08. How Social Entrepreneurship Changes the World: Khan Academy
08. How Social Entrepreneurship Changes the World : Khan Academy
Image is from www.khanacademy.org
Watch a video: Khan Academy Vision and Social Return
“A FREE WORLD-CLASS EDUCATION FOR ANYONE ANYWHERE”
-Khan Academy Mission Statement
These days, we perceive business as a mechanism to be a “rich”- to earn money. The business’s objective was to maximize profit, and the stakeholders were interested in the profit and the returns. Doubtlessly, profit is significant in maintaining the business. However, should maximizing profit be the only objective of the business?
Khan Academy, offering approximately 3,100 short videos and 138 million free lessons to the customers, solves the social problem by providing learning opportunities to students whom cannot afford private tutors. Although all of its lessons and videos are free, it generated total revenue of $11,845,812 in 2011. This indicates that social entrepreneurship is fully capable of generating revenue while positively affecting the society (by providing learning resources).
Other than profit, Khan Academy shows us the reason why the firm should be socially responsible: without the customers, the firm is unable to deliver its value proposition. Since the customers enable the company to deliver value proposition and thus generate revenue, the firm should return benefits and values to the customers. This is an ethical standard that any firm should meet.
Khan Academy is an important example of social entrepreneurship that successfully integrates business and technology to fulfill the social needs. The business that only pursues the profit without returning values to the customers is a flower without bees or food without any taste; despite the great profit, it will no longer be able to respond to customer needs, and eventually encounter “death” of the business.
References:
1. Picture:
2. Video:
https://www.youtube.com/watch?v=wRf6XiEZ_Y8&feature=player_embedded
3. Article:
https://www.openforum.com/articles/how-entrepreneurs-can-change-the-world/
4. Research:
http://www.guidestar.org/organizations/26-1544963/khan-academy.aspx#ctl00_phMainBody_divRevExp
