Social entrepreneurship is a field of study and practical application that has blossomed over the past couple of decades. The Annual Skoll World Forum for Social Entrepreneurship, which I have attended on two occasions, brings together hundreds of the world’s leading social entrepreneurs to Oxford. When it launched in 2004, it was all about celebrating the unknown social entrepreneurs, helping give them global recognition and credibility, and a platform to engage with policy leaders and large corporations. Now in its tenth year the Forum has assisted in helping social enterprise become mainstream.

What exactly is social entrepreneurship? There are many perspectives, but little unity. According to Ashoka, a leading institution in the field, “Social entrepreneurs are individuals with innovative solutions to society’s most pressing social problems.” Ashoka cites historical examples of leading social entrepreneurs such as Dr. Maria Montessori (Italy) who developed the Montessori approach to early childhood education and Florence Nightingale (U.K.) the founder of modern nursing who established the first school for nurses and fought to improve hospital conditions. Since their objectives are different, so are the ways of measuring returns. While business entrepreneurs typically measure performance in profit and return, social entrepreneurs also take into account a positive return to society. An important aspect of defining social entrepreneurship is to establish the meaning of “social” impact. How broad is the social net? Social entrepreneurs typically focus on a wide range of social, cultural, and environmental goals; these are often pursued within the voluntary and not-for-profit sectors

A more precise definition is provided in the comprehensive text by Alex Nicholls: “Simply put, social entrepreneurship is defined by its two constituent elements: a prime strategic focus on social impact and an innovative approach to achieving its mission.” An evocate definition is provided by a popular, somewhat motivational, book by David Bornstein, How to Change the World: Social Entrepreneurs and the Power of New Ideas. New York, NY: Oxford University Press, 2004. This book looks at social entrepreneurs as follows: “It sees them as transformative forces: people with new ideas to address major problems who are relentless in the pursuit of their visions, people who will simply not take ‘no’ for an answer, who will not give up until they have spread their ideas as far as they possibly can.”

Within the above definitions of social entrepreneurship, there is no concern with profit—but with social change. In fact, there may be minimal possibility of profit; perhaps sustainability is through donations. This book will incorporate a discussion of a particular strain of social entrepreneurship known as “social ventures. A “social venture” can be defined as an undertaking by a firm or organization to (a) provide systemic solutions to (2) achieve a sustainable, social objective. The key aspect of a social venture, as we define it is that it is sustainable; in other words, it generates profits. The social venture rather than return those profits to shareholders, like commercial ventures, it reinvests those profits to further the social venture and the resulting social benefits. By generating profits it is sustainable through market activity rather than seeking donations (that are separate from profit-making).