Social Entrepreneurship: Innovation on Dual Frontiers

Over the past two decades, social entrepreneurship as a phenomenon has gained increased momentum and is widely recognized for its potential to address social needs or problems that too often fall through the gaps of our market and governance systems. This article presents social entrepreneurship as a powerful tool to shape and change institutions and ultimately to inspire the commercial and public sectors. It is conceptualized as a process involving innovation on two levels: (i) the innovation of a new type of product, service, or structure that is created to fulfil unmet needs; and (ii) the innovation of envisioning and enacting alternative institutional arrangements. We contend that the dual nature of this type of innovation is what makes social entrepreneurship more effective than existing solutions and distinguishes it from conventional entrepreneurship. Two case studies are examined to show how social entrepreneurs kick start change by challenging taken for granted ways of doing things and demonstrating how new strategies can make a real impact. They illustrate that more sustainable solutions are possible and often provide “proof of concept” leading to the creation of new markets, new policies, and even new behaviors and attitudes