Defining the mindset of social entrepreneurship

Defining the mindset of
social entrepreneurship
2021.6.19
Game Changer Institute
Yutaka Tanabe
The 23rd Annual Conference, the
Japan NPO Research Association
(JANPORA)
Copyright © 2021 Game Changer Institute. All rights reserved.
1

Table of contents
1. Introduction
2-1. A framework to define the mindset of social
entrepreneurship
2-2. Defining the mindset of social entrepreneurship
2-3. Difference between the definition of the mindset of
entrepreneurship and that of social entrepreneurship
3. Conclusion
2

1. Introduction
• The research area of the mindset of social entrepreneurship is still widely unknown.
• The definition of the mindset of entrepreneurship (McGrath and MacMillan, 2000)
(1) Entrepreneurs seek new opportunities.
(2) Entrepreneurs pursue opportunities with enormous discipline.
(3) Entrepreneurs pursue only the very best opportunities and avoid exhausting themselves and their
organizations by chasing after every option.
(4) Entrepreneurs focus on execution - specifically, adaptive execution.
(5) Entrepreneurs engage the energies of everyone in their domain.
• The definition of the mindset of social entrepreneurship
- “[The mindset of commercial entrepreneurship] could easily apply to social entrepreneurship.”
(Beugré, 2016)
- “the combination of an entrepreneurial mindset, global mindset, social mindset and
sustainability mindset”(Yokoyama and Birchley,2018)
3

2-1. A framework to define the mindset of social
entrepreneurship
• Actually, it is not easy to define the mindset of social entrepreneurship because of the
following three backgrounds of social entrepreneurship.
• Background 1: Complexity of social entrepreneurship
• Background 2: Multiple interpretations of social entrepreneurship
• Background 3: Paradox of government failure
The purpose of this essay is to define and describe the mindset of social entrepreneurship.
The research question of this essay is;
(1) What is the definition of the mindset of social entrepreneurship?
(2) How different between the definition of the mindset of
entrepreneurship and that of social entrepreneurship?
(3) Why does the definition of the mindset of social entrepreneurship
differ from that of entrepreneurship?
4

2. Reflecting on
Ethics
4. Developing
Metacognitive
Strategy
5. Applying
Systems
Thinking
3. Using
Collective
Wisdom
9. Facilitating
Leadership,
Followership and
Collaboration
11. Improving
Financial
Management
8. Discovering
Intangible
Assets
13. Pursuing
Triple Bottom Line
14. Strengthening
Democracy
Prepared for pursuing
Systemic Change for
a Sustainable Future
10. Creating
Social
Innovation
6. Utilizing
Design Thinking
12. Creating
Learning
Organization
7. Creating
Strategic
Planning
1. Applying a
Growth Mindset
2-1. A loop framework for the mindset of social entrepreneurship
Loop if
the preparation is
not sufficient;
if it is sufficient, thinking
of Endgame will be an option.
5

Mindset 4: Developing Metacognitive Strategy
(Haynie et al., 2010)
6
“A person's metacognitive knowledge and metacognitive experience direct
the use of specific cognitive strategies such as deduction, induction, case-
based reasoning, analogical reasoning, or mental simulation.“
“Consider the owner of a bicycle repair business in the 1970s who finds that
every two weeks he or she must undertake substantial repairs to a client's
bicycle.”
“If the owner's motive is serving
the client's needs and fixing the
regular damage, the owner may
view the client as atypical,
concluding that he is an unskilled
and uncoordinated rider. “
“If instead the owner seeks to expand
this business, he or she may conclude
instead that the equipment is not
suited for the demands of the rider. In
the latter case, the owner may identify
an opportunity to sell bikes that
sustain extreme abuse. “

Mindset 5: Applying Systems Thinking
(Meadows, 2008)
7
Unintended consequences
may happen.
Society is complex.
We human beings are ignorant.
Story of the
blind men
and the
elephant

Mindset 5: Applying Systems Thinking;
(Goodman, 2002)
8
Events
Patterns of
behavior
Systems
Structure
Mental
models
Increasing
Leverages

Mindset 8: Developing Intangible Assets
(Haskel and Westlake, 2017)
9
www.visualcapitalist.com/the-soaring-value-of-
intangible-assets-in-the-sp-500/
http://www-sk.icrr.u-
tokyo.ac.jp/xmass/darkmatter/index-e.html
“Only 5% of the universe is visible to us.”
(XMASS Collaboration at University of Tokyo)
“Intangible assets currently account
for 90% of the index’s total assets.”

Endgame (Gugelev and Stern, 2015)
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2-2. Defining the mindset of social entrepreneurship
1. Social entrepreneurs apply a Growth Mindset to start his/her social entrepreneurship journey.
2. Social entrepreneurs reflect on Ethics – wholeness, ethical codes, and legal mind.
3. Social entrepreneurs use Collective Wisdom to create and amplify their innovative ideas.
4. Social entrepreneurs develop Metacognitive Strategy to understand opportunity.
5. Social entrepreneurs apply Systems Thinking to find social problem systemically: a social problem is actually a
systemic problem.
6. Social entrepreneurs utilize Design Thinking for creating strategic planning by human-centered point of view.
7. Social entrepreneurs create Strategic Planning; Theory of Change (ToC) to encourage good communication and
agree on the expectations with a variety of stakeholders.
8. Social entrepreneurs discover Intangible Assets to generate flows and cultural change for sustainability.
9. Social entrepreneurs facilitate Leadership, Followership and Collaboration to amplify their ideas.
10. Social entrepreneurs create Social Innovation; a new combination to fix and/or improve social systems.
11. Social entrepreneurs improve Financial Management; cash flow management, managerial accounting, pricing, and
so forth.
12. Social entrepreneurs create Learning Organization for building and sustaining learning leadership capability in
organizations.
13. Social entrepreneurs pursue Triple Bottom Line; environmental value, social value, and financial value.
14. Social entrepreneurs strengthen Democracy by proposing policies for the marginalized people, affecting lasting change in laws and
public policy, and contribute to fix inequality.
Goal of the mindsets above: Prepared for pursuing Systemic Change for a Sustainable Future
11

2-3. Difference between the definition of the mindset of
entrepreneurship and that of social entrepreneurship
• The mindset of entrepreneurship focuses on seeking and
pursing opportunities and on execution (McGrath and
MacMillan, 2000).
• On the other hand, the mindset of social entrepreneurship aims
to solve problems that occur in complex social systems.
• There is an option of dissolving the social enterprise as an
endgame (Gugelev and Stern, 2015).
• The mindset of entrepreneurship is opportunity-driven: That of
social entrepreneurship is systemic-problem-driven.
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2-4. Reason for the mindset difference between entrepreneurship
and social entrepreneurship
1. The purpose: Entrepreneurship pursues to scale up the business
itself then to provide huge impact. Social entrepreneurship sets its
goal is to repair the social system.
2. The historical background: In 1836, when Say (1836) proposed
entrepreneurship, the Industrial Revolution was in full swing. The
top priority was to exponentially increase human productivity.
Bill Drayton of Ashoka first proposed the concept of social
entrepreneurship in 1972, the same year Limits to growth
(Meadows and Randers, 2013) was published.
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• An idea for a future research
y
Systemic change
x1
Mindset
x2
Intangible Assets
x3
Management
β1
β2
β3
y = β1x1 + β2x2 + β3x3 + ε
ε
14
3. Conclusion

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Defining the mindset of social entrepreneurship

Defining the mindset of social entrepreneurship

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