A business entrepreneur Essay
Another difference between business and social entrepreneurship is the ability to assess how well the organisation is actually performing. For a profit business ran by a business entrepreneur it is very easy to analyse how well a company is actually performing as they are able to look at sales figures and balance sheets, these figured can then be directly compared with other companies who are in the same market. For non-profit organisations run by social entrepreneurs it is much more difficult.
As social entrepreneurs usually start their cause due to an unresolved social issue which needs addressing, there is little likelihood that any other organisations are also performing the same actions therefore it is not possible to directly compare results, secondly as profits and balance sheets are irrelevant, success is usually measured on results and impact made upon the society. This links back to the point that social entrepreneurs can sometimes be too concerned with quick results and miss underlying features which originally cause social problems.
A more reliable way in which non-profit organisations can assess their own performance would be to set their company objectives and goals which are specific, measurable, agreed, realistic and time-scaled (SMART). This is a business technique
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To Conclude, In terms of individual characteristics such as their personal abilities, social and business entrepreneurs are very much the same; also the way in which the entrepreneurs become successful is also very similar i. e. they both identify a gap which needs filling in the market and society respectively. Additionally more and more social entrepreneurs are using business methods in order to complete their social aims.
It seems logical to assume that the way entrepreneurs are established is very similar the main difference then comes, in what the entrepreneur is aiming to achieve? Or more importantly what did they originally set out to achieve? A good example of this is how Bornstein (2002) explains why social entrepreneurs begin as “Social entrepreneurs are primarily motivated by an ethical imperative. They seek to respond to urgent needs. The question of why is paramount”.
As I have previously stated within the essay the idea of business entrepreneurship and social entrepreneurship being separate is not always correct, this is because the work business entrepreneurs complete can directly effect society in both a good and bad way the same applies to social entrepreneurs and the business market. The terms social and business entrepreneur are just parts of the wider concept of entrepreneurship. It can be difficult to differentiate between the two terms as many of their identifying points overlap; however it is very clear that the beginning intention of the entrepreneur is the vital point which separates them.
One the main difference remains the perception of wealth between the two forms of entrepreneurship as previously stated within the essay and what their aims are for their wealth, for example, a social entrepreneur class wealth as a substantial and beneficial change to society which can be sustained over a long period of time, their aim is to create as many beneficial changes and to address as many social issues as possible and use the fame that they have gained (if any) to raise public awareness of certain issues.
A business entrepreneur views wealth as profits and their main aim is to maximise profits, reduce costs and sustain a high level of profit over a long period of time, in order to increase their own personal wealth and net value.