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Motivations and Challenges of Social Entrepreneurship

3597 words (14 pages) Business Assignment

2nd Nov 2020 Business Assignment Reference this



There are different approaches to see social enterprise arranges to consider it to be a formation of business to serve poor people while a few analysts consider it to be a social innovation to take care of the social issues to make a social change in the association. Social entrepreneurship is a rapidly advancing domain of academic inquiry, practice, and policymaking. A promising and understudied prospect of social entrepreneurship is that of an organization's potential for emancipating as an act of setting free so that one can chase happiness, liberty and society’s resources (Chandra, 2017). Social entrepreneurship has become an active research area over the last few decades and the government has also started supporting and launching new organizational structures in order to inspire the creation of new social entrepreneurial structures by providing finance to these organizations. Most of the scholars are confused about what social entrepreneurship actually means. Many researchers refer social entrepreneurship to a non-profit organization as a way of funding strategies through business events (Choi and Majumdar, 2014) The Social Entrepreneurship includes multi-dimensional challenges during the life-cycle of the association in origin and development stages (Goyal, Sergi, and Jaiswal, 2016). With a powerful urge to make enormous positive change, social endeavors join social and financial missions and overwhelmingly seek after development as a way to expand their social effect (Siebold, Günzel-Jensen and Müller, 2018). This article will talk about what are the motivations and challenges faced by the social entrepreneurs and their approaches towards the challenges and opportunities. 


Social Business enterprise can show from various perspectives, starting to recognize that there are numerous fields from which the board and business enterprise researchers can learn. This strategy is an activity to shape the hypothetical confining, educate the exploration techniques, the kind of investigation required, and helps identification of internal relations and causal clarifications. Along these lines, therefore this article has carried out an electronic inquiry utilizing the ABS list database to distinguish articles identifying with this point from the year (2014-2019) that have contemplated Social Entrepreneurship Challenges and Motivations.  this paper is focused on articles distributed in the ABS Scholarly list given that they are the highest journals crosswise over different business disciplines: Small Business Ventures, International Entrepreneurship, Management, and Regional Development. Since the terminology used to address the theme of Social Entrepreneurship fluctuates both inside and crosswise over fields, by remembering a wide assortment of keywords for our pursuit that has been used to conceptualize the construct, “social entrepreneurship”, “motivations”, “Social Development”, “Social challenges”, “Opportunities”, “Social Entrepreneurs”, “Approaches”. With a wide variety of keywords, this article’s main objectives were to focus on the Motivations, Social entrepreneurs, approaches, and opportunities in Social Entrepreneurship. The chosen these journals are relevant to my context and these journals speak about the main purpose. One of the most valid information about the topic is provided by (Yitshaki and Kropp, 2015) in the Journal of Small Business Management where they have specified motivation and challenges of SE. This article conducts study research about the socially-driven entrepreneurs and their motivation in creating value and the challenges faced by social entrepreneurship. Total 15 of articles are used in this study of social entrepreneurship and its motivation and challenges

Entrepreneurship, Theory and Practice journal talks about the social entrepreneurship theoretically by supportive articles like “Understanding the Opportunities of Social Entrepreneurship” and “Current Approaches and Future Directions for Social Entrepreneurship”.

This article has used various highest ABS Academic Journals;

  • 1042-2587 Entrepreneurship, Theory and Practice
  • 0883-9026 Journal of Business Venturing
  • 1932-4391 Strategic Entrepreneurship Journal
  • 0898-5626 Entrepreneurship and Regional Development
  • 0047-2778 Journal of Small Business Management
  • 1059-1478 Production and operations management

Social Entrepreneurship;

