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Summary Sustainable entrepreneurship all articles UU USE USEMSE €7,99
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Summary Sustainable entrepreneurship all articles UU USE USEMSE

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A full summary of all the articles for sustainable entrepreneurship . Some articles are bit more elaborate than others, but this is mainly due to bonus explanations to make things more clear. Enjoy and good luck with the exam!

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  • 12 maart 2020
  • 32
  • 2019/2020
  • Samenvatting

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Voorbeeld van de inhoud

SUSTAINABLE
ENTREPRENEURSHIP
SUMMARY BY MERIJN


INHOUD

York 2010: the entrepreneur-environment nexus....................................................................................................3
The traditional incentives for environmental friendly action...............................................................................3
Kirznerian idea: entrepreneurs as the informers..................................................................................................3
Schumpeterian idea: Entrepreneurs as the innovators........................................................................................4
The role of the government..................................................................................................................................5
Cohen (2007) Market imperfections and sustainable entrepreneurship.................................................................5
Some important notes about sustainability..........................................................................................................5
Market failures and entrepreneurs.......................................................................................................................5
Dean (2007): A theory of sustainable entrepreneurship..........................................................................................6
Market failures as the nature of opportunities....................................................................................................7
Lumpkin (2013): entrepreneurial processes in social contexts................................................................................7
The antecedents of SE compared to CE................................................................................................................8
Outcomes of SE.....................................................................................................................................................8
EO and SE...............................................................................................................................................................9
Conclusions..........................................................................................................................................................10
Santos (2012) A positive theory of social entrepreneurship..................................................................................10
Holistic view on value..........................................................................................................................................10
The government and the economic system........................................................................................................10
How social entrepreneurs approach positive externalities................................................................................11
Step one: Look for the solution, not the advantage.......................................................................................11
Step two: Empower others, don’t control them.............................................................................................11
Conclusion: what the hell does he mean with the second invisible hand?........................................................11
Zahra (2009) A typology of entrepreneurs.............................................................................................................12
Patzelt (2010): Recognizing opportunities for social entrepreneurship.................................................................13
Modelling opportunity recognition.....................................................................................................................13
Part one: Knowledge of the environment.......................................................................................................13
Part two: Motivating entrepreneurial action..................................................................................................13
Akemu (2016): Social enterprise emergence..........................................................................................................15
Theoretical context.............................................................................................................................................15
Effectuation.....................................................................................................................................................15

, Distributed agency..........................................................................................................................................15
Conclusions..........................................................................................................................................................15
Leveraging agency...........................................................................................................................................15
Material artefact as a driver for cooperation.................................................................................................15
Battilana (2014): How hybrid firms stay sustainable..............................................................................................16
Defining hybrid organisations.............................................................................................................................16
Social Enterprises as Hybrid Organizations.........................................................................................................16
What is a social enterprise..............................................................................................................................16
The tensions of social enterprises...................................................................................................................16
Internal tensions..............................................................................................................................................16
ORganising a hybrid social enterprise.................................................................................................................17
Ebrahim (2014): accountability and mission drift in social enterprises..................................................................17
What social enterprise are you? (accountability for what)................................................................................18
Legislative status and stakeholder recognition...............................................................................................18
Type of governance.........................................................................................................................................18
Who are your stakeholders? (Accountability to whom).....................................................................................18
Downward accountability...................................................................................................................................18
Hockerts (2010): How the market engages in sustainable entrepreneurship........................................................20
Takeaways from the theoretical framework.......................................................................................................20
How the market evolves.....................................................................................................................................20
Gras (2014) : Resource dependency and the survival of social enterprises...........................................................21
Eikenberry (2004): Civil society threatened by NPO marketization.......................................................................21
How marketization of NPOs threatens civil society............................................................................................22
Kroeger (2014): Measuring social value creation...................................................................................................23
Ebrahim (2014): Measuring social impact...............................................................................................................24
What do you want to measure WHERE?............................................................................................................24
wHAT FUNDERS MEASURE..................................................................................................................................25
Conclusion...........................................................................................................................................................25
Molecke (2017): How entrepreneurs handle measure-pressure...........................................................................25
How entrepreneurs solve frictions: A bricoleur (constructionist) approach?....................................................25
The four problems with impact measurement for entrepreneurs.....................................................................27
Bloom (2009): How to scale your impact................................................................................................................28
Young (2006): Measuring social value creation......................................................................................................29
Current problems for social entrepreneurs and impact.....................................................................................29
Towards uniform measurement.........................................................................................................................29
Brest (2013) : Impact investing...............................................................................................................................31
Page (2012): Legal forms and social impact............................................................................................................32

,YORK 2010: THE ENTREPRENEUR-ENVIRONMENT NEXUS

Entrepreneurs might become the solution to environmental issues. However, we do not know what triggers
entrepreneurs in seeking solutions to environmental issues.

