**3. Social entrepreneurship and social value**

Most of the movements can be seen as small and extent worldwide, but they are interconnected and mutually strengthening each other. When all these things are taken together, it means more than the sum of their components. There is a synergy of these movements. Through social missions and entrepreneurial approaches, all social enterprises create and disseminate social, economic, and environmental values. Whatever the type or sector of the pioneering organization is, "creating value for all" is a precondition for the growth of more inclusive markets [7]. The concept of "sociality" includes adapting the principles of entrepreneurship to social problems instead of profit maximization. Thus, social enterprises are emerging as entrepreneurial or free market-based organizations in solving social problems.

definition according to United States law, which describes a new legal for-profit business

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149

The aims of projects that are realized by companies and social organizations are based on three themes. First, identifying the social, cultural, and environmental objectives that are deployed as the basis of the project, second prioritizing the social objectives identified during the project, and third going for profit for the purpose of ensuring the continuation of project implementation.

Social entrepreneur targets to find solutions for the environment, the youth, and various socioeconomic indexed social problem areas. It accentuates that providing employment and income-generating activities for religious, ethnic, economically marginalized groups emphasize the self-sufficiency of individuals. They aim to increase their visibility within the community they live in and to reduce their commitment to social safety nets in a rational way.

The access in long-term capital and the lack of strategic planning, especially in developing countries, constitute the biggest obstacle in front of entrepreneurs. The talent, money, and interest in social enterprises around the world are increasing recently. There are debates about what social initiatives are and what they do in various national and international platforms.

Systematic change is the most important objective. Social entrepreneurs aim to create systematic change, disseminate their solutions, and gain support from the community in the long run, eliminating the problem, while improving similar cases in the areas they deal with. To describe the difference between the social intervention approach and others is that social initiatives are not for to teach only fish or fishing, but instead aim to radically change the fish

It is considered that there is a big difference between entrepreneurship and social entrepreneurship also in the implementation process. They are so connected like the parts of a whole system. The partnerships like universities and other stakeholders contribute to the efficiency and the innovation. Social entrepreneurs aim to reach two different goals under the roof of a

Social enterprises that function as a commercial enterprise by producing goods and services in free market conditions also direct the income they derive from these activities to social purposes. In this method, the business activity may be directly related to the social problem, but it is also possible that there is no direct connection between them. CSOs adopting such an approach perceive social enterprise activities as an alternative to reduce their dependence on

Another way social enterprises pursue is the empowerment and capacity building of individuals and communities by creating employment and income-generating activities for dis-

Contrary to the first approach, commercial activity itself is seen as an effective tool for social

Another approach that is observed in social enterprises is to act in a creative, bold, and entrepreneurial spirit in their commercial activities. Solution-focused, experiential transformations of barriers can be much more profitable than traditional methods of business ventures.

advantaged groups (women, youth, people with disabilities, minorities, and so on).

single establishment: to provide social benefit and profit [8].

donations and grants and to increase their fiscal sustainability.

industry [9].

change in this method.

entity. It contains the responsibility to return profits to shareholders [33].

There are many definitions of social entrepreneurship. Social enterprises aim social impact. Social entrepreneurship involves corporate initiatives that invest in individual, or in the form of the profit generated by a new entity, which is planned to be opened by the individual, within the framework of social objectives [7].

According to the definition of GEM, the economic expectations of social entrepreneurship projects are determined according to the costs of the strategies to be implemented. Corporate social project practices, which have become an important part of corporate strategies, have made it possible to achieve common achievements within this understanding. The difference of social entrepreneurship and commercial entrepreneurship mentions entrepreneurship as a context, actor (people/resources), deal, and opportunity together: as the PCO equilibrium. The first proposition here is that market failure creates different opportunities for social and business entrepreneurs. The second factor is that the understanding of economic success and social value creation differs between the two concepts.

Social entrepreneurs are individuals who realize social transformation in an innovative way. These individuals are making social enterprise "with the enthusiasm of entrepreneurship, the methods of business, the creation of innovation, and the courage to abandon general practices" [7].

