ISSN 2321 3361 © 2019 IJESC

Research Article Volume 9 Issue No.8

Social Entrepreneurship in India: Opportunities and Challenges

Komalpreet Singh1, Manu Sharma2
PhD Research Scholar
Department of Business Studies, India

Abstract:
The social and economic hardships in India can be overcome through the innovation and promotion of best practices and positive
models as well as by explore good examples of social entrepreneurship. A major future challenge is the contribution of businesses
to reduce the problems and work for the welfare of the society. Social entrepreneurship is an important term of social
responsibility and a way to solve a variety of urgent societal problems. The purpose of this paper to define the term of social
entrepreneurship. This paper derives the necessary information from several research papers. A literature review of secondary
data resources is undertaken as relevant to the objectives of study. An entrepreneurial mind set is re-emerging in India. Right from
ancient times, India has been entrepreneurial. The paper attempts to shed light on the theme of challenges and opportunities facing
the social entrepreneurship scene in India. This paper also highlights the successful examples of social entrepreneurs.

Key Words: Challenges, Examples, Social Entrepreneurship.

1. INTRODUCTION 1.1 SOCIAL ENTREPRENEURSHIP

Entrepreneurship is the professional application of knowledge,
The development of a country depends upon its industrial skills and competencies and/or of monetizing a new idea, by an
development. Nobody can deny that the development depends individual or a set of people by launching an enterprise, thus to
upon every nation on its entrepreneurial competencies of the pursue growth while generating wealth, employment and social
people. Entrepreneur are innovative, highly motivated and good (Prem S. Potabatti, Nikhil D. Boob , 2015).Schumpeter
critical thinkers, when these attributes are joined together to introduced the concept of innovation in the theory of
solve social problems, a social entrepreneur is born. India entrepreneurship, (Schumpeter, J.A. 1934). Entrepreneur can
being a young nation provides a huge opportunity for social be defined as the one who maximizes opportunity (Drucker, P.
entrepreneurs. An entrepreneur is innovative, highly motivated F. 1964). According to McClelland an enabling environment
and a critical thinker. When these attributes are used to solve and one’s abilities ultimately decide entrepreneurial activity
social problems, a social entrepreneur is born. A social (McClelland, D.C., 1961). In India, social entrepreneur is a
entrepreneur identifies practical solutions to social problems. person, who can be the founder, co-founder or a chief
There is an increasing number of Governments paying functionary (may be president, secretary, treasurer, chief
attention to entrepreneurship policy and are subsequently executive officer (CEO), or chairman) of a social enterprise, or
implementing strategies in order to enhance the level of a Non-Profit, which raises funds through some services (often
entrepreneurial activity in their nations (Minniti, 2008). Social fund raising events and community activities) and occasionally
entrepreneurship is the application of innovative, practical and products. Today, non-profits &nongovernmental organizations,
sustainable approaches to benefit society in general(Schwab foundations, governments, and individuals also play a critical
Foundation, 2012). India is well known nation for the role to establish, promote, fund, and advise social
entrepreneurial activities carrying the seeds of social concern. entrepreneurs around the world. A growing number of
Here, we have the field of social entrepreneurship emerging as educational institutions are organizing programs focusing on
a potent tool for solving social problems in an entrepreneurial education and training of social entrepreneurs. (Seema
way (Bornstein, D. 2004).While there are a number of social Devi,2016). In the words of Gregory dees“ Father “ of the
issues increasing in Indian markets, they offer some powerful concept of social entrepreneurship; the social entrepreneurs are
opportunities for social entrepreneurships efforts to get rid of similar as the agents who bring the change in the society. The
these issues. Initially, the terms social entrepreneur and social concept of social entrepreneurship means different things to
entrepreneurship were used in the 1960s and 1970s.The terms different people (Dees,1998). One of the researchers has found
came into widespread use in the 1980s and 1990s, promoted by that social entrepreneurship as non-profit organisation and
Bill Drayton the founder of Ashoka: Innovators for the Public, objectives to create social value. (Austin, Stevenson, &
(Austin, Stevenson& Wei-Skillern J 2006). This study shows Wei-Skiller,2003;Boschee,1998). Social entrepreneurships
that in India, a nation with innumerable issues relating social use the techniques to start-up companies and find solutions
entrepreneurship. We undertake this study to understand to social, cultural or environmental issues. Social
opportunities and challenges faced by Indian social entrepreneurship attempts to further social, cultural and
entrepreneurs. The research methodology used for the paper is environmental goals in areas such as poverty alleviation, health
secondary in nature. An empirical study is conducted by care and community development. In 2010, social
reading research papers to know the concept of social entrepreneurship is facilitated by the use of internet, the social
entrepreneurship, to ascertain the role and importance of social media and websites help the entrepreneur to collaborate with
entrepreneurship in India, to know the challenges faced by the people online and raise funds through crowd funding.
social entrepreneurs, to know the scope and opportunities of Different definitions are given by different people on social
social entrepreneurship. entrpreneurshiop.. We think that social entrepreneurship is a

