Description
In the first section there is a theoretical approach of some aspects of societal change processes and seven trends which indicate the change processes within the working environment.
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
37
Anca BRATU
Sorin TOMA
Marin BURCEA
Faculty of Administration and Business, University of Bucarest, Romania
POSSIBILITY TO CREATE A
SOCIAL ENTERPRISE IN
TODAY’S WORKING
ENVIRONMENT
Literature
reviews,
case study
Keywords
Entrepreneurship
Change processes
Regional
Entrepreneurial activities
JEL Classification
L26, J23, M13
Abstract
Purpose – This paper aims to debate the possibility of creating a social enterprise in a certain
region of Romania.
Design/methodology/approach – In the first section there is a theoretical approach of some
aspects of societal change processes and seven trends which indicate the change processes
within the working environment. From the same point of view, there are also mentioned
different types of entrepreneurial activities. The paper ends with a case study which is dealing
with the study of the potential to create social enterprises to support rural communities in
Bistrita Nasaud county.
Findings – The data provides an array of social problems that are facing the people of this
region: the lack of jobs, of qualifications required by the market, poverty, social exclusion of
vulnerable groups.
Practical implications/originality/value – The presentation of a case study specific to social
entrepreneurship within a larger theoretical framework triggers a complex approach in
compliance with the specified theoretical aspects.
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
38
1. Introduction
Societies are fundamentally
changing under the impact of technological
developments such as large-scale,
networked information and communication
technology at a global level. The society
that is emerging nowadays can be
characterized by four determinants. The
leading determinant is the development
towards the change society. It is equally
instigated and intensified through the
growing international influences and
interdependencies. Complexity and
dynamics increase due to the global
entrepreneurial structures. Traditional
working structures change in order to
remain competitive within this
international context. This development
has strong impact on enterprises.
Perhaps the greatest competitive challenge
companies face is adjusting to – indeed,
embracing – non-stop change. They must
be able to learn rapidly and continuously,
innovate ceaselessly, and take on new
strategic imperatives faster and more
comfortably [Ulrich, 1998].
Our paper aims to analyse the major trends
indicating change processes within the
working environment and to present a case
study regarding the valorization of forest
fruits in Bistrita Nasaud County. In the
next chapter we enumerate and examine
the key trends regarding the change
processes within the working environment,
highlighting the micro-entrepreneurship
phenomena. Then, we display a case study
which is dealing with the study of the
potential to create social enterprises to
support rural communities in Bistrita
Nasaud county.
The paper ends with some conclusions
regarding the opportunity to create a social
enterprise in Romania.
2. Trends indicating change processes
within the working environment
Several trends emerge related to the
change processes within the working
environment:
• The first trend is moving towards
micro-entrepreneurship.
• The second trend is integrating
learning, teaching, working and
living. In this case we see the
development towards increasing
integration of the different aspects
of life.
• The third trend is developing job
mobility – the development of
change options within one’s
professional career.
Continuous change within the job
environment is part of today’s and
tomorrow’s society. This implies change of
jobs within the same company or between
companies as well as changes within the
job, for instance a new definition of tasks.
• The fourth trend is opting for
parallel jobs or tasks – the
development towards the
combination of parallel jobs or
tasks, also with different
employers.
Today, companies increasingly tend to
concentrate on core business processes.
Consequently, outsourcing or short-term
contracts increase.
These days, both companies and
employees are healthier if employees have
multiple skills, if they can move easily
across functional boundaries, if they are
comfortable switching back and forth
between regular duties and special
projects. [Waterman et al., 1994]
• Global and multicultural acting is
the fifth trend. Fundamental
changes within the working
environment are triggered by the
globalization of business and
production chains. These
increasing global dynamics
require company structures in
which multicultural acting is
possible [Gassmann, 1997].
• The sixth trend is sustaining
continuous change learning.
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
39
Continuous learning plays an
essential role with regard to the
growing complexity in the use of
modern information and
communication technologies.
Individuals, whatever their specific fields,
must cope with business demands that
require them to renew their knowledge and
competence continuously. In many
instances professional education must be
completely renewed three or four times
during a person’s career, or professional
person may have several completely new
careers during a lifetime. There is a
lifelong need for upgrading, updating and
relearning [Longworth and Davies, 1996].
Such lifelong relearning essentially means
to learn how to cope with continuous
change.
• The last trend we have noticed is
developing regional structures
and networking. The development
of regional structures and regional
networks can be considered a
counter-movement to better cope
with globalization. Globalization
and effective regional structures
are two sides of the same issue.
Increasing globalization creates
the necessity for regional
effectiveness. Within this global
framework, companies and
organizations join forces in order
to develop regional concepts and
to use their regional advantages.
In our view the first trend that is moving
towards micro-entrepreneurship is the most
important.
The development towards new working
structures in enterprises requires self-
responsibility and self-organization as well
as establishing small enterprises. This
trend appears central to the societal
changes presently induced through the
political-economic forces of globalization.
Micro-entrepreneurship means the role of
individual entrepreneurs taking into
account global political changes and their
social and economic impact. Such view
includes an understanding of any
individual employee within his/her
working environment as having the role
and the responsibility of a micro-
entrepreneur. It also includes the growing
numbers of newly founded small
enterprises. The new information and
communication technology both creates
the need for such micro-entrepreneurship
and enables these micro-entrepreneurs to
fulfill their roles and tasks.
The term micro-entrepreneurship,
however, refers to a specific attitude rather
than company size. Competitive companies
need employees who act, feel and think as
responsibly as if they were independent
entrepreneurs. This implies the fervor to
work, act and learn with the attitude of
someone who feels responsible for oneself
as well as one’s colleagues and their
individual and collective achievements.
Furthermore, employees become more
aware of their own competencies and
know-how, thus taking the role of
individual virtual entrepreneurs within
their working environment [Strina, 1997].