The entrepreneurs create innovations in different ways like "product or process innovation, or a new product or a changed product, or a combination of any" according to the definition of OSLO MANUAL. Product innovations are made through "the use of new materials; use of new intermediate products; new functional parts; use of radically new technology; fundamental new functions (fundamental new products) and process" and the process innovations through "the new production techniques; new organizational features (introduction of new technologies); new professional software" [25]. The social and/or ecological value creation motivates the social entrepreneurs. The social entrepreneurs also aim innovation in a new product, a new service, or a new method like entrepreneurs. Social entrepreneurs transform the society in economic and social ways.

They may be in the form of cooperative or hybrid models, legally organized as nonprofitmaking institutions. Although social initiatives are not yet defined as separate entities in most countries, there are some steps taken in this direction [7]. In the United States, there is differentiation between the Community Interest Company and the Low-Profit Limited Liability Company because of the focus of profitability [1, 24]. Benefit corporation (BC) is another definition according to United States law, which describes a new legal for-profit business entity. It contains the responsibility to return profits to shareholders [33].

**3. Social entrepreneurship and social value**

148 Entrepreneurship - Trends and Challenges

within the framework of social objectives [7].

social value creation differs between the two concepts.

the society in economic and social ways.

Most of the movements can be seen as small and extent worldwide, but they are interconnected and mutually strengthening each other. When all these things are taken together, it means more than the sum of their components. There is a synergy of these movements. Through social missions and entrepreneurial approaches, all social enterprises create and disseminate social, economic, and environmental values. Whatever the type or sector of the pioneering organization is, "creating value for all" is a precondition for the growth of more inclusive markets [7]. The concept of "sociality" includes adapting the principles of entrepreneurship to social problems instead of profit maximization. Thus, social enterprises are emerging as entrepreneurial or free market-based organizations in solving social problems.

There are many definitions of social entrepreneurship. Social enterprises aim social impact. Social entrepreneurship involves corporate initiatives that invest in individual, or in the form of the profit generated by a new entity, which is planned to be opened by the individual,

According to the definition of GEM, the economic expectations of social entrepreneurship projects are determined according to the costs of the strategies to be implemented. Corporate social project practices, which have become an important part of corporate strategies, have made it possible to achieve common achievements within this understanding. The difference of social entrepreneurship and commercial entrepreneurship mentions entrepreneurship as a context, actor (people/resources), deal, and opportunity together: as the PCO equilibrium. The first proposition here is that market failure creates different opportunities for social and business entrepreneurs. The second factor is that the understanding of economic success and

Social entrepreneurs are individuals who realize social transformation in an innovative way. These individuals are making social enterprise "with the enthusiasm of entrepreneurship, the methods

The entrepreneurs create innovations in different ways like "product or process innovation, or a new product or a changed product, or a combination of any" according to the definition of OSLO MANUAL. Product innovations are made through "the use of new materials; use of new intermediate products; new functional parts; use of radically new technology; fundamental new functions (fundamental new products) and process" and the process innovations through "the new production techniques; new organizational features (introduction of new technologies); new professional software" [25]. The social and/or ecological value creation motivates the social entrepreneurs. The social entrepreneurs also aim innovation in a new product, a new service, or a new method like entrepreneurs. Social entrepreneurs transform

They may be in the form of cooperative or hybrid models, legally organized as nonprofitmaking institutions. Although social initiatives are not yet defined as separate entities in most countries, there are some steps taken in this direction [7]. In the United States, there is differentiation between the Community Interest Company and the Low-Profit Limited Liability Company because of the focus of profitability [1, 24]. Benefit corporation (BC) is another

of business, the creation of innovation, and the courage to abandon general practices" [7].

The aims of projects that are realized by companies and social organizations are based on three themes. First, identifying the social, cultural, and environmental objectives that are deployed as the basis of the project, second prioritizing the social objectives identified during the project, and third going for profit for the purpose of ensuring the continuation of project implementation.

Social entrepreneur targets to find solutions for the environment, the youth, and various socioeconomic indexed social problem areas. It accentuates that providing employment and income-generating activities for religious, ethnic, economically marginalized groups emphasize the self-sufficiency of individuals. They aim to increase their visibility within the community they live in and to reduce their commitment to social safety nets in a rational way.

The access in long-term capital and the lack of strategic planning, especially in developing countries, constitute the biggest obstacle in front of entrepreneurs. The talent, money, and interest in social enterprises around the world are increasing recently. There are debates about what social initiatives are and what they do in various national and international platforms.

