Entrepreneurship for Social Change Essay -- Social Issues, Business, O

Entrepreneurship for social change: Is the U.S. doing enough to encourage and support sustainable social innovation? Introduction: Throughout U.S. history the nonprofit and government sectors have addressed needs that are not being met by the marketplace through the provision of a variety of social goods and services ranging from health and human services to environmental conservation. In response to increased demand for these services, the number of nonprofits has grown by 59% over the past 20 years (Powell and Steinberg, 2006; NCCS, 2010). There are now over 1.5 million nonprofit organizations in the U.S. which account for 5 percent of GDP, 8.1 percent of the economy’s wages, and 9.7 percent of jobs (Wing, 2008). Over the same time period, government social programs also rapidly expanded in number and per capita cost (OCED, 2010) . While the social sector contributes significantly to societal well-being, traditional approaches have proven unable to fully address critical social problems or deal effectively with increased need. In the past, good intentions were enough; however, the recent push towards increased organizational transparency and accountability left stakeholders – politicians, government contract administrators, leaders in the social sector, and service recipients – demanding more. This created a paradigm shift, both internal to and external to the sector, in the expectations for social sector providers. Not only do organizations need more entrepreneurial approaches to provide innovative and more efficient ways of tackling difficult social problems, but also a commitment to increased outcomes-based program performance assessment. In light of the current fiscal situation, the sector is also experienci... ...nefits that SEs offer because the sector still lacks sufficient government and public awareness and support. The OSICP and SIF establish a framework for federal involvement in the social innovation process; however, they are merely a launching point for continued discussion. Countries like the UK provide an example of the positive impact that government support for SE can have in building the necessary bridges between business, nonprofits, and the government. As the government gains a better understanding of the capabilities and challenges associated with social innovation, it will be better positioned to establish the institutional structures and environmental conditions for SE to flourish. When supported appropriately, SEs can provide a self-sustaining, inclusive opportunity to strengthen the national economy while simultaneously serving a social need.