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term with innovative and creative use to find the opportunities the importance of entrepreneurship in economic growth is
which bring change and Confront the social needs. Further, we increasing across nations (Mir Shahid Satar,2016) Social
are demonstrating the two terms. Social and entrepreneurship entrepreneurship is not a newer concept but the positioning of
The greatest challenge to know the exact regarding social the concept has risen to new heights in recent times. As
entrepreneurship. Social entrepreneurship based upon the term government of India has made CSR a more realistic
what we mean by social needs (Seelos&Mair, 2005 a). The responsibility than a mere formality, corporates are now
term social means initiatives aimed at helping others (Prabhu, looking for their grater roles in helping the society in a way
1999). Social entrepreneurship based on ethical motives that is both economically and socially beneficial. (Tripda
(Bornstin 1998; Catford 1998). Shan and venkataraman (2000) Rawal, 2018).
describe entrepreneurship as a field that analyses how, by
whom, with what effect opportunities to create goods and 3. RESEARCH METHODOLOGY
services.
The study is based on secondary data. Secondary data is
2. LITERATURE REVIEW collected mainly from the journals, articles, books and related
websites.
Social entrepreneurship as a practice that integrates economic
and social value creation has a long heritage and a global 3.1 Objectives of the study
presence. The global efforts of Ashoka, founded by Bill 1. To know the concept of social entrepreneurship.
Drayton in 1980, to provide seed funding for entrepreneurs 2.To ascertain the role and importance of social
with a social vision (http://www.ashoka.org); the multiple entrepreneurship in India.
activities of Grameen Bank, established by Professor 3.To know the challenges faced by social entrepreneurs, to
Muhammad Yunus in 1976 to eradicate poverty and empower know the scope and opportunities of social entrepreneurship.
women in Bangladesh (http://www.grameen-info.org); or the
use of arts to develop community programs in Pittsburgh by 4. SCOPE AND OPPORTUNITIES OF SOCIAL
the Manchester Craftsmen’s Guild, founded by Bill Strickland ENTREPRENEURSHIP
in 1968 (http:// www. manchesterguild.org): Williams (1999)
argued that interest in entrepreneurship as a field of study was Social entrepreneurship is a growing, worldwide movement.
crucially stimulated by community leaders’ belief that The scope of social work is no longer limited to activism.
entrepreneurship was a defining trend of the 21st century. Today, there are many opportunities in child welfare,
Similarly, we observe that the rise of scholarly interest in community policing, healthcare, counselling etc in not only
social entrepreneurship goes hand in hand with an increasing NGO’s but also national and international bodies as well as
interest in the phenomenon among elites. Entrepreneurship social enterprises. Additionally, there is immense scope for
played a significant role in economic growth, innovation, and social entrepreneurship and starting your own social initiatives.
alleviating poverty. And awareness regarding entrepreneurship Social entrepreneurship will play a big role in bringing the
is needed. In many of the developing countries is questionably growth to the rural masses in India and so it becomes
the least studied. Entrepreneurship may affect economic important to study the factors, like fair trade, that will shape
growth in various ways. They may introduce important the social entrepreneurship philosophy. First we will look into
innovations by entering markets with new products or the areas where India faces problems, some of which are listed
production processes. Entrepreneurial phenomena aimed at below:
economic development have received a great amount of
scholarly attention (Busenitz, West III, Sheperd, Nelson, 1. Making the educated youths employable- many of our
Chandler, &Zacharakis2003). Entrepreneurship as a process to courses are designed in such a way that they don’t cater to
foster social progress has only recently attracted the interest of needs of the industry.
researchers (Alvord, Brown, & Letts, 2004; Boschee, 1995; 2. Healthcare- affordability
Dees and Elias, 1998; Thompson, 2002). The development of 3. Urban and Rural Sanitation
social entrepreneurship as an area for research closely 4. Making use of renewable sources of power
resembles the development of research on entrepreneurship 5. Nutrition and Food for the poor.
itself. Social entrepreneurship as a social problem-solving 6. Affordable housing.
endeavour is emerging as a socially innovative business model 7. Agriculture
for the required social transformation and change in the whole
world. Considering its assumed potential for solving the social Many more are there, but these are the basic needs of the
problems, the arena of S-ENT is receiving significant attention Indian society, which are being the topics of discussions from
from both scholars as well as practitioners globally so many years, many policies and laws were passed by state
(Peredo and McLean, 2006; Thompsonet.el., 2000). Social and central governments of India. But still exists! All acts of
entrepreneurship is exercised where some person or persons entrepreneurship start with the vision of an attractive
(1) aim either exclusively or in some prominent way to create opportunities. An attractive opportunity is one that has the
social value of some kind, and pursue that goal through some potential for justify the investment of time ,energy and money.
combination of (2) recognizing and exploiting opportunities to It is a new term that depicts the characteristic of non profit
create this value, (3) employing innovation, (4) tolerating risk organisation, government and vbsuiness, Social entrepreneurs
and (5) declining to accept limitations in available resources. are sometimes regfered change agents. They create large scale
(Ana Maria Peredo, Murdith McLean,2006). Entrepreneurship change using ideads and persuade others to adopt it. Change
development in rural areas will go a long way in boosting the can be national or global. Social entrepreneurship in India is
overall economic growth of India. Entrepreneurship refers to very much dshaped by the potential context. The major boast
the act of setting up a new business or reviving an existing one in social entrepreneurship was given by Nobal [prize wiinerDr.
by taking advantage of new opportunities (Poonam Bakhetia Mohammad Yunus. When his brain –child Grameen Bank
and Bhupinder Singh Dhillon, 2017).The research analysing become successful in helping people and lift themselves out of