Systematic change is the most important objective. Social entrepreneurs aim to create systematic change, disseminate their solutions, and gain support from the community in the long run, eliminating the problem, while improving similar cases in the areas they deal with. To describe the difference between the social intervention approach and others is that social initiatives are not for to teach only fish or fishing, but instead aim to radically change the fish industry [9].

It is considered that there is a big difference between entrepreneurship and social entrepreneurship also in the implementation process. They are so connected like the parts of a whole system. The partnerships like universities and other stakeholders contribute to the efficiency and the innovation. Social entrepreneurs aim to reach two different goals under the roof of a single establishment: to provide social benefit and profit [8].

Social enterprises that function as a commercial enterprise by producing goods and services in free market conditions also direct the income they derive from these activities to social purposes. In this method, the business activity may be directly related to the social problem, but it is also possible that there is no direct connection between them. CSOs adopting such an approach perceive social enterprise activities as an alternative to reduce their dependence on donations and grants and to increase their fiscal sustainability.

Another way social enterprises pursue is the empowerment and capacity building of individuals and communities by creating employment and income-generating activities for disadvantaged groups (women, youth, people with disabilities, minorities, and so on).

Contrary to the first approach, commercial activity itself is seen as an effective tool for social change in this method.

Another approach that is observed in social enterprises is to act in a creative, bold, and entrepreneurial spirit in their commercial activities. Solution-focused, experiential transformations of barriers can be much more profitable than traditional methods of business ventures.

Another common point is that most social enterprises are initiated and maintained by social entrepreneurs. Like entrepreneurs who change the face of the business world, social entrepreneurs are also important tools of social change [10].

The Schwab Foundation for Social Entrepreneurship offers "models of sustainable social innovation." The global, regional, and industry transformation and the association with the other stakeholders of the World Economic Forum is in the focal point of The Schwab Foundation for Social Entrepreneurship [18].

Social entrepreneurship is a concept, which needs awareness and development in Turkey. Social support of universities, associations, and foundations through awards, courses, and studies and governmental support through tax regulations are expected to raise the awareness and interest in social entrepreneurship. The attainment of consumer markets is easier through the internet access and popularity of social media. Additionally, entrepreneurship is the period for innovation development and application. Economic development and also social development are not only evolved through innovation [32].

Entrepreneurship is a combination of production resources and aims the profit. Social entrepreneurs do not focus on profits, mostly the social benefits. The development of social entrepreneurship must be accentuated in the society.

Increasing knowledge-based economies promote entrepreneurship. Social inclusion and economic development constitute synergy for social entrepreneurship. Social enterprise can be defined as "businesses that trade for social purposes." They are nonprofit entities, which are implementing commercial methods to accomplish their social objectives. The concept is summarized as "mission-driven business approach" [23].

There is a "traditional NGO" managed by volunteerism, income-based donations, and social services, while at the other end there is a commercial enterprise which is the main goal of profit. Social enterprises are in the midst of these two extremes as commercialized institutions at various levels in their functioning. For example, many social enterprises employ professional staff, receive consultancy services, and make income-generating investments. However, social enterprises also provide employment and social services to disadvantaged groups, advocate, and thus interfere with various social problems. No social initiative is the same as another (in terms of purpose, target mass, methods, and institutional structures). However, no matter how diverse the commercialization, the approaches, and the environments in which they function, it is possible to find some common interests between social

"A leveraged nonprofit enterprise" is not working through an income-earning strategy. The sustainability is maintained through partnerships and funding of traditional donor-dependent model. Its sustainability strategy constitutes dependent independent resources [1].

"Hybrid enterprise" conglomerates features of the for-profit and nonprofit legal models. The various legal structures are used in different countries. In the United States, the low-profit entities are structured as Limited Liability Company. In the United Kingdom, the sustainability of the social activities is afforded by a profit subsidiary in the form of "Community Interest Company." The entrepreneur establishes numerous legal entities to sustain it financially. It is

Leveraged nonprofit ventures' sustainability is influenced by the partners' attention.

enterprises in terms of purposes and methods [10].

**Social enterprise**

(Nonprofit legal entity)

A financially sustainable nonprofit

Relying entirely on strategic partnerships for sustainability

Source: Abdou and Fahmy [1].

