Social entrepreneurship in India - Patterns, Challenges and Strategies: An exploratory study

This paper aims to conceptualise the term Social Entrepreneurship in the case of India through analysing a range of social enterprises operating in various sectors and in varied geographical parts of the country. India is... [ view full abstract ]

This paper aims to conceptualise the term Social Entrepreneurship in the case of India through analysing a range of social enterprises operating in various sectors and in varied geographical parts of the country. India is plagued with a magnitude of development problems, resulting in a poor 130^th rank on the HDI (2015) suggesting that a significant percentage of the population cannot access basic human needs.

Academic work in the field of Social entrepreneurship is in an emerging and fragmented state (Weerwardana & Mort 2006). Within the scholarship, there is a focus on case studies, success stories (Sharir and Lerner, 2006) resulting in social entrepreneurship being defined with the entrepreneur at the centre (Light2006). Mapping the qualitative differences about the personality of the social entrepreneurs, their objectives, their self-identification as a social entrepreneur, factors contributing to their success etc. will be largely different across the world and such studies are only recently emerging.

There is a huge number of social enterprises serving the bottom of the pyramid in India, across all enterprise sizes and forms. Cases like Aravind eye care, Narayana Hridalaya, SEWA have been extensively studied in management and social entrepreneurship literature. However, there is a lack of academic research on social entrepreneurship in India particularly and also a lack of understanding of the concept and term as was found by this study.

Specifically, the paper aims to map patterns among social enterprises in India focusing on the following:

1. size and organizational characteristics of enterprises

2. entrepreneur’s profile, including motivation, qualifications, objectives, nature of work, challenges faced and overcome

3. characteristics of innovations by the social entrepreneurs

4. success factors of these enterprises.

      5. lessons emerging from the functioning of Social Enterprises in India for other developing countries.

Methodology:

This is a preliminary exploratory study using primary data from 30 social enterprises in India.

The study uses snow ball sampling and a qualitative analysis. Data was collected from founders of social enterprises through written structured questionnaires, open-ended interviews, field visits to enterprises and focus group discussions with the staff and beneficiaries. The sample covered enterprises across sectors such as environment, affordable education, children’s rights, rain water harvesting, women and community empowerment etc. The interview questions focused on founder’s background and motivation, qualifications, funding, challenges, founder’s understanding and perspectives on social entrepreneurship, government support, linkages with other organizations and other. The interviews were conducted across 3 languages - Hindi, Marathi, English and were then translated and transcribed. The analysis of results is still in progress.

Preliminary Results and Implications

Average age of the social enterprises interviewed is 17 years with 48% of the founders being women. 65% of the founders are highly qualified- PhD, MBBS, MBA or post graduates.

Irrespective of the availability of funds, the prevalence of frugal or the jugaad style of innovations i.e making things happen by the best use of resources at hand was found to be common.

The founders had diverse perspectives about the understanding of the term, one founder said that, “Social Enterprise is all about working with your passion but it is important to earn decent money”. A second founder pointed out that, “Every business is a social enterprise” and another argued that "the main focus of a Social Enterprise is doing something for society, social welfare and not on money." Furthermore, 35% of the founders were not aware of the term social entrepreneur/ social entrepreneurship. Two of the founders said that they can now identify themselves as social entrepreneurs after the discussions with the researchers.

The most important challenge faced by these entrepreneurs is recruiting skilled people. The general perception in India is that “NGOs are corrupt”- fighting against this perception to secure funds is another problem. There are unique challenges that social entrepreneurs in India face, as the political, social, economic environment around them is rapidly changing. This research aims to clarify existing, missing and new definitions of the term to provide deeper insights in the terminology and issues relating to Social Entrepreneurship in India. In its subsequent stages, this research through a bigger sample of 100 social enterprises will also throw light on the scaling strategies of these enterprises and factors affecting social impact. 

References

Kerlin, J. A. (Ed.). (2009). Social enterprise: A global comparison. UPNE.

Light, P. C. (2009). The search for social entrepreneurship. Brookings Institution Press.

Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of world business, 41(1), 36-44.

Nicholls, A. (Ed.). (2008). Social entrepreneurship: New models of sustainable social change. OUP Oxford.

Pruthi, S. (2012). Process of social entrepreneurship in India: the case of Goonj. Social and Sustainable Enterprise: Changing the Nature of Business (Contemporary Issues in Entrepreneurship Research, Volume 2), Emerald Group Publishing Limited, Bingley, 1-23.