INTRODUCTION TO SOCIAL ENTREPRENEURSHIP

Lecture Notes (Chapter 1)

Prepared by: Dr. Ethel Dicdican – Catamco

CHAPTER 1

IDENTIFICATION OF SOCIAL PROBLEM

What is a Social Problem?

There is no universal definition of a social problem, however, the definitions of social problems
can be grouped into (3) categories: when the general public sees a social problem as a condition
that is harmful to society (Horton et al. 1997, Kerbo & Coleman, 2008 p.363,). Second, a situation
is considered as a social problem when there is a huge difference between the ideal social
standards and actual conditions of life (Merton & Nisbet 1971 cited in Spector & Kitsuse 1973 ).
Lastly, a social problem exists when a significant number of people believe that a certain condition
is a problem (Spector & Kitsuse 1973). Other definitions from other authors include:
A situation, policies, or trends that are distressing to a large number of people (Glynn et al.
1996: 3 cited in Alessio, 2016 ).
A social problem is any condition or behavior that has negative consequences for large
numbers of people and that is generally recognized as a condition or behavior that needs to
be addressed (Barkan, 2001)
Sociologically, a social problem is a phenomenon regarded as bad or undesirable by a
significant number of people or significant people who mobilize to remedy it (Heiner, 2010
cited in Alessio, 2016).
A social problem is a situation that is incompatible with the values of a significant number
of people who agree that action is needed to alter the situation. (Rubington and Weinberg
2011).
A definition of a social problem is composed of objective and subjective components. The
objective component is when a social problem has negative consequences for large numbers of
people. How do we know if a social problem has negative consequences? Sources can be through
awareness of the social condition or life experiences (i.e. climate change), data from government
agencies (i.e. when you read report related to unemployment in a particular country) and media
(i.e when you see homeless individuals) whereas the subjective component of the definition of a
social problem is when there is a perception that a condition or situation needs to be addressed for

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it to be considered as a social problem (Rubington & Weinberg, 2011). The question is which of
the social problems are considered serious enough to gain attention from society.
Characteristics of Social Problem
Based on the above definitions, the following are characteristics of a social problem:
 All social problems are deviations from the ideal and social standard” of a society.

 All social problems are interconnected.

 All social problems require a collective approach to achieve a particular solution to a

problem.

 Social problems occur in all societies

The Natural History of a Social Problem

A social problem goes through a natural history composed of various stages of their development (Spector
& Kitsuse, 2001 cited in https://open.lib.umn.edu/)

Development of
Emergence and Renewed Claims
Legitimacy Alternative
Claims Making Making
Strategies

Figure 1. The history of Social Problem

Source: Adapted from Primer on Social Problems v.1.0 by Steven E. Barkan, 2012 p. 17-19

A situation can be considered a social problem when there is individual or parties (i.e social
change group, media, or influential individual) exert pressure and successfully calls attention to
the condition or situation that needs to be addressed. The first stage of the process is called a
claims-making process. In this stage, the social change group tries to influence and persuade the
perception of public about the causes and possible solutions to the problem however not all efforts
succeed for some reason such as lack of resources or little influence in the public sphere. When
the social group succeeds in the first stage, it usually tries to convince and persuade the government
to take necessary actions (i.e policy-making) to solve the problem. This stage is called legitimacy.

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In this stage, the social change persuades the government about the legitimacy of its claim and if
they will succeed, the government action likely to occurs. Even if the government responds and
takes some actions, sometimes the social change group pressures the government when action
seems too limited in solving problems. In this stage, the social change group reasserts and renewed
the claims. Despite the renewed claims-making, sometimes the social change group develops its
strategies for addressing the social problem.
The Social Problems and the Sustainable Development Goals (SDGs)
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member
States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now
and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are an
urgent call for action by all developed and developing countries. Recognize that ending poverty
and other deprivations must go hand-in-hand with strategies that improve health and education,
reduce inequality, and spur economic growth – all while tackling climate change and working to
preserve our oceans and forests. The SGDs build and crafted on decades of work by various
countries and the United Nations. Below are significant dates and events.

Year Activities
June 1992 More than 178 countries adopted Agenda 21 during the Earth Summit
held in Rio De Janeiro, Brazil. Agenda 21 is a comprehensive plan of
action to build a global partnership for sustainable development which
aims to improve human lives and protect the environment.
September 2000 The member states adopted the (8) eight Millenium Development
Goals. The Goals sought to (1) reduce extreme poverty ; (2) achieve
universal education ; (3) promote equality and empower women; (4)
reduce child mortality; (5) improve maternal health; (6)combat
HIV/AIDS, malaria and other diseases; (7) ensure environmental
sustainability; and (8) develop a global partnership for development.
August 2002 The Johannesburg Declaration on Sustainable Development and the
Plan of Implementation, adopted at the World Summit on Sustainable
Development in South Africa in 2002, reaffirmed the global

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community's commitments to poverty eradication and the environment

and built on Agenda 21 and the Millennium Declaration by including
more emphasis on multilateral partnerships.
June 2012 One of the outcomes of the UN Conference on Sustainable
Development held in Rio De Janerio in June 2012 was the agreement
by the Member States to launch a process to develop a set of sustainable
development goals (SDGs).
January 2013 An open working group (30 members) was set up and established in
January 2013. The group developed a proposal on the SDGs.
January 2015 Member’s state adopted 2030 Agenda for Sustainable Development,
with 17 SDGs at its core, at the UN Sustainable Development Summit in
September 2015.

Goal 1: End poverty in all its forms everywhere

Goal 1 acknowledges the systemic nature of poverty. The goal aims to eradicate extreme poverty,
over the next 15 years.
Goal 2: End hunger, achieve food security and improved nutrition and promote sustainable
agriculture
Goal 2 seeks to end hunger and all forms of malnutrition and to achieve sustainable food
production by 2030. The goal puts greater emphasis on the impact of climate change which results
in risks on food security. There is a need to promote sustainable agriculture and increased
investment and properly functioning food markets.
Goal 3: Ensure healthy lives and promote well-being for all at all ages
Goal 3 aims to ensure health and well-being for all at all ages by improving reproductive, maternal
and child health; ending the epidemics of major communicable diseases; reducing non-
communicable and environmental diseases; achieving universal health coverage; and ensuring
access to safe, affordable and effective medicines and vaccines for all.
Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all

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Goal 4 focuses on the acquisition of foundational and higher-order skills; greater and more
equitable access to technical and vocational education and training and higher education; training
throughout life; and the knowledge, skills, and values needed to function well and contribute to
society.
Goal 5: Achieve gender equality and empower all women and girls
Goal 5 aims to empower women and eliminates discrimination, violence, and harmful practices.
This goal aspires for gender equality, decent work, and enjoy equal participation with men in
economic, political, and public life.

