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The effectiveness of social business plan competitions in developing social and civic awareness and participation

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The effectiveness of social business plan competitions in developing social and civic awareness and participation Caleb Kwong, University of Essex Piers Thompson, Nottingham Trent University Cherry Cheung, London South Bank University To cite: Kwong, C.C., Thompson, P and Cheung, C.W., 2012 The effectiveness of social business plan competitions in developing social and civic awareness participation Academy of Management Learning & Education, 11(3), pp.324-348 and Abstract More and more universities are now delivering courses and programmes to develop social awareness but the literature on the effectiveness of these courses is currently very limited With the introduction of “social entrepreneurship” as a new discipline within the wider social, ethics and third sector education banner, this pedagogic study explores the effectiveness of social business plan (SBP) teaching in inducing social and civil awareness and intentionality amongst business school students This is compared with the case study approach that is traditionally used within the classroom environment Our study found that both approaches can be successful in raising awareness and improving the attitudes of participating students, increasing the probability that they will support socially-orientated initiatives immediately or in the future Interestingly, students who participated in SBP teaching are more likely to develop a local awareness of social and civic matters whilst those who participated in case study learning are more likely to develop a wider national and international perspective In addition, it is found that those who participated in SBP development are more likely to develop a deeper managerial and technical understanding of managing third sector organisations Introduction Consistent with the increasingly widely-held belief that universities have a moral obligation to produce civically aware and socially responsible citizens (McDonald and Donleavy, 1995; Steiner and Watson, 2006), the number of social and third sector education programmes has grown steadily in developed nations in the past two decades (O’Neil, 2005; Paton, 2008; Mirabella et al., 2007) From something that was relatively unheard of in the 1980s, by 2006, there were 426 of such programmes offered by 238 US institutions (Mirabella, 2007), and no fewer than 20 in the UK by 2007 (Palmer and Bogdanova, 2008) However, some of these programmes using the traditional case study formats have received heavy criticism (McDonald and Donleavy, 1995) Students, educators and employers have generally failed to recognise the value of such courses, which often conflict with the principles expounded in the rest of the curriculum, lack personal relevance and may not transfer to the reality of the workplace (Furman, 1990; McDonald and Donleavy, 1995) The rise of the more commercially-orientated concept of social entrepreneurship has resulted in many business schools devoting more staff and resources into teaching these and related topics (Olszak and Sidorick, 2003), and, encouraged by work on experiential learning theory (Kolb, 1984), has led to a shift to more interactive methods of teaching, particularly those used commonly in business and management courses, including the use of business plan writing (Honig, 2004) However, there is little work on the effectiveness of adopting such a social business plan (SBP) teaching approach in third sector education Our study examines the learning outcomes for a group of students enrolled on business and management courses within a UK higher education institution undertaking a module of study on social enterprise The class was split into different seminar groups with one group taught using the traditional case study approach and the other through an approach based around the development and writing of a SBP We analyse the data derived from interviews with these two groups of students to evaluate the use of SBP in changing students’ attitudes, understanding, intentions and behaviours relating to social and moral issues within a business context through experiential learning We structure the remainder of the paper as follows In the first section, we summarise existing literature on third sector education and the increasing emphasis of experiential learning We categorise different types of third sector education programmes and assess their roles and effectiveness We then assess the effectiveness of the commercial business plan as an experiential learning method in a business school context, before connecting business plan teaching with third sector education This is followed by a discussion of the research methodology adopted in this study The implications of these interviews in