The traditional paradigm of business, singularly focused on profit, is undergoing a full-scale shift. Societal challenges – climate change, social inequity and resource scarcity – demand a new generation of business leaders ready to tackle this complex terrain. From an institutional economics perspective, traditional market mechanisms often struggle to address social issues effectively. Market failures, characterised by externalities, information asymmetry and collective action problems, impede the efficient allocation of resources towards social good. Educational opportunities are paramount. Universities can partner with social enterprises to create real-world projects where students grapple with authentic challenges and co-create solutions with T stakeholders from the community. These projects not institutions, however, can play a pivotal role in mitigating these issues. By fostering a robust social entrepreneurship ecosystem, they can create an institutional architecture that incentivises and facilitates the development of impactful ventures. One key lever at their disposal is the design of a curriculum that transcends the confines of traditional business education. Instead of focusing solely on profit-maximisation strategies, the curriculum should integrate social impact frameworks, such as the triple bottom line and social return on investment. These frameworks can equip schools with the tools to assess the social and environmental impact of business decisions alongside financial considerations. Many case studies highlighting successful social enterprises further illuminate the practical application of these frameworks, demonstrating the viability and potential of businesses driven by the dual mandate of financial sustainability and social good. Critical collaboration Beyond theoretical knowledge, experiential learning only hone essential skills such as design thinking and impact measurement, but also foster a deep empathy for the social issues being addressed. Students emerge from these experiences not just as business graduates but as potential changemakers, equipped with the knowledge, skills and passion to navigate the social entrepreneurship landscape effectively. Educational institutions can further strengthen the ecosystem by fostering a culture of social entrepreneurship. This entails creating spaces for collaboration and idea exchange. Business plan competitions dedicated to social ventures provide a platform for aspiring entrepreneurs to refine their ideas, secure funding and connect with potential investors. Guest lectures by successful social entrepreneurs offer students invaluable insights into the unique challenges and opportunities within the field. Mentorship programmes, pairing seasoned social entrepreneurs with students, not only provide crucial guidance but also forge vital connections within the ecosystem. These initiatives cultivate a supportive environment where students can translate their burgeoning social consciousness into concrete action. Collaboration with external stakeholders – financial institutions, government agencies and non-profit bodies – is another critical component of a robust institutional architecture. Universities can serve as a bridge between these entities, facilitating knowledge exchange and forging partnerships that benefit the social entrepreneurship ecosystem. Workshops co-hosted with impact investors educate students on the intricacies of social impact investing, while simultaneously exposing investors to a pipeline of promising social ventures. Universities can also advocate for policies that incentivise social entrepreneurship, such as tax breaks and loan guarantees for this type of enterprise. By fostering collaboration between diverse ecosystem players, universities can address the unique needs of social ventures and ensure a supportive infrastructure for their growth. Social entrepreneurship is vital The world faces unprecedented social and environmental challenges – poverty, inequality, climate change – and traditional business models often struggle to address these issues effectively. Social enterprises are profit-generating businesses that prioritise addressing social and environmental SOCIAL ENTREPRENEURSHIP
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Business Impact • ISSUE 2 • 2024
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