Goal 6: Ensure availability and sustainable management of water and sanitation for all
Goal 6 goes beyond drinking water, sanitation, and hygiene but also to address the quality and
sustainability of water resources. To achieve this goal, international cooperation and support from
local communities are vital in improving the water and sanitation management.
Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 7 seeks to promote broader energy access and increased use of renewable energy, including
through enhanced international cooperation and expanded infrastructure and technology for clean
energy.
Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all
Continued, inclusive, and sustainable economic growth is a prerequisite for global prosperity. Goal
8 aims to provide opportunities for full and productive employment and decent work for all while
eradicating forced labor, human trafficking, and child labor.
Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization
and foster innovation
Goal 9 focuses on the promotion of infrastructure development, industrialization, and innovation.
This can be accomplished through enhanced international and domestic financial, technological
and technical support, research and innovation, and increased access to information and
communication technology.
Goal 10: Reduce inequality within and among countries

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Goal 10 calls for reducing inequalities in income, as well as those based on sex, age, disability,
race, class, ethnicity, religion, and opportunity—both within and among countries. It also aims to
ensure safe, orderly, and regular migration and addresses issues related to the representation of
developing countries in global decision-making and development assistance.
Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable
Goal 11 aims to renew and plan cities and other human settlements in a way that fosters community
cohesion and personal security while stimulating innovation and employment.
Goal 12: Ensure sustainable consumption and production patterns
Goal 12 aims to promote sustainable consumption and production patterns through measures such
as specific policies and international agreements on the management of materials that are toxic to
the environment.
Goal 13: Take urgent action to combat climate change and its impacts
Climate change presents the single biggest threat to development, and its widespread,
unprecedented effects disproportionately burden the poorest and the most vulnerable. Urgent
action is needed not only to combat climate change and its impacts but also to build resilience in
responding to climate-related hazards and natural disasters.
Goal 14: Conserve and sustainably use the oceans, seas and marine resources for
sustainable development
This Goal seeks to promote the conservation and sustainable use of marine and coastal ecosystems,
prevent marine pollution, and increase the economic benefits to Small Island developing States
and LDCs from the sustainable use of marine resources.
Goal 15: Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably
manage forests, combat desertification, and halt and reverse land degradation and halt
biodiversity loss.
Goal 15 focuses on managing forests sustainably, restoring degraded lands, and successfully
combating desertification, reducing degraded natural habitats, and ending biodiversity loss. All of
these efforts in combination will help ensure that livelihoods are preserved for those that depend
directly on forests and other ecosystems, that biodiversity will thrive, and that the benefits of these
natural resources will be enjoyed for generations to come.

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Goal 16: Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all and build effective, accountable, and inclusive institutions at all
levels.
Goal 16 envisages peaceful and inclusive societies based on respect for human rights, the rule of
law, good governance at all levels, and transparent, effective and accountable institutions. Many
countries still face protracted violence and armed conflict, and far too many people are poorly
supported by weak institutions and lack access to justice, information, and other fundamental
freedoms.
Goal 17: Strengthen the means of implementation and revitalize the Global Partnership for
Sustainable Development
The 2030 Agenda requires a revitalized and enhanced global partnership that mobilizes all
available resources from Governments, civil society, the private sector, the United Nations system,
and other actors. Increasing support to developing countries, in particular LDCs, landlocked
developing countries and Small Island developing States is fundamental to equitable progress for
all.

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Figure 1.2 The Sustainable Development Goals

Source: United Nations (2016). Sustainable Development Goals. Retrieved July 1, 2020 from
https://www.un.org/sustainabledevelopment/.

F. SUMMARY

 The definition of a social problem has both an objective component and a subjective component.
The objective component involves empirical evidence of the negative consequences of a social
condition or behavior, while the subjective component involves the perception that the condition
or behavior is indeed a problem that needs to be addressed.

 The social constructionist view emphasizes that a condition or behavior does not become a social
problem unless there is a perception that it should be considered a social problem.

 The natural history of a social problem consists of four stages: emergence and claims-making,
legitimacy, renewed claims-making, and alternative strategies.

 The (17SDGs) Sustainable Development Goals are considered as a blueprint for a better and
more sustainable future for all.

G. REFERENCES:

Alessio, J. C. (2016). Social problems and inequality: Social responsibility through progressive
sociology.

Barkan, S. E. (2012). A Primer on Social Problems. Retrieved July 1, 2020, from

https://2012books.lardbucket.org/books/a-primer-on-social-problems/

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Francis, Laudato Si’ (Washington, DC: United States Conference of Catholic Bishops, 2015),
Retrieved July 01, 2020, from
https://w2.vatican.va/content/dam/francesco/pdf/encyclicals/documents/papafrancesco_2015052
4_enciclica-laudato-si_en.pdf

Malcolm Spector, John I. Kitsuse, Social Problems: A Re-Formulation, Social Problems, Volume
21, Issue 2, Autumn 1973, Pages 145–159, https://doi.org/10.2307/799536

Rubington, E., & Weinberg, M. S. (2010). The study of social problems: Seven perspectives (7th
ed.). New York, NY: Oxford University Press.

Spector, M., & Kitsuse, J. I. (2001). Constructing social problems. New Brunswick, NJ:
Transaction.

United Nations. (2016.). Sustainable Development Goals Report. Retrieved July 1, 2020, from
https://www.un.org/sustainabledevelopment/.

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CHAPTER 2
SOCIAL ENTREPRENEURSHIP

Definition of Social Entrepreneurship

According to Dees (2001), the concept of social entrepreneurship started gaining attention
and recognition during the 1980s. Social Entrepreneurship has a variety of existing definitions,
although much research has been done on the concept of social entrepreneurship in the past
decades, no consensus has been found on the standard definition for the term. Nevertheless, the
definition includes the aspect of applying entrepreneurial initiatives to solve social problems
innovatively.
Martin and Osberg (2007) pointed out that a wide range of activities have been categorized
as social entrepreneurship and therefore, there is a need to come up with a “more rigorous
definition” of what social entrepreneurship is.

