2010 nyu2pdf

Beyond Baumol...(or... Moving Past 'Productive', 'Unproductive' & 'Destructive': How Social Entrepreneurship Helps

Us Generalize Baumol's Typology)

OR... How social entrepreneurs can teach entrepreneurs, part 47.. ??

Norris Krueger, Entrepreneurship Northwest

([email protected] @entrep_thinking)

Dianne Welsh, UNC Greensboro

Theresa Michl, Munich School of Management

(but......).

“shoulders of giants...”

Jill Kickul

Jennifer Woolley & Maija Renko (from Wed!)

Johanna Mair (& Christian Seelos from Thurs!)

Sophie Bacq (& Frank Janssen)

Filipe Santos; Jeff Robinson; Geoff Kistruck

Sharon Alvarez; Tom Lumpkin (not just Thurs)

Colleen Robb (Post) & Jeff Stamp

Doug Bosse; Jon Entine; Sandy Gough

Marc Gruber, Carina Lomberg, Jana Thiel

and of course... Will Baumol

Partial list of the 'suspects”

Baumol's typology

Rents

Social rents

Externalities

Residual claimant theory

Tensor calculus

Cobb-Douglas production functions

Entrepreneurial lntentions!

What Do We Mean by...

“I intend to be a social entrepreneur”??

As noted frequently thus far...

Who is gaining rents? (or not?)

What's the revenue model?

Who is delivering the value?

Etc. etc. (thus...)

Nonprofit-Hybrid-ForProfit dimension is

far from sufficient

My biased (but correct)

assumptions

For good entrepreneurs, entrepreneurship isn't about

YOU; it's about creating value for others.

Great entrepreneurs act like social entrepreneurs.

“Entrepreneurs Pay Themselves Last”

Residual Claimant model: Entrepreneurs generate

value for customers, suppliers, employees,

community, etc., etc.

And THEN get paid

So What Can Social Entrepreneurs Teach Us?

Baumol's trichotomy

Productive

Unproductive

Destructive

BUT....

For WHOM?

(FROM Whom?)

(And By WHAT Means??)

Sure sounds like a business model

topic...

Business Models 101

Value Proposition

(what's the value and to whom?)

Value Delivery

(how is delivered & by whom?)

Value Capture

(who gets 'paid' & how/where/when)

....and as Filipe shows, “capture” for SE's can

be, um, complicated

Rents

Speak to 'sustainability'

Can be positive or negative

Can be economic or non-economic

Can be multi-dimensional (but...)

In theory, they are objective but....

Social Rents

(Colleen Robb & Jeff Stamp, ICSB 2010)

More than merely non-economic

Or Bosse's mix of economic & non-economic

More than the aggregation of individual rents

Think supernormal social impact

Externalities

Another angle: Externalities

Also can be positive or negative or...

Mixed (multi-dimensional)

Certainly can have complex, differential

effects on various stakeholders

Stakeholders

Any organization has multiple

stakeholders

Willingly or unwillingly

(even purely economic entrepreneurs,

Tom!)

If I think I'm one of your stakeholders...

I am!

Why Not a Model to

Make Paul Light Happy?

Assume that Entrepreneurs (of any type):

(Value Proposition Set)

INTEND to Develop Rents for Stakeholders

(Value Delivery Set)

Have an intended production function that

allocates rents & externalities to

stakeholders

Production function

[insert here a complex set-theoretic n-

dimensional production function with n-

dimensional output function;

Further assume fuzzy sets;

Represent via tensor calculus]

OR....

Beyond the For-Profit/Hybrid/non-

Profit Continuum?

Does anyone think ventures are uniformly

distributed across the cells?

Should we be able to create multi-dimensional

taxonomy to categorize “entrepreneurial”

ventures?

(per Tom L – maybe there's an added

dimension for process? “Entrepreneurial”

versus “Bureaucratic”?)

Analytic Tools?

Baumol Trichotomy versus Stakeholders

Stakeholder Rents/Externalities Map

(economic & non-economic)

Ecosystem (Stakeholder) Map?

JW map?

Analytic Tools? (quant?)

(insert another incredibly complex

mathematical formula)

(but probably fuzzy sets and definitely

multiplicative)

Amenable to cluster analysis or profile

analysis:

Which clusters/profiles are most prevalent?

Which are most effective?

Implications for Measurement?

Tie measurement to rents? (externalities??)

What did we INTEND?

What did we ACHIEVE?

How did we implement?

(Can we look to others in 'our' cluster for

BPs?)

Questions: 17

Responses: 14,007

How can I help YOU get involved?

www.StartupWeekend.org

Global Entrepreneurship Week Nov 15-22

www.UnleashingIdeas.org

(How can I help YOU get involved?)

Contact us!

Norris

– [email protected]

@entrep_thinking

also LinkedIn, Facebook

Theresa

– [email protected]

Dianne

[email protected]