Chrysalis NGOs and Their Evolution Into Social Entrepreneurship

Chrysalis NGOs and Their Evolution Into Social Entrepreneurship

Mansi Shah
DOI: 10.4018/IJSECSR.2021070104
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Abstract

The humanitarian crises from the archives have seen a multitude of economic agents striving to balance the incongruity across the globe and bring them in harmony with the developmental goals of the society. The Indian government has identified the role of society and social organisations in addressing the problems of the deprived segment to attain the neglected positive externalities. The crowding of non-governmental organisations over the years has led several researches in studying the prospects and effectiveness of the same. NGO is an umbrella term for all voluntary and charity ventures – relying on donations, subscriptions, and various activities for raising funds. The augmented scope of sustainability and unsatisfactory equilibrium existing in the society underpins their need to evolve. The paper reviews the research on the NGOs and their volunteers acknowledging the potential of NGOs in metamorphosing into different structures, concurrently enlarging the scope of its sustainability and the effectiveness of the value created.
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Introduction

India is a country of 131 billion people. It is the biggest democracy of the world and one of the biggest and cheapest manpower sources to fuel the growth of the economy. The sector outperforming in its GDP contribution is the service sector, forming 60 percent of GDP. However, in respect to employment it is eclipsed by agriculture, forestry, and fishing. The significant reduction in poverty is accompanied with stark inequalities across the population (Dang and Lanjouw, 2020). The status and demography of its national workforce warrants examination to identify neglected population, issues, and gaps. Despite government schemes and programs, disparity and depravity continue to exist (Razvi and Roth, 2010). As Foucault conjures one of the arts of government is like government of the family by the father, characterized by “plurality and immanence”. This plurality and immanence are seen as going beyond the exercise of sovereign power in order to foster the population’s prosperity. It is recognized the political power is exercised in several ways through different agencies, social groups, and techniques (Encyclopedia Britannica, 2020). The micro economic strategies of NGOs played to the benefit and India’s government seeked NGOs assistance at a proletarian level (Bhat, 2000) ;(Razvi & Roth, 2004).

The history of NGOs goes back to the 18th century, consisting of groups like the International Federation of Trade Unions, the International Olympic committee and the Universal Scientific Alliance. But it was not until the 20th century these groups gained global recognition and were formally named. The term Non-Governmental Organization was popularized by the United Nations at the end of WWII (Gina, 2016).

In India NGOs can register themselves either as a Trust, Society or Section 8 company. As per Companies Act 2013, a company is referred to as Non-Profit Organization i.e., when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profit (if any) or other income for promoting these objectives While there is a lack of any legal definition of social enterprise, the word NGO in India refers to a body that remains detached from the Government and profit framework of usual businesses.

The term NGO is used as an umbrella to cover all legal entities that seek philanthropic and charitable funds and utilize them towards the advancement of the society without the motive to originate profit from it or use the profit from the business of the NGO and utilize the same in the implementation of its objects. Borrowing from the World Bank’s Operational Directive we define NGOs as private organizations “characterized primarily by humanitarian or co-operative, rather than commercial, objectives that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development” in developing countries. However, research stipulates its integral facets are languishing the sustainability, driving them to adapt and transform.

Another economic agent which works on the similar magnitude of motivation and grassroots approach are Social Entrepreneurs. In common parlance, social entrepreneurship is a symbiotic relationship of two self explanatory and separate identities of its own words: ‘Social’ and ‘Entrepreneurship’. Entrepreneur has its origin in French language; meaning “adventurer” or “undertaker”, social is ‘Cohesion of Cohorts'. The synergy of these two gives us a ‘triple bottom line’ at its best. Using Elkington’s insight, social entrepreneurship can be defined as undertaking social, economic, and environmental dimensions for the purpose of value creation, in such a way where the social dimension is a protagonist. The term social entrepreneurship was first coined by Joseph Banks in 1972 in his formative work named ‘The Sociology of Social Movements’. It was described as the need to use managerial skills to address social problems as well as to address business challenges sustainably (Ebrashi, 2013).

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