When the objective is to understand and create social change in every field, entrepreneurship and enterprise may not be the most appropriate concepts. The paper ‘Rediscovering Social Innovation’, published in the ‘Stanford Social Innovation Review’ by professors James A. Phills Jr., Kriss Deiglmeier and Dale T. Miller, contends that social innovation represents the best construct for comprehending and producing lasting social change. The value created accrues primarily to society as a whole rather than private individuals.
In this respect, the article explains why most of today's innovative social solutions cut across traditional boundaries and redefine social innovation as a novel solution to a social problem that is more effective, efficient and sustainable than existing solutions. Microfinance is presented as a clear example of social innovation through providing loans, savings, insurance and other financial services to poor people who lack financial resources.
The paper also covers the importance of shifting roles and relationships between the three sectors: businesses, nonprofits and governments. It highlights the exchange of ideas and values, shifts in roles and relationships and the combination of public, philanthropic and private resources; everything necessary to achieve more social innovation in the world.