Authors & Year Definition

Social entrepreneurship is exercised where a person or group:
(Peredor & Mclean o “Aims at creating social value, either exclusively or at least
2006 cited in Guo & in some prominent way;
Bielefeld, 2014) o Shows a capacity to recognize and take advantage of
opportunities to create value;
o Employs innovation, ranging from outright invention to
adapting someone else’s novelty, in creating and/or
distributing social value.
o Is willing to accept an above-average degree of risk in
creating and disseminating social value; and
o Is unusually resourceful in being relatively undaunted by
scarce assets in pursuing their social venture” (p.64)

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Defined social entrepreneurship in terms of the following three

components:
o “Identifying a stable but inherently unjust equilibrium that
(Martin & Osberg, causes the exclusion, marginalization, or suffering of a
2007, as cited in Guo & segment of humanity that lacks the financial means or
Bielefeld, 2014) political clout to achieve any transformative benefit on its
own.
o identifying an opportunity in this unjust equilibrium,
developing a social value proposition, and bringing to bear
inspiration, creativity, direct action, courage, and fortitude,
thereby challenging the stable state’s hegemony.
o Forging a new, stable equilibrium that releases trapped
potential or alleviates the suffering of the targeted group, and
through imitation and the creation of a stable ecosystem
around the new equilibrium ensuring a better future for the
targeted group and even society at large” (p.35).
(Pomerantz, 2003, as Social entrepreneurship can be defined “as the development of
cited in Guo & innovative, mission-supporting, earned income, job-creating or
Bielefeld, 2014) licensing ventures undertaken by individual social entrepreneurs,
nonprofits, or nonprofits in association with for-profits” (p.25).
“The act of pioneering new methods, processes, products, and
Chahine (2016 ) services that address social and environmental challenges through
the creation of new organizations or initiatives” (p.7).

Moreover, social entrepreneurship has two objectives: social and financial objectives. The social
objective aims to create social value creation by providing economic and employment
opportunities for the poor in addressing societal issues whereas the financial objective of social
entrepreneurship is to ensure the financial viability and sustainability of the operation (Alter,
2007).

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Social Entrepreneurs
Dees (2001, p.4) provided the following definitions:
“Social entrepreneurs play the role of change agents in the social sector by:
o Adopting a social mission to create and sustain social value (not just private value).
o Recognizing and relentlessly pursuing new opportunities to serve that mission.
o Engaging in a process of continuous innovation, adaptation, and learning
o Acting boldly without being limited by resources currently in hand
o Exhibiting a heightened sense of accountability to the constituencies served and for the
outcomes created”.
On the other hand, Guo & Bielefeld (2014) pointed out that a social entrepreneur must have a
business and social mission. The following are the unique characteristics of a social entrepreneur
in terms of traits and skills, behavioral attributes, context, and background (Mair & Noboa,2006 )

o “Traits and Skills including Vision and fortitude, Creativity, Ability to pounce on
opportunities, Capability of working as a team, Community-oriented motivation factor.
Other characteristics might include passion, a clear purpose, bravery, values, commitment,
and a business style of thinking.

o Behavioral attributes: openness to others’ feelings, good communication skills,

determination, less concern about failure, ingenuity, trustworthiness, competence to satisfy
the needs of the customers, guts to accept social criticism, and target orientation.

o Context and background: moral and educational background, previous entrepreneurial

experience, social entrepreneurs’ involvement with the social sector or their exposure to
social issues, and the like” (p.10).
The Development of Social Entrepreneurship
Social entrepreneurship traces its roots to entrepreneurship in the business sector. The term
“entrepreneur” originated in French economics as early as the 17th century. According to Dees
(2001), an entrepreneur is defined “as someone who undertakes significant project or activity (p.1).

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In his book entitled, The Fortune of the Bottom Pyramid: Eradicating Poverty through Profits,
C.K Prahalad (2004), posited that the problem of the marginalized group can be considered as a
potential and untapped market.
“First, the active engagement of private enterprises at the BOP is a critical element in creating
inclusive capitalism. Second, the BOP, as a market, provides a new growth opportunity for the
private sector and a forum for innovations. Third, BOP markets must become an integral part of
the work of the private sector” (p.5-6).
On the other hand, Guo & Bielefeld (2014) presented three reasons why social entrepreneurship
occurs and develops. First, there are unmet and unaddressed social needs (i.e homeless people).
As the societal problem is in growing in numbers, the societal challenge is how to solve the
problem and be more responsive to the needs. Second, for non- profit organizations, there is a need
to increase efficiencies and generate income to financially sustain the operation of the
organization. Third, Social entrepreneurship occurs because of changes in the external
environment.
The social entrepreneurship recognizes as key players in poverty reduction. Among the
contribution generated by social entrepreneurship are the following:
o Social Entrepreneurship creates jobs and employment for thousands of Filipinos in the
country. For example, 5% of the 34% growth in jobs in the Philippine economy, comes
from social enterprises (British Council, 2017).
o It promotes equity in society by addressing social issues creatively – how to provide
affordable and easy solutions as respond to societal needs and effectively – engaging and
partnering the poor in addressing the societal problem. Moreover, some of the less and
vulnerable groups (homeless, disable, and women facing gender discrimination) benefitted
and received jobs and offered by social enterprises (Guo & Bielefeld 2014).
o It encourages innovation. Innovation is a tool to help improve social welfare and promotes
social development. For example, a social enterprise can innovate and develop new
products or services that address the significant problems of the poor (Guo & Bielefeld
2014).
Where does Social Entrepreneurship Occur?
Guo & Bielefeld (2014), emphasized that social entrepreneurship occurs in (3) different sectors.

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Public Sector – in this sector, social entrepreneurship might take in the form of “policy innovation
or service innovation” (p.17). For example, It might be an improvement of processes in the office
that directly benefit the public (i.e access to information – provide innovative ways to
communicate the public).
Private or Business Sector – in this sector, social entrepreneurship is conducted by for a profit
organization with a clear social mission and financially sustainable operation (Alter, 2007). It
maximizes the improvement in financial at the same time contributing to a broader social good. It
emphasizes business and ethics.
Non – profit organization – in this sector, social entrepreneurship occurs when using business
strategies to generate revenue to support the charitable mission. This type of organization create
social value and generate economic revenue to pay social programs and operating expenses. For
example, One World Heath is a nonprofit pharmaceutical company based in San Francisco, USA.
The mission of the organization is to discover, develop, and provide quality, affordable healthcare
to underserved and vulnerable populations.

Example of Social Enterprises in the Philippines

Rags2Riches

Rags2Riches Inc. partners with high-end designers to create eco-ethical fashion and home
accessories out of upcycled scrap cloth, organic materials, and indigenous fabrics by working with
women living in poor communities across the Philippines. Established in 2007 at Payatas, Quezon
City. Aside from providing sustainable livelihood, the social enterprise provides life and skill
workshops for the community artisan through its academy.