**Enterprising nonprofit**

(Nonprofit legal entity)

A financially sustainable nonprofit

Generates some income, making it more sustainable and strategic

**Table 2.** The Spectrum of social enterprises (arranged by legal form and revenue source).

**Hybrid model (an organization with two legal entities: for-profit and nonprofit OR an organization registered under a hybrid legal entity, such as in the United States and** 

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An organization with a social mission

Financially sustainable through its own income generation activities

**Social business Commercial** 

http://dx.doi.org/10.5772/intechopen.70955

(For-profit legal entity)

A company with a social mission

Reinvests 50% or more of its revenues back into its core activities

**business/ corporations** 151

(For-profit legal entity)

Generates revenues and maximizes profits to shareholders

**Britain)**

**Leveraged nonprofit**

**Philanthropic/ charitable, and nonprofit organizations**

(Nonprofit legal entity)

Relies entirely on donations, grants, and subsidies

financed with grants, loans and/or own resources [24].

The researches execute the antecedents and the consequences of social entrepreneurship in social constructionist approach [23].

Social capital can be defined as the assets that have as a consequence of the relations of one with others and (in a correlated way) of the participation in organizations: these relations facilitate the access to other resources [5].

Social enterprise must be constructed as a social organizational identity [23]. The social capital is an important determinant for business support. The concept of social entrepreneurship technology is affected through rapid technological change. The changes are adapted for creating social value. New methods are internalized [14].

Social capital is the feature of commercial conglomerates, which have shared values, trust, and culture. So trust is an important dimension of social capital [6]. Entrepreneurs use their connections for funding or receiving credit from suppliers without any formal contract, which is very crucial for the sustainability. Social capital is crucial for equalization and continuance for human development. German and Japanese cooperative and long-term oriented cultures induce them for innovation and industrial development. So the social capital is remarkable in these countries (**Table 2**) [32].

The Different Organizational Models of Social Enterprises are examined in **Table 2**. The entrepreneurial approach and social focus are their common point.


Source: Abdou and Fahmy [1].

Another common point is that most social enterprises are initiated and maintained by social entrepreneurs. Like entrepreneurs who change the face of the business world, social entrepre-

The Schwab Foundation for Social Entrepreneurship offers "models of sustainable social innovation." The global, regional, and industry transformation and the association with the other stakeholders of the World Economic Forum is in the focal point of The Schwab Foundation

Social entrepreneurship is a concept, which needs awareness and development in Turkey. Social support of universities, associations, and foundations through awards, courses, and studies and governmental support through tax regulations are expected to raise the awareness and interest in social entrepreneurship. The attainment of consumer markets is easier through the internet access and popularity of social media. Additionally, entrepreneurship is the period for innovation development and application. Economic development and also

Entrepreneurship is a combination of production resources and aims the profit. Social entrepreneurs do not focus on profits, mostly the social benefits. The development of social entre-

Increasing knowledge-based economies promote entrepreneurship. Social inclusion and economic development constitute synergy for social entrepreneurship. Social enterprise can be defined as "businesses that trade for social purposes." They are nonprofit entities, which are implementing commercial methods to accomplish their social objectives. The concept is sum-

The researches execute the antecedents and the consequences of social entrepreneurship in

Social capital can be defined as the assets that have as a consequence of the relations of one with others and (in a correlated way) of the participation in organizations: these relations

Social enterprise must be constructed as a social organizational identity [23]. The social capital is an important determinant for business support. The concept of social entrepreneurship technology is affected through rapid technological change. The changes are adapted for creat-

Social capital is the feature of commercial conglomerates, which have shared values, trust, and culture. So trust is an important dimension of social capital [6]. Entrepreneurs use their connections for funding or receiving credit from suppliers without any formal contract, which is very crucial for the sustainability. Social capital is crucial for equalization and continuance for human development. German and Japanese cooperative and long-term oriented cultures induce them for innovation and industrial development. So the social capital is remarkable in

The Different Organizational Models of Social Enterprises are examined in **Table 2**. The entre-

neurs are also important tools of social change [10].

social development are not only evolved through innovation [32].

preneurship must be accentuated in the society.

marized as "mission-driven business approach" [23].

ing social value. New methods are internalized [14].

preneurial approach and social focus are their common point.

social constructionist approach [23].

these countries (**Table 2**) [32].

facilitate the access to other resources [5].

for Social Entrepreneurship [18].

