Socially, entrepreneurship empowers citizens, generates innovation and changes mind sets. These changes have the potential to successfully integrate developing countries into the global economy. Economically, entrepreneurship stimulates markets by not always inventing or producing new things but introducing and exploring new and better dimensions. The formation of new business leads to job creation and has a multiplying effect on the economy because it lead to economic growth and expansion; social entrepreneurs serve as wide-ranging examples of motivation, purpose, selflessness and ability, especially among the young generation, seeing other successful in their own ventures and making ...view middle of the document...
SHAWCO projects cape town is a good example of a project that regularly include university faculty and students, local businesses, and community members, which is typical of many social entrepreneurship endeavours in facilitating cooperation between that state, community, educational institutions, and the private sector
In the presence of a corrupt, non‐developmental state, social entrepreneurs can serve as the basis for the political mobilisation of people from poor communities. The Treatment Action Campaign in South Africa, where AIDS activist forced the South African state to provide anti-retroviral drugs, is one good example of community group banding together to solve problems that the government have failed to address, or using the market and the general public to become a constituency to promote political change.
At a macro-level private sector development and entrepreneurship development are essential ingredients for South Africa and any other developing country in achieving the United Nations Millennium Development Goal of reducing poverty, The South African government has long recognised the vital contribution that entrepreneurs can play in economic development and the social upliftment of its people and is putting every policy in place to recognise and encourage entrepreneurial activities in South Africa. This process will contribute significantly to helping South Africa to meet and sustain the material needs of its entire people.
Challenges of social entrepreneurs in South Africa
Social Entrepreneurship is a sector of society that often go unnoticed, and as a result they often do not receive assistance from other stakeholders, including the government, and/or their contributions to society may go unrecognized at a national level. This is problematic since social investors cannot invest their money in Social Entrepreneurs or their ventures of which they are simply unaware of. Currently, there is a lack of thorough research on how Social Entrepreneurs can be viewed as key players for development in South Africa and how fostering connections with stakeholders, such as the government, may have unknown benefits for society.
Failure of social entrepreneur businesses to measure and present evidence of their financial, social and environmental performance Boris U. (2008), which make their goals of empowering people and changing lives sometimes elusive, and also the difficulty of social entrepreneurs to balance resource allocation between profit making and provision of welfare as well as trying to think of ways he can use to limit risk and maximise profit. There is no established way to measure the impact of Social Entrepreneurship (Echoing Green 2012) consequently, by not aligning ones work with standardized indicators, it is difficult to track Social Entrepreneur progress and accurately assess how close they are to meeting their business goals and influencing society.
In South Africa, there is a continual risk of business failure due...