Question 1

John and Mark are discussing the difference between social entrepreneurship and commercial entrepreneurship. They seem not to agree on whether both forms of entrepreneurship are really different. As a result, they come to you for clarification. Based on your expertise, you would probably tell them the main difference between the two is that social entrepreneurship focuses on __________, whereas commercial entrepreneurship ___________.

A) Creation of social value, creation of economic value.
B) Creation of economic value; creation of social value.
C) Creation of both economic and social value; creation of social value.
D) Creation of hybrid value; creation of social value.

A

Accepted Answer

Social entrepreneurship focuses on creating social value, while commercial entrepreneurship focuses on creating economic value.

Question 2

What type of social venture may be more affected by an economic downturn that leads governments and corporations to reduce expenses, grants and donations?&#10;A) Hybrid social ventures.&#10;B) Purely philanthropic social ventures.&#10;C) Government organizations.&#10;D) Purely commercial social ventures.

Accepted Answer

Purely philanthropic social ventures rely solely on grants and donations, and are therefore more vulnerable to economic downturns or reductions in funding. In contrast, hybrid social ventures and purely commercial social ventures have other sources of income, such as sales or profit, that can help sustain them during tough times. Government organizations may also have steady funding sources, even during an economic downturn.

Question 3

Timothy is contemplating starting a social venture. To avoid relying exclusively on donations and grants, he decides to focus on the social mission as well as economic value. According to him, doing so will help his social venture to be sustainable. He has also learned that a social venture that focuses on both social and economic value faces a potential concern related to ____________.

A) Integrity issues.
B) Market risk and legitimacy loss.
C) Market value.
D) Social value.

B

Accepted Answer

When a social venture focuses on both social and economic value, there is a potential concern related to market risk and legitimacy loss. This may occur when the venture’s social mission conflicts with the interests of its customers or investors, or when the venture fails to meet the expectations of its stakeholders. It is therefore important for social ventures to carefully balance their social and economic objectives while maintaining their integrity and social value.

Question 4

Which of the following characterizes the trend of social entrepreneurship around the world?&#10;A) Purely philanthropic.&#10;B) Purely commercial.&#10;C) Hybridization.&#10;D) Corporate social entrepreneurship.

Accepted Answer

The trend of social entrepreneurship around the world is characterized by hybridization, which involves combining social and environmental goals with commercial business strategies. This approach emphasizes both profit and social impact, often referred to as the "double bottom line."

Question 5

Which of the following is not one of the reasons why most social ventures are moving away from being purely philanthropic to engaging in earned income activities?&#10;A) A new pro-business orientation has made for-profit initiatives in the social sector more acceptable.&#10;B) Many nonprofit leaders are looking to deliver social goods and services in ways that do not create dependency on their constituencies.&#10;C) Availability of big donors.&#10;D) The sources of funds available to nonprofits are shifting to favor more commercial approaches.

Accepted Answer

Availability of big donors is not one of the reasons why most social ventures are moving away from being purely philanthropic to engaging in earned income activities. The other three choices are all reasons why this shift is occurring. A new pro-business orientation has made for-profit initiatives in the social sector more acceptable, and the sources of funds available to nonprofits are shifting to favor more commercial approaches. Additionally, many nonprofit leaders are looking to deliver social goods and services in ways that do not create dependency on their constituencies.

Question 6

___________is best described as a process through which individuals, organizations, or communities take actions whose outcomes add social value.&#10;A) Corporate social entrepreneurship.&#10;B) Social entrepreneurship.&#10;C) Purely philanthropic social ventures.&#10;D) Commercial entrepreneurship.

Accepted Answer

Social entrepreneurship is specifically focused on creating social value, while commercial entrepreneurship is primarily focused on generating profit. Corporate social entrepreneurship is a subset of social entrepreneurship that refers to businesses operating with a social or environmental mission, and purely philanthropic social ventures are focused on charitable donations and activities with no profit motive.

Question 7

A for-profit business that treats social value creation as part of its core mission and business model is more likely to engage in ____________.&#10;A) Civic engagement.&#10;B) Corporate social entrepreneurship.&#10;C) Philanthropy.&#10;D) Social responsiveness.

Accepted Answer

Corporate social entrepreneurship involves businesses actively pursuing social and environmental goals alongside profits. This approach is embedded in the core mission and business model of the company, distinguishing it from practices like philanthropy or social responsiveness. Civic engagement, while important, doesn't necessarily involve the same level of intentional social value creation as corporate social entrepreneurship.

Question 8

Purely philanthropic social ventures receive their income through the following sources except:&#10;A) Grants.&#10;B) Corporate donations.&#10;C) Earned income.&#10;D) Individual donations.

Accepted Answer

Purely philanthropic social ventures do not generate income through earned income, which refers to revenue earned through the sale of goods or services. Instead, they rely on grants, corporate donations, and individual donations to fund their operations.

Question 9

A social venture that focuses on both the creation of social and economic value is best described as ___________.&#10;A) Philanthropic social venture.&#10;B) Nonprofit organization.&#10;C) Corporate entrepreneurship.&#10;D) Hybrid social venture.

Accepted Answer

A social venture that focuses on both social and economic value creation is known as a hybrid social venture. It combines the efficiency and effectiveness of for-profit businesses with the social mission of nonprofit organizations. The primary aim of a hybrid social venture is to create positive social and environmental change while generating profit.

Question 10

Mark is contemplating taking a course in social entrepreneurship. However, he has no idea what the field is all about. He comes to you for advice. You would probably tell Mark that social entrepreneurship focuses on ___________.

A) The creation of new ideas.
B) The formulation of entrepreneurial strategies.
C) The creation of social value.
D) The creation of economic value.

Accepted Answer

Social entrepreneurship is a field that uses the techniques and principles of entrepreneurship to create social value rather than just economic value. It aims to solve social problems and meet the needs of underserved communities through innovative solutions and business models. Thus, the focus of social entrepreneurship is on the creation of social value.

Deck 1: The Nature of Social Entrepreneurship