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poverty in rural Bangladesh by providing them with credit purely profit-maximization. In Yunus‘s example, the Grameen
without collateral. Social enterprises in these sectors will not Bank supports disadvantaged women. Another case is the
only create many opportunities but also can find a solution for American social entrepreneur J.B. Schramm who has helped
these problems. For example an enterprise to train the youth thousands of low-income high-school students to get into
with industrial oriented skills, is a good entrepreneurial option tertiary education. Eventually, social enterprises should be
at the same time it will answer the problem of unemployed seen as a positive force, as change agents providing leading-
educated youth. There are several schemes and plans both by edge innovation to unmet social needs. Social entrepreneurship
centre and state government at different levels for the is not a panacea because it works within the overall social and
promotion of rural entrepreneurs in India. In 1999-2000, the economic framework, but as it starts at the grassroots level it is
government of India launched “Swarna Jayanthi Grama often overlooked and deserves much more attention from
Swarozgar Yojana” progrmme for promoting poverty academic theorists as well as policy makers. This is especially
alleviation through self-employment and the organization of important in developing countries and welfare states facing
poor into SelfHelp Groups. Loans sanctioned under this increasing financial stress.
scheme have given a new life to the women in villages for their
social and economic empowerment.(Vasanthi MK, Dr. A. Jaya 6. CHALLENGES OF SOCIAL ENTREPRENEURSHIP
Kumar Shetty, 2019).
It is said and researches shows that attitude towards
5. IMPORTANCE OF SOCIAL ENTREPRENEURSHIP entrepreneurs and entrepreneurship is an important factor that
determines entrepreneurial growth in a country but talking
Social entrepreneurship has a mission to create a social value. about the Indian culture it continues to remain risk averse.
David Gergen, Harvad Professor, described social entrepreneur Even certain studies have shown that our Indian business men
are viewed as new engine of reforms. Social entrepreneurship want to invest less in our country because of regulatory
plays important role in society by following points:- environment and are ready to invest abroad. The entrepreneurs
here face challenges like limited access to finance, bureaucratic
5.1.Employment Development procedure, and poor infrastructure etc. (Gunjan Sharma &
The first major economic value that social entrepreneurship Kushagra Kulshreshtha, 2014). When social; entrepreneurs
creates is the most obvious one because it is shared with endeavour to bring about a social change, they confront with
entrepreneurs and businesses alike: job and employment numerous obtacles. Social entrepreneurship is facing following
creation. Estimates ranges from one to seven percent of people challenges;
employed in the social entrepreneurship sector. Secondly,  Business People support
social enterprises provide employment opportunities and job  Government Approval
training to segments of society at an employment disadvantage  Maintaining product
(long-term unemployed, disabled, homeless, at-risk youth and  Sustaining employees
gender-discriminated women). In the case of ‗GrameenBank‘  Competition from others
the economic situation of six million disadvantaged women  Promoting Awareness
micro-entrepreneurs were improved.  Conveying the Business
 Idea attracting Donors
5.2. Innovation / New Goods and Services  Working remotely
Social enterprises develop and apply innovation important to  Hiring
social and economic development and develop new goods and  Finding Time
services. Issues addressed include some of the biggest societal  Getting Fund
problems such as HIV, mental ill-health, illiteracy, crime and  Raising Money
drug abuse which, importantly are confronted in innovative  Family and Friend Support
ways. An example showing that these new approaches in some  Getting Skilled Employees
cases are transferable to the public sector is the Brazilian social  Policy Challenges: Now and then there is lot of
entrepreneur Veronica Khosa, who developed a home-based changes in the policies with change in the government.
care model for AIDS patients which later changed government Problems of TRIPS and TRIMS. Problems of raising equity
health policy. capital Problems of availing raw-materials. Problems of
obsolescence of indigenous technology Increased pollutions
5.3.Social Capital Ecological imbalanced. Exploitation of small and poor
Next to economic capital one of the most important values countries, etc (N. Santhi and S. Rajesh Kumar, 2011)
created by social entrepreneurship is social capital (usually Social entrepreneurship, like any other branch of social
understood as ―the resources which are linked to possession entrepreneurship also faces challenges. All the challenges are
of a durable network of ... relationships of mutual acquaintance either controllable or non-controllable, but all the challenges
and recognition"). Examples are the success of the German and are manageable.(Tripda Rawal,2018).
Japanese economies, which have their roots in long-term
relationships and the ethics of cooperation, in both essential 7. EXAMPLES OF SUCCESSFUL ENTREPRENEURSHIP
innovation and industrial development. The World Bank also
sees social capital as critical for poverty alleviation and 7.1. Aravind Eye Hospital &Aurolab, Dr.Govindappa
sustainable human and economic development. Investments in Venkataswamy
social capital can start a virtuous cycle. (Dr. V) & David Green started trust at Madurai, India with a
mission of making medical technology and health care services
5.3. Equity Promotion accessible, affordable and financially self-sustaining Founded
Social entrepreneurship fosters a more equitable society by in 1976 by Dr. G. Venkataswamy, Aravind Eye Care System
addressing social issues and trying to achieve ongoing today is the largest and most productive eye care facility in the
sustainable impact through their social mission rather than world. From April 2007 to March 2008, about 2.4 million

