Week Six: Introduction

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Moeno Kiuchi

New Leader: Social Entrepreneurs

                In recent years, the world faced significant unrest − poverty, natural disaster, wars, economic recession and other confusions. The more economic growths, the more disparity occurs between the poor and the rich. The bigger society becomes, the more people hurt the nature. To solve this tough social problems and economic challenges, it is necessary to find a new approach. Social business can be a main stream of finding solution. They seek not only their profits, but also put importance on following their missions: how to give a positive impact on society. Grameen Bank is one of the famous social ventures that lends loans to poor people in developing country to give them opportunities to get themselves out of poverty. In Japan, Daichi wo Mamoru Kai is known as a big social business company that adopts organic agriculture to Japanese farms in order to conserve environment and support Japanese farmers. Social business will be the key to make sustainable society in this difficult day and age.

                If social business can be a solution to this unrest sociaty, how can we develop it? Leaders who start breakthrough business for society are necessary to develop social business, that is, “Social entrepreneurs”. They have clear mission which can change society in positive way. To solve difficult problems which were made by human beings, social entrepreneurs should be recognized as a new leader.

The purpose of this paper will be to identify essential factors to be a social entrepreneur because it helps us to increase the number of social ventures. My research writing paper would evaluate what kind of leadership is required in social business. It will begin with overview of social business and social entrepreneurs – what is definition, when it was started, what kind of background they had. Then, it will compare with other leaders in order to distinguish the differences and identify the character of social entrepreneurs. Finally, it will analyze the cases by using companies from various fields which are giving positive impact to the society, and show how they are making important role in this world.

Social business is new trend in business field, though its impact is huge and involving many people in the society. Even though it seems current trend, however, it has the history and it was born because of necessity. In 1970’s, there was big change in the society in UK. Prime minister Margaret Thatcher cut down the money for social security system such as welfare, water service, gas system, electricity, railways, transmission system and gas system. She brought competition in the economy, so that government could cut down the budget for them. It means, not government, but private sectors have the responsibility more than before. That brought the trend to establish business which seeks profit for public government cannot do. In 1981, “Ashoka: Innovators for the Public” which purpose is to support social capital in private sector was established by William Bill Drayton, and that was thought as the beginning of social business. After that, many social entrepreneurs appeared such as Rosabeth Moss Kanter and Charles Leadbeater. Then, 10 or 20 years later, this new type of leader became more popular.

William Bill Drayton can be said as the father of social entrepreneurs because he was pioneer of social business at that time. If he was social entrepreneur, what is the definition? According to homepage of Ahoka, “social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change.” Social entrepreneurs are defined as people who have clear vision about what he/she wants to do to the society. Also, they have astonish idea for innovation which nobody could not come up with ever.