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Saint Mary's College National Conference on SOCIAL ENTREPRENEURSHIP: DIMENSIONS AND DEVELOPMENT ORIENTATION (Sponsored by University Grants Commission) August 21-22, 2009 Organised by SAINT MARY’S COLLEGE (Affiliated to Mangalore University) SHIRVA- 574116, UDUPI DISTICT Karnataka – India www.smcshirva.com August 21, 2009 Technical Session I: 11 AM – 1PM Emerging Models of Social Entrepreneurship: An Overview Key Speaker: Prof Chowdari Prasad, Professor, T A Pai Management Institute, Manipal Chairperson: Dr Jayaprakash, Director, AJ Institute of Management, Mangalore Paper presentation by Scholars / Researchers =============================================================================== 1 Emerging Models of Social Entrepreneurship: An Overview Key Speaker: Prof Chowdari Prasad, Professor T A Pai Management Institute, Manipal Udupi Dist. Karnataka – 576104 Email: [email protected] “Innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned and practised. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. And they need to know and to apply the principles of successful innovation.” – Peter Drucker Paradigm Shift: The combination of Entrepreneurship Education in Schools and Colleges, the hassle-free flow of Venture Capital and evolution of good market would give momentum for the National Growth – Dr APJ Abdul Kalam, President of India on the eve of the Republic Day, January 26, 2004. Introduction: It is said that Entrepreneurs are born and not trained. In India, there have been a large number of entrepreneurs even during the British Rule period who were motivated to enter into businesses which were traditional as well as into new products and services. Technological innovations, Industrial Revolution, Modernisation, Economic/Financial/Land/Legal Reforms including enactment of Trade Union Laws and Industrial Laws as also setting up of specialised financial institutions in consonance with the planned economic development of the country afforded newer opportunities to these risk takers to take up host of economic activities. Over the last six decades of independence, India witnessed many entrepreneurs, techno-preneurs and edu-preneurs taking up employment and income generation activities. Interestingly, religious leaders like Matha Amritanandamayee, Satya Sai Baba, Maharshi Yogi and others have also been catering to the highly needed University education in private sector while other IT-Czars like Narayana Murthy and Nandan Nilekani of Infosys and Azim Premji of Wipro have been diversifying into certain social enterprises by setting up Leadership Institutes and Educational Foundations for taking up adult literacy and child education. It is heartening to note that organisations like Dhirubhai’s Reliance and Adani Group venturing into education in Gujarat, Vedanta’s Agrawal setting up a University in Orissa as part of their Corporate Social Responsibility. Dr TMA Pai being a Medical Doctor from a remote place like Udupi took up revolutionizing the private enterprises in Medicine, Engineering, Management, Pharmacy, Education, Nursing, etc., over fifty years back which venture now is an internationally known Private University in Manipal and is emulated by many others in India. Who is an Entrepreneur? An Entrepreneur is an innovator or developer who recognises and seizes opportunities; converts these opportunities into workable / marketable ideas; adds value through time, effort, money, or skills; assumes the risks of the competitive marketplace to implement these ideas; and realises the rewards from these efforts. National Knowledge Commission’s Report on Entrepreneurship in India released in August 2008 is a very important document which 2 captures the status in the country with detailed analysis on opportunities in each of the States based on various parameters. Entrepreneurship Education In recent times, Entrepreneurship Education is catching up in Indian Academia at Collegiate level. Almost all the Universities, IITs, NITs, IIMs and other special institutions like Entrepreneurship Development Institute of India (EDII), Ahmedabad have been offering specialised courses on entrepreneurship to motivate the young budding professionals and managers to be on their own as job creators instead of job seekers by turning to be entrepreneurs. Some of these institutes are also organising Business Plan Contests every year and invite reputed Venture Capitalists and Private Equity players to selecting the prospects. They are also maintaining Incubation Centres to impart necessary training and guidance to the start-ups. Leading Management Institutes like Amrita Institute of Management-Ettumadai (TN), Great Lakes Institute of Management-Chennai, Indian School of Business (ISB)-Hyderabad, Management Development Institute (MDI)-Gurgaon, SP Jain Institute of Management & Research-Mumbai, T.A. Pai Management Institute (TAPMI)-Manipal, Xavier Institute of Management and Entrepreneurship (XIME)- Bangalore, etc., have also been focussing on imparting of entrepreneurship education as part of their management programs. Other organisations like The Indus Entrepreneurs (TiE), National Entrepreneurship Network (NEN), Venture Capitalists Association of India (VCAI), Small Industries Development Bank of India (SIDBI) and other Banks and Financial Institutions are also campaigning about their various financing schemes for Micro, Small and Medium Enterprises. Small and Medium Enterprises Rating Agency (SMERA) has been created four years back in 2005 to offer rating services to the small business units to strengthen their ability to raise credit from organised sources. The following diagram gives a very good action-oriented model for Entrepreneurship Education: Source: ISB, Hyderabad If educational institutions engaged in entrepreneurship program adopt the suggested steps, India can be proud to produce highly qualified, talented, committed and dedicated entrepreneurs from out of whom, we may also see good number of Social Entrepreneurs. 3 Millennium Development Goals announced by the then UN Secretary General Kofi Annan in 2003 lead the world to look at Financial Exclusion and Inclusion issues in developed and developing countries. Several Non-Governmental Organisations (NGOs), Self-Help Groups (SHGs), Voluntary Organisations, Business Consultants and Business Facilitators have sprung up in recent years to supplement the efforts being made by the formal banking system towards rural finance and development. Inclusive Growth is accorded high importance in recent years in order to extend offering of affordable financial services to people at the grass root level. Vijay Mahajan of BASIX, and Vikram Akula of SKS Finance – both belonging to Andhra Pradesh are role models in this line. Ashoka Foundation is yet another example of Indian Social Entrepreneurs rendering yeoman services in Africa for poverty alleviation. In the year 2008, Dr Nachiket Mor, Executive Director of ICICI Bank gave up his position and illustrious career in the bank to take up micro finance work through IFMR, Chennai. Mr Amit Chugh, an MBA from TAPMI (1991-93) switched from his lucrative career and founded Cosmos Ignite to take energy to rural India. We can list out many more such names and examples of Social Entrepreneurs. Social Entrepreneurship: • Social Entrepreneurship is an emerging field that offers opportunity to young professionals to create societal / economic value on a sustainable basis. • According to some reports, globally this is the fastest growing sector and perhaps the only sector that is creating gainful employment worldwide. • Social Entrepreneurship is the process of recognizing and resourcefully pursuing opportunities to create social value and craft innovative approaches to addressing critical social needs. • By “Social Entrepreneurs,” we mean leaders of social-purpose organizations that demonstrate the following behaviors and values: – Focus on impact – Primacy of mission – Private initiative – Willingness to blur sector boundaries – Opportunity orientation and – Innovation and resourcefulness. Social Entrepreneurship Education abroad: A quick search at the list of leading Business Schools abroad offering courses and programs at graduate level and above reveals the following names. • Skoll Center for Social Entrepreneurship (Oxford Said Business School) • Center for Advancement of Social Entrepreneurship (Faqua Business School, Duke University) • Catherine B Reynold Program for Social Entrepreneurship (New York University) • Entrepreneurship in Social Sector Program (Harvard Business School) 4 • Schwab Foundation for Social Entrepreneurs (University of Geneva) and Social Entrepreneurship Course Series (Stanford University) The Multiplier Effect of BOP Entrepreneurship Creates rural employment Spawns multilayered Stimulates rural economic development growth Entrepreneurship at BOP Evolves regional Improves local role models for others economic activity to emulate Enhances productivity and efficiency at local level The above diagram affords an idea as to the advantages of Entrepreneurship at the Bottom of Pyramid. Social Entrepreneurship is concerned with concern for others by these individuals who create enterprises. They operate far above the ordinary mortals. Social Entrepreneurship in some sectors: We may
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