However, it is important to look to the
positive as well as the negative aspects of
being a micro-entrepreneur. Foucault
(1989) raises the following questions: how
does one ‘govern oneself’ by performing
actions in which one is oneself the object
of those actions, the domains in which they
are applied, the instruments to which they
have recourse and the subject which acts?
[Foucault, 1989]
On the one hand the self-responsibility is
high and may appear burden because it is
required for the working environment itself
and for its social aspects. Besides,
competition among employees is
stimulated which might affect cooperation.
On the other hand, micro-entrepreneurship
stimulates motivation since the employees
are responsible for the results of their
work. The degree of individual freedom
within the working environment increases
with this kind of micro-entrepreneurship.
Some examples of micro-entrepreneurs
are:
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
40
• An outsourced department. This
kind of micro-entrepreneurship
implies that former employees
become more self-responsible
entrepreneurs – it has mainly
become possible and is
encouraged by the achievements
of today’s technology.
• Semi-autonomous working
structures. These require
responsibility for production and
business processes. The concept
of teamwork sets an example
within this framework, allowing
teams to directly control their
production processes and
stimulating the concept of micro-
entrepreneurs.
• Profit centers. The reorganization
of a company into profit centre
structures offers to employees the
possibility to develop self-
responsibility and to act like
managers of their own business.
• Small service companies. Within
this framework new small
companies are founded which
offer a variety of services, e.g.
translation agencies in which the
translators create a network of
self-responsible one-person
entrepreneurs cooperating as a
virtual company.
3. Types of entrepreneurial activities
The business literature provides us several
typologies of entrepreneurial activities.
Mintzberg (1973) suggests that
entrepreneurship is one of the primary
roles of management. This statement could
have one of two different alternative
meanings: (1) entrepreneurial activity is a
part of the daily, on-going process of
managing an organization; or (2) managers
must be prepared to use periodic episodes
of entrepreneurial activity in order to
revitalize their organizations and change
the direction of their organizations to keep
them competitive in a changing
marketplace. Meaning (1) would imply
that entrepreneurial activities are merely a
subset of managerial activities and that
differences in the use of entrepreneurial
activities during highly turbulent times
versus more stable times may be only a
matter of degree. On the other hand,
meaning (2) would imply that
entrepreneurial activities are different in
kind, separate and distinct from the normal
daily activities of management, and that
the undertaking of those entrepreneurial
activities could be classified as episodes of
entrepreneurial activity, separable from
less turbulent periods of managerial
activities.
The ten classes of entrepreneurial activity
are:
• 1. Enterprise Turnaround –
changing the basic value system,
rationale, or mainspring for the
existence of an organization.
• 2. Corporate Turnaround –
transformation and strategic
renewal of an organization
through the radical restructuring
of the organization’s portfolio of
businesses units.
• 3. Corporate Venturing – forming
new ventures from within an
existing organization.
• 4. Business Turnaround –
transforming an existing business
unit through the radically
restructuring of the business
unit’s strategic direction and way
of competing in its industry.
• 5. Product/Process Development
– transforming or radically
restructuring a functional unit
within an existing business unit
through the development of new
products, processes or modes of
doing business.
• 6. Need-Driven Independent New
Venturing – founding a high
growth-potential, independent
new venture started for the
purpose of fulfilling a perceived
market need.
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
41
• 7. Technology-Driven
Independent New Venturing –
founding a high growth-potential,
independent new venture started
for the purpose of
commercializing or capitalizing
on a particular technology.
• 8. Income Substitution New
Venturing – founding a “mom ‘n’
pop,” low growth-potential,
independent new venture intended
to replace the income that one or
more individuals could have
earned from gainful employment.
• 9. Income Supplementing New
Venturing – founding a new
business started to create extra
income on a part-time basis.
• 10. Hobby / Lifestyle New
Venturing – founding a venture
for which making a profit is not a
primary motive in the founding
but that is, instead, founded for
the purpose of allowing the
entrepreneur to pursue a hobby or
lifestyle that would not be
possible or economically feasible
without some contribution from
the venture.
The above typology of entrepreneurial
activities is based on the assumption that
entrepreneurial activities are different in
kind from other, non-entrepreneurial
managerial activities, and that managers of
existing organization may undertake such
entrepreneurial activities periodically
within their managerial roles, but that these
entrepreneurial activities are identifiable as
separate and apart from the normal, day-to-
day activities of running an on-going
organization. However, this issue has not
yet been proven empirically in
entrepreneurship literature. This may partly
be a function of the emphasis on
classifying entrepreneurs and ventures
rather than entrepreneurial activities.
This typology does not attempt to classify
the types of ventures into classes or to
classify the types of entrepreneurs into
classes but, instead, classifies
entrepreneurial activities into classes. The
implication of this is that it is distinctly
possible for a particular venture or
organization to undergo several different
types of entrepreneurial activity at different
times in its life. It is equally possible for an
individual to undertake different types of
entrepreneurial activities at different times
within the same organization or to
undertake multiple types of entrepreneurial
activity simultaneously within different
organizations or ventures.
Concerning independent entrepreneurship
there are several questions that arise. At
what point in the founding of an
independent business entity does the
entrepreneurial activity cease and small
business management begin? Since it is
possible for a business to change over time
from a hobby business to income
supplementing to income substitution, even
to a high growth-potential business, it
seems logical that the process of making
such changes in an existing organization be
considered episodes of Corporate
Entrepreneurship, since they take place
within the context of an existing
organization. Are such changes
entrepreneurial activity at all? Does every
such change in the goals and purpose of a
business indicate another episode of
entrepreneurial activity?
4. Case Study: the Valorization of Forest
Fruits in Bistri?a N?s?ud County - a
Possible Business in the Social Economy
Sector
Since 2002, the management of the
Romanian woods has been accomplished
in a proportion of 23% by private forest
districts, two thirds of the forest surface
being located in Transylvania [Abrudan,
2012], mainly in Bistrita Nasaud county.