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persons have received outpatient eye care and over 285,000 Khakhra, Appalam, Masala, Vadi, Gehu Atta, Bakery
have undergone eye surgeries at the Aravind Eye Hospitals at Products, Chapati, SASA Detergent Powder, SASA Detergent
Madurai, Theni, Tirunelveli, Coimbatore and Puducherry. Cake (Tikia), SASA Nilam Detergent Powder, SASA Liquid
Blending traditional hospitality with state-of-the-art Detergent. The organization is wide-spread, with its Central
ophthalmic care, Aravind offers comprehensive eye care in the Office at Mumbai and its 67 Branches and 35 Divisions in
most systematic way attracting patients from all around the different states all over India. The organization started off with
world. a paltry sum of Rs.80 and has achieved sales of over Rs.300
crores with exports itself exceeding Rs. 12 crores. Membership
7.2. Akanksha Hazari has also expanded from an initial number of 7 sisters from one
A social entrepreneur, businesswoman and peace negotiator, building to over 40,000 sisters throughout India. The success
her pursuit in solving the problem of global water shortage in of the organization stems from the efforts of its member sisters
the form of m.paani led her all the way to be honoured by who have withstood several hardships with unshakable belief
president Bill Clinton with 1 million dollars. in ‗the strength of a woman‘

