The aim in this section is to review and discuss the concept of social entrepreneurship (SE). First, some of the historical antecedents of SE such as communities, cooperatives and philanthropists will be introduced. Then, definitions of SE extant literature will be presented. Two significant streams in the definition of SE are derived, one is social innovation (SI) and the other one is social enterprise organisation (SEO). Following this a synthesised definition of SE is suggested as an umbrella term for any “entrepreneurial activity with an embedded social purpose” (Austin, Stevenson, & Wei-Skillern, 2006).
1. Historical background
2. Definitions
3. Social Value Proposition
3.1.1. Historical Background of Social Entrepreneurship
The origin of cooperating for mutual benefit by allocating resources among each other and only trading with external communities dates back to early human tribes. However, the beginnings of the cooperative movement could be taken as a starting point.
The industrial revolution was associated with technological changes and urbanisation on one hand, and dire conditions that prevailed throughout Europe as a consequence of mechanisation in the 1840s on the other hand. Consequently, this has forced many skilled workers into poverty such as a group of thirty people (ten of which were weavers) to unite their funds, 28 pounds at that time, to open their own store. The so-called Rochdale Pioneers were formed in 1844 and would later become a symbol and forerunner of the cooperative movement in the UK.
“Idealism, the vision of a better social order, not hunger, inspired these men... There is sometimes a tendency, perhaps an inclination, to forget that the Pioneers commenced business with the purpose of pioneering the way to a new and better social order.... Without an ideal there would have been no Co-operative Movement” (Bonner, 1961).
The underlying entrepreneurial