In this county there are significant
quantities of forest fruits and medical
plants such as bilberries, raspberries,
savins, eglantines and hawthorns. That is
why this considerable potential of the area
is valorized especially by the population
from this rural local community. This
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means that the identification of the social
needs and of the potential existing in a
certain region is the first step in creating a
social enterprise. [Matei & Matei, 2012]
and the second one is to analyses the
opportunities to create work places, social
inclusions and to reduce poverty.
Regarding the methodology used in our
paper, there were carried out the following
steps:
• the analysis of the evolution of
the working population in county,
during the period 2007-2011,
especially in the rural area;
• the analysis of the unemployment
rate among women;
• the analysis of the forest fruits
production obtained in 2012.
• the final SWOT analysis
regarding the opportunity to set
up a social enterprise in the
county.
The research provided us a comprehensive
picture of the socio-economic situation in
the Bistrita Nasaud County during the
period 2007 -2011. The main findings of
our research reveal the following:
• a decrease of the working
population between 2007 -2011 in
Bistrita Nasaud County;
• an increase of the women
unemployment rate from 2,5% in
2007 to 7,2% in 2009, with a
slight improvement in 2010 (6%).
As a result, several social problems arose
in the area such as: lack of work places,
poverty and social exclusion of vulnerable
groups.
In order to face these social problems a
necessity to create social enterprises has
emerged.
These show the existence of tight
correlations, of direct connection between
the number of social enterprises in an area
and the indicators that characterize the
population and the work force. [Matei &
Matei, 2012].
According to the data provided by Bistrita
Forest Department, in 2012 an important
quantity of forest fruit was collected (Fig.
1), and most of this quantity was exported
with a profit rate between 10% and 15%.
PLACE THE FIGURE 1 HERE
It is obvious that social enterprise with the
activity of collecting, processing and
valorifying forest fruits can help rural
communities to fight against the above
mentioned social problems.
Similar researches showed that the social
enterprises integrate in the labour market
vulnerable groups. However the concepts
related to social economy and social
enterprise are not so often implemented in
Romania
Within the EU Between 2009 -2010 the
number of work places in the social
enterprises reached 163354, which
represents only 1,16 % from the total
number of working places [Monzon, J.L,
R. Chaves, 2012].
The SWOT analysis shows the main
strengths, weaknesses, opportunities and
threats. (Fig. 2)
Conclusions
In the past decades micro-
entrepreneurship has proved to be one of
the main trends in the world. An attitude
towards micro-entrepreneurship has
emerged and developed due to the
necessity to solve some social problems of
the human society.
First of all training the population of the
rural communities in relation to social
entrepreneurship is fundamental. Secondly
people have to behave responsible not only
for themselves but for the whole
community. Thirdly social entrepreneurs
need financial resources in order to start
their businesses. Fourthly government
should implement a friendly fiscal policy.
Launching a social enterprise represents a
huge opportunity for the rural communities
taking into account the local resources (e.g.
agricultural potential, vulnerable social
groups).
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
43
Reference list
Journal article
[1] Abrudan, I.V. (2012). A Decade of Non-State
Administration of Forests in Romania:
Achievements and Challenges, International
Forestry Review, 14(3), 275-278
[2] Brown, J.S. & Duguid, P. (1991)
Organizational Learning and Communities of
Practice: Toward a Unified View of Working,
Learning and Innovation, Organization
Science 2(1), 40-57
[3] Gassmann, O. (1997). Multi-Cultural Teams,
Technical Observation, 26-30
[4] Hall, J. C. (2007). Randall G. Holcombe,
Entrepreneurship and Economic Progress,
Review of Austrian Economics, 21(2-3), 219-
22
[5] Matei, L. & Matei, A. (2012). The Social
Enterprise and Social Entrepreneurship –
Instruments of Local Development. A
Comparative Study for Romania, World
Conference on Business, Economics and
Management, Antalya, Turkey
[6] Strina, G., Isenhardt, I. & Henning, K. (1997).
Qualification for Micro-Entrepreneurship,
Services for 21
st
Century, Stuttgard, 289-299
[7] Ulrich, D. (1998). A New Mandate for Human
Resources. Harvard business review. January-
February, 124-134
[8] Waterman, R.H., Waterman J.A. & Collard,
B.A. (1994). Toward a Career-Resilient
Workforce, Harvard business review. July-
August, 87-95
[9] Wennekers, S. & Thurik, R. (1999). Linking
Entrepreneurship and Economic Growth,
Small Business Economics, 13(1), 27-55
Book
[10] Bhide, A.V. (2000). The Origins and
Evolution of New Business, Oxford, UK:
Oxford University Press
[11] Casson, M. (1982), The Entrepreneur: An
Economic Theory, Totowa, NJ: Barnes &
Noble Books
[12] Foucault, M. (1990). The Care of the Self.
London: Penguin
[13] Homans, G.C. (1964). Social Behaviour: Its
Elementary Forms, New York: Harcourt Brace
Jovanovich, Inc.
[14] Longworth, N., & Davies, W. K. (1996).
Lifelong Learning: New Vision, New
Implications, New Roles for People,
Organizations and Communities in The 21st
Century. London, England: Kogan Page, 2002
[15] Mintzberg, H. (1973). The Nature of
Managerial Work. New York: HarperCollins
FIGURES AND TABLES:
Figure No.1 Quantities of berries collected by the Forestry Department of Bistrita Nasaud in
2012 (tons)
raspberries, 3
cranberries, 6
savins, 5
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
43
Reference list
Journal article
[1] Abrudan, I.V. (2012). A Decade of Non-State
Administration of Forests in Romania:
Achievements and Challenges, International
Forestry Review, 14(3), 275-278
[2] Brown, J.S. & Duguid, P. (1991)
Organizational Learning and Communities of
Practice: Toward a Unified View of Working,
Learning and Innovation, Organization
Science 2(1), 40-57
[3] Gassmann, O. (1997). Multi-Cultural Teams,
Technical Observation, 26-30
[4] Hall, J. C. (2007). Randall G. Holcombe,
Entrepreneurship and Economic Progress,
Review of Austrian Economics, 21(2-3), 219-
22
[5] Matei, L. & Matei, A. (2012). The Social
Enterprise and Social Entrepreneurship –
Instruments of Local Development. A
Comparative Study for Romania, World
Conference on Business, Economics and
Management, Antalya, Turkey
[6] Strina, G., Isenhardt, I. & Henning, K. (1997).
