The New Social Entrepreneurs

According to Pozen, there is a social entrepreneurship that creates social value. There is policy entrepreneurship which develops new ways to package, market, and apply old ideas. There is also Norm Entrepreneurship, and there is Moral Entrepreneurship. There are also failed entrepreneurs. These categories have been promoted by buzz words. When the titles become too specific they generally fail because it is harder to tell what falls into the category.

The new categories have risen due to the growth of the non-profit sector as well as social corporate responsibility. There is also a generous tax code for social entrepreneurs. However, unlike the capital entrepreneurs, these new entrepreneurs are not facing the same financial risks. They will not invest and lose everything they have. Capital entrepreneurs tend to have amoral goals, and they do not make targeted interventions aimed at a specific audience.

Pozen believes that social entrepreneurs are reformers. They improve upon the work of capital entrepreneurs, and therefore should be labeled as entrepreneurs.

Source: We are all Entrepreneurs Now, David E. Posen, March 19, 2008

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