Source: Retrieved July 04, 2020, from https://www.rags2riches.ph/

Good Food Community

Good Food Community is a regional agriculture-based social enterprise which established last
2011 and driven by the principle of Community Shared Agriculture. It is an alternative food system

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that transforms consumers into co-producer. CSA is a system that connects the producer and
consumers within the food system through a subscription to the harvest of a certain group of
farmers. For 9 years and counting, Good FoodCo. Successfully bridges local farmers to the
market. Consumers can eat healthy and organic vegetables while farmers can farm sustainably.

Source: Retrieved July 04, 2020, from https://www.goodfoodcommunity.com/

Fishers & Changemakers Inc. established in October 2014 and started the social enterprise for the
Artisan Filipino Fishers in Bantayan Island Cebu. It aims to produce high –quality Balangay’s best
seafood products using sustainable technologies partnered with equitable business practices.

Source: Retrieved July 04, 2020, from British Council in Philippines

https://www.britishcouncil.ph/programmes/society/magazine/
The State of Social Enterprises in the Philippines
Social enterprise plays a vital role in the achievement not only for National Goals but as well
as the Sustainable Development Goals. It has been recognized for its potential to achieve
development goals as seen in their inclusion in the Philippine Development Plan 2017 -2022
(NEDA, 2017).
In the study published last 2017 by the British Council and PhilSEN, supported by the
European Union and United Nations Economic and Social Commission in Asia and the Pacific,
social enterprises are gaining more attention and growing in numbers in the Philippines. The main
findings of the study are summarized as follows:
o Most social enterprises are led by people ages 35 to 44 years and likely led by women.
o Young professionals and individuals are becoming active in start-up enterprises.
o Social enterprises provide employment opportunities for thousands of Filipinos.
o 5% of the 34% growth in jobs in the Philippine economy comes from social enterprises.
o Most of the social enterprises are agriculture. The second most predominant sectors include
education, business development, and financial services. These sectors aim to improve the
lives of the people in the locality by providing jobs, eradicate extreme poverty, and
empowers marginalized groups.

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o Most social enterprises remain limited in size and difficult to scale up due to: limited supply
of capital, unrefined business models, and lack of access to investors was considered as the
main financing constraints.
o As of 2016, there were an estimated 164,473 social enterprises currently operating in the
country.
Philippines Poverty reduction through Social Entrepreneurship (PRESENT Bill)
This bill recognizes social enterprise as one of the key players in poverty reduction in the country.
As defined in this bill, social enterprise:
“Social Enterprise or SE refers to a social mission-driven organization in the form of an association,
single proprietorship, partnership, corporation, cooperative, people’s organization, non-stock non-
profit and peoples organizations or any other legal form that conducts economic activities providing
goods and/or services directly related to their primary mission of improving the well-being of the
poor, basic and marginalized sectors and their living environment. A social enterprise explicitly
declares and pursues poverty reduction as its principal objective by purposefully rendering both
transactional and transformational services. An SE engages and invests in the poor to become
effective workers, suppliers, clients, and/or owners and ensures that a substantive part of the wealth
created by the enterprise is distributed to or benefits them”.
The bill provides support and incentives to social enterprises whose primary stakeholders are the poor.
These include access to capital and other resources (Chapter VII), a fund for capability building
(Section 11 and 12 of Chapter V), tax exemptions (Chapter VIII), marketing, research, and systems
development support (Section 13 and 14 of Chapter V), and the preferential right of social
enterprises to government procurement (Section 28). It also grants cash incentives to start-up social
enterprises employing persons with disabilities (Section 24). Moreover, the bill also mandates the
creation of a Social Enterprise Commission (Section 6). The bill proposes the formulation and
adoption by the national government of a Poverty Reduction through Social Entrepreneurship or
PRESENT Program.

SUMMARY

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 Social Entrepreneurs play the role of change agents in the social sector by adopting a
social mission to create and sustain social value (Dees (2001, p.4) and possess uniques
characteristics in terms of traits and skills, behavior attributes, context, and background.
 Social Entrepreneurship occurs because of unmet and unaddressed social needs, increase
efficiencies or want to generate income or external environment
 Social Entrepreneurship occurs in three different sectors namely: public sector, private or
business sector, and in non – profit organization.
 As discussed in the PRESENT Bill, Social Entrepreneurship is one of the key players in
poverty reduction in the country.

G. REFERENCES:
Alter, K. (2007). "Social Enterprise: A Typology of the Field Contextualized in Latin America.”
Virtue Ventures LLC. Retrieved July 1, 2020, from http://www.4lenses.org/setypology
British Council (2017), “Reaching the Farthest First - The State of Social Enterprise in the
Philippines”. Published by British Council and PhilSEN. Retrieved July 01, 2020, from
https://www.britishcouncil.org/sites/default/files/the_state_of_social_enterprise_in_the_philippin
es_british_council_singlepage_web.pdf
Chahine, T. (2016). Introduction to Social Entrepreneurship. London: CRC Press Taylor and
Francis Group.
Dacanay, M. L. (2012) “Perspectives on the Policy Environment affecting Social Enterprises in
the Philippines”. Retrieved July 01, 2020, from http://www.isea
group.net/resources/SE_Policy_Environment_Philippines_for_ISEA_May_2012.pdf

Dacanay, M. L. (2017) “Social Enterprise in the Philippines: Social Enterprises with the Poor as
Primary Stakeholders”, ICSEM Working Papers, No. 49, Liege: The International Comparative
Social Enterprise Models (ICSEM) Project.

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Dees, Greg, the Meaning of Social Entrepreneurship, The Kaufmann Center for Entrepreneurial
Leadership and Ewing Marion Kaufmann Foundation, 1998.

Dees, J.G. (2001) The Meaning of “Social Entrepreneurship” reformatted and revised 2001, July
1, 2020. Retrieved from http://www.fuqua.duke.edu/centers/case/documents/dees_SE.pdf

Guo, C. & Bielefeld, W. (2014), Social Entrepreneurship: An Evidence-Based Approach to

Creating Social Value. California, USA: John Wiley & Sons, Inc.

Martin, R. & Osberg, S. (2007). Social Entrepreneurship: The case for definition. Stanford Social
Innovation Review, Spring: 29–39. Retrieved July 2, 2020,
https://ssir.org/articles/entry/social_entrepreneurship_the_case_for_definition

Mair, J., & Martí, I. (2006). Social entrepreneurship research: A source of explanation, prediction,
and delight. Journal of World Business, 41(1), 36–44 http://doi.org/10.1016/j.jwb.2005.09.002.