Qualification for Micro-Entrepreneurship,
Services for 21
st
Century, Stuttgard, 289-299
[7] Ulrich, D. (1998). A New Mandate for Human
Resources. Harvard business review. January-
February, 124-134
[8] Waterman, R.H., Waterman J.A. & Collard,
B.A. (1994). Toward a Career-Resilient
Workforce, Harvard business review. July-
August, 87-95
[9] Wennekers, S. & Thurik, R. (1999). Linking
Entrepreneurship and Economic Growth,
Small Business Economics, 13(1), 27-55
Book
[10] Bhide, A.V. (2000). The Origins and
Evolution of New Business, Oxford, UK:
Oxford University Press
[11] Casson, M. (1982), The Entrepreneur: An
Economic Theory, Totowa, NJ: Barnes &
Noble Books
[12] Foucault, M. (1990). The Care of the Self.
London: Penguin
[13] Homans, G.C. (1964). Social Behaviour: Its
Elementary Forms, New York: Harcourt Brace
Jovanovich, Inc.
[14] Longworth, N., & Davies, W. K. (1996).
Lifelong Learning: New Vision, New
Implications, New Roles for People,
Organizations and Communities in The 21st
Century. London, England: Kogan Page, 2002
[15] Mintzberg, H. (1973). The Nature of
Managerial Work. New York: HarperCollins
FIGURES AND TABLES:
Figure No.1 Quantities of berries collected by the Forestry Department of Bistrita Nasaud in
2012 (tons)
bilsberries, 32
cranberries, 6
savins, 5
eglantines, 4
hawthorns, 1
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
43
Reference list
Journal article
[1] Abrudan, I.V. (2012). A Decade of Non-State
Administration of Forests in Romania:
Achievements and Challenges, International
Forestry Review, 14(3), 275-278
[2] Brown, J.S. & Duguid, P. (1991)
Organizational Learning and Communities of
Practice: Toward a Unified View of Working,
Learning and Innovation, Organization
Science 2(1), 40-57
[3] Gassmann, O. (1997). Multi-Cultural Teams,
Technical Observation, 26-30
[4] Hall, J. C. (2007). Randall G. Holcombe,
Entrepreneurship and Economic Progress,
Review of Austrian Economics, 21(2-3), 219-
22
[5] Matei, L. & Matei, A. (2012). The Social
Enterprise and Social Entrepreneurship –
Instruments of Local Development. A
Comparative Study for Romania, World
Conference on Business, Economics and
Management, Antalya, Turkey
[6] Strina, G., Isenhardt, I. & Henning, K. (1997).
Qualification for Micro-Entrepreneurship,
Services for 21
st
Century, Stuttgard, 289-299
[7] Ulrich, D. (1998). A New Mandate for Human
Resources. Harvard business review. January-
February, 124-134
[8] Waterman, R.H., Waterman J.A. & Collard,
B.A. (1994). Toward a Career-Resilient
Workforce, Harvard business review. July-
August, 87-95
[9] Wennekers, S. & Thurik, R. (1999). Linking
Entrepreneurship and Economic Growth,
Small Business Economics, 13(1), 27-55
Book
[10] Bhide, A.V. (2000). The Origins and
Evolution of New Business, Oxford, UK:
Oxford University Press
[11] Casson, M. (1982), The Entrepreneur: An
Economic Theory, Totowa, NJ: Barnes &
Noble Books
[12] Foucault, M. (1990). The Care of the Self.
London: Penguin
[13] Homans, G.C. (1964). Social Behaviour: Its
Elementary Forms, New York: Harcourt Brace
Jovanovich, Inc.
[14] Longworth, N., & Davies, W. K. (1996).
Lifelong Learning: New Vision, New
Implications, New Roles for People,
Organizations and Communities in The 21st
Century. London, England: Kogan Page, 2002
[15] Mintzberg, H. (1973). The Nature of
Managerial Work. New York: HarperCollins
FIGURES AND TABLES:
Figure No.1 Quantities of berries collected by the Forestry Department of Bistrita Nasaud in
2012 (tons)
bilsberries, 32
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
44
Strengths:
• Important areas covered by
forests in the Bistrita
Nasaud County;
• high variety of forest fruits
(bilberries, raspberries,
savins, eglantines);
• the tradition in collecting
the forest fruits for the rural
population in the area;
• entrepreneurial competences
after courses which were
held in the local rural
communities by experts in
social economy;
• available and qualified work
force, among the women
vulnerable from a social
point of view
Weaknesses:
• seasonality;
• perishable fruits;
• the scarcity of financial
resources needed to start a
business;
• the low level of
entrepreneurial intentions;
• overwhelming bureaucracy;
• lack of marketing strategies
regarding consumption of
these products.
Opportunities:
• the weak competition in the
area in collecting and
processing the forest fruits.
• the possibility to obtain a
higher added value to the
forest fruit
• the possibility to sell the
forest fruits both on the
internal and external market;
• a higher rate of consumption
of ecological products;
• a higher preoccupation for a
healthy life style;
• the development of some
touristic facilities in the
area;
• the implementation of
several projects for
strengthening the woman
social enterprising in
Bistrita Nasaud County.
Threats:
• difficulties connected with
efficient distribution of the
products made;
• low interest from the
consumers in buying
products made in social
enterprises;
• the weather;
• the decrease of the
purchasing power of the
consumers;
• the reduction of the wood
surfaces;
• the competition of the
cheap imported products
(jams, syroups);
• the decrease of the active
population in the rural area;
• the fiscal policy.
Figure No.2 The SWOT analysis.
doc_479033900.pdf
In the first section there is a theoretical approach of some aspects of societal change processes and seven trends which indicate the change processes within the working environment.
