Tag: Social

Social Entrepreneurship – How is it any different?

Prasad Ajinkya4 Comments

I really do not see how is it any different from any other enterprise? I looked up the wiki page for Social Entrepreneurship, here’s what it says –

Social entrepreneurship is the work of a social entrepreneur. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change (a social venture). Whereas a business entrepreneur  typically measures performance in profit and return, a social entrepreneur focuses on creating social capital. Thus, the main aim of social entrepreneurship is to further social and environmental goals. However, whilst social entrepreneurs are most commonly associated with the voluntary and not-for-profit sectors, this need not necessarily be incompatible with making a profit.

How in the world is this any different from what a good business does? It recognizes a social problem (read loosely as a problem that the society in general faces), and it solves the problem. For any enterprise, over a period of time there will be performance metrics – profit and return merely build sustainability. These would be needed by the social entrepreneur as well. So what makes it any different? Social capital is also created by enterprises. If you go through any of the annual reports that a firm publishes, they have this term – Goodwill.

If good will is not social capital, then what is? I think social entrepreneurship is just a term invented by hacks to make themselves feel good. Or maybe its just a marketing gimmick for generating funds.

PS – Before you hit the comment button to rant, do not misread me. All I am saying is that any good business is as good as any “social entrepreneurship”, then why make the difference? Is social entrepreneurship the new green?

Capitalism

Prasad Ajinkya1 Comment
Hidden ideal

Some time back I was reading a collection of essays by Ayn Rand, ‘twas titled Capitalism: The unknown ideal. I was foolhardy enough to put my status message as so on a professional networking site (LinkedIn). A friend of mine commented on that saying –

let me know how to ameliorate the fact that capitalism is pro-incumbent. Also how do we bridge the rich poor divide..Raising taxes for the rich?

Then started a slew of replies, back and forth. I did not understand why do we have to bridge the rich and poor divide. I soon put the issue to rest and went ahead with my day-to-day life … until yesterday, when a chance discussion with Amol led us back to this issue.

I do not see why do we, as a society have to strive for collective equality (why else would you want to reduce the rich-poor divide?). Amol said, that it is not fair, that some people should have a good life while others do not even have basic amenities. I agree, its not fair. But such is life! How can there not be a divide, if there were no difference between people, then there would have been no difference between you and me. So where would your individualism go? People can’t be equal, they have to be TREATED equally. There is a difference.

I agree, that the country needs infrastructure boosts … so much so that it should support the basic needs of all. But to expect that the rich feel for the poor and give willingly, naaah … I have no such feelings.

On a light note, let me paint a picture for you of what would happen if all people were equal, here’s a song by Groove Armada, check the video out – If Everybody Looked the same.

Careers: Visibility is not the only problem

Prasad Ajinkya4 Comments

One of my assumptions about career design lays shattered today. I thought that students do not have visibility into their next career spaces, and that is why there is so much confusion in the careers area.

However, after reading this post by Rashmi Bansal, it’s not just career visibility that is the problem, but also something else. In the post Rashmi has put down her conversation with an ambitious fellow. This fellow is an engineer (aren’t they all!!) working in an IT MNC firm (you knew this would be there) and wanting to work in a finance role such as i-banking or analyst (surprise, surprise). For this purpose, he has done enough research on the pros and cons of giving the CAT, doing an MS from IIT Madras and doing a PhD from a US University.

The boy has done his research, at one point Rashmi tells him to do give the CAT and to do an MBA from the IIMs; to which the boy replies that he wishes to do a PhD due to a demand-supply difference in the no. of PhD students v/s the no. of IIM grads.

All said and done, the boy is still in a quandary and hell bent on doing a PhD. Interestingly enough, all his choices can get him there. So the visibility is not stopping him, then what is? It’s fear.

Fear of making the wrong choice. He wants to foist off the choice making to someone has informed as Rashmi Bansal. In his latest book, even Seth Godin has touched upon this point. It’s fear that makes us fit in. Here the boy is talking about PhD because less people are doing it, but he is afraid of fitting in – because if he makes the wrong choice, then he will be singled out.

What’s your ideal?