National Economic and Development Authority (2017).” Philippine Development Plan 2017 -
2022, Retrieved July 1, 2020, from http://www.neda.gov.ph/wp-content/uploads/2017/02/2017-
NPP.pdf and http://2040.neda.gov.ph/wp-content/uploads/Vision2040_final.pdf
Philippines Poverty reduction through Social Entrepreneurship (PRESENT Bill), Retrieved July
04, 2020, from https://www.isea-group.net/resources/Social_Enterprise_Bill_HB_6085.pdf

Prahalad, C.K (2004) The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through
Profits (The Wharton Press Paperback Series): Prentice-Hall, ISBN13: 9780131877290

Other Websites:

One Health World https://www.oneworldhealth.com/

Rag2Riches https://www.rags2riches.ph/

Good Food Community https://www.goodfoodcommunity.com/

Supplemental Materials:
Definition of Social Entrepreneurship: YouTube Link: https://youtu.be/aTo0qtdVMpM
Example of Social Enterprise: Fisher and Changemaker Inc.
YouTube Link: https://youtu.be/6-v4JaV3QVM

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CHAPTER 3
SOCIAL ENTREPRENEURSHIP

Definition of Social Enterprise

Source/ Author & Year Definition
http://www.socialenterprise.org.uk/ Social Enterprise is defined as “business trading for a
(UK based Social Enterprise Coalition) social purpose”.
Social Enterprise “self – financing methods used by
https://www.nesst.org/ non- profit organization to generate income to support
the organization’s mission”.
A social enterprise “is any business venture created for
(Alter, 2007 p. 12) a social purpose–mitigating/reducing a social problem
or a market failure–and to generate social value while
operating with the financial discipline, innovation and
determination of a private sector business”.
Social Enterprise or SE “refers to a social mission-driven
Philippines Poverty reduction organization in the form of an association, single
through Social Entrepreneurship proprietorship, partnership, corporation, cooperative,

(PRESENT Bill) people’s organization, non-stock non-profit and peoples

organizations or any other legal form that conducts economic
activities providing goods and/or services directly related to
their primary mission of improving the well-being of the poor,
basic and marginalized sectors and their living
environment.”.
Social enterprise “a company or organization that
Chahine (2016) provides a social product or service to maximize access
for underserved populations” (p.7).

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Social Enterprise Operating Models

A Social Enterprise model is a visual representation, design, or framework of how an organization
delivers value to its beneficiaries/customers while maintaining financial returns. Alter (2007)
identified nine fundamental types of social enterprise operating models.
o Entrepreneur Support Model – sells business support and financial services directly to
its “client” or target population. This type of SE facilitates the financial security of the
clients by supporting its entrepreneurial activities (i.e micro-financing institution).
o Market Intermediary Model – promotes or sells their client’s product or services. In this
type of model, the primary goal of the SE is to facilitate the financial security of its client
by promoting or selling the client’s product or services. The SE may purchase clients’
products and sell at a higher price (i.e cooperatives).
o Employment Model – provides job opportunities and training for those people with high
barriers to employment such as homeless, disabled, women facing gender discrimination,
or ex-offenders). In this model, the Social Enterprise train and capacitate its client on the
necessary skills needed for the job (i.e cleaning and janitorial services).
o Fee – for service model - one of the most commonly adopted SE operating model. In this
model, SE seeks to render social services in the sector it works. In return, the social
enterprise asks for a charge or fee to its clients for the social service it provides. ( non –
profit universities, hospitals).
o Low-Income Client Model – SE in this category offers social services to poor and low-
income clients. (i.e non – profit hospitals that provide access to affordable and high-quality
healthcare programs ) .
o Cooperative Model - the most widely recognized categories of SE. The cooperatives
provide various services to its members. It provides a direct benefit to its “ client”,
cooperative members.
o Market Linkage Model – the SE serve as brokers for their clients. It focuses on building
connections and relationships with the clients and the market. Unlike the intermediary

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model, these SE model generally do not promote or sell their client’s product/ services
rather it connects clients to the market (i.e trade associations).
o Service Subsidization Model - This type of SE funds social programs by selling
products or services in the marketplace. It is considered as one of the most common
SE Models as almost any SE can adopt it. In this model, SE can be any type of
business.
o The Organizational Support Model – this type of SE is almost similar to the service
subsidization Model however SE raises funds for the non - profit parent organization.
In this model, the Social enterprise is created as a funding mechanism for the parent
organization

SUMMARY:

Commonly used social enterprise operating models are the Entrepreneurs Support model, market
intermediary model, employment model, fee – for service model, low-income model, cooperative
model, market linkage model, service subsidization model, and organizational support model.
Although most of the social enterprises fall in one of the nine categories mentioned above, there
are instances where social enterprises combine operational models to capitalize on social impact
while generating income thus captures both social and economic opportunities for the enterprise.

REFERENCES:
Alter, K. (2007). "Social Enterprise: A Typology of the Field Contextualized in Latin America.”
Virtue Ventures LLC. Retrieved July 1, 2020, from http://www.4lenses.org/setypology
Chahine, T. (2016). Introduction to Social Entrepreneurship. London: CRC Press Taylor and
Francis Group.
Social Enterprise Coalition (n.d) “Definition of Social Enterprise” Retrieved July 04, 2020, from UK
based Social Enterprise Coalition http://www.socialenterprise.org.uk

Social Enterprise Definitions", Retrieved July 04, 2020, from https://www.nesst.org/

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CHAPTER 4
IDENTIFYING, CREATING AND DISCOVERING
SOCIAL ENTREPRENEURIAL OPPORTUNITIES