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
37
Anca BRATU
Sorin TOMA
Marin BURCEA
Faculty of Administration and Business, University of Bucarest, Romania
POSSIBILITY TO CREATE A
SOCIAL ENTERPRISE IN
TODAY’S WORKING
ENVIRONMENT
Literature
reviews,
case study
Keywords
Entrepreneurship
Change processes
Regional
Entrepreneurial activities
JEL Classification
L26, J23, M13
Abstract
Purpose – This paper aims to debate the possibility of creating a social enterprise in a certain
region of Romania.
Design/methodology/approach – In the first section there is a theoretical approach of some
aspects of societal change processes and seven trends which indicate the change processes
within the working environment. From the same point of view, there are also mentioned
different types of entrepreneurial activities. The paper ends with a case study which is dealing
with the study of the potential to create social enterprises to support rural communities in
Bistrita Nasaud county.
Findings – The data provides an array of social problems that are facing the people of this
region: the lack of jobs, of qualifications required by the market, poverty, social exclusion of
vulnerable groups.
Practical implications/originality/value – The presentation of a case study specific to social
entrepreneurship within a larger theoretical framework triggers a complex approach in
compliance with the specified theoretical aspects.
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
38
1. Introduction
Societies are fundamentally
changing under the impact of technological
developments such as large-scale,
networked information and communication
technology at a global level. The society
that is emerging nowadays can be
characterized by four determinants. The
leading determinant is the development
towards the change society. It is equally
instigated and intensified through the
growing international influences and
interdependencies. Complexity and
dynamics increase due to the global
entrepreneurial structures. Traditional
working structures change in order to
remain competitive within this
international context. This development
has strong impact on enterprises.
Perhaps the greatest competitive challenge
companies face is adjusting to – indeed,
embracing – non-stop change. They must
be able to learn rapidly and continuously,
innovate ceaselessly, and take on new
strategic imperatives faster and more
comfortably [Ulrich, 1998].
Our paper aims to analyse the major trends
indicating change processes within the
working environment and to present a case
study regarding the valorization of forest
fruits in Bistrita Nasaud County. In the
next chapter we enumerate and examine
the key trends regarding the change
processes within the working environment,
highlighting the micro-entrepreneurship
phenomena. Then, we display a case study
which is dealing with the study of the
potential to create social enterprises to
support rural communities in Bistrita
Nasaud county.
The paper ends with some conclusions
regarding the opportunity to create a social
enterprise in Romania.
2. Trends indicating change processes
within the working environment
Several trends emerge related to the
change processes within the working
environment:
• The first trend is moving towards
micro-entrepreneurship.
• The second trend is integrating
learning, teaching, working and
living. In this case we see the
development towards increasing
integration of the different aspects
of life.
• The third trend is developing job
mobility – the development of
change options within one’s
professional career.
Continuous change within the job
environment is part of today’s and
tomorrow’s society. This implies change of
jobs within the same company or between
companies as well as changes within the
job, for instance a new definition of tasks.
• The fourth trend is opting for
parallel jobs or tasks – the
development towards the
combination of parallel jobs or
tasks, also with different
employers.
Today, companies increasingly tend to
concentrate on core business processes.
Consequently, outsourcing or short-term
contracts increase.
These days, both companies and
employees are healthier if employees have
multiple skills, if they can move easily
across functional boundaries, if they are
comfortable switching back and forth
between regular duties and special
projects. [Waterman et al., 1994]
• Global and multicultural acting is
the fifth trend. Fundamental
changes within the working
environment are triggered by the
globalization of business and
production chains. These
increasing global dynamics
require company structures in
which multicultural acting is
possible [Gassmann, 1997].
• The sixth trend is sustaining
continuous change learning.
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
39
Continuous learning plays an
essential role with regard to the
growing complexity in the use of
modern information and
communication technologies.
Individuals, whatever their specific fields,
must cope with business demands that
require them to renew their knowledge and
competence continuously. In many
instances professional education must be
completely renewed three or four times
during a person’s career, or professional
person may have several completely new
careers during a lifetime. There is a
lifelong need for upgrading, updating and
relearning [Longworth and Davies, 1996].
Such lifelong relearning essentially means
to learn how to cope with continuous
change.
• The last trend we have noticed is
developing regional structures
and networking. The development
of regional structures and regional
networks can be considered a
counter-movement to better cope
with globalization. Globalization
and effective regional structures
are two sides of the same issue.
Increasing globalization creates
the necessity for regional
effectiveness. Within this global
framework, companies and
organizations join forces in order
to develop regional concepts and
to use their regional advantages.
In our view the first trend that is moving
towards micro-entrepreneurship is the most
important.
The development towards new working
structures in enterprises requires self-
responsibility and self-organization as well
as establishing small enterprises. This
trend appears central to the societal
changes presently induced through the
political-economic forces of globalization.
Micro-entrepreneurship means the role of
individual entrepreneurs taking into
account global political changes and their
social and economic impact. Such view
includes an understanding of any
individual employee within his/her
working environment as having the role
and the responsibility of a micro-
entrepreneur. It also includes the growing
numbers of newly founded small
enterprises. The new information and
communication technology both creates
the need for such micro-entrepreneurship
and enables these micro-entrepreneurs to
fulfill their roles and tasks.
The term micro-entrepreneurship,
however, refers to a specific attitude rather
than company size. Competitive companies
need employees who act, feel and think as
responsibly as if they were independent
entrepreneurs. This implies the fervor to
work, act and learn with the attitude of
someone who feels responsible for oneself
as well as one’s colleagues and their
individual and collective achievements.
Furthermore, employees become more
aware of their own competencies and
know-how, thus taking the role of
individual virtual entrepreneurs within
their working environment [Strina, 1997].
However, it is important to look to the
positive as well as the negative aspects of
being a micro-entrepreneur. Foucault
(1989) raises the following questions: how
does one ‘govern oneself’ by performing
actions in which one is oneself the object
of those actions, the domains in which they
are applied, the instruments to which they
have recourse and the subject which acts?
