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EDITED BY
ANIRUDH AGRAWAL
PAYAL KUMAR
Social
Entrepreneurship
and Sustainable
Business Models
The Case of India
Editors
Anirudh Agrawal Payal Kumar
Copenhagen Business School BML Munjal University
Copenhagen, Denmark Haryana, India
This Palgrave Macmillan imprint is published by the registered company Springer International Publishing
AG part of Springer Nature.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
This book is dedicated to all social entrepreneurs who make it their
business to transform society.
Foreword
If one goes through the profiles of people who have been recognized,
celebrated and quoted in research and case studies as social entrepreneurs
(e.g., Ashoka Fellows, recipients of Schwab Social Entrepreneur of the Year,
Echoing Green Fellow), it is difficult to find a common conceptual thread.
These individuals work in very diverse fields (energy, human trafficking,
agriculture, worker’s rights, rural markets, etc.); use very different strate-
gies to make the social impact they intend to achieve (e.g., providing
affordable access to social goods and services, building value chains, or
social mobilization, activism and advocacy); and create different kinds of
organizational entities which range from pure for-profits to donation-
based NGOs while they have dissimilar backgrounds in terms of their
educational qualifications, work experience and family. It is not surpris-
ing that the academic discipline too is replete with very different defini-
tions of social entrepreneurship. As Broader (2009, p. 30) observed:
“Social entrepreneurship is allergic to definitions, many of us can’t describe
social entrepreneurship, but we know it when we see it.”
There are many reasons why defining social entrepreneurship is such
an important task. As a field of academic study, social entrepreneurship is
still in its formative stage. Researchers in the field represent a wide range
in their academic background (e.g., public policy, economics, marketing,
finance, social development, agriculture), and are guided by the lenses of
their disciplines in understanding the phenomenon. In addition, the
practice of social entrepreneurship itself is evolving with the emergence
of newer social issues and problems (e.g., impacts of climate change, refu-
gee crisis) which need be to be, and can be, addressed by individuals.
But perhaps the most important reason for this diversity of definitions
is that by its very nature, social entrepreneurship is embedded, and finds
manifestation, in the local social and cultural context. Societies differ in
terms of the significant social problems, which need to be addressed, and
therefore provide different kind of opportunities to the social entrepre-
neurs (Mair, 2010). Many problems, which are significant in the Indian
context (e.g., caste discrimination, substantial size of the ultra-poor seg-
ment, lack of access to basic social services such as primary education or
health care) would not be irrelevant in many other countries. Moreover,
societies also differ in terms of the enabling ecosystem mechanisms (e.g.,
sources of funding, regulatory environment, social and institutional
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Foreword
ix
structures) which both constrain and enable the kind of solutions which
are possible and relevant in the local context.
While the term ‘social entrepreneurship’ is of recent origin and its aca-
demic pursuit even more recent, the practice of social entrepreneurship in
India has a long history (Shukla, 2010a). As a culture which reinforces
the values of “giving” and duty towards the collective well-being, Indian
society provides a fertile ground for active engagement with social issues.
Moreover, historically, the Independence Movement in pre-independent
India, and later social movements led by Vinoba Bhave and Jai Prakash
Narain, provided a strong impetus to building an empowered society
through creating social leaders who would facilitate economic and social
change. Many individuals who participated in such movements or got
inspired by them went on to establish social organizations which were
later recognized as social entrepreneurial ventures (e.g., SEWA, Amul,
Barefoot College, Sulabh International). These ventures have influenced
many social enterprises in other regions of the world.
* * *
ventures, which create social impact while giving the financial returns to
the investor. Similarly, the chapter by Shambu Prasad and Joseph Satish
V (“Embedding Diversity in Social Entrepreneurial Research: India’s
Learning Laboratories”) provide an insightful narration of how such
social movements form the backdrop of social entrepreneurship in India.
Given the emergence of impact investing, sustainable accelerators and
the role these new forms are likely to play in the scaling up of social ven-
tures in India, these studies provide useful pointers towards developing a
social entrepreneurial ecosystem in India.
This book aims to open a conversation on social entrepreneurial studies,
its impact and its possibilities in the government policy. However, there
are many things that the book does not cover, and I hope it would in the
later volumes. Some of the things that are not covered in the book are how
automation and digitalization will impact the social fabric; how and what
strategies Indian policy makers must choose to leverage the social impact
bonds in social value creation, how government policies can rejuvi-
nate micro-entrepreneurs in India and what role can social entrepreneur-
ship play in job creation in India. Finally, the field needs more quantitative
studies on social impact and externalities. These studies would further
resolve the definitional dilemmas and would also move the field ahead.
* * *
XLRIMadhukar Shukla
Jamshedpur, India
xiv Foreword
References
Broader, G. (2009, Fall). Not everyone’s a social entrepreneur, beyond profit,
30–32.
