Business Entrepreneurship For Social Entrepreneurs: A Case Study

Business Entrepreneurship: Social Entrepreneurs

Explanation of how entrepreneurship acts as a change agent within your chosen organization

Discuss aboutthe case study Business Entrepreneurship for Social Entrepreneurs.

Entrepreneurship was first used in the year 1700s and the definition was formed by French economists Jean-Baptise Say in 1920.

Entrepreneurship is the process where in an individual can form, own and operate a business.

The term entrepreneurship also includes risk taking, planning, innovating capabilities.

The process of entrepreneurship is said to be able to create new business ideas and processes.

Entrepreneurship is the process of setting up and running a new business or service, hence he assumes risks and takes various decisions for a new venture.

Explanation of how entrepreneurship acts as a change agent within your chosen organization

Entrepreneurs in health care for public and private organizations become agent for conducting a change. Entrepreneurs envision change in order to create a new industry or an income source that could solve greater social problems.

Innovating ideas: An entrepreneur becomes the change agent by innovating a new idea or concept as Nurse Maude during the 1896 recognized the need for nursing services in New Zealand. While working at the Christchurch hospital as a matron she proposed a lot of creative ideas and process which were not accepted hence she started her own district nursing services. The organization now has a hospital, hospice and nursing services(Austin, 2006). The organization has made several significant innovations in providing services by incorporating services to aged residential and also in field of palliative care.

Solving Problems: An entrepreneur solves existing problems with processes and concepts thus creating a change. New Zealand during the 1896 era has several people who could not afford nursing and hospital services in order to treat minor injuries, provide first-aid and nurse the old. Nurse Maude setting up of district nursing services was the first of its kind to solve the problem. Now, the organization has been formed such that it can meet changing and complex healthcare needs of the community, there are also constant research and education projects in the area that can directly benefit clients (Austin, 2006).

Role Models: An entrepreneur demonstration of skills provides encouragement to many and they are able to envision them as role models. Nurse Maude had been a role model for setting up district nursing services post which Royal District Nursing Services, Waikato District Health Board, Auckland District Health Board and other district nursing services were set up. The organization of Nurse Maude has been improvising on the care and related services such that patients can benefit the most, hence being a role model in the area and setting examples which others can look up to(Kirzner).

Innovating ideas

Social entrepreneurship has been seen as an innovator for benefitting the society for little or no gain for owns self. Still there are major criticisms against these social entrepreneurs in the public and private health and social care sector. Some of the major criticisms are;

Quest for profit: Health and social care sector requires patient and clients do be dealt with utmost care and often many individuals will not be able to afford high range services(Austin, 2006). Some social entrepreneurs both in public as well as private institutes often set profits as precedence over care. Health and social care organizations are primarily not for profit organizations hence having a quest for profit is against the nature and standards in the industry. These type of entrepreneurs set high targets of incomes from the sector ignoring the societal factor. Some private hospitals operate only for profit ignoring patient’s health issues and prioritizing monetary benefits. Though the major motivation for Nurse Maude is only service to humanity.

Quality Compromise: Social entrepreneurs in health and social sector both in private and public organizations ignores the level of quality that is required. Primary compromise in quality in regards to medications, staff, personnel and diagnostics(Dacin, 2011). People suffering from a health conditions needs to be provided best quality such that they are able to recover fast and return to their normal life. Compromise in quality affects the ultimate quality in health and social care rendered as the patient or client and their family suffers. Hospitals have often been seen to follow quality compromise in several aspects of patient care, but Nurse Maude has been able to earn its distinction in the field by providing quality service.

Commodification of Health: Health and social care practices is a philanthropic in nature and cannot be treated as commodities. Certain entrepreneurs in health and social care however view the service as commodities and trade them over to patient and clients. The service is necessary in nature for persons with illness or certain sickness, therefore commodification of health has often hampered them(Abu-Saifan, 2012). Nurse Maude views health as a priority over other factors, but in other hospitals some commodity health.

Imbalance in Priorities: In health and social care the priority needs to be the service provided to the ailing and sick. Certain entrepreneurs however priorities profits, other gains over the service. They fail to recognize the motive behind setting up of the organization of health and social care and set other targets that form priority over the social cause. Nurse Maude’s priority is to provide quality service inpatient care which has many a times been seen to be ignored at other places.