[Foucault, 1989]
On the one hand the self-responsibility is
high and may appear burden because it is
required for the working environment itself
and for its social aspects. Besides,
competition among employees is
stimulated which might affect cooperation.
On the other hand, micro-entrepreneurship
stimulates motivation since the employees
are responsible for the results of their
work. The degree of individual freedom
within the working environment increases
with this kind of micro-entrepreneurship.
Some examples of micro-entrepreneurs
are:
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Volume I, Issue 2 (2), 2013
40
• An outsourced department. This
kind of micro-entrepreneurship
implies that former employees
become more self-responsible
entrepreneurs – it has mainly
become possible and is
encouraged by the achievements
of today’s technology.
• Semi-autonomous working
structures. These require
responsibility for production and
business processes. The concept
of teamwork sets an example
within this framework, allowing
teams to directly control their
production processes and
stimulating the concept of micro-
entrepreneurs.
• Profit centers. The reorganization
of a company into profit centre
structures offers to employees the
possibility to develop self-
responsibility and to act like
managers of their own business.
• Small service companies. Within
this framework new small
companies are founded which
offer a variety of services, e.g.
translation agencies in which the
translators create a network of
self-responsible one-person
entrepreneurs cooperating as a
virtual company.
3. Types of entrepreneurial activities
The business literature provides us several
typologies of entrepreneurial activities.
Mintzberg (1973) suggests that
entrepreneurship is one of the primary
roles of management. This statement could
have one of two different alternative
meanings: (1) entrepreneurial activity is a
part of the daily, on-going process of
managing an organization; or (2) managers
must be prepared to use periodic episodes
of entrepreneurial activity in order to
revitalize their organizations and change
the direction of their organizations to keep
them competitive in a changing
marketplace. Meaning (1) would imply
that entrepreneurial activities are merely a
subset of managerial activities and that
differences in the use of entrepreneurial
activities during highly turbulent times
versus more stable times may be only a
matter of degree. On the other hand,
meaning (2) would imply that
entrepreneurial activities are different in
kind, separate and distinct from the normal
daily activities of management, and that
the undertaking of those entrepreneurial
activities could be classified as episodes of
entrepreneurial activity, separable from
less turbulent periods of managerial
activities.
The ten classes of entrepreneurial activity
are:
• 1. Enterprise Turnaround –
changing the basic value system,
rationale, or mainspring for the
existence of an organization.
• 2. Corporate Turnaround –
transformation and strategic
renewal of an organization
through the radical restructuring
of the organization’s portfolio of
businesses units.
• 3. Corporate Venturing – forming
new ventures from within an
existing organization.
• 4. Business Turnaround –
transforming an existing business
unit through the radically
restructuring of the business
unit’s strategic direction and way
of competing in its industry.
• 5. Product/Process Development
– transforming or radically
restructuring a functional unit
within an existing business unit
through the development of new
products, processes or modes of
doing business.
• 6. Need-Driven Independent New
Venturing – founding a high
growth-potential, independent
new venture started for the
purpose of fulfilling a perceived
market need.
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41
• 7. Technology-Driven
Independent New Venturing –
founding a high growth-potential,
independent new venture started
for the purpose of
commercializing or capitalizing
on a particular technology.
• 8. Income Substitution New
Venturing – founding a “mom ‘n’
pop,” low growth-potential,
independent new venture intended
to replace the income that one or
more individuals could have
earned from gainful employment.
• 9. Income Supplementing New
Venturing – founding a new
business started to create extra
income on a part-time basis.
• 10. Hobby / Lifestyle New
Venturing – founding a venture
for which making a profit is not a
primary motive in the founding
but that is, instead, founded for
the purpose of allowing the
entrepreneur to pursue a hobby or
lifestyle that would not be
possible or economically feasible
without some contribution from
the venture.
The above typology of entrepreneurial
activities is based on the assumption that
entrepreneurial activities are different in
kind from other, non-entrepreneurial
managerial activities, and that managers of
existing organization may undertake such
entrepreneurial activities periodically
within their managerial roles, but that these
entrepreneurial activities are identifiable as
separate and apart from the normal, day-to-
day activities of running an on-going
organization. However, this issue has not
yet been proven empirically in
entrepreneurship literature. This may partly
be a function of the emphasis on
classifying entrepreneurs and ventures
rather than entrepreneurial activities.
This typology does not attempt to classify
the types of ventures into classes or to
classify the types of entrepreneurs into
classes but, instead, classifies
entrepreneurial activities into classes. The
implication of this is that it is distinctly
possible for a particular venture or
organization to undergo several different
types of entrepreneurial activity at different
times in its life. It is equally possible for an
individual to undertake different types of
entrepreneurial activities at different times
within the same organization or to
undertake multiple types of entrepreneurial
activity simultaneously within different
organizations or ventures.
Concerning independent entrepreneurship
there are several questions that arise. At
what point in the founding of an
independent business entity does the
entrepreneurial activity cease and small
business management begin? Since it is
possible for a business to change over time
from a hobby business to income
supplementing to income substitution, even
to a high growth-potential business, it
seems logical that the process of making
such changes in an existing organization be
considered episodes of Corporate
Entrepreneurship, since they take place
within the context of an existing
organization. Are such changes
entrepreneurial activity at all? Does every
such change in the goals and purpose of a
business indicate another episode of
entrepreneurial activity?
4. Case Study: the Valorization of Forest
Fruits in Bistri?a N?s?ud County - a
Possible Business in the Social Economy
Sector
Since 2002, the management of the
Romanian woods has been accomplished
in a proportion of 23% by private forest
districts, two thirds of the forest surface
being located in Transylvania [Abrudan,
2012], mainly in Bistrita Nasaud county.