Social Entrepreneurship is well-defined as a pursuit of prospects generating social value and organizes social change (Marlow and Hu, 2019). The idea of opportunity is vital to the meanings of Social Entrepreneurship. Be that as it may, contemporary vagueness in characterizing and clarifying SE opportunities, and at times the prominent inconsistencies between surviving theory and the unmistakable setting of Social Entrepreneurship request new ways to deal with theory working in this area (Hu et al., 2019). Social Entrepreneurship management and individual characteristics are comparative, similar to their style and approach. They are ambitious and motivated for pursuing their goal. (Yitshaki and Kropp, 2015) portrays an opportunity as something that is both interesting and imaginable. Entrepreneurs seek opportunity utilizing a unique set of rare assets and aptitudes in the desire for future returns. Innovative opportunity acknowledgment might be connected to a business visionary's learning abilities just as earlier information proposes that opportunity definition ought to be updated considering the individual–opportunity connection, information related with orderly looking, classified chances, and related knowledge (Yitshaki and Kropp, 2015). Driving establishments in the field like Ashoka, the Skoll Establishment, and the Schwab Establishment effectively advance social business enterprise by featuring the accomplishments of individual social entrepreneurship. Likewise, governments have begun supporting social enterprise by setting up new authoritative systems so as to energize the arrangement of new social pioneering activities and by giving financing to these activities (Choi and Majumdar, 2014). During the studies of 1994-99 the author found out that the social entrepreneurship was result of desire and enthusiasm to help the society, this offers a ray of optimism and symbolizes social development as of now the younger generation is profound in taking up the social entrepreneurship for example even Bill Gates, Azim Premji, and other entrepreneurs have taken up social entrepreneurship after succeeding in their entrepreneurial ventures (Jain, 2018).


Socially determined motivations are a basic segment in the making of social value. The business enterprise report underlines that innovative motivations are identified with finding and misusing new opportunities based on human capital and learning abilities, for example, data securing and change (Yitshaki and Kropp, 2015). Temporary compromises, for instance, motivation for social entrepreneurs are creating value, for example, MNCs frequently needed more noteworthy emphasis on value creation to the detriment of significant value capture and upheld for emphasis on the well-being advantages of safe water, lower costs, and area in increasingly country settings where bigger fragments of the underserved life. In this manner, both Coca‐Cola and Diageo favored infiltration valuing, charging a low cost to create enormous volume and maximum market share. Jeffery S states that Hamish Banks, chief of public affairs and communication for the Middle East and North Africa division of TCCC notes, "We are not out to maximize profits with this. It is our goal to grant as many people access to safe water as possible. We want them using it for all their water needs: drinking, cooking, bathing…everything" (McMullen and Bergman, 2017). This behavior is likely called prosocial motivation, benefiting others even though there is no self-benefit. Breaking down the connection between the entrepreneur's motivation and risk disposition enables us to comprehend the impacts of organization programs precisely designed for essential entrepreneurs. Likewise, it encourages us to comprehend the huge contrasts that exist inside the group of entrepreneurs, for instance, concerning enterprising achievement, or the impacts of enterprise on monetary advancement (Block, Sandner and Spiegel, 2013). Entrepreneurs are usually risk-takers and what drives them and keeps them motivated Is that creating value in the organization. As the business enterprise is an activity arranged wonder, entrepreneurial motivation is the key indicator for a person's cooperation in the innovative procedure. An entrepreneur is unusual without "the eagerness of individuals to play the game"(Mahto and McDowell, 2018). The visible outcome of the entrepreneurial attitude is generally based on an individual’s motivation, if the individual is lacking this sort of self-motivation then he or she is unlikely to engage in such entrepreneurial opportunities.


Social entrepreneurship includes multi-dimensional challenges during the life-cycle of the association in commencement and development stages. These tasks are connected to the dynamic condition; financial difficulty; casual market arrangement (mindfulness and acknowledgment); asset preparation; qualities of contributions (moderate, open and accessible); appraisal; speculators fit; sort of organizational setup and partners; and adaptability problem(Goyal, Sergi and Jaiswal, 2016). The major challenges faced by the social entrepreneurship organizations are social innovation and social transformation, in one of the articles as Mike Porter mentions, related social entrepreneurship with another, future demand, so-called transformational private enterprise, as social entrepreneurship generates shared value (Sekliuckiene and Kisielius, 2015). Governments, non‐governmental associations (NGOs) and purchasers are compelling organizations to turn out to be all the more socially attentive too. All the while, advertise opportunities for supportable business models are opening up. Organizations are progressively changing from a thin spotlight on the benefit to a more extensive "triple main concern" (profit, planet, people) (Besiou and Van Wassenhove, 2015). The challenges here spoken by Maria Besiou in this articles require multiple approaches but spoken of two to critically understand these challenges and propose solutions, complete system approach needs to be taken into consideration with the directness to methodologies. We overcome these challenges by realizing opportunities. The two strategic theories in this context to the article are, the discovery theory recommends that innovative opportunities are pre-existing financial circumstances whereby ready people can get to applicable data, capitalize upon this data and create profit. In like manner, opportunity exposure is difficult as scholars earlier information, abilities and bits of knowledge dependent on a person's educational encounters go about as a creation to alarm them to find the opportunity. Similarly, creation theory opportunities are socially created and via individual beliefs in order to create economic wealth (Hu et al., 2019). Indeed, the individuals who get past early long stretches of struggle effectively and endure flawless likewise may build up resilience for risk and more positive thinking and self-assurance in their capacity to defeat challenges, all things considered, they have already done as such on various events