terms of the conceptual, pedagogical, and empirical (such as employability) are then discussed In doing so, this paper not only enhances existing research, but also should inform practice in the teaching of social issues in a business school context Finally, our conclusion section integrates the theoretical, empirical and pedagogical findings in order to develop a pedagogic model for the implementation of SBP The Development of Third Sector Education within Tertiary Institutions Traditionally there are two types of third sector education programmes targeting very different audiences (Table 1) – those aimed at enhancing the managerial and administrative skills of those who are already engaged in the third sector (Mirabella and Wish, 2000, O’Neil, 2005), and those, which are the focus of this study, more generic awareness-based programmes targeting a much wider non-specialist audience within the university The rationale for the development of the second group of courses originates from the belief that the higher education sector has a socio-political function and cannot exist independently of the society within which it operates (Giroux and Penna, 1979) Part of the purpose of higher education is therefore to create responsible, moral, and productive citizens who will make a great contribution to their community (Tyler, 1949; HEFCE, 2007; Hoskin et al., 2008; Einfeld and Collins, 2008; Cate, 1990) The increasingly apparent disengagement of young people from social and civic matters (Sloam, 2008) has strengthened this viewpoint, and has led to a healthy increase in the number of such programmes since the 1980s Likewise, recent scandals surrounding Enron, WorldCom, Parmalet, BP and News International, and in turn has led to a renewed interest in business ethics, corporate social responsibilities (CSR) and other social initiatives within business schools (Kochan, 2002; Steiner and Watson, 2006; Neubaum et al., 2009) However, a major criticism of many of the existing initiatives is the adoption of a superficial, case-driven approach that prioritises the memorising of information, rather than taking a more complex analytical-driven approach (Rossi, 1995; McDonald and Donleavy, 1995) Such an approach leads to a lack of transferability to activities in the workplace and therefore little value for future careers (Schug et al., 1984; Furman, 1990; McDonald and Donleavy, 1995) Students also report that studying about civic and social matters is boring, repeats coverage of other courses, is too detailed, and unrelated to existing knowledge (Schug et al., 1984) The above arguments suggest the need to acknowledge the complexity of understanding social phenomenon beyond the superficial view of students merely as passive recipients of knowledge (Jones, 2002) Kolb’s (1984; 2005) formulation of the experiential learning theory has received widespread attention in the education literature and is particular relevant to this study (Kayes, 2002; Yamazaki and Kayes, 2004, 2007; Ng et al., 2009) According to the theory, understanding and sustained commitment can be attained through the process of ‘experiencing’, ‘reflecting’, ‘thinking’ and ‘acting’ (Kolb, 1984, 2005) By doing so, a student becomes involved in the learning experience and is engaged in addressing their own needs, which ensures the new understanding is retained and memorised better Students are also more prepared for the knowledge to be scrutinised by society at large upon graduation On a more holistic level, such experiential learning is also about creating a ‘total person’ (Yorks and Kasl, 2002) and to understand the nature of the social environment and the global view which fits issues around an individual’s needs, interests, skills and future career aspirations The use of some of the tried and tested active experiential teaching methods should enable more in-depth and interesting social learning, resulting in a personal understanding of civic and social issues, by deliberately challenging their norms and to make students struggle with unfamiliar information (Jones, 2002; Rossi, 1996) However, such in-depth learning requires an “inquiry-orientated” teaching approach as well as innovative curriculum materials that are complicated to administer and time-consuming to develop (Kon, 1995; Rossi, 1996) It requires staff to act as coaches rather than teachers to provide extensive guidance, and to direct students without revealing the answer (or one version of it), in other words facilitating the learning process rather than traditional transmission based teaching (Rossi, 1996; Löbler, 2006) Many of these methods require students to actively participate in discussion of issues or questions containing ambiguities, doubts, and controversies (Rossi, 1996), which necessitates thorough preparation prior to classes (Kim et al., 1996) and can be a struggle if students fail to see the value of the subject (Rossi, 1996) The