ENTR 302 Chapter 3: Facilitating Social Entrepreneurship

Social entrepreneurs and traditional entrepreneurs are similar in that both ______.

• measure success solely based on profit

• have the same mission and goals

• measure success solely based on improving societal well-being

• identify opportunities

Which is true about social entrepreneurs?

• They measure performance the same way traditional entrepreneurs do.

• They focus on generating a profit.

• They seek to solve environmental problems.

• They use their own, unique approach to entrepreneurship.

A person invents commercial trash cans that enable garbage to be compacted using solar energy. This helps reduce emissions for the company, making it a more eco-friendly solution. People love the product because of the social problems it solves. Which is true about this scenario?

• The product is creating social value.

• The inventor would be considered a traditional entrepreneur.

• The inventor is measuring success in profits.

• The product was created using the entrepreneurship method.

Which best describes wicked problems?

• any problem with a straightforward, but labor-intensive, solution

• large, complex social problems that are not easily solved

• social problems requiring buy-in from a few key stakeholders

• any problem requiring a high number of high-power stakeholders

An entrepreneur is seeking funding for their nonprofit social enterprise. They would like to find an investor who also wants to be heavily involved in making decisions for the venture. Which type of funding would best fit this entrepreneur?

• an earned-income activity

• venture philanthropy

• social venture capital

• microfinance loan

A company buys the byproducts of ready-made food products for humans, turns them into feed for farm animals, and sells them to farmers. They measure their success in how much revenue they generate but have a dual mission to make a profit and reduce food waste. Which is true about this company?

• They would be considered an enterprising nonprofit.

• They would be considered a for-profit social venture.

• They are using an employee model of revenue generation.

• They are using a customer model of revenue generation.

What is the aim of a hybrid social venture?

• Engage in earned-income activities.

• Find venture philanthropy funding.

• Resolve a social problem and make a profit.

• Create awareness about a social issue.

Sword & Plough hires army veterans to recycle surplus military materials such as parachutes, sleeping bags, and tents into fashionable bags and accessories. It donates 10% of its profits to veterans’ organizations. Sword & Plough is an example of which of the following?

• enterprising nonprofit

• for-profit social venture

• customer model of revenue generation

• employee model of revenue generation

Which stakeholders possess the urgency attribute but have no power or legitimacy?

• independent

• dormant

• demanding

• discretionary

Donna is a board member of a nonprofit. She has the connections to influence other board members and stakeholders, but she doesn’t do this unless it would benefit the mission of the organization. What type of stakeholder is Donna?

• dormant

• discretionary

• demanding

• dominant