Critical Review

The intention and purposes of authors in these journals were to find the entrepreneur’s motivations and challenges of social entrepreneurship. In this article, “Motivations and Opportunity Recognition of Social Entrepreneurs”, the author Ronit Yitshaki speaks about creating value and exploiting opportunities in the organizations in an innovative manner by maximizing social returns rather than economic returns. Social entrepreneurship Motivations are intensions or desires to take action which will benefit society (Yitshaki and Kropp, 2015). In this article “Social Entrepreneurship and the Development Paradox of Prosocial Motivation: A Cautionary Tale”, the author’s aim is to create benefit for others such as helping and donating, where in Africa there has been health issues with water supply and sanitation. health benefits of safe water were taken into consideration by the Unicef since Reasonable access to water, sanitation, and cleanliness in wellbeing focuses and schools additionally remains a challenge. In the area, under 50 percent of school’s approach water and under 40 percent approach satisfactory sanitation. Water, sanitation and cleanliness benefits in social insurance offices are likewise restricted, to overcome these circumstances joint monitoring program for water supply and sanitation Unicef says “Every child should live in a predictable, safe and clean environment. This is how we make it happen in West and Central Africa” (Unicef.org, 2019), (https://www.unicef.org/wcaro/english/overview_4554.html). Also, the United Nations announced, “early” achievement of Millennium Development Goal 7.C: “to halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation” (Un.org, 2019). The challenges faced by social entrepreneurship are innovation and transformation as highlighted by the author of this article in Development of Social Entrepreneurship Initiatives; A Theoretical Framework. Mike porter describes in his interview as social entrepreneurship generates value (Sekliuckiene and Kisielius, 2015). The findings for these challenges are spoken in “Addressing the Challenge of Modeling for Decision‐Making in Socially Responsible Operations” Article. The Author (Maria Besiou) speaks about the two approaches and focuses on understanding these challenges and strategic theories in this article. The findings are from an operation at School feeding program and Corporate Social Alliances with the WFP (a lead agency of the UN Logistics Cluster) (Besiou and Van Wassenhove, 2015). The corresponding author quotes an entrepreneur veteran of the middle East clash as pursues: "You could tell me that my office burned down ... and I’m not going to get insurance reimbursement, and I’m in the hole $50,000, and I could still say on that worst day that it’s never any worse than it was back there"(Miller and Le Breton-Miller, 2017). Work control and steadiness can come from past triumphs over testing encounters as well as in light of the fact that failing is a horrendous alternative. With the lack of other career opportunities affecting the majority of our challenged groups, people endeavor to make their ventures effective. Given the liabilities of originality related to driving enterprising endeavors, such determination and ability to battle perhaps gainful as well as essential (Miller and Le Breton-Miller, 2017). All together the objectives of articles stated here were to find the motivations of social entrepreneurship and each article speaks about it in the background by providing a relevant theory for supporting the articles in the journals.