challenge of classroom-based third sector education is therefore to balance academic intensity and rigour of content containing rich and diverse knowledge, as well as to making it relevant and interesting for students in order to achieve a spirit of inquiry allowing interpretation of the full and lasting meaning of the subject (Rossi, 1996; Jones, 2002) However, teaching social and ethics issues in business schools poses a few difficult challenges on all practical, pedagogical and ideological levels Business students often feel they are there primarily to learn about for-profit rather than not-for-profit activities and other civic and social matters, and such disengagement from the subject represents a serious obstacle to overcome For business teachers, the contradiction and even incompatibility with the commercial emphasis of the rest of the curriculum, provides a considerable obstacle to overcome Further, pedagogically social and civic sector courses are widely-criticised for their empirical ‘softness’, ambiguity, and normative and subjective natures, which clashes with the positivist, technocratic and dehumanised emphasises of the ‘old-school’ business and management teaching (McDonald and Donleavy, 1995; McPhail, 2001; Porter and McKibbin, 1998; Ghosal, 2005; Steiner and Watson, 2006) The Potential Use of the SBP as part of the Third Sector Education Curriculum The rise of social entrepreneurship in the UK during the past 15 years, partly due to its ability to link the third sector and market (Dart, 2004; Sepulveda, 2009) and partly due to policy pressures for greater hybridisation of the third sector (Harris, 2010), has brought the business schools to the forefront of the delivery of third sector education (Olszak and Sidorick, 2003) The concept of social entrepreneurship emphasises both the processes of entrepreneurial opportunity recognition and exploitation in these courses (Paton, 2008), as well as the generation of ‘earned income’, resulting in a double bottom line from the pursuit of both social outcomes and commercial sustainability (Tracey and Phillips, 2007) Such commercial-social interchange of the social entrepreneurship concept opens doors to the use of successful pedagogic methods from within the business schools for the delivery of third sector education The business plan is widely utilised as a unique part of entrepreneurship teaching ever since it became a popular tool to aid business start-up activities in the 1970s (Hill, 1998; Karlsson and Honig, 2009) Of 100 top universities in the US, 78 had at least one course on business plan development; and 10 of the top 12 universities conducted business plan competitions (Honig, 2004) Interestingly, even though these competitions are primarily there to encourage students to start up their own businesses, interest in business plan competitions does not always lead to subsequent business start-ups (Koch, 2003; Edwards and Muir, 2002), but are seen as having value added for employers (Bell, 2010) In the social entrepreneurship context, the use of the SBP is also becoming increasingly popular (Olszak and Sidorick, 2003) In the US, SBP competitions can be found in a number of universities, either as a standalone competition such as the social business plan impact competition held by the Duke University (Duke University, 2009), or as part of a generic business plan competition, such as the social business stream of the business plan contest in Harvard (Harvard University, 2011) Most of these competitions target the general student population rather than those who attended a specific course, with some even attracting entries from the wider public and from third sector practitioners (Olszak and Sidorick, 2003) These are people who have already expressed interest in third sector issues and therefore such courses may not offer much appeal to business students who may be more profit-orientated It is not difficult to see that SBP teaching is in effect a branch of experiential learning outlined in the previous section Through SBP teaching, students observe the problems in the world (experiencing), think of a possible solution (reflecting and thinking) and come up with their own business plan to solve this problem (acting) Consistent with Gibb’s (2002) notion of an active learning environment, it has been suggested that a business plan competition produces a very real business situation, allowing students to pull together different facets of commercial skills required to start a new venture, including marketing, finance, and human resource management (Gibb, 2002; Honig, 2004) Through the process participants confront challenges which might go beyond their prior knowledge and experiences (Bell, 2010, p.20) The advice and support that the students received from the educators are likely to trigger future learning loops by reshaping the students’ ideas and thoughts (Race, 2007) The business plan model provides