Entrepreneurs in health and social care can be of two types profit-oriented and social entrepreneurs. Samer Abu-Saifan (2012) defined a social entrepreneur as one who contributes for improving the welfare of communities(Abu-Saifan, 2012). Nurse Maude is a classic example of social entrepreneurship that is meant to serve the society in a better way whereas Microsoft Corporation set by Bill Gates is a profit oriented entrepreneurship example (Microsoft Corporation, Retrieved on 24 th July, 2016). Though social entrepreneur is different to an ordinary entrepreneur the some points of similarities between them are;

Solving Problems

Innovator: Both the type of entrepreneur basic quality lies in innovation. Entrepreneur tries to innovate new product, service, processes which is the uniqueness in the characteristics of being an entrepreneur. Nurse Maude innovated the idea of district nursing and bringing health and social care facilities to those who needed them the most. The organization of Nurse Maude conducts several research and educational programs such that new processes can be developed in the field to provide quality care to patients. Microsoft Corporation is also an innovator that provides new and updated software as well as hardware in the computer and mobile phone market.

Dedicated: Be it an ordinary entrepreneur or a social entrepreneur, dedication is the primary factor that drives them. Entrepreneurs are generally very dedicated with their aim and motive and want to establish their business or ideas with extreme dedication of effort and work. Nurse Maude demonstrated immense dedication to her work by often walking miles every day to bring health care services to the ailing(Abu-Saifan, 2012). Her dedication to the service was so well recognized that she had immense support and contribution in setting up the facility of district nursing. The Nurse Maude organization continues in the path of their mentor by extensively dedicating their services to those who need it the most and by extending services to people at their residence who wants to stay back at their home. Bill Gates had started with his innovative ideas of computer at his garage and with sheer dedication Microsoft Corporation is the world largest hardware and software manufacturing company.

Initiative taker: Entrepreneurs are generally not hesitant of taking an initiative even it requires a drastic step. An entrepreneur whether social or not is not reluctant when a prospect arises where an initiative needs to be taken. Nurse Maude took an initiative to provide health and social care to individuals who could not communicate to the hospital or could not afford it(Perrini, 2006). The organization of Nurse Maude have taken initiates including advanced standardized assessment and duplication of referrals and services by integration of information sharing with care. Bill Gates took the initiative to set up Microsoft Corporation and made several discoveries in the field of hardware and software.

Leader: Entrepreneurs are leaders by nature and they self-motivated such that they are able to lead a team. Entrepreneurs either social or ordinary entrepreneur are able to motivate a group of individual for the cause, innovation or product. Nurse Maude left her service at the Christchurch Hospital and started treating people from door to door, post which she set up a nursing services where she trained nurses also(Kirzner). She took a leaders role in pioneering the services and motivating the team of nurses. The organization of Nurse Maude continues to be a leader in the field of health and social care practices by setting new standards and practices in healing and providing service to patients. Microsoft Corporation is a leader and pioneer in computer oreinted services.

Role Models

Opportunity alert: An entrepreneur is an opportunity taker and whenever a situation or a prospect arises, he capitalizes on it. Entrepreneur makes immense gain from recognizing these opportunities and then reacting to them immediately. Nurse Maude organization capitalizes on every opportunities that it gets to provide quality service to its patient. Microsoft Corporation has taken on opportunities present in the market to innovate and introduce new products every time.

Entrepreneurs of profit-oriented types and social types have several distinctions between them as the underlying cause for which they operate is different. Bill Gates is an example of a profit-seeking entrepreneur who set up Microsoft Corporation in order to earn profits (Microsoft Corporation, Retrieved on 24 th July, 2016). Some of the points of difference between them are;

• A social entrepreneur is a mission leader by nature whereas a profit-oriented entrepreneur is high achiever. A social entrepreneur starts of a venture, process or idea for an underlying social cause which is unattended. Whereas profit-oriented entrepreneur eyes a profit that can be made from a cause. Nurse Maude recognized the absence of district nursing institute at that time in New Zealand and hence set up an organization that trains nurses and provides care to patients. The organization still functions on the mission to provide the surrounding community with good health and society services(Austin, 2006). The sole purpose of Microsoft Corporation is to develop new products and services in the market that can earn distinct leadership such that the company is able to earn revenues.
• A social entrepreneur remains emotionally charged for discharging a specific social cause and the motivation arises from the suffering of the society. A profit-oriented entrepreneur is a risk bearer who takes on additional risks for achieving a desired goal. The organization of Nurse Maude consists of several nurses and other personnel from various departments who are emotionally attached to the duty they discharge(Abu-Saifan, 2012).
• Social entrepreneurs are recognized to be change agents who bring about certain alteration to the existing patterns in services, quality, products or processes. Whereas a profit-oriented entrepreneur is an organizer by nature, who tries to coordinate between various activities for a business gain. Nurse Maude organization has brought about several changes in the way health and social care is provided. Prior to Nurse Maude organization there were no nursing services at district level that could support the ailing and people who needed first-aid(Maude, 2016). Microsoft Corporation launching of several new products like the Microsoft mobile was a major risk bearing attitude that reflected its desire to bring about change in the organization.
• Social entrepreneurs are opinion leaders whereas profit-oriented entrepreneurs are strategic thinkers. Nurse Maude had specific opinion regarding the way health and social care services needs to be provided to its patients as against service provided by traditional hospitals in New Zealand. The organization continues to have opinion regarding future of nursing and homecare. Microsoft Corporation has taken several strategic decisions in the markets it operates such that it can establish itself to be a leader in the field.
• Social entrepreneurs are known to be social value creator and profit-oriented entrepreneurs to be merely value creators. Social entrepreneurs provide significant social value by their efforts which is demonstrated by Nurse Maude who formed the district nursing organization that could provide care to the people in need. The organization now provides home care services by trained professional nurses such that patient does not have to travel beyond the comfort of their homes(Dacin, 2011). Microsoft Corporation has rendered new attributes to the usage and utilities of computer as it stands today, thus creating immense value.