Prasad Ajinkya4 Comments

I had written about Purpose and also how Perspective can be used to change the society, well … what does one do if one has neither? I did not have an answer for that now … if a person is devoid of both, then is his life a wasted time? Does he not achieve fulfillment??

Today, I get to throw one more term in this quagmire of confusion. If one has neither, then one need not worry … one simply needs to choose an ideal and uphold it. Simple. Pick an ideal of your choice, and live by it. I know its an axiomatic way of life, but imagine a world without living by any ideals.

Without an ideal, one may not know what is good or what is bad (think about this before you dismiss it). We talk about work-life balance … well, we choose work because we have career success as an ideal, we choose life because we choose being a good son as an ideal (or a good husband, a good father … the list goes on). \

The best part is that, there are no rules once you choose an ideal and live by it. Choice making is easier. I know a friend who lives by integrity as an ideal. Even if her job depends on it, she will choose to go take the path of integrity.

So what’s yours?

Technology as a catalyst

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This on the New York Times, an article about how a librarian had to change her practice skill-sets from being an archive keeper of knowledge to someone who teaches the right way to access the right data.

How many of us still read books? Flip through their pages? Very few of the new generation do this … they prefer new age media to books. If the same concepts can be taught through videos, games, et al then why bother with reading the books?

If this is the world to come (and I am not fighting against it or complaining), then the article takes an interesting take on how old age practices have adapted themselves to the new age solutions.

Gaming as a Learning technology

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I was watching Jane McGonigal’s TED talk and her logic of gaming being a parallel learning track for this generation’s youth is pretty convincing.

For example, a researcher at CMU through a survey has found that by the age of 21, a youngster has put in almost 10,000 hours of online gaming.

Add to it Malcolm Gladwell’s 10,000 Hour rule of success, and you have a whole generation of teens who are virtuoso’s in gaming.

Compare this to the 10,080 hours of education that you attend in your secondary school (i.e. if you dont miss a single day of school), and you have an alternative track/medium where an individual is deeply engaged. I had earlier blogged about how games can be used to engage people at work. Well, the same holds true for education, and the platform is almost set. Now it’s for game designers to design games like Superstruct and Evoke, so that modern day games (where the world spends 3 billion hours of online playing every week!!) can be harnessed to educate, collaborate and design new-age solutions for the world.

Jane further goes on to say how games can be used to solve world problems – you can watch the rest of her talk here

No risk, No return

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Or No pain, no gain … the adage holds, is what empirical data says. A working paper by Harvard Business School presents its findings on human capital, performance incentives and ownership models.

Do different kinds of firm ownership drive the adoption of different managerial practices? HBS professor Raffaella Sadun and coauthors focus on the difference between the two most common ownership modes, family firms and firms that are widely held, namely that have no dominant owner. They find that the greater weight attached by family firms to benefits from control induces a conflict of interest between family-firm owners and high-ability, risk-tolerant managers. Key concepts include:

  • Family firms systematically offer low-powered incentive contracts to external managers compared with widely held firms. The differences are economically large.
  • Where incentives are more powerful, managers exert more effort, are paid more, and are more satisfied.
  • Firms that offer high-powered incentives are associated with better performance. This result holds even after controlling for the type of ownership.
  • Economies where family firms prevail because of institutional or cultural constraints are also economies where the demand for highly skilled, risk-tolerant managers languishes.

What this study suggests, is that to have high performance managers, organizations should employ the high powered incentives (this may not be as simple as cutting the current CTC of an individual into fixed and variable components). The last finding suggests that economies (and even societies) where family firms are prevalent (take Marwaris or Sindhis), the risk-appetite may be lesser. The first set of findings is also interesting since it is related to satisfaction.

So the next time you are considering a job, maybe these tips might help you evaluate that job slightly better –

  1. Is there a variable component, is the calculation of that component completely transparent?
  2. Will you be empowered enough to take risks and get the job done?
  3. How mediocrity based is the leadership? (As in, is the leadership attracting the best talent, or the talent which can be ordered around)
  4. Is your work ecology risk tolerant Or does it always stick to the safe path?