a personalised project-orientated output that assists with student evaluation, rather than following a closed-ended pedagogical structure (Honig, 2004) Students can therefore develop specific knowledge determined by their areas of interest to concentrate on a specific business context (Gibb, 2002), allowing different interpretations of the experience based on their prior knowledge (Piaget, 1950; Steffe and Gale, 1995; Löbler, 2006) This encourages independent and divergent thinking (Sternberg and Lubart, 1999) Students are also provided with an analytical platform to analyse both internally how strategies and tactics affect business operations, and also externally through the situational and stakeholder contexts (Timmons et al., 1987) This provides a “focus and structure to a field that is, by definition, without conventional borders” (Honig, 2004, p.260) Koch (2003) found business plan preparation is seen by 80% of entrepreneurship majors as the most important component of their academic programme, 50% found it an authentic simulation of real life, and 30% of the business plans actually lead to the foundation of company Nevertheless, support for the business plan approach is far from universal Many argue that the business plan is merely a tool for venture capitalists and bankers to assess business proposals without reflecting one’s true capability to start and run a business (Wan, 1989; Gibb, 2002) It has also been argued that the over-reliance on the business plan inhibits entrepreneurial responses to subsequent changes in the environment (Gibb, 2002) In the teaching context, it is contended that assessed business plans often become too studious, with students often fixated on a particular idea which can then quickly become outdated (Honig, 2004), or a risk averse less innovative attitude is taken to ensure the assessment is passed (Kwong and Mitra, 2010) Thus it may be unrealistic to expect to change students’ entrepreneurial intentions through the development of a single business plan Whilst the advantages and limitations of using business plans in raising entrepreneurial intentions and participation through increasing perceived feasibility have been heavily discussed, the use of the business plan to increase perceived desirability in an educational setting is a less heavily explored topic In the business school and social education context understanding of this issue is particularly important as respondents were not actively seeking social business opportunities, thus have no intention to realise their business plan Nevertheless, this paper argues that the additional focus on entrepreneurship emphasised by a SBP is potentially an important one Depending on personal preferences, some students will develop a non- profit paradigm whilst some others will develop a social justice paradigm (Einfeld and Collins, 2008) Research Methodology Our research is based on interviews with postgraduate business students attending a mandatory core module on “social enterprise” According to the module handbook, the aim of this module is to enable students: “to acquire a critical understanding of theories and practice of how social entrepreneurs use a range of entrepreneurial and management skills to address social issues such as exclusion, collaboration, networking and environmental concerns” The course has two contact hours per week, consisting of a lecture followed by a seminar, with each lasting an hour The lectures, which all students attended together, provided students with the critical and theoretical underpinning of social entrepreneurship, as well as the practical application of management issues and functions, for social enterprises For seminar sessions, students were divided into two groups For the first group (the SBP stream) the seminar session took the form of an hour of business plan discussion based on the lecture’s topic At the end of the module, a business plan competition was held whereby all students presented their business ideas in front of a panel of judges consisting of academics, third sector participants and a venture capitalist (see Part of Figure 1) For the second group (the Case Study (CS) stream) the seminar session used a mixture of conventional classroom-based teaching approaches including case studies, simulations and role play, quiz, videos and podcasts In total there were 29 students enrolled on the module The majority (N=24) were assigned to the SBP stream but a small number (N=5) were assigned to the case study stream to act as the “control group” for the study The SBP stream can be further divided into two groups: 10 Godfrey, P., Illes, L., & Berry, G 2005 Creating breadth in business education through service learning Academy of Management Learning & Education, 4: 309-323 Greenberg, J., & Eskew, D E 1993 The role of role-playing in organizational research Journal of Management, 19: 221–241 Gribbin, D 2005 How to conduct a successful accounting field trip Management Accounting Quarterly, 7(1): 44-50 Guda, D 2006 Impact of NGO institutional capacity on coverage and quality of ESP services in NSDP supported NGO clinics Dhaka: MBA Thesis, Ibais University Gumpert, D 2002 Burn your business plan Needham, MA: Lauson Hang, C., Ang, M., Wong, P., & Subramanian, A 2009 Technology management education initiatives in Asia: A case study from the National University of Singapore Academy of Management Learning & Education, 8: 444-456 Harris, M 2010 Third sector organizations in a contradictory policy environment In D Billis, (Ed.) 