MODULE 3 – Entrepreneurs and Social Entrepreneurship

Objectives:
At the end of the lesson, the students are expected to:
1. define what an entrepreneur in social entrepreneurship is
2. enumerate and explain the stages of growth of community-based enterprises
3. discuss the habits and traits common to entrepreneurs
4. list down and describe the entrepreneurial traits that are commonly experienced by the
implementor

A. What is an entrepreneur?
An entrepreneur is somebody who organizes, manages, and assumes the risks of a
business/ enterprise or community business. He/she is a member of certain type of community.
Studies reveal that entrepreneurs are self-confident. They are optimistic, they believe in the
possibility of change or mastery of the environment, through themselves.
Entrepreneurs are dynamic leaders. They are creative, innovative, versatile, flexible and
receptive to the changes in their dealings with the environment. They accomplish things through
initiative and resourcefulness.
There are habits and traits common to entrepreneurs. If you're an entrepreneur, you must be
• a good administrator
• a good leader
• a good planner
• a good negotiator
• a good communicator
• a good decision-maker
• a good follower

An entrepreneur is also ...

• aggressive • industrious
• competitive • innovative
• customer-oriented • optimistic
• determined • patient
• disciplined • productive
• efficient • reputable
• enthusiastic • resilient
• energetic • resourceful
• flexible • self-confident
• happy • self-motivated
• hardworking • self-reliant
• healthy • tactful
• helpful • tenacious
• humble • versatile
• trustworthy • thrifty
• visionary

Social Entrepreneurship
Peter Druckers (1986) states that entrepreneurship is a result-oriented attitude. An
entrepreneur must have strong values to accomplish what society needs and that a value-driven
innovator who enhances society should be as equally important as the entrepreneur who enhances
economic growth.
Social entrepreneurship often requires the involvement or support of business and
government in education, health, security, housing, as well as a myriad of other social needs.
Social entrepreneurs are hunter-gatherers of our culture. They look around, see where the
food is, and go to get it. The skills of teaching, sensing, hunting, and harvesting are very much alive
in the entrepreneur. They don't change themselves to fit their environment instead, they use the
environment to meet their nee People who start their own business, or entrepreneurs, are a strange
breed. I will give up almost anything to have the right to make their own choices, decision
opportunities, and mistakes even when they know that many of those choices decisions may turn
out to be bad ones.

B. Stages of Growth of Community-based Enterprises (Haugh, 2003)

To get out of poverty means to move up the continuum and eventually achieve a certain
degree of financial stability or success. Not all the poor can completely be alleviated from poverty.
Nevertheless, here is a Stage Model of Community Enterprise Creation and Development that can
gradually build up the poor people's capacity to manage and establish a viable enterprise.

Table 1. Model of Community Enterprise Creation and Development

Stage Behaviors and Actions
Problem Identification Recognition of a "felt need” within a community—one or more persons
perceive that a need/opportunity exists in the community. This might
arise from different sources such as experience, local knowledge, formal
analysis, suggestions, action from local people, or intervention by local
authority.
Idea Articulation The idea is verbalized and people begin to talk about it informally.
Possibilities for action are suggested. Alternative ways of developing the
idea to benefit the community are discussed. Tacit knowledge is drawn on
to focus ideas. The threads of a network begin to take shape as ideas are
discussed with others outside of the community, e. g., community
development workers, sources of business advice, and those working in
communities facing similar changes.
Community Idea Ownership The community takes ownership of the idea, actively sharing information.
Formal meetings begin to take place. A decision is made to act together as
a community group (intentionality). The vision/purpose/mission of the
community enterprise is determined. The first documents for the
community enterprise are created, e. g., minutes of meetings

Community Mobilization Gathering of human, physical, financial and technological resources.