By undertaking these journals in an effort to provide scholars with a clear view of state research on Social Entrepreneurship on its Motivators and Challenges. Although the volume of the research on this topic is widely spread crosswise in several disciplines, the nature of social entrepreneurs and entrepreneurship has obscured a clear understanding of its practices. By casting a wide net, targeting the top journals in Entrepreneurship and Small Business Management to capture theoretical and empirical work. Relevant and characteristic sample of articles on social entrepreneurship motivations and challenges were collected, with all characteristics criteria, some of the papers offer a distinct contribution to the debate by theoretical analysis and Social entrepreneurship opportunities, value creation and motivation of social entrepreneurs. It also speaks about some empirical challenges Social Entrepreneurship Scholars come across while analyzing the opportunities. This study has strengths and limitations of Social entrepreneurship, social value,  and motivation in Africa where the prosocial motivation has made a huge difference in the country and Social entrepreneurial process driving the young age After it was recognized by the UN. Unicef made the prosocial behavior known by the corresponding author (Jeffery S. McMullen). In this particular article (Social Entrepreneurship and the Development Paradox of Prosocial Motivation: A Cautionary Tale) making his point very clear about how it affects the motivation to social entrepreneurs by creating value and social change. Challenges being overcome by opportunities of discovery and creation theory were one of the main strengths of the challenges faced by social entrepreneurship which was successfully discussed by Maria Besiou in this particular article, “Addressing the Challenge of Modeling for Decision‐Making in Socially Responsible Operations”. For future research directions Social entrepreneurship, given out serious focus on social entrepreneurship’s motivation and challenges there is a certain belief that important insights related to these topics might have opened few doors and can progress by going forward, it’s not possible that suggestions understood are absolute. It’s well believed that the support to these information and theory are by positioned scholars and also help lead these determinations and think critically about the important factors and will help the social entrepreneurship to influence research in a new and important direction.

  • Besiou, M. and Van Wassenhove, L. (2015). Addressing the Challenge of Modeling for Decision-Making in Socially Responsible Operations. Production and Operations Management, p.n/a-n/a.
  • Block, J., Sandner, P. and Spiegel, F. (2013). How Do Risk Attitudes Differ within the Group of Entrepreneurs? The Role of Motivation and Procedural Utility. Journal of Small Business Management, 53(1), pp.183-206.
  • Chandra, Y. (2017). Social entrepreneurship as emancipatory work. Journal of Business Venturing.
  • Choi, N. and Majumdar, S. (2014). Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research. Journal of Business Venturing, 29(3), pp.363-376.
  • Goyal, S., Sergi, B. and Jaiswal, M. (2016). Understanding the challenges and strategic actions of social entrepreneurship at base of the pyramid. Management Decision, 54(2), pp.418-440.
  • Hu, X., Marlow, S., Zimmermann, A., Martin, L. and Frank, R. (2019). Understanding Opportunities in Social Entrepreneurship: A Critical Realist Abstraction. Entrepreneurship Theory and Practice, p.104225871987963.
  • Mahto, R. and McDowell, W. (2018). Entrepreneurial motivation: a non-entrepreneur’s journey to become an entrepreneur. International Entrepreneurship and Management Journal, 14(3), pp.513-526.
  • Marlow, S. and Hu, X. (2019). Understanding Opportunities in Social Entrepreneurship: A Critical Realist Abstraction. Entrepreneurship Theory and Practice.
  • McMullen, J. and Bergman, B. (2017). Social Entrepreneurship and the Development Paradox of Prosocial Motivation: A Cautionary Tale. Strategic Entrepreneurship Journal, 11(3), pp.243-270.
  • Miller, D. and Le Breton-Miller, I. (2017). Underdog Entrepreneurs: A Model of Challenge–Based Entrepreneurship. Entrepreneurship Theory and Practice, 41(1), pp.7-17.
  • Ruskin, J., Seymour, R. and Webster, C. (2016). Why Create Value for Others? An Exploration of Social Entrepreneurial Motives. Journal of Small Business Management, 54(4), pp.1015-1037.
  • Sekliuckiene, J. and Kisielius, E. (2015). Development of Social Entrepreneurship Initiatives: A Theoretical Framework. Procedia - Social and Behavioral Sciences, 213, pp.1015-1019.
  • Siebold, N., Günzel-Jensen, F. and Müller, S. (2018). Balancing dual missions for social venture growth: a comparative case study. Entrepreneurship & Regional Development, 31(9-10), pp.710-734.
  • Un.org. (2019). United Nations Millennium Development Goals. [online] Available at: https://www.un.org/millenniumgoals/environ.shtml [Accessed 26 Nov. 2019].
  • Unicef.org. (2019). Water, Sanitation and Hygiene. [online] Available at: https://www.unicef.org/wca/what-we-do/wash [Accessed 26 Nov. 2019].
  • Yitshaki, R. and Kropp, F. (2015). Motivations and Opportunity Recognition of Social Entrepreneurs. Journal of Small Business Management, 54(2), pp.546-565.

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