The role of social entrepreneurship in reducing poverty: A case study of Anchor of Hope

Thumbnail Image
Matebese, Noluvuyo
Journal Title
Journal ISSN
Volume Title
University of the Free State
Social entrepreneurship has, over the years, come to be known as an important element in the development of society at large (Ferri, 2014:12). Governments and researchers such as Ferri (2014) have displayed interest in understanding this phenomenon. The role of social entrepreneurship in reducing poverty is what the researcher is trying to uncover in this study. Social entrepreneurship is defined as an action that is innovative in using resources to pursue a need in an ever-changing world to address social needs (Mair & Marti, 2006). Furthermore, social entrepreneurship is said to be associated with using enterprise methods to satisfy social reasons (Dey & Teasdale, 2013). Drawing knowledge from the definition, it appears that social entrepreneurship involves financial gain or profit and giving social value. The social value in this study links to poverty reduction. Social enterprises are therefore seen as a critical factor in development and poverty alleviation (Mair & Marti, 2006). Poverty has different definitions, and it is looked at from different perspectives. Often, there is a claim that poverty must be based on logical argument and science, but there is no correct, scientifically agreed definition because it is inevitably a political concept and, thus, an inherently contested one (Ludi, 2007). One definition is that poverty is a state whereby a person is poor because his or her income level falls below the minimum level necessary to meet basic needs (World Bank, 2019). Millions of people around the world live in extreme poverty and hunger, and many people in extreme poverty are found in Africa. This will be looked at in length in the literature review section. South Africa has also proven to have high levels of inequality, poverty, and unemployment. The South African government has, therefore, called upon businesses to play a role in transforming and developing better conditions for all to live in. Business on its own is broad, and it calls on all sectors within it to play a part. One of them being social entrepreneurship. It can be used as an innovative way of fighting poverty and other social and economic ills that hinder the development of this nation (Mohammed & Ndulue, 2017). Non-profit organisations (NPOs) are also encouraged to take a more entrepreneurial and business-oriented approach in order to generate revenue and be self-sustaining while providing social value services (Mohammed & Ndulue, 2017).
Dissertation (MDS (Development Studies))--University of the Free State, 2022