Definition of Opportunity
Every successful business started as someone’s idea. A business idea is a concept that must offer
benefits to the customer by addressing unmet needs. Initially, it has no commercial value whereas
business opportunity is a business idea that has been researched upon, developed with a promising
venture that is readily available to launch (i.e introducing a new product /services for low income
or underserved market).
In the book “New Venture Creation: Entrepreneurship for the 21st Century authored by Jeffry
Timmons, the author discusses the importance of seizing an opportunity.
“Another way to think of the process of creating and seizing an opportunity in real-time is
to think of it as a process of selecting objects (opportunities) from a conveyor belt moving
through an open window (window of opportunity). The speed of the conveyor belt changes,
and the window through which it moves is constantly opening and closing. That the window
is continually opening and closing and that the speed of the conveyor belt is constantly
changing represents the volatile nature of the marketplace and the importance of timing.
For an opportunity to be created and seized, it needs to be selected from the conveyor belt
before the window closes” (p.90).
The Nature of Opportunity in Social Entrepreneurship
Identification of Opportunity is considered as the most important stage in the social entrepreneurial
process. Guo & Bielefeld (2014), defined social entrepreneurial process as:
“Sequence of functions, activities, or behaviors associated with the identification of
opportunities leading to a social entrepreneurial event such as the creation of a new
program, venture or organization” (p.49).
There is no standard definition and nature of entrepreneurial opportunities. However, Guo &
Bielefeld (2014), presented that there are two philosophical views of entrepreneurial opportunity.
Table 3.1 Philosophical views of Entrepreneurial Opportunity
Discovery View Creation View
1. Opportunities would not exist without the
1. Opportunities exist objectively due to
entrepreneur’s actions. Opportunities are
imperfect market or industry.
created.
2. Emphasizes the pursuit of opportunities 2. Focuses on what can be done with what is
regardless of resources currently under control.
Source: Guo & Bielefeld (2014)

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Definition of Social Entrepreneurial Opportunity

Authors/ year Definition

(Austin, Stevenson, & Wei – Skillern “The desired future state that is different from the
2006 cited in Guo & Bielefeld, 2014) present and the belief that the achievement of that state
is possible” (p.52).

Guclu, Dees, & Anderson 2002 cited “An opportunity that has sufficient potential for
in Guo & Bielefeld, 2014) positive social impact to justify the investment of time,
energy, and money required to pursue it seriously”
(p.52).

Following the idea of Joseph Schumpeter, an Austrian economist, who first coined the term
creative destruction in 1942, Dees (2007) identifies seven types of innovative opportunities in
social entrepreneurship:
• Offering new products or services
• Developing new or improved current operational processes for producing or delivering
existing product or service
• Serving the underserved market.
• Developing or use a new source of supply for materials and other resources.
• Using a new source of supply for raw materials and resources.
• Establishing a new industrial or organizational structure
• Framing new terms of engagement
• Developing new funding sources or structures.
How Are Social Entrepreneurial Opportunities Different?
Opportunities in social entrepreneurship differ in the following in terms of focus, context, and
stakeholders. The focus of possible opportunity is “to create social value rather than making a
profit”, must be embedded in “local context” and usually involves the entire various
“stakeholders” rather than the owners or investors (Guo & Bielefeld, 2014 p.54).
How are Social Opportunities Discovered or Created?

Opportunity
Idea Generation Opportunity
Assessment

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Figure 3.1 the Opportunity Recognition Process

Source: Adapted from Social Entrepreneurship: An Evidence-Based Approach to Creating Social
Value by Guo & Bielefeld, 2014 p. 56
Phase One: Idea Generation
In this phase, the ideas are results from the unmeet social needs (market gap) or solving
existing social problems. These unmeet social needs open opportunities for entrepreneurs to come
up with innovative and feasible ideas to address unmet needs. Furthermore, the development of
ideas can be based on what are the available assets or resources in the community that can be
used to address social needs. The new and promising ideas can also be a result of recognizing
patterns from various events in the external environment (political, economic, socio-cultural,
technology& ICT, environmental, legal). Pattern recognition defined as “cognitive process with
individuals identifies meaningful patterns in complex arrays of events or trend” (Guo & Bielefeld,
2014 p.56).
Prior research conducted by Baron (2006), presented factors that help entrepreneurs recognized
different patterns which could eventually lead to a viable opportunity. A potential entrepreneur
needs to be alerted with the market demands and actively search the information that can connect
his/her skills and assets, prior experience and knowledge of entrepreneur can contribute to pattern
recognition and social network can also be a factor which entrepreneur recognizes potential
entrepreneurial opportunities. Strong social relationships with various people are more likely to
generate new ideas (Guo & Bielefeld, 2014 p.56).
The following are some of the approaches and techniques used in solving existing problems or
generating new ideas.
o Brainstorming - a technique used to generate a large number of ideas and solutions to a
problem. The common principle of brainstorming is to set aside the restrictive thinking
processes so that many ideas can be generated (Osborn, 1953).
o Focus Group – composed of five to ten people who have been selected based on their
common characteristics, expertise on the subject, or issues being discussed. Although focus
groups are commonly used in research, it can also be used to help generate new business
ideas (Cooper & Schindler, 2014)
o Problem Analysis
o Problem Tree Analysis - defined as a visualization of the problems in form of a
diagram, or “hierarchy of problems” to help analyze and examine the negative
aspects of the existing situation and establish the cause and effect relationship
between the identified problem (Chevalier & Buckles, 2008)
o Root Cause Analysis
o Cause and Effect Analysis - is a technique for identifying all the possible causes
associated with a particular problem and effect and narrowing down to the small
number of main root causes which need to address.
o Five why’s – the result of a 5 Why’s analysis is one or several root causes that
ultimately identify the reason why a problem existed. This method helps identify
the root cause of a problem and establish a relationship between the different root
causes of a problem.

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Phase Two: Opportunity Assessment

In this phase, entrepreneurs evaluate and assess the identified opportunities. Social Entrepreneur
assesses the value of an opportunity in terms of who are their customers or who benefits the product
or service offered, who invest in the service or product to create a benefit for those who need it.
Jerry Kitzi (2001) developed a model on how to evaluate entrepreneurial opportunities. The
model is composed of three dimensions: social value potential, market potential, and sustainability
potential. Social Value potential is assessed in terms of strategic alignment, achievable outcomes,
partnership & alliance potential, and organizational benefits. Market Potential is assessed in
terms of the interest of funders, user needs, user desire, and market share. This help entrepreneur
assesses the position of the opportunity in terms of meeting the demand for both funders and users
of product or services. Sustainability Potential is assessed in terms of organizational capacity and
capability, income potential, and funder’s interest. It helps the entrepreneur assesses the
sustainability and scalability of the created or recognized opportunity.

Market Value
Potential

SocialValue Sustainability
Potential Potential

Figure 3.2 Opportunity Assessment Model

Source: Jerry Kitzi, “Recognizing and Assessing New Opportunities”, in Enterprising Nonprofits:
A Toolkit for Social Entrepreneurs, Dees, Emerson and Economy, ed., (Wiley, 2001) p.53
Note to students: For the Need and Opportunity Analysis, please refer to the prescribed format
and template.
SUMMARY:
 In this chapter, we discussed the different definitions, types, and sources of social
entrepreneurial opportunities.
 We presented a process model of opportunity development that includes a two-stage
model: idea generation and opportunity assessment.