In this county there are significant
quantities of forest fruits and medical
plants such as bilberries, raspberries,
savins, eglantines and hawthorns. That is
why this considerable potential of the area
is valorized especially by the population
from this rural local community. This
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42
means that the identification of the social
needs and of the potential existing in a
certain region is the first step in creating a
social enterprise. [Matei & Matei, 2012]
and the second one is to analyses the
opportunities to create work places, social
inclusions and to reduce poverty.
Regarding the methodology used in our
paper, there were carried out the following
steps:
• the analysis of the evolution of
the working population in county,
during the period 2007-2011,
especially in the rural area;
• the analysis of the unemployment
rate among women;
• the analysis of the forest fruits
production obtained in 2012.
• the final SWOT analysis
regarding the opportunity to set
up a social enterprise in the
county.
The research provided us a comprehensive
picture of the socio-economic situation in
the Bistrita Nasaud County during the
period 2007 -2011. The main findings of
our research reveal the following:
• a decrease of the working
population between 2007 -2011 in
Bistrita Nasaud County;
• an increase of the women
unemployment rate from 2,5% in
2007 to 7,2% in 2009, with a
slight improvement in 2010 (6%).
As a result, several social problems arose
in the area such as: lack of work places,
poverty and social exclusion of vulnerable
groups.
In order to face these social problems a
necessity to create social enterprises has
emerged.
These show the existence of tight
correlations, of direct connection between
the number of social enterprises in an area
and the indicators that characterize the
population and the work force. [Matei &
Matei, 2012].
According to the data provided by Bistrita
Forest Department, in 2012 an important
quantity of forest fruit was collected (Fig.
1), and most of this quantity was exported
with a profit rate between 10% and 15%.
PLACE THE FIGURE 1 HERE
It is obvious that social enterprise with the
activity of collecting, processing and
valorifying forest fruits can help rural
communities to fight against the above
mentioned social problems.
Similar researches showed that the social
enterprises integrate in the labour market
vulnerable groups. However the concepts
related to social economy and social
enterprise are not so often implemented in
Romania
Within the EU Between 2009 -2010 the
number of work places in the social
enterprises reached 163354, which
represents only 1,16 % from the total
number of working places [Monzon, J.L,
R. Chaves, 2012].
The SWOT analysis shows the main
strengths, weaknesses, opportunities and
threats. (Fig. 2)
Conclusions
In the past decades micro-
entrepreneurship has proved to be one of
the main trends in the world. An attitude
towards micro-entrepreneurship has
emerged and developed due to the
necessity to solve some social problems of
the human society.
First of all training the population of the
rural communities in relation to social
entrepreneurship is fundamental. Secondly
people have to behave responsible not only
for themselves but for the whole
community. Thirdly social entrepreneurs
need financial resources in order to start
their businesses. Fourthly government
should implement a friendly fiscal policy.
Launching a social enterprise represents a
huge opportunity for the rural communities
taking into account the local resources (e.g.
agricultural potential, vulnerable social
groups).
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
43
Reference list
Journal article
[1] Abrudan, I.V. (2012). A Decade of Non-State
Administration of Forests in Romania:
Achievements and Challenges, International
Forestry Review, 14(3), 275-278
[2] Brown, J.S. & Duguid, P. (1991)
Organizational Learning and Communities of
Practice: Toward a Unified View of Working,
Learning and Innovation, Organization
Science 2(1), 40-57
[3] Gassmann, O. (1997). Multi-Cultural Teams,
Technical Observation, 26-30
[4] Hall, J. C. (2007). Randall G. Holcombe,
Entrepreneurship and Economic Progress,
Review of Austrian Economics, 21(2-3), 219-
22
[5] Matei, L. & Matei, A. (2012). The Social
Enterprise and Social Entrepreneurship –
Instruments of Local Development. A
Comparative Study for Romania, World
Conference on Business, Economics and
Management, Antalya, Turkey
[6] Strina, G., Isenhardt, I. & Henning, K. (1997).
Qualification for Micro-Entrepreneurship,
Services for 21
st
Century, Stuttgard, 289-299
[7] Ulrich, D. (1998). A New Mandate for Human
Resources. Harvard business review. January-
February, 124-134
[8] Waterman, R.H., Waterman J.A. & Collard,
B.A. (1994). Toward a Career-Resilient
Workforce, Harvard business review. July-
August, 87-95
[9] Wennekers, S. & Thurik, R. (1999). Linking
Entrepreneurship and Economic Growth,
Small Business Economics, 13(1), 27-55
Book
[10] Bhide, A.V. (2000). The Origins and
Evolution of New Business, Oxford, UK:
Oxford University Press
[11] Casson, M. (1982), The Entrepreneur: An
Economic Theory, Totowa, NJ: Barnes &
Noble Books
[12] Foucault, M. (1990). The Care of the Self.
London: Penguin
[13] Homans, G.C. (1964). Social Behaviour: Its
Elementary Forms, New York: Harcourt Brace
Jovanovich, Inc.
[14] Longworth, N., & Davies, W. K. (1996).
Lifelong Learning: New Vision, New
Implications, New Roles for People,
Organizations and Communities in The 21st
Century. London, England: Kogan Page, 2002
[15] Mintzberg, H. (1973). The Nature of
Managerial Work. New York: HarperCollins
FIGURES AND TABLES:
Figure No.1 Quantities of berries collected by the Forestry Department of Bistrita Nasaud in
2012 (tons)
raspberries, 3
cranberries, 6
savins, 5
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
43
Reference list
Journal article
[1] Abrudan, I.V. (2012). A Decade of Non-State
Administration of Forests in Romania:
Achievements and Challenges, International
Forestry Review, 14(3), 275-278
[2] Brown, J.S. & Duguid, P. (1991)
Organizational Learning and Communities of
Practice: Toward a Unified View of Working,
Learning and Innovation, Organization
Science 2(1), 40-57
[3] Gassmann, O. (1997). Multi-Cultural Teams,
Technical Observation, 26-30
[4] Hall, J. C. (2007). Randall G. Holcombe,
Entrepreneurship and Economic Progress,
Review of Austrian Economics, 21(2-3), 219-
22
[5] Matei, L. & Matei, A. (2012). The Social
Enterprise and Social Entrepreneurship –
Instruments of Local Development. A
Comparative Study for Romania, World
Conference on Business, Economics and
Management, Antalya, Turkey
[6] Strina, G., Isenhardt, I. & Henning, K. (1997).