Chin & Benne (1969) in their classic article outlined three meta-approaches for implementing changes in social organizations. The meta-theories of rational empirical, normative-reeductive and power coercive reflected innovations at systems level. The strategies are confined to planned change approaches hence the motivation for the change is conscious and deliberate in nature.

The first change strategy is empirical-rational, which assumes that individuals behave in a rational manner and will follow their self-interests, once they realize them. In this process change is dependent on communicating information and proffering incentives. Nurse Maude can adopt this change strategy in regards to improvised health and social care if the leader in their organization can communicate regarding the change processes to the employees by comparing existing methods to better and improvised methods. For adopting changes relating to a practice in health care for healing a wound this strategy is taken by the organization (Szabla, 2007).

The second change strategy is normative reeducative, where individuals are assumed to be social beings hence is bound to adhere by cultural norms and values. The process of change here is focused on redefining and reinterpreting of existing values and norms, and being able to develop commitments for new values and norms. This change process can be adopted by examining the existing set of values present within the employees and then applying cognitive dissonance such that new norms and values of the changed process can easily be applied. The process will be applied in case of applying home based care services where service providers need to adapt to the resident’s culture.

The third change strategy is power coercive where individuals are taken to be complaint and hence will follow whatever they have indicated to (Hull, 2010). In this process change is made by forming a new organization and then transferring people from the existing to the new one. In this change strategy the process of change is applied by non-violent confrontation with the employee and displaying of regulations and policy. In case of applying any major changes in the employee rules related to shifts this strategy can be applied.

Criticism against Social Entrepreneurship in Health and Social Care Sector

Figure 1: Chin & Benne’s Change Strategy

Source: (Szabla, 2007)

The process of change has always faced resistances from employees as they view it as something that is unnecessary. Nurse Maude while applying the change strategies might encounter several resistances, some of which are;

Past Change records: In case previous changes made in the organization had not been had been handled wrongly then employees can a negative connotation for change. Employees often tend to relate past experiences in order to form judgments regarding the future.

Lack of motivation: Employees if not properly handled and motivated for the change process may not be enthusiastic regarding the change. A change management leader needs to layout the plans for the change process and communicates the details of the change to the employees. The leader needs to provide adequate proves regarding the positive aspects of the change then employees will feel motivated regarding the change management processes(Lozano, 2013).

Relationship between management and staff: The underlying relationship between the management and the staff plays an integral role in determining the change management process. The better the relationship, easier it is for the management to employ the change management strategies.

Lack of clear communication: Employees are an integral part of the organization and they feel they should be aware of all major strategic decisions that are taking place in the organization. in absence of proper communication regarding the change management processes, employees are often seen to resists(Hull, 2010).

Resistance from change often hampers the entire process by slowing down regular flow. Resistance makes change management to come to a halt and results in organization’s productive time getting spent in an inefficient way. Hence the organization has to device ways means and methods such that the change management takes place smoothly. The strategies that Nurse Maude applies in order to overcome the various resistances to change are;

Change Management Leader: By appointing a change management leader the organization can easily pass through the transition phase. A change management leader will handle the various aspects of change in terms of employees hence will make it easy for the organization to change. A leader already present in the organization who has a good rapport with the employees can be given charge(Hull, 2010).

Communication regarding proposed changes: Employees need to be communicated regarding the changes to be made in the organization either through meetings or display boards. When employees are aware from the management regarding the change process they develop a positive attitude towards the change.

Quest for Profit

Developing a relationship between management and employees: The management needs to develop a relationship with their employees such that they are able to communicate changes in a positive manner. Developing relationship through meetings, grievance cells and patient listening will allow the company develop a good relationship with the employees which will reduce resistance towards the change management process(Choi, 2010).

Motivating the employees: The organization needs to device ways means and methods such that they are able to motivate their employees. Employees can be motivated either through intrinsic or extrinsic motivators, which will reduce resistance and allow the change process to take place easily(Mair, 2006).

