Theory Pract 13(4):47–68, 1988), ‘social entrepreneurship’ is conceptualised as a process of social value creation. It is conceptualised as a multidisciplinary and multidimensional concept like entrepreneurship. The five major dimensions are included in this social entrepreneurship model. These are as follows: first, capabilities of social entrepreneur/s; second, the social value which they create; third, opportunity identification; fourth, resourcefulness; and fifth, the context/environment, within which they operate. The most important dimension—‘social value creation’—occupies central position in the model. The other dimensions, which are capabilities of social entrepreneur/s, opportunity identification and resourcefulness, are directed towards the central position. There is also overlapping (interplay) between these dimensions, which is reflected in the process of social value creation. The model focuses on contextualising social entrepreneurship. Following Gartner’s behavioural theory (Acad Manag Rev 10(4):696–706,1985; Entrep Theory Pract 13(4):47–68, 1988), I conceptualise ‘social entrepreneurship’ as a process of social value creation. Social entrepreneurs perform a series of activities in order to create social value. They identify and exploit opportunities, mobilise resources, take decisions and actions based on their knowledge and judgement, provide services and respond to the government, market and society in order to achieve their social mission.

Based on primary and secondary data, this chapter provides description of each of the nine cases included in the sample for the study. These caselets give case-specific information and thus help to understand the contexts, specific to each case. These caselets are arranged in the order: non-profit charitable social enterprises; non-profit social enterprise sustainable with combined income of external funding and own earned income, or not-for-profit self-sustainable social enterprise, or hybrid social enterprise; for-profit social enterprises. Finally, important descriptions about the cases (social entrepreneurs) and social enterprises are summarised into two separate tables.

This chapter explores the concept of ‘social value’ from the perspectives of both social entrepreneurs and the beneficiaries. All social entrepreneurs see ‘social value creation’ in bringing social change or creating social impact (long term impact)/outcomes (immediate or short term impact), while addressing social problems/issues/needs. This social change or social impact/outcome includes a wide range of social impacts, starting from creating awareness, empowering beneficiaries, bringing about changes in behaviour, attitude, perception, norms and institutions, to create socio-economic benefits for the beneficiaries and impact their lives at the institutional, individual, community, state, national and in some cases, the international level. Social entrepreneurs create value not only for the poor and marginalised people, but also for the affluent sections of the society. Beneficiaries perceive ‘value’ in getting various kinds of benefits created by social entrepreneurs for them, and in various positive changes and impacts (direct and indirect) in their lives brought in because of these benefits. Chapter 4 provided a brief description of each case included in the study. This chapter would first present an understanding of ‘social value’ from the perspectives of both social entrepreneurs and beneficiaries.

This chapter looks into opportunity identification/recognition in the process of social value creation. Opportunity recognition emerged as a process rather than a one-time action, which in turn involved a series of actions. Considering the fact that the contextual factors play an important role in the process of social value creation, this chapter explores the values and beliefs of the social entrepreneurs, and their different contextual backgrounds. Then, it explores the influence of these contextual differences on identifying/recognising opportunities by social entrepreneurs. The cases showed that social entrepreneurs identified opportunities in different ways, yet many similar patterns emerged out of the cross-case analysis. Based on the findings, two propositions have been developed, and finally, opportunity recognition in social entrepreneurship has been presented in a figure. The study showed that social entrepreneurs pursued opportunities to achieve their social mission, that is, to solve social problems and create social value. The cases showed that opportunity recognition/identification and exploitation involved a series of actions. Hence, it emerged as a process rather than a one-time action. Considering the fact that the contextual factors play a very important role in the process of social value creation, this chapter focuses on the values and beliefs of social entrepreneurs, the different contextual backgrounds (their family and social backgrounds, relationships, educational and professional backgrounds, work experiences and past experiences). Then, it explores the influence of these contextual differences on identifying/recognising opportunities by social entrepreneurs. The cases showed that social entrepreneurs identified opportunities in different ways, yet many similar patterns emerged out of cross-case analysis.

This chapter elaborates on resource mobilisation (resourcefulness) in the process of social value creation. After the identification of opportunities, social entrepreneurs pursued opportunities without regard to the resources they had. They started resource mobilisation to start the operation of their social enterprises. These resources included human, financial and other kind of resources (mainly infrastructure and land). This chapter includes all the information related to attracting, recruiting and retaining human resources, mobilising financial resources and mobilising other kinds of required resources in the process of social value creation. Special attention is given to explore resource mobilisation (resourcefulness) in the complete process of social value creation, starting from initial stage to stage of maturity of the social enterprises. Based on the findings, three propositions are developed. Finally, resourcefulness in the process of social value creation is presented in a figure.

This chapter is dedicated to explore the capabilities of social entrepreneurs in the process of social value creation, from start-up to maturity. Giving importance to the capabilities of social entrepreneurs in the process of social value creation, individual capabilities are discussed. Organisational capability is outside the scope of this study. Social entrepreneurs exhibited a variety of capabilities in the process of social value creation. These capabilities are divided into two categories—first, individual capabilities required for social value creation and second, entrepreneurial capabilities. Based on these findings, a proposition is developed. The capabilities of social entrepreneurs are presented in a figure.

This chapter explores how using their capabilities, social entrepreneurs identified opportunities, mobilised resources to solve social problems and created value for the beneficiaries. Therefore, this chapter throws light on the interplay of the dimensions of opportunity recognition, resourcefulness and capabilities of social entrepreneur/s in this process. It also focuses on the issue of continuity (sustainability), enhancement or expansion of services (scalability and replicability), finding new opportunities in the process of social value creation, problems associated with these issues, strategies used to face such problems and the measurement of social impact. After identifying opportunities and mobilising resources, social entrepreneurs initiated operations for social value creation. In order to achieve their social mission, they performed a series of actions and exhibited different entrepreneurial behaviours. The chapter also focuses on the influence of various contextual factors at different stages in the process of social value creation. It concludes the process of social value creation and presents different states involved in it. Based on findings, several patterns have been observed and propositions developed. At the end, synthesising all the propositions, the theoretical framework of social entrepreneurship is presented.

This chapter gives a brief introduction to the purpose of the study and presents its major findings. It also discusses theoretical and practical implications of the findings. Various themes and subthemes that emerged from the findings provide future scope for study in social entrepreneurship. At the end, it discusses the limitations of the study.