Questions for Chapter 14
True/False
1) The Global Entrepreneurship Monitor estimates that 5% of the population is either
443)
2) Wicked problems can be defined by those that require multiple stakeholders and
complex solutions. (pg. 444)
3) Social entrepreneurship is primarily concerned with profits. (pgs. 444-445)
4) Social entrepreneurship creates social value and/or social change. (pg. 445)
5) Process‐based definitions of social entrepreneurship focus on actions such as value
creation, opportunity recognition, opportunity exploitation, and resource mobilization.
(pg. 445)
6) Many social ventures are nonprofit organizations. (pgs. 445-446)
7) Corporate social responsibility most closely aligns with the Social Consequence
Venture. (pg. 446)
8) Enterprising nonprofit (quadrant 4) focus primarily on economic mission and
economic impact. (pg. 446)
9) Social purpose ventures (quadrant 3) are founded on the premise that a social problem
will be solved, yet the venture is for‐profit and the impact on the market is typically
perceived as economic. (pg. 446)
10) Social purpose ventures are firms started with a specific social mission and do not
care about making profits. (pg. 447)
11) Because social entrepreneurial ventures serve social ends they do not need to be
financially viable. (pgs. 447 – 448)
12) Nonprofit organizations cannot be financially evaluated, because they do not produce
financial profits. (pg. 448)
13) Hybrid ventures are those that pursue social and economic goals unequally. (pg. 449)
14) Hybrid social ventures have a revenue-generating component. (pg. 449)
15) Identifying an opportunity for a social venture always results from a deliberate
process. (pg. 453)
16) It is possible to position a venture in all four of the specific typologies of ventures.
(pg. 453)
17) The Timmons Model will be affected by the choice of Social venture type. (pg. 453)
18) Sometimes reducing the consequences of a social problem may not actually solve the
problem. (pg. 454)
19) The ability to articulate a venture’s social values is helpful for evaluating its
performance. (pgs. 454-455)
Multiple Choice
1) Why did Tricia Compas-Markman first start the DayOne Response? (pg. 443)
2) What is driving the increase in social entrepreneurship? (pg. 443)
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley
A. Increased awareness of social issues
B. Desire to avoid corporate taxes
C. Stabilization of environmental issues
D. Lack of opportunities for finding by traditional ventures
E. None of the above
3) According to the Global Entrepreneurship Monitor (GEM), what percent of the
population is either currently in the process of trying to start a social venture or is
presently running one? (pg. 443)
A. 4%
4) Which of the following is NOT one of the assumptions about creating new ventures
E. None of the above
5) In keeping with process-oriented definitions of social entrepreneurship; social wealth
is defined broadly to include: (pg. 444)
6) According to entrepreneur-centric definitions, social entrepreneurs are: (pg. 444)
7) Which of the following is essential in order to undertake a social venture? (pg. 445)
A. An existing organizational model.
E. All of the above.
8) What is the most social impact focused type of social venture? (pg. 446)
E. Social consequence
9) ______ focus primarily on economic mission and economic impact. (pg. 446)
10) Financial performance is the primary metric for which of the following? (pg. 446)
11) The popular term, corporate social responsibility, most closely aligns with the _____.
(pg. 446)
12) ______ are founded on the premise that a social problem will be solved, yet the
venture is for‐profit and the impact on the market is typically perceived as economic. (pg.
446)
13) Which of the following companies would be considered a traditional venture? (pg.
D. Doctors without Borders
E. None of the above
14) What experience best qualified Jim Poss to start Big Belly Solar? (pgs. 447-448)
15) What aspect of many large companies’ social impact has garnered the largest amount
of negative media attention in recent years? (pg. 449)
E. It can be organized anywhere worldwide.
17) Tom’s shoes give away one pair of shoes to someone in a developing country for
every pair of shoes sold for a profit in a developed country. Which typology is this? (pgs.
446 – 450)
18) Which of the following is NOT a principle of the UN Global Compact? (pg. 450)
A. Businesses should support and respect the protection of internationally proclaimed
human rights.
19) What would be the typology of a venture that is focused on increasing the supply of
affordable housing that uses a business model designed to lowers the cost of producing
housing so that it can sell homes at a price more lower income families can afford? (pgs.
446 – 450)
A. Hybrid
20) One reason to become a Certified B Corporation is to; (pg. 451)
21) Which of the following changes will impact all three portions of the Timmons
Model? (pgs. 451 – 453)
22) Why is it difficult to measure the impact of social ventures. (pgs. 453-454)
23) What are the three components of a Triple Bottom Line (TBL) objective statement?
(pg. 454)
Open Ended
1) Why might different countries have different needs for social entrepreneurship?
(pgs. 443 – 444)
Governments can have very different mandates to meet the needs of their citizens.
Zacharakis, A., Corbett, A. & Bygrave (2020) Entrepreneurship, 5th Edition. Hoboken, NJ: Wiley
• Governments in very poor or highly corrupt countries can neglect serving some
social needs entirely. Poor countries can present entrepreneurial opportunities to
meet the most basic needs, such as food and shelter.
• Some governments prefer that social needs be served by the market, and will only
provide support for those proven to be unable to meet their own needs. Countries
such as the U.S. provide opportunities to help those not already being served by
either the government or the market.
• Each of these cases can result in different levels and types of social
entrepreneurship.
2) What would be some ways to identify social entrepreneurship opportunities?
3) What are the four types of entrepreneurial ventures? (pg. 446)
4) How might a social entrepreneur be different from a classical entrepreneur? (pgs.
5) Discuss some reasons why, given the choice, a social purpose venture may be able
to have a larger impact than an enterprising non-profit. (pgs. 447 – 449)
• You may be able to do more good by helping more people a little, than helping
fewer people a lot. Scale might enable this, even at the expense of returning some
portion of retained earnings to shareholders as capital gains or dividends.
6) Discuss the interplay between the typology of any given venture and the Timmons
model (pgs. 446 – 451)
7) Given what is understood about the objectives of different typologies, discuss
some likely differences between boards of traditional ventures and enterprising non-
profits. (pgs. 446 – 451)
• In enterprising non-profits many of the board members will likely be economic
stakeholders, although in a different sense.
8) What are the differences between measures of success for social ventures, as
compared to for-profit companies? (pgs. 453 – 455)
9) How might a social venture be more economically profitable than a for-profit
company? (pgs. 449 – 451)
10) Why would shifting from one type of venture to another be challenging? (pgs.
451-453)
• Strategy and resources must be aligned according to the type of venture chosen.
11) How might Triple Bottom Line be reflected in your venture’s objectives? (pg.
454)
• Social, economic, and environmental results do not encompass all possible