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Clawson, 1996; Klofsten; Stephenson and Christensen, 2007; Sévigny et 2000 al., 2010 Classroom based Generic Shafritz et al., 2005; Mustar, 2009 Mirabella and Wish, 2000; Cooney, 2011; Business/management Mirabella, 2007 skills training Sector specific skills Pierson, 1959; Schlossman and Sedlak, 1988; Balassiano and Chandler, 2010, Mirabella, training Mosher, 1975; Mustar, 2009 2007; Palmer and Bogdanova, 2008; Paton, 2008; Miller, 1986 Action orientated Service learning Godfrey et al., 2005 ; Salimbeme et al., 2005 ; Perry and Imperial, 2001; Brower, 2011; Steiner and Watson, 2006 Godfrey et al., 2005; Salimbeme et al., 2005 ; Warren, 1998; Perks and Haan, 2010; Dolch et al., 2007; Austin & Sax, 1998 ; Austin et al., 1999 ; Clark et al., 1997 ; Clague, 1995; Everett, 1998 ; Evler & Giles, 1999; Jacoby, 1996; Mabry, 1998 ; Markus et al 1993 ; Moely et al., 2002 ; Monard-Weissman, 2003 ; Roker et al.,1999 ; Stukas et al., 1999 Fieldtrips Gribbin 2005; Mustar, 2009 Duarte and Hodge, 2007; Dolch et al., 2007 Work experience/ Johannisson, 1991 ; Raelin 2006 ; Narayanan Marlin–Bennett, 2003; Reddy, Internship et al., 2010; Liu et al., 2011 ; D’Abate et al., Sweetman and Gallagher, 2006 2009 Consultancy organisations for Joy and Kuehn, 2002; Luppino, 2007 2006; Guda, 2006; Tobin, 2010 33 Research project Lambert et al., 2007; Mustar, 2009 ; Roth, Miller-Millesen and Mould, 2004; Holt, 2003 1994; Jiang and Xu, 2005; Hang et al., 2009 Hosting conferences Bailey and Guskey (2000), Rochford et al., Marshall, 2005, Bailey and Guskey (2000) and other events 2004; Love and Hildebrand, 2002 Classroom based Speaker invitation Shepherd, 2004; Mustar, 2009 Swanson, 2004; Sims, 2002 TV and Videos Alavi et al., 1995; Keegan, 1995; Pirrong and Hepburn, 1997; Bratton et al., 1999; Hosmer Lathen, 1990 and Steneck, 1989 Case studies Shepherd, 2004; Cooper et al., 2004; Hart, Herkert, 2000; Link, 1989, Cowton and 1996a; Hart, 1996b; Hang et al., 2009 Cummins, 2003; Ogden, 1984; Lane and Schaupp, 1992 Quizzes Faria, 1987; Mula and Kavanagh, 2009 Games Verzat et al., 2009; Faria, 1987; Keys and Keys and Wolfe, 1990; Wolfe and Fritzsche, Wolfe, 1990 1998; Furman, 1990 Role play Greenberg and Eskew, 1993; Craig amd Brown, 1994; McDonald and Donleavy, 1995 Amernic, 1994; Brown, 1994; Mercado, 2000; Shepherd, 2004 Simulations Hindle, 2002; Petranak, 2000; Petranak and Ullmann and Brink, 1992; LeClair et al., 1999 Corey, 1992; Keys, 1997; Wolfe, 1997; Wolfe and Bruton, 1994; Shepherd, 2004 Business plan Honig, 2004; Lumpkin et al., 1998 Lau et al., 2007 - 34 Table Descriptive details on the participated students Interviewee No Participated in SBP Strong prior interest of the third sector Good prior knowledge of the third sector Previous experience in third sector Prefer employment upon graduation Prefer self employment upon graduation Desire self employment in the long term Some interests in a social career       10                         11  12     13       14      15  16  17  18  19  20  21  22  23  24  25             26     27          28       29      35    Table Existing social initiatives and other related responses mentioned by interviewees during their interviews Cast study approach SBP Scale International/ National/ Regional initiatives International/ National/ Regional initiatives • • • • Personal interest Grameen Bank (Bangladesh/ International) Big issues (UK/ International) Oxfam (UK) Ashoka (Japan/ International)* • • • • • • Grameen bank (Bangladesh/ International) Big issues (UK/ International) Cancer research (UK) Jamie Oliver’s 15 (UK) Bank Rakyat Indonesia (Indonesia) Devine chocolate (Ghana) Local initiatives Local initiatives • • • High street charity shops “cannot think of any” “There is none available” • • • • • High street charity shops A number of local elderly café in various countries* Locally-based biofuel initiative in India* Some reading club initiatives across the US* “There is none available” • helping the poor • • • A social enterprise relating to a cycling initiative* Some reading club initiatives across the US* A student movement in Cyprus* Note: * represents cases discovered during their independent research 36 Table 4: Social Business ideas from SBP students No Brief description of the social idea