We conducted an exploratory multi-case study of female, necessity micro-entrepreneurs in developing contexts to partially validate an existing theoretical model and identify relevant omitted variables. Using a sample of eight female, necessity entrepreneurs in Tijuana (Mexico), we were able to challenge the established pull-push binary framework in entrepreneurship as well as the linear entrepreneurial process. Our analysis suggests that motivations, family embeddedness and gender identity are critical factors impacting the female micro-venture creation process in developing contexts. We summarize our theoretical findings in a new process model that accounts for macro, meso and micro factors, offering contributions to the scholarship on female entrepreneurship in developing contexts.
Theoretical basis The case and discussion questions posed will allow the instructors the opportunity to introduce critical strategic concepts from strategic, nonprofit management and social enterprise literature. Specifically, (1) strategic transformation: countering drift and anticipating future trends and crises; (2) types of leadership: transactional versus transformational; (3) hybridity and mission drift; and (4) nonprofit funding models, the starvation cycle and the overhead myth. Research methodology Both primary and secondary sources have been used to prepare the case. The first two authors had the opportunity to interview Thomas Tighe, Direct Relief’s (DR) President and CEO in July of 2019. The interview lasted one hour and was transcribed by one of the authors and reviewed by the other two authors for accuracy. In addition, the authors conducted nonparticipant observations in DR’s headquarters in Santa Barbara (California). Given the longevity and media exposure of the organization, extensive internal and external archival data was also available for the analysis. Case overview/synopsis This real and undisguised case is based on DR, a +70-year-old humanitarian $1.2bn nonprofit organization headquartered in California (USA). From its headquarters in Santa Barbara, DR responds to emergencies and delivers medical support for vulnerable people affected by poverty, natural disasters and civil unrest in all 50 US states, six US territories including Puerto Rico and US Virgin Islands, and in more than 90 countries. The case presents Thomas Tighe, DR’s President and CEO, reflecting in late 2018 on the transformation and growth that the organization had experienced since he started his tenure in 2000. Specifically, he is considering the most effective way to allocate an unrestricted recent cash donation. Should DR spend that money on traditional fundraising, reducing its efficiency rate, or should DR take a long-term approach and use the funds to build long-term capabilities? In addition, the case outlines the history and evolution of DR over its more than 70 years of existence, the CEO’s background and motivations, as well as a detailed description of the organization’s revenue portfolio. Students will have an opportunity to learn about a unique nonprofit named among “the world’s most non-for-profit organizations” by Fast Company; DR was also included in the Charity Navigator’s list of the “10 Best Charities Everyone’s Heard of.” In addition, in January 2009, DR was designated as a Verified-Accredited Distributor by The National Association of Boards of Pharmacy, which placed it as the first nonprofit to receive this designation to deliver prescription medicines to all 50 US states. Throughout Tighe’s tenure, DR had been lauded for its fundraising efficiency. The unique distinction to DR’s efficiency is its tradition of adopting new technologies and modern business practices for humanitarian purposes. Students will learn how DR, under the leadership of Thomas Tighe, reinvented and reinforced the organization’s traditions to retain high levels of efficiency in the face of an ever-larger organizational scale, public scrutiny and demand for humanitarian support across the world. Students will witness many strategic and operational tenets that they may be more familiar with from the for-profit world. The case also will help students to understand the concept of hybrid organizations and different nonprofit funding models. Complexity academic level The case has been written to be used in graduate Nonprofit Leadership Management and Social Entrepreneurship courses. Given the scope and implications, the case could also be used on an upper-level strategy course. To maximize students’ learning, the case should be introduced halfway into the course after students have a solid understanding of what nonprofits are and how they operate. If students are not familiar with some of the concepts introduced in the analysis, the proposed readings will prepare them for a more fruitful discussion.
This case is based on Coding Autism, a limited liability company founded in April 2017 and located in Westlake Village (California). The case features the decision process followed by the cofounder, Oliver Thornton regarding the opportunity to seek B Corp certification. B Corp is a certification granted by the nonprofit B Lab founded in Philadelphia in 2006 that recognizes for-profit organizations for meeting the ''highest standards of verified social and environmental performance, public transparency, and legal accountability and aspire to use the power of markets to solve social and environmental problems.'' The case describes the social issue, the start-up, and the social entrepreneur's background as well as his rationale and analysis finally to become a certified B Corp. The case introduces the students to the social issue of unemployment among young adults within the Autistic spectrum. It also explains what a B Corp is, the process to become certified, the B Impact Assessment, as well as the advantages and disadvantages of seeking the certification. It also describes the differences between the B Corp certification and the relatively new legal status, the benefit corporation. This case sheds light on a critical question relevant for social entrepreneurship students, scholars, and sustainable business practitioners.
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