THE TRADITIONAL INCENTIVES FOR ENVIRONMENTAL FRIENDLY ACTION

There are four ‘traditional’ incentives for entrepreneurs to engage in environment-oriented actions:

Type of
By who? Description
action
Governmental regulations moved (forced) entrepreneurs into
Regulatory Government environmental action. We mustn’t forget however that such
regulations often also scare away people!
When an entrepreneur is a stakeholder of the environmental
A stakeholder that is problem, s/he can engage in stakeholder action or activism to
Stakeholder directly affected by a ‘creatively’ perform activism. Rarely happens though that
problem entrepreneurs are solely activist in nature, because that doesn’t
deliver any profit.
CSR places a burden on what a company should do about the
Ethical Firms environment. Yet, one should not forget the csr mainly looks at social
responsibility and not directly and an environmental responsibility.
Firms can be economically inclined to engage in environmental
Corporate Businesses friendly policy when it, maybe on the long term, appears to be cost-
reducing.

KIRZNERIAN IDEA: ENTREPRENEURS AS THE INFORMERS

Many environmental problems are actually problems related to wrong resource allocation or uncertainty and it
just so happens that entrepreneurs are very good at tackling those. It is important to understand though that
this is only possible when there is a suitable environment for those entrepreneurs to forward their idea.




A bigger issue with this uncertainty, is that it leaves big corporates in an inertia (standing still). They do not like
uncertainty as there is no calculable return on investment possible. This adds another layer of importance for
the entrepreneur to act! Entrepreneurs are not motivated by uncertainty but seek to address the underlying
technical challenges inherent in uncertainty.

The fact that entrepreneurs engage in environmental action, serves a few important purposes:

1) It is of course problem-solving

, 2) It provides an indication of financial costs (let the entrepreneur do that exploration)
3) Provide information to society about

In essence, entrepreneurs thus explore the uncertainty and take it away, making space for the bigger firms to
tackle the problems on a huge scale. The more information all the entrepreneurial intermediaries generate
together, the more firms will exploit it and emerge because of it.

Exploration
Information
Entrepreneurs
explore the Exploitation
The successes and
uncertain market or failures of
gap This information is
entrepreneurs then used to
provide information efficiently exploit
to incumbent firms the new market




Proposition 1. The higher the entry rate of new firms providing environmental information, the less uncertainty
incumbent firms will perceive regarding environmental degradation and more effectively they will address
environmental issues.

Proposition 2a. The higher the number of entrepreneurial intermediaries which provide information and
services supporting environmentally superior products, the less perceived uncertainty there will be about these
products, and the more likely it is that incumbent firms will offer such products.

Proposition 2b. The higher the number of entrepreneurial intermediaries which provide information and
services supporting environmentally superior products, the less perceived uncertainty there will be about these
products, and the more likely it is that new firms will emerge to offer such products.

SCHUMPETERIAN IDEA: ENTREPRENEURS AS THE INNOVATORS

On the other hand, we know already that entrepreneurs are not merely explorers. They innovate as well and it
may just be such a situation where this happens. Think for example of Tesla, at its start an entrepreneurial
venture, completely disrupting the car industry. There are thus specific markets where there is rapid
replacement of existing technologies. Especially in those markets we can thus easily expect that
entrepreneurial innovations are to replace existing technologies. This of course is a promising thought! In those
markets where replacements happen often, it is a matter of when and not if in relation to the next
environmental innovation.

Proposition 3. In industries in which environmental innovations are likely to supplant existing products,
entrepreneurial firms will be more likely than incumbents to introduce these innovations.

We must however recognize that not every innovation is bound to succeed. This mainly depends on whether
an innovation is accepted by the crowds. Therefore, we should understand that this, again, creates a degree of
uncertainty to be dealt with. This again means that entrepreneurs have to deal with this before the big
incumbent firms do.

Proposition 4. The lower the degree of intersubjective agreement regarding the ability of an innovation to
address environmental degradation and create economic profits, the higher the likelihood the innovation will
be brought to market by an entrepreneurial rather than incumbent firm

And there where economies of scale provide less competitive advantage, entrepreneurs actually stand a
chance! Especially when they execute an innovation from there very own ethical considerations.

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