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G. REFERENCES:
Baron, R. (2006) “Opportunity Recognition as Pattern Recognition: How Entrepreneurs "Connect
the Dots" to Identify New Business Opportunities”, Academy of Management Perspectives. Vol.
20, No. 1, pp. 104-119

Chevalier, J. M., & Buckles, D. J. (2008) Problem Tree: A guide to collaborative inquiry and
social engagement (pp. 108-115). New Delhi: SAGE Publications India Pvt Ltd doi:
10.4135/9789351507734
Cooper, d. R., & Schindler, P. S. (2014). Business research methods. London, McGraw-Hill
Education.
Dees, J.G (2007). “Taking social entrepreneurship seriously.” Soc 44, 24–31 (2007).
https://doi.org/10.1007/BF02819936
Guo, C. & Bielefeld, W. (2014), Social Entrepreneurship: An Evidence-Based Approach to
Creating Social Value. California, USA: John Wiley & Sons, Inc.
Jerry Kitzi, “Recognizing and Assessing New Opportunities”, in Enterprising Nonprofits: A
Toolkit for Social Entrepreneurs, Dees, Emerson and Economy, ed., (Wiley, 2001) p. 53
Jeffry A. Timmons, New Venture Creation: Entrepreneurship for the 21st Century, (New York:
McGraw-Hill, 1994), p. 90
Osborn, A. (1948). Your creative power. New York: Charles Scribner’s Sons. Osborn, A.F. (1979).
Applied imagination: Principles and procedures of creative problem-solving (3rd. rev. ed.). New
York: Charles Scribner’s. [Orig. ed. 1953.]
Yunus, M. (rev. 2005, October 18) “Grameen Bank” Case ID: SM -116, 655 Knigth Way,
Standford, CA 94305, USA, Standford Graduate School of Business, Retrieved from
https://www.gsb.stanford.edu/faculty-research/case-studies/grameen-bank
Other Websites:
https://www.isixsigma.com/tools-templates/cause-effect/determine-root-cause-5-whys/
5 Whys

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CHAPTER 5
Unleashing YOUR Entrepreneurial Potential

“To live a creative life, we must lose our fear of being wrong”
- Joseph Chilton Pearce

Creativity and Innovation

In Oxford Living Dictionaries, creativity is defined as “ the use of imagination or original ideas to
create something” Creativity is about unleashing the potential of the mind to conceive new ideas
Three important levels of creativity: discovery, invention, and creation.

On the other hand, innovation means, “ a new method, idea, product or services. By identifying
unmet needs, an enterprise can use innovation to apply its creative resources to design an
appropriate solution.

Innovation and Social Entrepreneurship

Innovation is defined in a variety of ways by different authors. “Innovation is defined as
“the application of the purposeful process to transform new ideas and opportunities that generate
new or added value into results” (Matthews & Brueggemann 2015 p. 28). It involves the
progression of ideation, creation, transformation, invention, innovation, and transformation and
looking at a problem from a different and multi-perspective (Mathew & Goswami, 2005).
Furthermore, innovation is the successful implementation of creative ideas within an organization
(Amabile et al., 1996)
The first definition suggests that innovation is a process of idea/opportunity development
that results in the creation of value and the start of a new venture whereas in the second
definition, innovation is viewed as an outcome of creativity.
Definition of Entrepreneurship
, In most cases, entrepreneurship defines as starting a new business. According to Shane (2012),
entrepreneurship aims to understand how opportunities are created or discovered to create
something new. Individuals use several means to exploit or develop opportunities that generate
economic or social value. However, entrepreneurship is not synonymous with new venture
formation (Baron, 2014). Entrepreneurs can exploit their ideas by offering new products or
services, developing new or improved current operational processes for producing or delivering
existing products or services, serving the underserved market, developing or use a new source of
supply for materials and other resources, establishing a new industrial or organizational structure
or developing new funding sources or structures (Dees, 2001).
Preparing the Mind to Innovate

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In this section, we will discuss the key principles and mindset in Design thinking. It is popularized
by Stanford’s d.school, it is a process that focuses on a user-centered approach to problem-
solving. A solution ( it might be a product, service, methods, process) that will be created for and
of the people. According to Tim Brown, Executive Chair of IDEO, Desing Thinking is:

“ a human-centered approach to innovation that draws from designer’s toolkit to integrate the needs
of people, the possibilities of technology and the requirements for business success”.

Design thinking human-centered problem-solving approach is based on the key principles:

Mindset and Attitudes
o Human-centered Design – a mindset that ensures the product and services can create value
to the people they are intended to serve for and with. This was popularized by IDEO.org.
Businesses can use the Design Thinking process for creating commercial products or
services and applying a Human-Centered design approach will ensure the creation of social
value to the end-users.
o Empathy – Human-centered design is premised on empathy, on the idea that the people you’re
designing for are your roadmap to innovative solutions which means, start solving problems in their
perspectives. It is considered as the first stage in the Design Thinking process (retrieved July 04,
2020, from https://www.interaction-design.org).
o Beginner Mindset – by definition “beginner’s mind, means having an attitude of openness,
eagerness, and lack of preconceptions when approaching anything” (Nithyananda, 2015). In the
design thinking process, assume a beginner’s mindset to put aside biases (i.e assumptions
prior experience) in developing the solution.
o Emotional Resilience – since design thinking involves several iteration processes,
emotional resilience is crucial. It refers to one’s ability to adapt to stressful situations. One
of the most important aspects of resilience involves developing a flexible way of thinking
about how to solve the problems.
Skills
o Learning By Doing – it’s a hands-on approach to learning.
o Embrace Experimentation – it involves an interactive process that will lead to a more
effective solution.
o Collaboration – co-create with the user of the product or services. Sharing the solution to
them and integrate feedback for possible improvement of the solution.
F. SUMMARY:
In this chapter, we discussed creativity as the heart of
innovation. We emphasize the importance of innovation
in creating social and economic value. In the next “ Creative confidence is the the ability
chapter, we will discuss the fundamentals of design or skills in generating, embracing, and
thinking. acting on new ideas”.
-David Kelley
IDEO Founder

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G. REFERENCES:
Amabile, T.M., et al (1996) ‘Assessing the Work Environment for Creativity’. Academy of
Management Journal 39 (5), 1154-1184.
Baron, R. A. (2014) Essentials of Entrepreneurship: Evidence and Practice. Cheltenham: Edward
Elgar Publishing.

