Social Entrepreneurship and Innovation Entrepreneurship
Social entrepreneurship is a type of entrepreneurship aimed at offering solutions to social problems facing the society. Social entrepreneurs create solutions to problems facing the society and then offer these solutions at a small fee or free (Peredo & McLean, 2006). These solutions help overcome some of the major problems facing the society such as diseases, environment pollution, illiteracy, famine and drought among others. Innovations are crucial in social entrepreneurship. This is because the solution that is offered must be effective as well as affordable (Peredo & McLean, 2006). Most of these problems already have solutions but expensive ones that only the rich can afford. An example is drought, which can be overcome through irrigation, but most poor farmers cannot afford water pumps and their maintenance. They also cannot afford drought resistant seeds that can be productive in their regions. A social entrepreneur must come up with technology that either enables the farmers to irrigate their farms or to access drought resistant crops. This requires innovation. It is also requires a well laid up plan for the business to succeed. This is due to the low income generated by most of these products which leave very little or no profits at all. Consequently, innovation is required throughout the project to cut costs and also design ways of generating additional income necessary to sustain the projects (Peredo & McLean, 2006). Social entrepreneurship has a huge market all over the world due to the myriad problems that have faced people in all societies. Properly implemented social entrepreneurial projects are highly beneficial to the society and the entrepreneur.
Innovation entrepreneurship is driven by the need to deal with changes in the market and the society. This is done by entrepreneurs so that they can grow their sales, capture a market niche or maintain a grip on their market segment (Drucker & Drucker, 2007). The current business environment demands that entrepreneurs position their products in a way that is unique. This has resulted to research by marketers and designers to come up with unique tag lines and products in a bid to maintain their demand and consumer base. There are a number of reasons that force entrepreneurs to innovate. The main reason is to respond to competitors’ threat (Drucker & Drucker, 2007). Entrepreneurs are forced to think creatively when a competitor threatens to capture a market segment previously held by another company. This mostly results from a better product, pricing or marketing strategy that draws more consumers to a company. The only way an entrepreneur can fight off this threat is through innovation to create a sustainable product that will withstand the threat posed by competitors. Changes in the demographics also force entrepreneurs to innovate (Drucker & Drucker, 2007). Certain age groups develop a taste for a certain product, which results to a huge demand. This is accompanied by a drop in demand of a previously popular product. In such circumstances, entrepreneurs must develop new products that will meet the new demand. This keeps on changing as people age and new trends emerge. Changes in perception, moods, and meaning also influence innovation (Drucker & Drucker, 2007). These changes result to people shifting their needs. This creates a new market while also marking the death of another one. Business people must predict these changes and offer products that will meet the new demand. Those who fail to move with the trend end up closing down. Changes in industry and market structure also demand for innovation (Drucker & Drucker, 2007). This occurs when change catches people unawares. A case in point is the introduction of iPhone by Apple. This forced mobile companies to move fast and adopt Android to meet the new demand. Few entrepreneurs expected that change. The result is that there has been extensive innovation resulting to companies releasing new and better products to maintain their market segment.
Drucker, P. F., & Drucker, P. F. (2007). Innovation and entrepreneurship: Practice and principles. Routledge.
Peredo, A. M., & McLean, M. (2006). Social entrepreneurship: A critical review of the concept. Journal of world business, 41(1), 56-65.