1 James C. Collins, Good to Great and the Social Sectors: A Monograph to Accompany Good to Great, 1st ed., Boulder, Colo.: Jim Collins, 2005; Mark Harrison Moore, Creating Public Value: Strategic Management in Government, Cambridge, Mass.: Harvard University Press, 1995; Albert Gore and Scott Adams, Businesslike Government: Lessons Learned from America's Best Companies, Washington, D.C.: National Performance Review, 1997; and Christine Letts, William P. Ryan, and Allen Grossman, High Performance Nonprofit Organizations: Managing Upstream for Greater Impact, New York: Wiley, 1999.
2 Beatriz Armendáriz de Aghion and Jonathan Morduch, The Economics of Microfinance, Cambridge, Mass.: The MIT Press, 2005:21.
3 Grameen Bank’s financial statements reveal Yunus’s salary in 2006 to be $6,879.99.
4 “Mechanism, n.,” The Oxford English Dictionary OED Online, Oxford University Press, 2008. Paul Light makes exactly this point in his plea to broaden the definition of social entrepreneurship in his fall 2006 Stanford Social Innovation Review article, but this stretches the fundamental meaning of entrepreneurship. Hence we still see innovation as a better tool for analyzing social innovations.
5 Skoll Foundation, "Background on Social Entrepreneurship," Schwab Foundation for Social Entrepreneurship, "What Is a Social Entrepreneur?" Ashoka, "What Is a Social Entrepreneur?" and John Elkington and Pamela Hartigan, The Power of Unreasonable People: How Social Entrepreneurs Create Markets That Change the World, Boston: Harvard Business School Press, 2008. In the context of management education, some who teach entrepreneurship and social entrepreneurship do tend to focus on entrepreneurial processes (i.e., the means through which individuals create and grow new organizations). Although this is closer to a social innovation perspective, it still tends to emphasize individual entrepreneurs and the managerial challenges of starting new firms rather than the broader economic system of society. See, for example, William B. Gartner, "'Who Is an Entrepreneur?' Is the Wrong Question,"American Journal of Small Business, 12, no. 4, 1988; and Jane Wei-Skillern et al., Entrepreneurship in the Social Sector, Thousand Oaks, Calif.: Sage, 2007.
6 For a review, see Cynthia Massarsky, "Coming of Age: Social Enterprise Reaches Its Tipping Point," in Research on Social Entrepreneurship: Understanding and Contributing to an Emerging Field: ARNOVA's Occasional Paper Series, edited by Rachel Mosher- Williams, Washington, D.C.: Association for Research on Nonprofit and Voluntary Organizations, 2006.
7 See Paul Light, "Searching for Social Entrepreneurs: Who They Might Be, Where They Might Be Found, What They Do," in Research on Social Entrepreneurship: Understanding and Contributing to an Emerging Field: ARNOVA's Occasional Paper Series, edited by Rachel Mosher-Williams, Washington, D.C.: Association for Research on Nonprofit and Voluntary Organizations, 2006: 13-37.
8 See, for example, J. Gregory Dees and Beth Battle Anderson, "Framing a Theory of Social Entrepreneurship: Building on Two Schools of Thought and Practice," in Research on Social Entrepreneurship: Understanding and Contributing to an Emerging Field: ARNOVA's Occasional Paper Series, edited by Rachel Mosher-Williams, Washington, D.C.: Association for Research on Nonprofit and Voluntary Organizations, 2006: 39-66. Our claim about the influence of such efforts is based on our own analysis showing that the composition of grantees/award winners of notable networks, including Ashoka, Fast Company Social Capitalists, the Schwab Foundation for Social Entrepreneurship, and the Skoll Foundation, are predominantly nonprofits. One notable exception in the funding world is the Omidyar Network, which changed its name and legal form to support for-profit social entrepreneurs.
9 Although this is a relatively broad and sweeping claim, it is supported by the contrast between two reviews of the innovation and entrepreneurship literatures (J.T. Hage, "Organizational Innovation and Organizational Change," Annual Review of Sociology, 25, 1999; and Patricia H. Thornton, "The Sociology of Entrepreneurship," Annual Review of Sociology, 25, 1999).
10 Rosabeth M. Kanter, The Change Masters: Innovation and Entrepreneurship in the American Corporation, New York: Simon & Schuster, 1983: 20; and T.M. Amabile, "A Model of Creativity and Innovation in Organizations," in Research in Organizational Behavior, edited by Barry M. Staw and L.L. Cummings, Greenwich, Conn.: JAI Press, 1988.
11 William J. Abernathy and James M. Utterback, "Patterns of Industrial Innovation," Technology Review, 80, no. 7, 1978; and Eric von Hippel, The Sources of Innovation, New York: Oxford University Press, 1988.
12 See von Hippel, The Sources of Innovation; and John E. Ettlie, William P. Bridges, and Robert D. O'Keefe, "Organization Strategy and Structural Differences for Radical Versus Incremental Innovation," Management Science, 30, no. 6, 1984.
13 For examples of unsuccessful diffusion of an effective innovation, see Everett M. Rogers, Diffusion of Innovations, 5th ed., New York: Free Press, 2003. For an example of the successful diffusion of an ineffective innovation, see Sarah A. Soule, "The Diffusion of an Unsuccessful Innovation: The Case of the Shantytown Protest Tactic," The Annals of the American Academy of Political and Social Science, 566, November 1999.
14 J. Gregory Dees, "The Meaning of 'Social Entrepreneurship,'" Center for the Advancement of Social Entrepreneurship, 2001.
15 Clayton M. Christensen et al., "Disruptive Innovation for Social Change," Harvard Business Review, 84, no. 12, 2006: 96.
16 A detailed description of related notions of social objectives, public value, and public good and externalities can be found in J. Gregory Dees, Social Enterprise: Private Initiatives for the Common Good, Boston: Harvard Business School, 1994; Mark Harrison Moore, Creating Public Value: Strategic Management in Government, Cambridge, Mass.: Harvard University Press, 1995; and Charles Wolf Jr., Markets or Government: Choosing Between Imperfect Alternatives, 2nd ed., Cambridge, Mass.: MIT Press, 1993.
17 For a more detailed discussion, see Public Goods and Market Failures: A Critical Examination, edited by Tyler Cowen, New Brunswick, N.J.: Transaction Publishers, 1992.
18 David Vogel, The Market for Virtue: The Potential and Limits of Corporate Social Responsibility, Washington, D.C.: Brookings Institution Press, 2005: 28.
19 Joshua Humphreys et al., 2005 Report on Socially Responsible Investing Trends in the United States, Washington, D.C.: Social Investment Forum, 2006.
20 John McMillan, Reinventing the Bazaar: A Natural History of Markets, New York: W.W. Norton & Company, 2002; and A. Denny Ellerman, Paul L. Joskow, and David Harrison Jr., Emissions Trading in the U.S.: Experience, Lessons, and Considerations for Greenhouse Gases, Pew Center on Global Climate Change, 2003.
21 McMillan, Reinventing the Bazaar.
22 Eric Nee and Martin Eakes, "15 Minutes: Interview with Martin Eakes," Stanford Social Innovation Review<, 5, no. 3, 2008.
23 Special thanks to Greg Dees for his suggestions about this section and drawing our attention to this quotation. William Drayton, "Everyone a Changemaker: Social Entrepreneurship's Ultimate Goal," Innovations, 1, no. 1, 2006.