The study of the concept and the development of social entretpreneurial models in South Africa

The study investigates the concept and development of social entrepreneurial models in South Africa to demonstrate how social business initiatives can thrive and increase their impact on quality of life. Extreme poverty and diminishing natural resources threaten the future existence of the human race. Transformative, cost-effective and sustainable solutions are necessary to address the most challenging social problems. The study explores the speculation that creation of social value naturally progressed to increase economic value. Governments and philanthropic efforts have to date, failed to offer effective solutions to social problems. Independently, no sector is able to handle the scale, cost and extent of the current social issues facing humanity. In order to address this gap the study considers the business models followed by the public, private and non-profit sectors. It then introduces the concept of social entrepreneurship and explores the use of a hybrid business model as a possible solution. It is argued that transformative, cost-effective and sustainable solutions to the most critical social problems within South Africa can only be generated once these different sectors collaborate to leverage public and private resources. The method used in approaching the study was: Identifying the need for new forms of social value creation and identifying specific ventures emerging to address these needs; Recognising the key factors enabling social entrepreneurs to accomplish ambitious task, create large social impact and influence economic value; Establishing the most predominant social problems threatening the future sustainability of society and economy in South Africa; Identifying the most strategic business model able to create transformation, sustainability and deliver both economic and social value; Establishing the guidelines, support and resources needed to strengthen social entrepreneurial behaviour and social entrepreneurial initiatives within South Africa. The objective of the study was firstly achieved through an analysis of literature related to the topic of social entrepreneurship. The literature study explored the origins of traditional entrepreneurship and entrepreneurial characteristics. It then went on to discover the concept of social entrepreneurship and made a clear definition between the different types of social entrepreneurship, separating the social entrepreneurial venture from charity and corporate social responsibility. The literature study looked further into the characteristics of a social entrepreneur, the need for new forms of social value creation, the opportunities that exist and the impact created by social entrepreneurship. The second part of the analysis strictly focussed on social entrepreneurship in South Africa and the role each sector plays in addressing social issues. The most critical social issues in South Africa were identified with emphasise on the change needed. The methodology used was the case study method. A single-case study was conducted with the Freeplay Energy Group, presenting a successful social entrepreneurial venture, serving as a good business model example for the South African environment. A qualitative approach was followed with the objective of testing theory. By comparing the theory identified in the literary review with the findings of the case study, it was possible to investigate the concept and development of social entrepreneurial models in South Africa. The conclusions demonstrate how social business initiatives can thrive and increase their impact on quality of life. The most strategic business model identified was one which integrated the public, private and non-profit sectors with social entrepreneurship. The collaboration of all the sectors with social entrepreneurship results in social value creation which gives impetus to economic value creation. The findings were documented with specific conclusions being made and offered suggestions for future research