7.3. Sanjit “Bunker” Roy, Founder of Barefoot College 7.8. Sharad Vivek Sagar
In 1965, Roy was a young postgraduate student from He was born and bought up in Patna, Bihar, this 26 year old
St.Stephen’s College, Delhi. When he volunteer to spend the social entrepreneur is on a mission of connecting children from
summer mapping 100 drought prone area in famine affected remotest area with best opportunities. Sharad believes that the
Palamu, District of Jharkhand (earlier part of Bihar). He made next generation of leaders are sitting in the classrooms right
his life’s mission to fight poverty and inequality. He founded now, and if provided with the right opportunity, can change the
social works and Research Centre (SWRC). In 1972 he found whole world. With this vision, he founded Dexterity Global at
way to address problems by new modelsd and strategics. His the age of 16, and has provided opportunities to more than 1.2
first initiative was to address the water situation by settin up million students. Sharad is one of the few Indians to be enlisted
water pupms. In 2010, herecongized by Tim magazine. in the Forbes 30 under 30 list and also one of few to reject a
masters degree from Harvard University. What’s more, he has
7.4. Jeroo Billimoria also been invited by the former U.S president Barack Obama
She presently work as the founder and managing director of to the white house for an inaugural ceremony. To keep adding
child and youth finance international (CYFI). She has ably led to his achievements, the Rockefeller foundation also inducted
CYFI to work with 91 governments to create national him in the list of 100 next century innovators.
initiavtives for economiv citizenship education and financial
inclusion. 7.9. Ria Sharma
When Ria came back to India as a part of her final year project
7.5. AMUL (Anand Milk Union Limited) at Leeds College of Arts, UK, little did she know that the trip
Dr.Verghese Kurien started a Co-operative organization would become more than a just a project for her. Ria came
AMUL. Amul has been a sterling example of a co-operative here to film a documentary on the acid victims of the country.
organization‘s success in the long term. It is one of the best She could have forgotten about those victims like the rest of
examples of co-operative achievement in the developing her group did, but chose not to, and thus founded Make love
economy. The Amul Pattern has established itself as a uniquely not scars. This crowd funded organization supports victims of
appropriate model for rural development. Amul has spurred the acid attacks in all ways possible. They also help these victims
White Revolution of India, which has made India the largest portray their talents and urges organization to hire them. In
producer of milk and milk products in the world. 2015, MLNS started a campaign called End acid sale, with the
aim of putting a ban on the retail sale of acids. It became the
7.6. Muhammad Yunus first Indian campaign in 7 years to win the Cannes Gold Lion
Muhammad Yunusstarted Grameen Bank. Grameen Bank in film. Ria’s work in the social sector has made a such a huge
(GB) has reversed conventional banking practice by removing impact that it has been recognized on the international level. In
the need for collateral and created a banking system based on 2016,Ria was awarded with the British Council’s social impact
mutual trust, accountability, participation and creativity. GB award. In 2017,she became the first ever Indian to be awarded
provides credit to the poorest of the poor in rural Bangladesh, the United Nations Goalkeeper Global Award.
without any collateral. At GB, credit is a cost effective weapon
to fight poverty and it serves as a catalyst in the overall 7.10.Urvashi Sahni
development of socio-economic conditions of the poor who She is the founder and CEO of SHEF( Study Hall Education
have been kept outside the banking orbit on the ground that Foundation), an organisation dedicated to offering education to
they are poor and hence not bankable. Professor Muhammad most disadvantaged girls in India. She has worked with over
Yunus, the founder of ―Grameen Bank‖ and its Managing 900 schools and changed the life of 1,50,00 girls directly and
Director, reasoned that if financial resources can be made 2,70,00 girls indirectly with her program. She was felicitated
available to the poor people on terms and conditions that are with the ‘Social Entrepreneur of the Year’ award in 2017.
appropriate and reasonable, ―these millions of small people
with their millions of small pursuits can add up to create the 8. CONCLUSION
biggest development wonder.‖ As of May, 2009, it has 7.86
million borrowers, 97 percent of whom are women. With 2,556 In India, social entrepreneurship has emerged to a greater
branches, GB provides services in 84,388 villages, covering extent and is well appreciated. There are many challenges
more than 100 percent of the total villages in Bangladesh. faced by the social entrepreneurs like conveying the business
idea, working remotely, getting fund, government approval,
7.7. Shri Mahila Griha Udyog Lijjat Papad competition from others, acquiring technologies, promoting
Shri Mahila Griha Udyog Lijjat Papad is a Women‘s awareness and getting skilled workers. Though these
organization manufacturing various products from Papad, challenges exit there are many successful examples of social

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