Part B : Individual Reflective Report

Nurse Maude initially was set up as a small organization which has grown and expanded to provide health and social care service to the community. While the organization developed itself it had to go through a series of change process, the step by step change can be understood by Adams, Hayes and Hopkins (1976) 7stages of change process in organizations. The stages can be understood as below;

Figure 2: Triggers for Change

Source: (Wood, 2010)

Phase One : SHOCK

In the first phase the organization’s reaction to the change process is referred to as the shock or surprise. This reaction arises as there is a mismatch of things from what they were to the current situation. This phase sees significant dip in level of confidence and competence as a result of experiencing new circumstances (Wood, 2010).

Phase Two : DENIAL

The second phase starts off with individual developing negative feelings regarding the change process. individual draws conclusion from the processes and makes justification regarding the denial.

Phase Three: AWARENESS

In the third phase the individual realizes the competence level as against levels required. In this phase the individual gets emotionally engaged in the change process and frequently becomes frustrated or confused in regards to tackling the change process (Maude, 2016).

Phase Four : ACCEPTANCE

Individuals in this phase lets go of attitudes and behaviors, hence it is the lowest point in the curve. In this stage individuals gets comfortable with the idea of change management however depression can occur in anticipation of results.

Phase Five  : TESTING

The phase tests the new skills that can match the required behavior or attitude. Individuals here are required develop the newly acquired skills such that they are able to match the change process.

Phase Six  : SEARCHING FOR MEANING

Quality Compromise

Individuals in this phase search for meaning as to why certain behaviors were compatible and other behaviors were not. The understanding helps individuals develop strategies in advance and also take control of one’s own actions.

Phase Seven: INTEGRATION

The final stage results in development of confidence and competence in behavior. The new ways of doing activities in the changed process (Perrini, 2006).

While going through the changed processes in Nurse Maude, the change stages as suggested by Adams, Hayes and Hopkins, (1976) was adhered. In the first stage the new for change came as a shock and all employees were surprised as to how to deal with the change processes. Each one ’s self- competence was evaluated to compare against the desired competence level. Confidence level was low amongst all employees at this level as expectations were unclear and not set out properly. Then there was a confusion amongst all employees that led to denial and no one was ready to acknowledge and accept the changed processes. Everyone developed a negative idea regarding the change process as proper clarity and communication was not provided by the management. In the third stage everyone realized that the changed processes needed to applied and greater analysis regarding competence was initiated. This awareness phase led to the acceptance stage, which resulted in depression amongst all. The fifth stage started with comparing the achieved process with the desired ones, hence leading to sixth stage where learning was high. Individually everyone learnt from their failures and success hence progressing to integration. The last stage led to lot of accomplishment arising from  increased confidence and competence.

References

Maude, N. (2016). Annual Reports. https://www.nursemaude.org.nz/about/annual-reports, Accessed on 23rd July,2016 .

Perrini, F. &. (2006). Social entrepreneurship: Innovation and social change across theory and practice. In P. M. UK., In Social entrepreneurship (pp. 57-85).

Wood, D. &. (2010). The rocky road: The journey from classroom teacher to teacher educator. . Studying teacher education, pp. 17-28.

Abu-Saifan, S. (2012). Social entrepreneurship: definition and boundaries. Technology Innovation Management Review.

Austin, J. S.â€ÂS. (2006). Social and commercial entrepreneurship: same, different, or both?. Entrepreneurship theory and practice, pp. 1-22.

Choi, M. &. (2010). Individual readiness for organizational change and its implications for human resource and organization development. Human Resource Development Review, 1534484310384957.

Dacin, M. T. (2011). Social entrepreneurship: A critique and future directions. Organization science, pp. 1203-1213.

Drake Meddox Nursing Service, 2. (Retrieved on 20 th July,2016). https://www.drakemedoxnursing.co.nz/.

Hull, T. H. (2010). Overcoming Resistance to Change. Principal Leadership, p. 36.

Kirzner, I. M. (n.d.). Competition and entrepreneurship. . 2015: University of Chicago press.

Lozano, R. (2013). Are companies planning their organisational changes for corporate sustainability? An analysis of three case studies on resistance to change and their strategies to overcome it. Corporate Social Responsibility and Environmental Management, pp. 275-295.

Mair, J. R. (2006). Social entrepreneurship . New York: Palgrave Macmillan.

Maude, N. (2016). Annual Reports. https://www.nursemaude.org.nz/about/annual-reports, Accessed on 23rd July,2016 .

Microsoft Corporation, 2. (Retrieved on 24 th July, 2016). Company Background. https://www.microsoft.com/en-in/.

Szabla, D. B. (2007). A multidimensional view of resistance to organizational change: Exploring cognitive, emotional, and intentional responses to planned change across perceived change leadership strategies. Human Resource Development Quarterly, pp. 525-558.