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)
10

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.
12

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.
13

• 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

References
Anderson, A. A. (2004). Theory of change as a tool for strategic planning. ActKnowledge.
André, K., & Pache, A. C. (2016). From caring entrepreneur to caring enterprise: Addressing the ethical challenges of scaling up social enterprises. Journal of Business Ethics, 133(4), 659-675.
Argyriades, D. (2006). Good governance, professionalism, ethics and responsibility. International Review of Administrative Sciences, 72(2), 155-170.
Beugré, C. (2016). Social entrepreneurship: Managing the creation of social value. Taylor & Francis.
Bryson, J. M. (2010). The future of public and nonprofit strategic planning in the United States. Public administration review, 70, s255-s267.
Chell, E., Spence, L. J., Perrini, F., & Harris, J. D. (2016). Social entrepreneurship and business ethics: Does social equal ethical?. Journal of business ethics, 133(4), 619-625.
Cho, Y. S., & Jung, J. Y. (2014). The relationship between metacognition, entrepreneurial orientation, and firm performance: An empirical investigation. Academy of Entrepreneurship Journal, 20(2), 71.
Chou, D. C. (2018). Applying design thinking method to social entrepreneurship project. Computer Standards & Interfaces, 55, 73-79.
Dees, J. G. (1998). The meaning of social entrepreneurship.
Dees, J. G., Emerson, J., & Economy, P. (2004). Strategic tools for social entrepreneurs: Enhancing the performance of your enterprising nonprofit (Vol. 207). John Wiley & Sons.
Dweck, C. S. (2008). Mindset: The new psychology of success. Random House Digital, Inc..
Goldstein, J., Hazy, J. K., & Silberstang, J. (2010). A complexity science model of social innovation in social enterprise. Journal of social entrepreneurship, 1(1), 101-125.
Goodman, M. (2002). The iceberg model. Hopkinton, MA: Innovation Associates Organizational Learning.
Guclu, A., Dees, J. G., & Anderson, B. B. (2002). The process of social entrepreneurship: Creating opportunities worthy of serious pursuit. Center for the advancement of Social Entrepreneurship, 1, 1-15.
Gugelev, A., & Stern, A. (2015). What’s your Endgame. Stanford Social Innovation Review, 13(1), 40-47.
Haskel, J., & Westlake, S. (2017). Capitalism without capital. Princeton University Press.
Haynie, J. M., Shepherd, D. A., & Patzelt, H. (2012). Cognitive adaptability and an entrepreneurial task: The role of metacognitive ability and feedback. Entrepreneurship Theory and Practice, 36(2), 237-
265.
Haynie, J. M., Shepherd, D., Mosakowski, E., & Earley, P. C. (2010). A situated metacognitive model of the entrepreneurial mindset. Journal of business venturing, 25(2), 217-229.
Ismail, S. (2014). Exponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it). Diversion Books.
Jarzebowski, M. (2020, Dec 29). As Intangible Assets Grow, So Does The Role Of ESG Standards. Forbes. https://www.forbes.com/sites/forbesfinancecouncil/2021/12/29/as-intangible-assets-grow-so-
does-the-role-of-esg-standards/
Kaplan, R. S., Kaplan, R. E., Norton, D. P., Davenport, T. H., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into tangible outcomes. Harvard Business Press
15

References
Kultgen, J. (2010). Ethics and professionalism. University of Pennsylvania Press.
Kummitha, R. K. R. (2018). Institutionalising design thinking in social entrepreneurship: A contextual analysis into social and organizational processes. Social Enterprise Journal.
Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of world business, 41(1), 36-44.
Mair, J., Robinson, J., & Hockerts, K. (Eds.). (2006). Social entrepreneurship (p. 3). Basingstoke: Palgrave Macmillan.
McGrath, R. G., & MacMillan, I. C. (2000). The entrepreneurial mindset: Strategies for continuously creating opportunity in an age of uncertainty (Vol. 284). Harvard Business Press.
Mead, S., Chuong, C., & Goodson, C. (2015). Exponential growth, unexpected challenges: How Teach For America grew in scale and impact. Boston: Bellwether.
Meadows, D. H. (2008). Thinking in systems: A primer. chelsea green publishing.
Meadows, D. H., Randers, J., & Meadows, D. L. (2013). The Limits to Growth (1972) (pp. 101-116). Yale University Pres
Mintzberg, H. (1994). ``The fall and rise of strategic planning''Harvard Business Review January^ February.
Org, I. D. E. O. (2015). The Field Guide to Human-Centered Design. São Francisco.
Roundy, P. T. (2020). The wisdom of ecosystems: A transactive memory theory of knowledge management in entrepreneurial ecosystems. Knowledge and Process Management, 27(3), 234-247.
Salamon, L. M. (1999). America’s nonprofit sector. New York: The Foundation Center.
Say, J. B. (1836). A treatise on political economy: or the production, distribution, and consumption of wealth. Grigg & Elliot.
Senge, P. M. (2014). The fifth discipline fieldbook: Strategies and tools for building a learning organization. Currency.
Thompson, J., Alvy, G., & Lees, A. (2000). Social entrepreneurship–a new look at the people and the potential. Management decision.
Trivedi, C., & Misra, S. (2015). Relevance of systems thinking and scientific holism to social entrepreneurship. The Journal of Entrepreneurship, 24(1), 37-62.
Uhl-Bien, M., Riggio, R. E., Lowe, K. B., & Carsten, M. K. (2014). Followership theory: A review and research agenda. The leadership quarterly, 25(1), 83-104.
Waddock, S. A., & Post, J. E. (1991). Social entrepreneurs and catalytic change. Public administration review, 393-401.
Wen, C. T., & Chen, Y. W. (2007). The innovation process of entrepreneurial teams in dynamic business plan competition: from sense-making perspective. International Journal of Technology Management, 39(3-4), 346-363.
Wolf, C., & Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven agenda. Journal of Management, 43(6), 1754-1788.
XMASS Collaboration at University of Tokyo (nd). Retrieved from http://www-sk.icrr.u-tokyo.ac.jp/xmass/darkmatter/index-e.html
Yokoyama, K., & Birchley, S. L. (2018). Mindset and social entrepreneurship: Japanese self-initiated expatriate entrepreneurs in Cambodia. Journal of Entrepreneurship and Innovation in Emerging Economies, 4(1), 68-88.
Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of business venturing, 24(5), 519-532.
16

Defining the mindset of social entrepreneurship

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a Defining the mindset of social entrepreneurship

Semelhante a Defining the mindset of social entrepreneurship (20)

Mais de YutakaTanabe

Mais de YutakaTanabe (20)

Último

Último (20)

Defining the mindset of social entrepreneurship