People and organizations are mobilized. A tailor-made network is formed.
Alternative ideas are evaluated. Additional documentation created, e. g., a
feasibility study. Bank account opened.
Community Action The enterprise is created as a legally identifiable organization
(boundaries). Contracts are arranged with providers of resources
(exchange). Decisions on responsibilities and allocation of tasks are made.
Any training necessary to turn the idea into practice is organized and
implemented. Control and accountability measures are established.
Professionalization of roles, responsibilities, structures, procedures and
management. Financing arranged: entirely funder-dependent; mixed
 finance (a combination of funding sources, and revenue generation);
financially sustainable (revenue generation)
Community Reflection Collection of performance indicators, outcomes evaluated and fed back to
stakeholders. Decisions made concerning future direction of enterprise.
Recycling and re-deployment of resources:

C. Magna Carta for Small Enterprises

Republic Act No. 6977, otherwise known as the Magna Carta for Small Enterprises, is an Act
to promote, develop, and assist small and medium enterprises through the creation of a Small and
Medium Enterprise Development Council and establishment of a Small Business Guarantee and
Finance Corporation, the mandatory allocation of credit resources to small enterprises and the
rationalization of government assistance program and agencies concerned with the development of
SMEs.

Small-Medium Enterprise Skills and Management Training Program

The program provides continuing training of would-be small and medium business
entrepreneurs to improve and develop the production processes and to conduct a forum for the
exchange of experiences among small and medium entrepreneurs with experts and consultants
from private and government agencies. SME Skills and Management Trainings that can be
effectively transferred to the community through Seminar-Workshop Projects of CWTS/LTS:

1. For SME Skills Training Programs

• Food processing
• Meat and fish processing
• Wine and vinegar processing
• Skills upgrading on knitting, leathercraft, shell craft, ceramics, coco midrib, etc.
• Bamboo furniture and craft
• Poultry-raising
• Speed sewing
• Salt-making
• Basic carpentry training
• Basketry
• Embroidery
• Stuffed toy training
• Candle-making

2. For the SME Management Training Programs

• Simplified bookkeeping
• Financial management
• Business management
• Marketing management
• Production management
• Strategic marketing
• Product costing and pricing
• Basic exporting
• Symposium on livelihood projects
• Starting a small business
• Values formation seminar
• Team-building
• Leadership training programs
 • Advertising and promotion
• Entrepreneurship development seminar
3. Part-time Business Opportunities
• Mail order/mailing services
• Catalog sales
• Freelance writing
• Garage sale service
• Recycling
• Pet sitting
• Child care
• Tutoring service
• Handicrafts
• Repair service
• Janitor service
• Balloon delivery
• Pet grooming
• Parking lot striping

Controlling your Enterprise

Managing a small business requires using management principles as in a large organization-
planning, organizing, directing, controlling, and staffing.
a. Planning - The planning function of looking into the future often gets lost in the
strenuous day-today operation of a small business.
b. Organizing - deals with decision-making and how to use resources to get objectives
accomplished.
c. Directing - is the leader's job. It involves guiding; effective directing comes from good
listeners.
d. Controlling - is setting procedures to stay on top of progress. It is concerned with the
many ways to keep an eye on how the business is doing.
e. Staffing - staffing your business with competent people is critical to work efficiency and
establishing good customer relationship.

Activity 1
1. As social entrepreneurs dealing with community people, what habits and traits must you
possess to make you more enterprising in implementing the development program?
2. How will you promote the growth of community-based enterprises in relation to the
livelihood projects under your development program?
3. Explain the third stage of community-based growth in terms of its interventions.

Activity 2
For a student entrepreneur’s guide in planning a small business, there are ten (10)
questions you should ask to formulate your final business plan. Jot down a few notes after each
question.
1. Why am I starting my own business?
2. What type of business do I want?
3. Do I have enough time and money?
4. What am I selling?
5. Who am I selling to?
6. Will they buy?
7. Where will I sell it?
 8. When will I sell it?
9. How will I sell it?
10. Shall I do it?