Mair, J. (2010). Social entrepreneurship: Taking stock and looking ahead.
Working Paper, WP-888, IESE Business School, University of Navarra.
Shukla, M. (2010a). Landscape of social entrepreneurship in India: An eclectic
inquiry. Paper presented in the 2010 Research Colloquium on Social
Entrepreneurship (June 22–25, 2010), Said Business School, University of
Oxford.
Shukla, M. (2010b, January 4). An invisible revolution in rural India. Wall
Street Journal. Retrieved from http://online.wsj.com/article/
SB126258063197814415.html
Preface
There are many reasons that inspired us to put our heads together to
bring out this edited volume. The overriding driver was that India has
some distinctive social, economic and cultural characteristics that provide
a contextualization of the social entrepreneurship that is fairly unique.
In recent times, India has been moving towards a market-driven econ-
omy, which means that government-sponsored public services and public
subsidies are slowly diminishing. This, coupled with rising inflation, has
caused tremendous stress among those living below the poverty line in
India. The question that arises is, what market-driven solutions can be
devised to alleviate their hardships? Furthermore, the forces of climate
change are having an adverse effect on agriculture, weather and fresh
water availability. The agricultural sector accounts for 60% of employ-
ment in India. So how do we address the increasing problems of people
associated with agriculture?
To add to the complexity, the public healthcare system in India is
poorly managed while private healthcare is expensive. Any individual on
the margins may lose his entire savings if his loved once gets sick and
needs to be treated in a private hospital. Again, how can one create sim-
ple, efficient healthcare solutions to ensure that people do not get ensnared
in the poverty trap? Finally, dwindling resources and a rising population
in general, coupled with massive migration to cities such as Delhi,
Mumbai and Bengaluru, have created huge social problems. How can the
xv
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xvi Preface
people and the government address these problems? We believe that one
of the most prominent strategies to address these multifarious problems
is innovative social entrepreneurship. It has been acknowledged that
social entrepreneurship, using sustainable development models, can
address these problems and help society greatly (Hockerts, 2010; Hockerts
& Wüstenhagen, 2010; Mair, Mart, Iacute, Ignasi, & Ventresca, 2012).
Historically, India has led the way in social entrepreneurship through
the Sulabh Toilet Project, Seva Café, SEWA and also a plethora of self-
help groups. Most recently, social enterprises like the TAPF, CRY and
Aravind Eye Care are striving hard to innovate and address social issues
in an effective manner. The increasing acceptance of social entrepreneur-
ship as a viable option can be seen not just from the rise of such enter-
prises but also by the trend in the top higher educational institutions in
the country, such as IRMA, TISS, IIT Chennai, IIM Bangalore, IIM
Calcutta, which have developed dedicated programmes on social
entrepreneurship.
Much of the work by scholars on social entrepreneurship in the Indian
context was published after the seminal book, The Fortune at the Bottom
of the Pyramid, by C. K. Prahalad (2004). The book considered the poor
as a potential market and explained how firms should innovate business
models and products to monetize this market. Since then social entrepre-
neurial research looked at social business models addressing goods and
services to the poor (Linna, 2012; Olsen & Boxenbaum, 2009; Seelos &
Mair, 2007). The downside of this research was that many firms ended up
marketing inconsequential products and services to the poor, of little
utility, such as Fair and Lovely Cream and microfinance products, lower-
ing their savings (Garrette & Karnani, 2009; Karnani, 2009).
More social entrepreneurial research came to light after the IPO of
SKS microfinance (Gunjan, Soumyadeep, & Srijit, 2010). In both the
Bottom of the Pyramid (BOP) business models (Karnani, 2011; Seelos &
Mair, 2007) and the SKS microfinance case (College & Baron, 2011;
Joshi, 2011), the social impact was considered implicit to the business
model. In other words, if a firm creates socially and sustainably relevant
products and services and sells them to the poor, this was considered to
constitute social entrepreneurship. The downside is that it does not cover
baseline studies and impact measurement post intervention, which is an
Preface
xvii
essential element for the legitimacy of the field in India. The work by
Sonne (2012) dwells on the emerging class of social entrepreneurs and
impact investment, which provides a neoliberal market perspective on
the emergence of the social entrepreneur while the study by Sonne and
Jamal (2014) maps and contrasts various social entrepreneurial
initiatives.