150 Entrepreneurship - Trends and Challenges

**Table 2.** The Spectrum of social enterprises (arranged by legal form and revenue source).

There is a "traditional NGO" managed by volunteerism, income-based donations, and social services, while at the other end there is a commercial enterprise which is the main goal of profit. Social enterprises are in the midst of these two extremes as commercialized institutions at various levels in their functioning. For example, many social enterprises employ professional staff, receive consultancy services, and make income-generating investments. However, social enterprises also provide employment and social services to disadvantaged groups, advocate, and thus interfere with various social problems. No social initiative is the same as another (in terms of purpose, target mass, methods, and institutional structures). However, no matter how diverse the commercialization, the approaches, and the environments in which they function, it is possible to find some common interests between social enterprises in terms of purposes and methods [10].

"A leveraged nonprofit enterprise" is not working through an income-earning strategy. The sustainability is maintained through partnerships and funding of traditional donor-dependent model. Its sustainability strategy constitutes dependent independent resources [1]. Leveraged nonprofit ventures' sustainability is influenced by the partners' attention.

"Hybrid enterprise" conglomerates features of the for-profit and nonprofit legal models. The various legal structures are used in different countries. In the United States, the low-profit entities are structured as Limited Liability Company. In the United Kingdom, the sustainability of the social activities is afforded by a profit subsidiary in the form of "Community Interest Company." The entrepreneur establishes numerous legal entities to sustain it financially. It is financed with grants, loans and/or own resources [24].

"Social entrepreneurs" aim to create social change in education, health, environment, and enterprise improvement. A social entrepreneur accomplishes major and sustainable social change through innovations [18]. The entrepreneur establishes a for-profit entity or business which is social or ecological driven. The social entrepreneurs' main objectives are social and then profit [22].

lives of poor people. GIM endeavors for the millennium development goals (MDGs). This

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UNDP Private Sector Division is working toward the inclusive market policies and projects with sections The GIM Initiative and the Business call to action (Cat). The Inclusive Markets Development (IMD) program is for the advancement of new opportunities. The Growing Inclusive Markets Initiative has two purposes. The enhancement of the recognition includes business models and finds solutions for sustainable human development. The other purpose is structuring market environment improvements with taking actions with stakeholders and

As the empirical research conducted by the GIM Initiative reveals, these constraints include limited market information, problems about the infrastructure, reaching the knowledge and skills, difficulties by compensating the financial needs, and ineffective regulatory environments. In addition to the potentially unnecessary bureaucratic processes that can be undertaken in general by interventional efforts, many laws do not recognize social enterprises as separate legal structures. Conditions, laws and regulations may limit their capacity to seek financial and social returns, and force such organizations to merge into profit-oriented or non-

Social entrepreneurship encompasses three main types of inclusive business models, as documented in the final report of the Social Entrepreneurship Information Network and shaped in many GIM case studies. First, they can get members to come together and get more value; for example, strong bargaining power, efficiency and volume develop, value chain, and product development increase [29]. The business model is based on the production of handcrafts that are low cost, require intensive labor, consume little energy, and perform with low technology. **Table 3** summarizes the Socially Inclusive Business Model according to the social value and the economic value [5]. The initiatives analyzed found business opportunities in low-income

The base of the pyramid (BOP) approach can be explained as creating and distributing goods and services for poor people. There are not many companies using the opportunity to supply goods to this group. The international finance corporation reveals that purchasing power is annually \$5000 billion of this 4 billion people. The transformation is aimed of this people to customers. The multinational companies have to look from a different window to find out the

Prahalad and Hart [13] explained the BOP approach in their study "The Fortune at the Bottom of the Pyramid" as "The aspiring poor present a prodigious opportunity for the world's wealthiest companies. But it requires a radical new approach to business strategy" [13]. Prahalad (2004), Hart (2005) and London (2007) are the authors, which have mentioned the base (bottom) of the pyramid (BOP) theory first. The poor society, which is living on less than US\$ 1.25 per day, is defined as "resilient and creative entrepreneurs" and "valueconscious consumers" (Prahalad 2004: 1). The concept suggests to create economic openings with collaboration of multinational corporations. It recommends the strategic association

profitable legal entities. Social entrepreneurs need to ensure financial stability [1].

sectors. Socially Inclusive Businesses produce economic and social values [26].

opportunities in the market of four billion people and assure the capital efficiency.

initiative creates a big network [19].

changing the policies [16].

