**5. The social venturing entrepreneurship: economics**

Social venturing economics provides explanations and understanding of SVCE business model enterprise. The social venturing economics term was coined by professor Gert [8]. It borrows ideas from different economic schools of thought to explain, defend, analyze and predict the behavior of economic agent in SVCE business model enterprise.

Social venturing entrepreneurship is a society minded entrepreneurship. It is rooted in the study of welfare and political economics and supported in the literature of the Austrian School/economics (provides coherent suggestive theoretical constructs in entrepreneurship) and the New Institutional Economics (role of institutions in shaping economic behavior focusing on social and legal norms and rules that underlie economic activity) and Behavioral Economics. The starting point is not the neo-classical approach of maximization of utilization for each individual goal. By definition the approach is that people are not acting in a rational way to achieve the highest possible (financial) benefit and utilization. It studies the economy on the basis of society issues existing, in which choices have to be made how to approach them in a business manner and entrepreneurial approach. Most of the times in an environment in which market mechanisms are lacking or functioning poorly and also the A Practical and Theoretical Approach to Social Venturing Entrepreneurship http://dx.doi.org/10.5772/intechopen.72011 97

**Figure 5.** SVCE business model conceptual framework. Source: Siame [18]: p. 173.

government, private business sector and philanthropy have difficulties to bring lasting and sustainable results to these issues with the available instruments [8, 18, 68].

#### **5.1. The conceptual framework for SVE**

A needs assessment at the inception of the SVCE enterprise is done in order to establish the training needs for the delivery rights holders to be able to take part in social venture management. And establish also the interventions that are required to increase production and productivity of economic ventures that the stakeholders are already engaged in so that they are able to supply the value adding social venture with delivery rights of the right quality, the

Before exit, what economic, social, environmental, etc., impact ought to be achieved so that the SVCE business model enterprise remains sustainable even after partner exit? How will the

The proponents of SVE argue that SVCE business model enterprise is superior to traditional social venture enterprise (TSVE) business model on account of exit strategy building block that is integrated with SVCE business model. For example, Community, Market for Conservation (COMACO) business model (a TSVE business model shown in **Figure 4**), has been very successful in delivering economic and impact teleology to communities, but the lack of exit strategy for COMACO lenders the smallholders perpetually dependent on it. In case of COMACO winding-up for some reason the converted smallholders would revert to pouching since they social enterprise where they sell farm produce is no longer in existence ([65]: pp. 307–308).

Social venturing economics provides explanations and understanding of SVCE business model enterprise. The social venturing economics term was coined by professor Gert [8]. It borrows ideas from different economic schools of thought to explain, defend, analyze and

Social venturing entrepreneurship is a society minded entrepreneurship. It is rooted in the study of welfare and political economics and supported in the literature of the Austrian School/economics (provides coherent suggestive theoretical constructs in entrepreneurship) and the New Institutional Economics (role of institutions in shaping economic behavior focusing on social and legal norms and rules that underlie economic activity) and Behavioral Economics. The starting point is not the neo-classical approach of maximization of utilization for each individual goal. By definition the approach is that people are not acting in a rational way to achieve the highest possible (financial) benefit and utilization. It studies the economy on the basis of society issues existing, in which choices have to be made how to approach them in a business manner and entrepreneurial approach. Most of the times in an environment in which market mechanisms are lacking or functioning poorly and also the

**4.5. The difference between SVCE business model and the TSVE business model** 

right quantity, at the right time.

96 Entrepreneurship - Trends and Challenges

impact be measured and communicated to stakeholders?

**5. The social venturing entrepreneurship: economics**

predict the behavior of economic agent in SVCE business model enterprise.

**4.4. Impact**

**enterprises**

The success of the SVCE business model enterprise across the supply chains is possible when the social venturing entrepreneur applies social venturing entrepreneurship rooted in new institutional economics, behavioral economics and exit strategy theory as shown in **Figure 5**. The conceptual framework is premised on the notion that SVCE business model enterprise performance and growth is influenced by: Social venturing entrepreneurship + social venturing exit theory + Institutional, legal and policy environment + Internal governance + incentive structure ([69]: p. 235).