Activity 3
After responding to the following questions with a simple “yes” or “no,” elaborate your
answers and share it to the class.
1. Are you ambitious?
2. Do you enjoy a good challenge?
3. Do you set high goals for yourself?
4. Are you competitive and success-oriented?
5. Are you willing to take risks to make a profit?
6. Are you creative?
7. Do you get enthusiastic about your ideas?
8. Would you rather lead than follow?
9. Do you feel confident in your ability to work on your own?
10. Do you expect more out of life than just a good salary and a steady job?

Activity 3
As a social entrepreneur, you must be able to prepare a project proposal on livelihood
technology that will serve as the source of entrepreneurial small-scale business of the people in the
community. Write at least three (3) proposed project titles with corresponding rationales and
objectives for approval.

MODULE 4 – Grass-roots Fundraising

Objectives:
At the end of the lesson, the students are expected to:
1. recognize the importance of grass-roots fundraising campaign in an organization
2. implement the guidelines in conducting the fundraising campaign
3. adopt the grass-roots fundraising ideas that are applicable to the association or team
 4. devise and initiate grass-roots fundraising campaign that are functionally acceptable to
the community people.

Grass-roots fundraising is raising money from and by the constituency. Grass-roots

fundraising wins real victory on two levels. First, money can be successfully raised with the
constituency, particularly if specific and realistic fundraising goals are set. Second, real victory can
also be won because the money raised from grass-roots fundraising can be used for whatever the
group chooses.
Grass-roots fundraising gives people a sense of their own power. Leaders and members are
developed and encouraged when they raise funds to support the organization.

A. Funding Sources
There are many ways to raise funds for your organization. These are through:
1. Proposal writing
2. Large-donor solicitation
3. Direct-mail appeals
4. Canvassing
5. Government and foundation grants
6. Grass-roots fundraising

B. Government or Foundation Fundraising

1. Solicit “seed” money from government agencies or foundation fund to support a new
project.
2. Funds are solicited from members as membership fees, dues, and contributions, and from
grassroots fundraising events.
3. Funds are solicited from foundations as additional source.

C. The Fundamentals of Grass-roots Fundraising (Flanagan, 1992)

1. Set a goal. (How much is to be raised). If your organization's goal is to raise money, you
should figure out how to work with your leaders to raise the target money.
2. Make a fundraising calendar. Control the timing on what you raise funds for. Make a
calendar of the fundraising campaign for times when your constituency has more money
to spend or donate.
3. Observe the following guidelines.
a. Raise more money than you spend.
Make big money by selling certain things with a large number of willing
sellers. Spend less for your capital investment; for cheaper but good quality
products.
b. Do not try risky ventures requiring big investment.
Stick to a project that seems like a sure thing and that calls for small
investment, especially the first time. Invest more if the products are saleable.
c. Raise money for your issue program.
It is easier to raise money to support a campaign for community
development projects/program as your issue program.

d. Have fun.
Lots of projects will raise money. Let people use their own creativity in fun
planning and implementing the event. This will attract more people to get involved
in the fundraising campaign.
e. Build on past successful events.
 Once you have identified a fundraising project that works, repeat it annually.
Not only do you learn how to host or handle the project more efficiently, but the
group is identified with that annual event, thus making it easier to promote.
f. Stay in line with your image.
A health organization cannot be selling junk food, nor can a "Clean Air"
group sell cigarettes. Grass-roots fundraising is part of your program and it must,
therefore, meet the same high standards as your program.

g. Maintain high ethical standard.

It is essential that the organization remains rigorously honest in all its
fundraising activities and accountable to its constituents.
h. Build leaders.
Grass-roots fundraising should not only raise money; it should also develop
leaders to chair or co-chair the fundraising campaign.
i. Budget money to raise money.
It is quite difficult to raise money without beginning with some money.
Budget some money. Start with a "seed” money to initially finance the fundraising
campaign.
j. Devote organizational time to fundraising.
Grass-roots fundraising requires excellent leadership skills. Look for
someone who will spearhead and devote his/her time and assume responsibility to
chair the fundraising project.