*3.1.2. Base of the Pyramid (BOP)*

Entrepreneurs and social entrepreneurs are using the same tools and endeavor in market principles and forces for driving change. Social entrepreneurs provide opportunities for marginalized and poor. They find solutions for social issues like education, health, welfare reform, human rights, workers' rights, environment, economic development, agriculture, and so on [18].

Social entrepreneurship is tried to be encouraged with educational programs and competitions. The financial returns are low, and it complicates the presence of these organizations [10].

A strong financial system is a requirement of entrepreneurship. The entrepreneurs create jobs, and so they help to reduce the unemployment rate. Turkey's economy is growing. The collaborations with international organizations promote economic progress through entrepreneurship. **Table 1** summarizes the differences between entrepreneurship and social entrepreneurship.

There are many suggestions for the improvement of social entrepreneurship [23]. One of the problems they face is institutionalization which is difficult because the social initiatives are dependent on the social entrepreneurs and it is not easy to survive [3, 4].

The institutionalization of social entrepreneurship education is impeded through limited presidential support, a clear and well-defined vision, and financial problem [27].

The strategies to simplify the increase of social enterprises are legal recognition and regulation; combination of the most innovative organizational solutions; replication process; protection of consumer's rights; and avoidance of isomorphism. Quasi-market strategies require unusual mix of resources and conformance to local dimension. The network plays important role to accomplish this. It is recommended to change the implementation of employment subventions for long-term unemployed to reduce labor costs. It can be used to lower productivity [4].

## **3.1. The concepts of new business models**

The competiveness forces the companies for a search of new business opportunities. Growing Inclusive Markets (GIM) and Base of the Pyramid (BOP) can be taken into account as important concepts when considering the size of the population.

## *3.1.1. Growing Inclusive Markets (GIM)*

The macro-level approach is based on the creation of opportunities and innovation through defining the markets in another way. There are important aspects of social entrepreneurship. The concepts aim at taking "business for poor" and raise prosperity of the society. Social entrepreneurship operates in a global structure with many stakeholders. The growing inclusive markets (GIM) Initiative is a stakeholder of UNDP. The aim is to find solutions for the global development with inclusive business models. They try to create new chances for better lives of poor people. GIM endeavors for the millennium development goals (MDGs). This initiative creates a big network [19].

UNDP Private Sector Division is working toward the inclusive market policies and projects with sections The GIM Initiative and the Business call to action (Cat). The Inclusive Markets Development (IMD) program is for the advancement of new opportunities. The Growing Inclusive Markets Initiative has two purposes. The enhancement of the recognition includes business models and finds solutions for sustainable human development. The other purpose is structuring market environment improvements with taking actions with stakeholders and changing the policies [16].

As the empirical research conducted by the GIM Initiative reveals, these constraints include limited market information, problems about the infrastructure, reaching the knowledge and skills, difficulties by compensating the financial needs, and ineffective regulatory environments. In addition to the potentially unnecessary bureaucratic processes that can be undertaken in general by interventional efforts, many laws do not recognize social enterprises as separate legal structures. Conditions, laws and regulations may limit their capacity to seek financial and social returns, and force such organizations to merge into profit-oriented or nonprofitable legal entities. Social entrepreneurs need to ensure financial stability [1].

Social entrepreneurship encompasses three main types of inclusive business models, as documented in the final report of the Social Entrepreneurship Information Network and shaped in many GIM case studies. First, they can get members to come together and get more value; for example, strong bargaining power, efficiency and volume develop, value chain, and product development increase [29]. The business model is based on the production of handcrafts that are low cost, require intensive labor, consume little energy, and perform with low technology. **Table 3** summarizes the Socially Inclusive Business Model according to the social value and the economic value [5]. The initiatives analyzed found business opportunities in low-income sectors. Socially Inclusive Businesses produce economic and social values [26].

