Abstract
Giving priority to creating value for sustainable development rather than accepting the dominance of the profit-centered perspective has been gaining more momentum. Within this changing perspective, social entrepreneurs are the most notable group, whose innovative initiatives create valuable contributions by becoming pioneer forces required for economic and social development. Further, their efforts in showing the significance of social value creation result in a new business model, “social business.” Although the social business shares some common features with the traditional business, the social business differentiates itself by acting as a social change actor accompanied by a socially sensitive mission, a hybrid flexible design, innovative ways of finding/using resources for creating new solutions to needs. Thereby, this study aims to understand the features of social business models together with their contribution to social inclusion and creating equal opportunities for all in terms of a developing country context.
TopIntroduction
As the complexity and the prevalence of social problems increase, their consequences have started to affect more people than ever. The climate crisis, unequal distribution of wealth and natural resources accompanied by increasing poverty undermine the prevalent economic system, and traditional way of doing business. Additionally poverty, resource crises and ecological degradation have transformed the perceptions of development by giving equal importance to social and ecological values besides economic interests (Schaltegger et al., 2016; Stubbs and Cocklin, 2008). Further, the prevailing economic system in terms of equal income generation creates the question of inclusiveness of the disadvantaged groups in the system. Thereby, economic growth not as an impediment but as an accelerator for equity becomes the required view for the welfare of current and forthcoming generations (Ranieri and Ramos, 2013).
The quest for equal opportunities, social integration and social welfare are embraced by inclusive growth paradigm. Inclusive growth, though have defined by various angles, refers to a growth process that embraces all without discriminating the poor, minorities, the disabled etc. (Klasen, 2010). Inclusive growth also questions the value creation through businesses and transforms created value to shared value that offers value to disadvantaged groups through redesigning products/services and transforming value chain (Kramer and Porter, 2011; Porter and Kramer, 2019). Parallel to inclusive growth, the shared value perspective advocates the sustainability of business success and competitiveness only if the given business operations support the economic and social development of societies (Porter and Kramer, 2019). More to that, inclusive growth through creating shared value can be regarded as a solution to distrust directed at corporate mentality that is believed to put all its’ efforts and will on profit maximization (Porter and Kramer, 2019).
Inclusive growth through creating shared value also requires innovative products and processes in the value chain regarding disadvantaged groups. Since Schumpeter’s arguments (1934), entrepreneurs and their innovative initiatives are regarded as triggers of social and economic transformation (Hall et al. 2010). In line with Schumpeter’s entrepreneurship definition, this study follows the ‘social innovation’ school’s approach to social entrepreneurship (Dees and Anderson, 2006a, b). Within this school, social entrepreneurs are evaluated as “change makers as they carry out ‘new combinations’ in at least one the following areas: new services, new quality of services, new methods of production, new production factors, new forms of organizations or new markets” (Defourny and Nyssens, 2010:44). As an explicit example, the social entrepreneur, Muhammed Yunus and his idea of Microfinance method with his socially innovative product, Grameen Bank can be given. In his case, the created value is enlarged to the poor women of Bangladesh through small loans so that Bangladeshi women can earn their living through minor activities as buying animals for breeding.
Based on not only to the social innovation school but also to other related studies, this chapter aims to discuss the contributions of social enterprises on social inclusiveness through a Turkish initiative; Future is Brighter Youth Platform which offers solutions to the fight against the inequality and social exclusion experienced by Turkish youth related to skill development and employment.
Key Terms in this Chapter
Social Impact: Social impact is the consequences of activities, projects, programs, or policies that can create a change in the knowledge and behaviors of individuals, groups, or organizations.
Social Business Model: The business model that focuses on creating social welfare by developing solutions to social problems.
Social Entrepreneurship: The social entrepreneur is someone who develops innovative solutions to social problems with a motive for generating social impact.
Social Innovation: The social innovation is the developing new perspectives, new approaches, new solutions to social problems.
Inclusive Growth: Growth that adopts the principle of equity and that covers the development of conditions of the disadvantaged. Growth without the neglected groups’ development would be unhealthy and unsustainable.