Dees, J.G. (2001) The Meaning of “Social Entrepreneurship” reformatted and revised 2001, July
1, 2020. Retrieved from http://www.fuqua.duke.edu/centers/case/documents/dees_SE.pdf

IDEO (Firm). (2015). Human-centered design: Field guide, Design Kit, 1st edition, IDEO .org.
Retrieved July 02, 2020, from https://designthinking.ideo.com/resources
Kelley, D., & Kelley, T. (2013). Creative confidence: “Unleashing the creative potential within
us all”, Retrieved July 2, 2020, from https://www.creativeconfidence.com

Matthews, C. H, & Brueggemann, R. (2015) Innovation and Entrepreneurship: A Competency

Framework. New York: Routledge

Nithyananda, S. (2015). “ Definition of Beginner’s Mindset”, Retrieved July 02, 2020, from
https://www.nithyananda.org

Shane, S. (2012) ‘ Reflection on the 2010 AMR Decade Award: Delivering on the Promise of
Entrepreneurship as a Field of Research’. Academy of Management Review. 37 (1), 10-20

Stanford d.school. (n.d.). “Fundamentals of Desing Thinking”, Retrieved July 10, 2020, from
https://dschool.stanford.edu/resources/public-library

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Design Thinking: Origin and Evolution

Design thinking as a specific process became prominent in the mid-20th century as designers of
many different things began using it to think about the end user's experience.
In 1960, Horst Rittel, a design theorist known for coining the term “Wicked Problems”, wrote and
explain the problem-solving in design extensively. Rittel focused on the application of design
methodologies in discussing wicked problems. Wicked Problems defined as extremely complex/
multi-dimensional problems and the very heart of Design Thinking.
Cognitive scientist and Nobel Prize laureate for economics, Herbert Simon contributed many ideas
and concepts of Design Thinking in the 1970s. He is noted to have spoken of rapid prototyping,
testing through observation, concepts that form the core of many design and entrepreneurial
processes.
In 1982, Nigel Cross discussed the nature of designer’s problem – solving in his seminal paper
entitled “Designerly ways of knowing”, he compared designers’ problem solving to the non –
design related problem solutions we develop in our everyday lives.

Design Ways of Designerly Design

Science Thinking ways Thinking

Figure 5.1 Design Thinking: Origin and Evolution

Adapted from “Design Thinking: Get a Quick Overview of the History”, Retrieved July 12, 2020, from
Interaction Design Foundation
The 1990s to Present
IDEO was formed and showcased its design process modeled on the work developed at the
Standford Design School. IDEO is one of the companies that popularized Design thinking to the
mainstream, developing customer-friendly terminology, steps, and toolkits. In 1992, Designer and
scholar Richard Buchanan published his article, “Wicked Problem in Design Thinking”, he
discussed that design thinking needs to integrate the highly specialized field of knowledge so that
it can be applied in a holistic approach. Last 2005, Design thinking is taught at the Standard School
of Design (https://dschool.stanford.edu/). At present, The Design Thinking movement is gaining
ground rapidly. Universities, business schools, and forward-thinking companies have adopted the
design thinking methodologies.

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Definition of Design Thinking

Design thinking. It is popularized by Stanford’s d.school, it is a process that focuses on a user-
centered approach to problem-solving. A solution ( it might be a product, service, methods,
process) that will be created for and of the people. According to Tim Brown, Executive Chair of
IDEO, Desing Thinking is:

“ a human-centered approach to innovation that draws from designer’s toolkit to integrate the needs
of people, the possibilities of technology and the requirements for business success”.

Stages of Design Thinking: An Overview

To view the resources in this section, please to the public d. school teaching resources page,
https://dschool-old.stanford.edu/groups/dresources/. Resources are attributed to Hasso Plattner
Institute of Design at Stanford.

Human-Centered Design:

 Human-centered design is based on the use of techniques which communicate, interact,

empathize and stimulate the people involved, obtaining an understanding of their needs,
desires, and experiences (Giacomin, 2014)

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 IDEO, a global design innovation company, thinks of human-centered design as a unique

approach to problem-solving (IDEO, 2014). The company goes on to state that it is a process
that starts with the people you are designing for and ends with new solutions that are tailor-
made to suit their needs.
Therefore, human-centered design is all about building a deep empathy with the people you’re
designing for; generating various ideas; creating several prototypes; sharing what you’ve made with
the people you’re designing for, and eventually putting your innovative new solution out in the
world.

Design Thinking and Traditional Problem Solving

The traditional problem solving is a more linear and structured approach to describing and
resolving an issue. It starts with the identification of the problem, looks for alternative solutions,
and chooses the most viable and feasible solution whereas Design thinking starts with
empathizing with the user. It takes a set of data and works off of that same data to come up with a
solution whereas design thinking is a flexible approach of coming up with a custom-tailored
solution based on continuous data input which follows steps in resolving problems (Design
Thinking vs. Traditional Problem Solving, 2018).

Framing the Design Challenge: Project Scoping

When starting a real project using the human-centered design process, it begins the process with a
specific purposeful situation or problem to solve called Design Challenge
(https://www.designkit.org/).

. Note: Kindly refer to the separate reference materials for Chapter 5 (File Name: Project Scoping).
Resources and materials used in this section are attributed to https://www.ideo.org/ and Interaction
Design Foundation and https://dschool.stanford.edu/.

F. SUMMARY

In this chapter, the student learned what design thinking is all about and will apply what they have
learned to a real-world issue. This chapter allows students to learn how to scope and frame a
design challenge.
REFERENCES

Definition and Stages of Design Thinking (July 7, 2011): Retrieved March 2018, 2020 from
https://dschool-old.stanford.edu/groups/dresources/
Design Thinking in Business: Definition, Benefits & Stages. (2018, September 27). Retrieved from
https://study.com/academy/lesson/design-thinking-in-business-definition-benefits-stages.html.
Design Thinking: Origin & Evolution. (2018, May 3). Retrieved from
https://study.com/academy/lesson/design-thinking-origin-evolution.html.
Design Thinking vs. Traditional Problem-Solving. (2018, April 30). Retrieved from
https://study.com/academy/lesson/design-thinking-vs-traditional-problem-solving.html.

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IDEO (2015). “The field guide to human-centered design”. Retrieved March 28, 2020, from
https:// www.designkit.org/resources/
Interaction Design Foundation (n.d) Preparing (POV) Problem Statement (n.d): Retrieved March,
2020 from https://www.interaction-design.org/courses/design-thinking-the-beginner-s-guide
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623, DOI: 10.2752/175630614X14056185480186
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