#### *3.1.2. Base of the Pyramid (BOP)*

"Social entrepreneurs" aim to create social change in education, health, environment, and enterprise improvement. A social entrepreneur accomplishes major and sustainable social change through innovations [18]. The entrepreneur establishes a for-profit entity or business which is social or ecological driven. The social entrepreneurs' main objectives are social and

Entrepreneurs and social entrepreneurs are using the same tools and endeavor in market principles and forces for driving change. Social entrepreneurs provide opportunities for marginalized and poor. They find solutions for social issues like education, health, welfare reform, human rights, workers' rights, environment, economic development, agriculture, and so on [18].

Social entrepreneurship is tried to be encouraged with educational programs and competitions. The financial returns are low, and it complicates the presence of these organizations [10].

A strong financial system is a requirement of entrepreneurship. The entrepreneurs create jobs, and so they help to reduce the unemployment rate. Turkey's economy is growing. The collaborations with international organizations promote economic progress through entrepreneurship. **Table 1** summarizes the differences between entrepreneurship and social entrepreneurship.

There are many suggestions for the improvement of social entrepreneurship [23]. One of the problems they face is institutionalization which is difficult because the social initiatives are

The institutionalization of social entrepreneurship education is impeded through limited

The strategies to simplify the increase of social enterprises are legal recognition and regulation; combination of the most innovative organizational solutions; replication process; protection of consumer's rights; and avoidance of isomorphism. Quasi-market strategies require unusual mix of resources and conformance to local dimension. The network plays important role to accomplish this. It is recommended to change the implementation of employment subventions for long-term unemployed to reduce labor costs. It can be used to

The competiveness forces the companies for a search of new business opportunities. Growing Inclusive Markets (GIM) and Base of the Pyramid (BOP) can be taken into account as impor-

The macro-level approach is based on the creation of opportunities and innovation through defining the markets in another way. There are important aspects of social entrepreneurship. The concepts aim at taking "business for poor" and raise prosperity of the society. Social entrepreneurship operates in a global structure with many stakeholders. The growing inclusive markets (GIM) Initiative is a stakeholder of UNDP. The aim is to find solutions for the global development with inclusive business models. They try to create new chances for better

dependent on the social entrepreneurs and it is not easy to survive [3, 4].

presidential support, a clear and well-defined vision, and financial problem [27].

then profit [22].

152 Entrepreneurship - Trends and Challenges

lower productivity [4].

**3.1. The concepts of new business models**

*3.1.1. Growing Inclusive Markets (GIM)*

tant concepts when considering the size of the population.

The base of the pyramid (BOP) approach can be explained as creating and distributing goods and services for poor people. There are not many companies using the opportunity to supply goods to this group. The international finance corporation reveals that purchasing power is annually \$5000 billion of this 4 billion people. The transformation is aimed of this people to customers. The multinational companies have to look from a different window to find out the opportunities in the market of four billion people and assure the capital efficiency.

Prahalad and Hart [13] explained the BOP approach in their study "The Fortune at the Bottom of the Pyramid" as "The aspiring poor present a prodigious opportunity for the world's wealthiest companies. But it requires a radical new approach to business strategy" [13]. Prahalad (2004), Hart (2005) and London (2007) are the authors, which have mentioned the base (bottom) of the pyramid (BOP) theory first. The poor society, which is living on less than US\$ 1.25 per day, is defined as "resilient and creative entrepreneurs" and "valueconscious consumers" (Prahalad 2004: 1). The concept suggests to create economic openings with collaboration of multinational corporations. It recommends the strategic association

producers, and entrepreneurs. Such initiatives can be developed by all types of institutions (social enterprises, multinational corporations, large public entities, or SMEs), and these busi-

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Some firms like Nirma have implemented solutions with product innovation and new manufacturing process. Of course, in this business model, it is not possible to aim the traditional high margins. A different perspective is needed for the competitiveness [29]. It is expensive to research for the development of products and services sustainability and enter and continue in distribution channels and communication networks. MNCs have know-how to bring together a global knowledge rather to local entrepreneurs. Leaders can use the interpersonal and intercul-

The economically sustainability and generation of social and environmental benefits are important to define the inclusive businesses [26, 31]. Despite the significant benefits of the social enterprise model, such as increasing financial capacity and independence from donors, increasing scale of operations resulting from income strategies is achieved, and thus greater social impact, and social enterprises also faced some potential difficulties. First, while social enterprises are developing market models of pyramid-based coverage, they face market constraints that are similar to traditional markets. Social enterprises use solutions like organizations operating in low-income markets adopt according to formulate products and processes for BOP markets, which has different conditions, increasing the buying power and bringing the potential resources with other partners. The researchers indicate that the success of the business models is dependent on the organization's main mission, capacities, and the segment it addresses and when it reaches a suitable scale.