Recent institutionalization of social entrepreneurship practice and
impact investment in the UK and Europe (Harkiolakis & Mourad, 2012;
Heyman, 2013; Spear, Cornforth, & Aiken, 2009), clarifying financial
disclosures, social impact and development of both the social and market
space, calls for further theorization and operationalization of various ele-
ments of social entrepreneurship. Drawing from the institutionalized his-
tory of social entrepreneurship in the UK and Europe, this edited volume
strives to present empirical and theoretical peer-reviewed chapters, in
order to provide a deeper understanding of the social entrepreneurial eco-
system in India for scholars, entrepreneurs and policy makers (ICSEM,
2017). In terms of scholarship, this volume is a humble beginning, lim-
ited to exploratory and qualitative studies. We hope it will contribute in
some way to inculcating both the social entrepreneurial intentions and
social entrepreneurial business acumen across strata, from school and
university level, to village management and central government level
initiatives.
This volume is divided into two sections: Theoretical Contextualization
on Social entrepreneurship and, Sustainable Business Models and Impact
Investment. Each section has a series of dedicated conceptual and empiri-
cal papers. The chapters in the first part largely focus on conceptual
debates around social entrepreneurship in India, such as entrepreneurial
intentions, entrepreneurial empathy, dilemma around standardized social
entrepreneurial measures and problems with the social entrepreneurial
solutions to primary education in India. The chapters in the second part
study the self-help groups, impact-investing firms, circular economy,
accelerators and disruptive social entrepreneurial themes, weaving emerg-
ing trends and theory with the social enterprise cases from India. We
strive to provide empirical work that not only looks at the social innova-
tion from the market disequilibrium perspective and also presents a more
realistic perspective of the social entrepreneurship landscape in India.
xviii Preface
While this research work is of significant value, India still lacks specific
theorization and robust empirical validation and quantitative research in
social entrepreneurship (British Council India, 2015).
Future studies on social entrepreneurship in the Indian context would
do well to theorize and develop solutions around the following research
gaps. First, research must study different scaling models of social enter-
prises. It must study how social impact by social enterprises can be scaled
without grants or subsidies but through markets. Second, more research
is needed on the cooperative movement in India, beyond the dairy and
agriculture cooperatives, into newer areas of community self-sufficiency
and empowerment like renewable energy, education, healthcare and
water sharing. Finance is an important aspect of social entrepreneurship
and future research could explore newer models of impact investing,
quantitative and risk modelling of impact investing, microfinance and
public-private partnership (PPP) finance models, looking beyond impact
investing to public-private funding of social enterprises and social impact
bonds. Social entrepreneurs need support and guidance.
In this direction, research should also focus on how and what models
can be developed to support social enterprises. One such example is self-
help groups, which can be replicated at different socio-economic levels of
society. Furthermore, we also need to research how to increase the pro-
ductivity and income of the members associated with the SHGs. Another
support mechanism is through the accelerators and incubators focusing
on social entrepreneurship. Social entrepreneurship in India is in its
infancy. It needs extensive support and a social movement to develop at
each level of society, including national associations for social enterprise
to engage with government for redefining the tax breaks and incentives in
order to scale up social entrepreneurship.
To sum up, social enterprise addresses social problems and helps those
at the margins by using creative means (Defourny & Nyssens, 2010; Di
Domenico, Haugh, & Tracey, 2010) while simultaneously leveraging the
personality of the social entrepreneur (Smith, Besharov, Wessels, &
Chertok, 2012) and seeking rents both from the social problem and mar-
kets to ensure that the dividends generated while running the enterprise
are used for the benefit of the marginalized and not channelled towards
the shareholders (Yunus & Jolis, 1999). The promise of social
Preface
xix
References
British Council India. (2015). Social enterprise: An overview of the policy frame-
work in India.
Defourny, J., & Nyssens, M. (2010). Conceptions of social enterprise and social
entrepreneurship in Europe and the United States: Convergences and diver-
gences. Journal of Social Entrepreneurship, 1(1), 32–53.
Di Domenico, M., Haugh, H., & Tracey, P. (2010). Social bricolage: Theorizing
social value creation in social enterprises. Entrepreneurship Theory and Practice,
34(4), 681–703.
Garrette, B., & Karnani, A. (2009). Challenges in marketing socially useful
goods to the poor.
Gunjan, M., Soumyadeep, S., & Srijit, S. (2010). IPO in the Indian microfi-
nance industry: A SKS microfinance perspective. Advances in Management,
3(5), 23–30.
Harkiolakis, N., & Mourad, L. (2012). Research initiatives of the European
Union in the areas of sustainability, entrepreneurship, and poverty alleviation
by, 717, 73–79.
Heyman, M. (2013). The emergence and growth of social finance in the UK. Lund,
Sweden.
Hockerts, K. (2010). Social entrepreneurship between market and mission.
International Review of Entrepreneurship, 8(2; interested in the transforma-
tion of a sector induced by social entrepreneurship. More specifically), 1–22.