Idea based on: Crops for biofuel purpose (Bangladesh) 2, 4, 5, As above 8 As above As above 10 Local elderly café (UK) 5, 11 Local elderly café (Norway) 4, 5, 12 Local medical supplies (Nigeria) 1, 2, 4, 5, 13 Storage space for students (UK) 3, 14 Cookies factory to help ex-prisoners (UK) 4, 5, 15 As above 5, 16 As above 5, 17 As above 5, 18 As above 4, 5, 19 As above 5, 20 Local Recruitment and training agency (UK) 3, 4, 21 As above 3, 4, 22 As above 3, 4, 23 As above 24 As above 25 Local cycling initiative (UK) 4, 5, 26 Shelter for abused women (UK) 4, 27 Investment network development for students (UK) 3, 4, 5, 28 Local reading club (UK) 3, 4, 5, 29 Consultancy for prospective overseas students (UK) 2, 3, 4, 5, Note: = linked to future career; = linked to possible future business; = linked to personal problems, = linked to personal interests, = linked to opportunity gap, = linked to a local issue, = linked to an issue of national importance; = not contributed to the idea development process – merely participated in other’s project 37 Table Examples of participants’ narratives relating to the different aspects of skills discussed in the interviews CS stream SBP stream Strategic • I learnt about the concepts of Mission drift and double • We learnt how to conduct an enhanced SWOT analysis bottom lines This is when your initiative dwell off from analysis for our SBP (11) your social objectives as it became more commercialised I now realised that the line between social and commercial venture is blurred (4) Marketing Finance • We learnt about how some social organisations used • innovative channels to increase the profiles of their organisation (1) • Word of mouth can be a powerful and cost effective marketing tool for SEs (11) • We searched online and found a website where we could find volunteers to our website for us for free, and we will use it to advertise our social enterprise (9) • I become aware of the difference between different • sources of finance available for SEs (2) • We found that conventional funding is almost obsolete for small SEs… we found a number of funding channels online (11) I became aware of the different financial consequences arose as a result of different commercial emphasises (2) • • Because what we are doing is for good clause, we hoped to invite celebrities to attend our events without charging us any money (24) Commercial requirement for funding was too high for my commercial business However, I realise that I can apply for money from the government if there is a social spin to my idea (6) Cost is one of the major adjustments when drafting the income statement We need to put it lower than for-profit 38 businesses and provide justification (7) HRM • We learnt that different types of social organisations • adopted different HRM practices Most charity adopted the cost reduction approach when it comes to HRM, whilst more commercially oriented social organisations may adopt HRM practices that are similar to commercial organisations (3) • Volunteers can be difficult to handle because they are not there for the long term and that they are not motivated by rewards, and therefore something needed to induce their intrinsic motivation (6) Choosing appropriate board members for SEs can be a tricky task You need to find people with a mixed relevant skills but at the same time, understand the social nature of the organisation to prevent mission drift (8) 39 Figure A contingency model of social business plan training for business school students Part A: selecting an appropriate assignment A full SBP relating to a particular social idea Prior interest in initiating a social initiative? Social idea discovery Yes No Expectation to start a commercial business in the immediate future? Part B: training approach Yes No A partial SBP within an existing commercial business plan as CSR/ marketing tool A consultancy report/ cost effectiveness analysis regarding the promotion of CSR/ social initiative within an existing organisation External speakers/ advisors Other business modules Other support sessions Business plan training Peer support sessions 1-on-1 training Social network training Theories of SE Strategic orientation Marketing HRM Finance Social business plan Competition 40 ... commonly in business and management courses, including the use of business plan writing (Honig, 2004) However, there is little work on the effectiveness of adopting such a social business plan (SBP)... entrepreneurial intentions through the development of a single business plan Whilst the advantages and limitations of using business plans in raising entrepreneurial intentions and participation through increasing... environment (Interviewee 6) Given that the business plan is already an existing teaching method in business schools, the introduction of the SBP further reinforces the alignment between the social and

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