D. Following the Religious Group

Religious groups do the best grass-roots fundraising. Religious groups have so many
guidelines for their fundraising campaign. Learn how to do it from them.
1. Ask frequently.
Most religious groups ask at least 52 times per year, and no one gets upset. Make
sure that people are asked to contribute every time you have a public meeting. Most people
can, and will give regularly if asked.
2. Ask volunteers.
Too many organizers want to separate volunteers from givers. They say that
volunteers should not be asked to donate since they have already given much of the time
and effort to help. The truth is that volunteers who give time will also give money. The more
volunteers you have, the more sources of regular givers you have as well.
3. Instill the expectation of giving.
Everyone who joins a religious group expects to contribute to it. The value of giving
is instilled with membership. Instill this value in your members.
4. Organize fundraising committees.
The committee does the planning to raise the money. The more committees you
have one for bingo, one for thrift store, and so forth), the more donations you get.
5. Ask personally and publicly.
Many congregations have a committee of people to discuss how they can personally
or publicly support the fundraising project. This is either to "pledge” or encourage to tithe
(setting aside a tenth of your income) for donation.
E. Grass-roots Fundraising Ideas
1. Ask at every opportunity.
This is the easiest idea. Ask money from the members every meeting
 2. Raffle Draws
Consider holding a raffle in conjunction with other events, banquets or programs as
an extra money maker. (Note that the government and some cities have laws that regulate
raffles.)
3. Food and Wine Tastings
Organize food and wine tasting events in conjunction with neighborhood
restaurants. People pay to try small samples of food.
4. Songs
Asking a community or choir to volunteer to sing songs to people for Valentine's Day
or Christmas celebration.
5. Phone-a-Thons
Many organizations have found that regular solicitation of their members by phone
is their best source of membership-related fundraising.
6. Benefit Concerts and Performances
If performers can do shows for free, and the use of the hall is for free, benefit
performances are usually good fundraisers. It does not require lots of upfront money. You
may be able to get more profit by sponsoring concerts and performances.
7. Dinner
Usually, a "Dinner-for-a-Cause" is enjoyable as a good source of funds especially
when the food and the cooking are donated. Raffle draws and ad books can also add income
to the sponsoring organization.
8. Ads/Ad Books
Individuals, organizations, and businesses like to see their names in print. Because
of this, you can sell ads or charge individuals a certain fee for them to be listed in a
booklet/souvenir program that will be distributed to the public.
9. Flowers
Consider selling flowers around holidays, such as Christmas, Valentine's Day,
Mother's Day, and Graduation Day, etc. as a way to raise funds.
10. Rummage Sales
Rummage sales usually have no overhead costs, unless you set up an ongoing thrift
store. You make more money when you display items outside than inside your thrift store.
11. Baby Contests
Conduct annual baby contests and “A Human Dolls Parade.” These contests are
sponsored by church and other organizations. "Votes” are sold for a certain amount. The
baby who gets the most "votes" wins a fancy cup, a cash prize, a framed photo of him/her
with his/her parents, and other valuable prizes.
12. Bingo
A “Bingo Social” may be a potential source of funds for your organization. A bingo
game is strictly monitored by the government.
13. Dance for a Cause
Sponsor a ballroom dancing/socialized dancing/dance contest w tickets sold to all
participants and sponsoring agencies and whose process are intended to support
projects/program, etc.

Activity 1
1. What is a grass-roots fundraising? Why is it important to conduct a grass-roots
fundraising project?
2. Make use of religious strategies in conducting/soliciting grass-roots donations from non-
governmental agencies and foundations. What strategies are you going to adopt?
3. Fundraising campaigns may not be difficult if you know how to do it. From among many,
select one grass-roots fundraising idea that your group might adopt as your strategy for
sourcing funds to finance your project.
4. Devise a strategic plan for grass-roots fundraising campaign of your group. Submit this
plan for approval.