Hockerts, K., & Wüstenhagen, R. (2010). Greening Goliaths versus emerging
Davids—Theorizing about the role of incumbents and new entrants in sus-
tainable entrepreneurship. Journal of Business Venturing, 25(5), 481–492.
ICSEM. (2017, November 25). ICSEM Working Papers. Retrieved from
https://www.iap-socent.be/icsem-working-papers
xx Preface
Karnani, A. (2009). The bottom of the pyramid strategy for reducing poverty: A
failed promise. Economic and Social Affairs, (80).
Linna, P. (2012). Base of the pyramid (BOP) as a source of innovation:
Experiences of companies in the Kenyan mobile sector. International Journal
of Technology Management & Sustainable Development, 11(2), 113–137.
Mair, J., Martí, I., & Ventresca, M. J. (2012). Building inclusive markets in rural
Bangladesh: How intermediaries work institutional voids. Academy of
Management Journal, 55(4), 819–850.
Olsen, M., & Boxenbaum, E. (2009). Bottom of the pyramid: Organizational
barriers to implementation. California Management Review, 51(4), 100–126.
Prahalad, C. K. (2004). The fortune at the bottom of the pyramid: Eradicating
poverty through profits. Wharton School Publishing.
Seelos, C., & Mair, J. (2007). Profitable business models and market creation in
the context of deep poverty: A strategic view. Academy of Management
Perspectives, 21(4), 49–63.
Smith, W. K., Besharov, M. L., Wessels, A. K., & Chertok, M. (2012). A para-
doxical leadership model for social entrepreneurs: Challenges, leadership
skills, and pedagogical tools for managing social and commercial demands.
Academy of Management Learning & Education, 11(3), 463–478.
Spear, R., Cornforth, C., & Aiken, M. (2009). The governance challenges of
social enterprises: Evidence from a UK empirical study. Annals of Public &
Cooperative Economics, 80(2), 247–273.
Yunus, M., & Jolis, A. (1999). Banker to the poor: Micro-lending and the battle
against world poverty.
Contents
xxi
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that it should go with him if the vessel went down with
him and his people.
The fearful storm broke out anew, the vessel was driven 64
from its course, the sails were torn, the masts wavered,
and at every shock of the waves the despairing crew
expected to be lost. In this desperate condition, which
had now lasted two days, the crew suddenly perceived
rocks, upon which the old and shattered vessel was
being driven. Had it continued in that direction a
moment longer it would have been destroyed, but
Columbus’ presence of mind did not forsake him in this
appalling crisis. A skilful turn which he made at just the
right time saved the vessel and all on board. He soon
recognized that he was on the Portuguese coast and
certainly at the mouth of the Tagus, so he decided to
come to anchor.
67
Chapter IX
Columbus’ Second Journey in 1493—Several Islands Discovered
—The Spaniards Find their Fort Destroyed and the
Colonists Dead
75
Chapter X
New Discoveries—Columbus in Great Danger—Uprising of the
Natives
The worst of all was the fact that the natives, hitherto
so peaceful and friendly, at last began to realize the
danger which menaced them. Made wiser by their
experiences, they looked into the future and saw, with a
shudder, that a longer stay of these strangers, whom
they at first had reverenced, meant famine and slavery
for them. With the idle life to which they were
accustomed, and in that hot climate, very little food was
required for daily subsistence. A handful of maize and a
[18]
little roasted cassava were all they needed. Now,
they noticed with surprise, that one Spaniard ate more
at one meal than four of them would eat in a whole day,
from which they concluded that it would not be long
before everything on the island would be consumed and
they would be left victims of hunger.
82
Chapter XI
The Natives are Subjugated—Columbus is Traduced in Spain—
He Returns to Europe and Suffers Many Hardships on the
Voyage
Worn out with illness and the incessant strain upon him,
he at last reached the colony, to take a long rest from
his cares and troubles.
93
Chapter XIII
Wretched Condition of the Colony—Vasco da Gama Sails around
the Cape of Good Hope to the East Indies—Ojeda’s
Undertaking—Cabral Discovers Brazil
The time for rest and recovery had not yet come for
poor Columbus. Unforeseen blows, new difficulties, new
anxieties, new labors and dangers, so great that they
would have tested the endurance of a well man and
exhausted any man not worn down with trouble, were
awaiting him. His noble brother, Bartolomeo, during his
absence had conducted an expedition to a favorable and
not far distant region and had begun the erection of a
new city, which he named San Domingo in honor of his
father, Domenico. This city, which still flourishes, has
been for a long time one of the most important in the
West Indies and the whole island has gradually come to
take its name. While laying out the new city,
Bartolomeo, with a part of his men, advanced into parts
of the island where Columbus had never been, leaving
behind him the captain-general Roldan in command of
those remaining. This evil-disposed man betrayed the
confidence reposed in him and proved himself guilty of
blackest ingratitude.