ocial entrepreneurs are often held up
as today’s heroes. They are feted at the Clinton Global Initiative conference, grace the cover of
Fast Company, draw adoring crowds at Harvard Business School confabs, and even appear on
The Oprah Winfrey Show. Yet for all of the adulation, our understanding of the value that social
entrepreneurs bring to society remains fuzzy, and in some instances, even controversial.
Many of those who believe that social entrepreneurs play a vital role say that the evidence
supporting their views is straightforward and compelling. Social entrepreneurs matter for the
same reason that other entrepreneurs matter: because they generate new, disruptive models for
organizing human activity. The diff erence is simply, and importantly, that conventional entrepreneurs
focus on creating fi nancial value, whereas social entrepreneurs focus on creating social value.
Without initiatives undertaken by social entrepreneurs, the status quo would stand uncontested
and critical societal challenges would remain unresolved.
Those who question the importance of social entrepreneurs, however, say they are simply being
realistic. While entrepreneurs capture imaginations and tug at heartstrings, large fi rms are
quietly doing the work of creating stable jobs for workers and low-cost products for consumers.
“The greatest agents for sustainable change are unlikely to be [social entrepreneurs], interesting
though they are,” opined the Jan. 31, 2008, issue of The Economist in its review of John Elkington
and Pamela Hartigan’s book, The Power of Unreasonable People. “They are much more likely to be
The idea that social entrepreneurs create something called social value—good works
that go above and beyond what traditional entrepreneurs and
businesses deliver—is a dearly held tenet of the social change movement.
But what exactly is social value, and how do social entrepreneurs go about creating it?
Creating
Social Value
By Philip Auerswald | Illustration by Don Kilpatrick III
S52 STANFORD SOCIAL INNOVATION REVIEW • Spring 2009
the entirely reasonable people, often working for large companies,
who see ways to create better products or reach new markets, and
have the resources to do so.”