Methodology of the research is case study. Case study approach is an effective way to build solid ground to make positive argument on subject where it is rather easy to compare theoretical information and arguments with applied cases. It is also aimed to encourage other social entrepreneurship initiatives by mentioning good examples like Trusted Hands Food Safety Program Online. This case provides opportunity for awakening the social interest. This case is appropriate for the use of the subject matter covered which includes concepts that are

**5. Unilever food solutions and trusted hands food safety online training** 

The study researches "Food Safety" training of Unilever Food Solutions. An independent company conducted the Turkey Chief Survey, and 80% of the chiefs identified as the most important need Food Safety training. The "Trustworthy Hands" Food Safety Training Program is prepared online in order to reach all kitchen teams throughout Turkey. The project aims to complete 5000 chief trainings in the first year. It is planned to have a food safety certificate by

globally discussed. However, various examples determine the value.

participating in trainings of 30,000 chiefs in 3 years.

ness models carry a number of common characteristics as outlined below [7].

tural skills to customize the products and services to local BOP markets [29].

**4. Methodology**

**program**

Source: Marquez [23, 26].

**Table 3.** Profits and Social Impact in Socially Inclusive Business.

with persons at the base of the world's income pyramid. It assumes to the radical change in the business model. The poor is presented as solution itself and as a resource. In that way can be a win-win position created. The demand of the over three billion poor people is attracting the entrepreneurs and social entrepreneurs. The financing and social value has to be balanced with low-cost consumer goods. It is contrasting to the mission-driven corporate social responsibility approach [26]. The BOP concept brings "mutually beneficial economic and social incentives" together. It is purposed to produce the own revenues. It is revealing that the partner's involvement depends on the potential of venturing the needs of the poor people [26].

Based on the study of the famous Indian economist Amartya Sen (1999), which sees the rise of freedom as including the economic possibilities as "a fundamental solution to a basic solution and development" to provide sustainable human development, UNDP considers the markets to be more inclusive. This means that the poor people can buy his needs at affordable prices, meaning that venture capitalization is an opportunity rather than a necessity, access to decent business opportunities, and the ability to contribute to companies' value chains as suppliers and distributors. Social enterprises contribute to the development of "containment markets" either by supporting development and can change the role of the disadvantaged groups. They are able to demand the products and services as customer and buyers or supply as employees, producers, and entrepreneurs. Such initiatives can be developed by all types of institutions (social enterprises, multinational corporations, large public entities, or SMEs), and these business models carry a number of common characteristics as outlined below [7].

Some firms like Nirma have implemented solutions with product innovation and new manufacturing process. Of course, in this business model, it is not possible to aim the traditional high margins. A different perspective is needed for the competitiveness [29]. It is expensive to research for the development of products and services sustainability and enter and continue in distribution channels and communication networks. MNCs have know-how to bring together a global knowledge rather to local entrepreneurs. Leaders can use the interpersonal and intercultural skills to customize the products and services to local BOP markets [29].

The economically sustainability and generation of social and environmental benefits are important to define the inclusive businesses [26, 31]. Despite the significant benefits of the social enterprise model, such as increasing financial capacity and independence from donors, increasing scale of operations resulting from income strategies is achieved, and thus greater social impact, and social enterprises also faced some potential difficulties. First, while social enterprises are developing market models of pyramid-based coverage, they face market constraints that are similar to traditional markets. Social enterprises use solutions like organizations operating in low-income markets adopt according to formulate products and processes for BOP markets, which has different conditions, increasing the buying power and bringing the potential resources with other partners. The researchers indicate that the success of the business models is dependent on the organization's main mission, capacities, and the segment it addresses and when it reaches a suitable scale.
