Social Entrepreneurship - A Model for Sustainable Value Creation

Abstract

“Business as usual” has come under heavy scrutiny. The financial crisis has caused many to question the basic premises of the current business system. In the following chapter, I will examine how organizations can cope with the current crisis by creating sustainable value. I propose that businesses learn from a newly emerging field called social entrepreneurship. The concept of social entrepreneurship is discussed and examined for its potential to support for sustainable value creation. A detailed case study of bracNet provides an example of shared-value creation. bracNet is a for-profit enterprise in Bangladesh aiming to close the digital divide globally and regionally. New business models and cross-sectoral partnerships allow bracNet to implement a social and financial value creation strategy. Key for success seems to be the shared ownership of bracNet, by BRAC, a nonprofit organization, and various for-profit entities (including VCs, industrial conglomerates, and hedge funds).