Qualification for Micro-Entrepreneurship,
Services for 21
st
Century, Stuttgard, 289-299
[7] Ulrich, D. (1998). A New Mandate for Human
Resources. Harvard business review. January-
February, 124-134
[8] Waterman, R.H., Waterman J.A. & Collard,
B.A. (1994). Toward a Career-Resilient
Workforce, Harvard business review. July-
August, 87-95
[9] Wennekers, S. & Thurik, R. (1999). Linking
Entrepreneurship and Economic Growth,
Small Business Economics, 13(1), 27-55
Book
[10] Bhide, A.V. (2000). The Origins and
Evolution of New Business, Oxford, UK:
Oxford University Press
[11] Casson, M. (1982), The Entrepreneur: An
Economic Theory, Totowa, NJ: Barnes &
Noble Books
[12] Foucault, M. (1990). The Care of the Self.
London: Penguin
[13] Homans, G.C. (1964). Social Behaviour: Its
Elementary Forms, New York: Harcourt Brace
Jovanovich, Inc.
[14] Longworth, N., & Davies, W. K. (1996).
Lifelong Learning: New Vision, New
Implications, New Roles for People,
Organizations and Communities in The 21st
Century. London, England: Kogan Page, 2002
[15] Mintzberg, H. (1973). The Nature of
Managerial Work. New York: HarperCollins
FIGURES AND TABLES:
Figure No.1 Quantities of berries collected by the Forestry Department of Bistrita Nasaud in
2012 (tons)
bilsberries, 32
cranberries, 6
savins, 5
eglantines, 4
hawthorns, 1
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
43
Reference list
Journal article
[1] Abrudan, I.V. (2012). A Decade of Non-State
Administration of Forests in Romania:
Achievements and Challenges, International
Forestry Review, 14(3), 275-278
[2] Brown, J.S. & Duguid, P. (1991)
Organizational Learning and Communities of
Practice: Toward a Unified View of Working,
Learning and Innovation, Organization
Science 2(1), 40-57
[3] Gassmann, O. (1997). Multi-Cultural Teams,
Technical Observation, 26-30
[4] Hall, J. C. (2007). Randall G. Holcombe,
Entrepreneurship and Economic Progress,
Review of Austrian Economics, 21(2-3), 219-
22
[5] Matei, L. & Matei, A. (2012). The Social
Enterprise and Social Entrepreneurship –
Instruments of Local Development. A
Comparative Study for Romania, World
Conference on Business, Economics and
Management, Antalya, Turkey
[6] Strina, G., Isenhardt, I. & Henning, K. (1997).
Qualification for Micro-Entrepreneurship,
Services for 21
st
Century, Stuttgard, 289-299
[7] Ulrich, D. (1998). A New Mandate for Human
Resources. Harvard business review. January-
February, 124-134
[8] Waterman, R.H., Waterman J.A. & Collard,
B.A. (1994). Toward a Career-Resilient
Workforce, Harvard business review. July-
August, 87-95
[9] Wennekers, S. & Thurik, R. (1999). Linking
Entrepreneurship and Economic Growth,
Small Business Economics, 13(1), 27-55
Book
[10] Bhide, A.V. (2000). The Origins and
Evolution of New Business, Oxford, UK:
Oxford University Press
[11] Casson, M. (1982), The Entrepreneur: An
Economic Theory, Totowa, NJ: Barnes &
Noble Books
[12] Foucault, M. (1990). The Care of the Self.
London: Penguin
[13] Homans, G.C. (1964). Social Behaviour: Its
Elementary Forms, New York: Harcourt Brace
Jovanovich, Inc.
[14] Longworth, N., & Davies, W. K. (1996).
Lifelong Learning: New Vision, New
Implications, New Roles for People,
Organizations and Communities in The 21st
Century. London, England: Kogan Page, 2002
[15] Mintzberg, H. (1973). The Nature of
Managerial Work. New York: HarperCollins
FIGURES AND TABLES:
Figure No.1 Quantities of berries collected by the Forestry Department of Bistrita Nasaud in
2012 (tons)
bilsberries, 32
SEA - Practical Application of Science
Volume I, Issue 2 (2), 2013
44
Strengths:
• Important areas covered by
forests in the Bistrita
Nasaud County;
• high variety of forest fruits
(bilberries, raspberries,
savins, eglantines);
• the tradition in collecting
the forest fruits for the rural
population in the area;
• entrepreneurial competences
after courses which were
held in the local rural
communities by experts in
social economy;
• available and qualified work
force, among the women
vulnerable from a social
point of view
Weaknesses:
• seasonality;
• perishable fruits;
• the scarcity of financial
resources needed to start a
business;
• the low level of
entrepreneurial intentions;
• overwhelming bureaucracy;
• lack of marketing strategies
regarding consumption of
these products.
Opportunities:
• the weak competition in the
area in collecting and
processing the forest fruits.
• the possibility to obtain a
higher added value to the
forest fruit
• the possibility to sell the
forest fruits both on the
internal and external market;
• a higher rate of consumption
of ecological products;
• a higher preoccupation for a
healthy life style;
• the development of some
touristic facilities in the
area;
• the implementation of
several projects for
strengthening the woman
social enterprising in
Bistrita Nasaud County.
Threats:
• difficulties connected with
efficient distribution of the
products made;
• low interest from the
consumers in buying
products made in social
enterprises;
• the weather;
• the decrease of the
purchasing power of the
consumers;
• the reduction of the wood
surfaces;
• the competition of the
cheap imported products
(jams, syroups);
• the decrease of the active
population in the rural area;
• the fiscal policy.
Figure No.2 The SWOT analysis.
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