Table of Contents Editorial Notes

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Social Entrepreneurship eJournal :: SSRN

SOCIAL ENTREPRENEURSHIP eJOURNAL Vol. 6, No. 29: Jun 14, 2013

JILL KICKUL, EDITOR

Director, Stewart Satter Program in Social Entrepreneurship, New York University (NYU) - Berkley C enter for Entrepreneurial Studies, C linical Professor of Management & Entrepreneurship, New York University (NYU) - Markets, Ethics & Law (MEL) Program

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Table of Contents La Vida Local: Planting the Seeds for Growing an Organic Food Delivery Business Mark Simon , Oakland University - School of Business Administration - Dept. of Management and Marketing Cynthia Miree , Oakland University Matilda Dule , Oakland University Holistic Entrepreneurship Values: Panacea for Self-Development of Vocational High School Students in Indonesia Andi Mallanti, Universiti Teknologi Malaysia Rohana Hamzah , Universiti Teknologi Malaysia (UTM) Cultural Differences and Geography as Determinants of Online Pro-Social Lending Gordon Burtch , University of Minnesota - Twin C ities - C arlson School of Management Anindya Ghose , New York University - Leonard N. Stern School of Business Sunil Wattal, Temple University - Fox School of Business and Management Microcredit in Developed Countries: Unexpected Consequences of Loan-Size Ceilings Anastasia Cozarenco , Aix-Marseille University (Aix-Marseille School of Economics), C NRS & EHESS Ariane Szafarz , Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, C entre Emile Bernheim (C EB) & C ERMi

Fairness and Microcredit Interest Rates: From Rawlsian Principles of Justice to the Distribution of the Bargaining Range Marek Hudon , Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management Arvind Ashta , Burgundy School of Business - C EREN Female Managers in Hybrid Organizations: Evidence from Financial Cooperatives in Senegal Anaïs Périlleux, C atholic University of Louvain (UC L) Ariane Szafarz , Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, C entre Emile Bernheim (C EB) & C ERMi

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SOCIAL ENTREPRENEURSHIP eJOURNAL "La Vida Local: Planting the Seeds for Growing an Organic Food Delivery Business" Entrepreneurship Theory and Practice, Vol. 37, Issue 3, pp. 641-660, 2013 MARK SIMON, O ak land Unive rsity - School of Busine ss Adm inistration - De pt. of Manage m e nt and Mark e ting Em ail: [email protected] CYNTHIA MIREE, O ak land Unive rsity MATILDA DULE, O ak land Unive rsity

La Vida Local is a small organic food delivery business which was started with an investment of under $1,000. In 2008, less than 2 years after its inception, the company is grossing over $80,000. Profits, however, are minimal. Although Julie LaPorte, the owner/operator, is more interested in facilitating the consumption of organic foods than making money, she is exhausted. She wants to hire an employee to help out, but to do so she needs to find a way to generate more profits and to overcome her own desire to keep tight control over operations. "Holistic Entrepreneurship Values: Panacea for Self-Development of Vocational High School Students in Indonesia" ANDI MALLANTI, Unive rsiti Te k nologi Malaysia Em ail: [email protected] ROHANA HAMZAH, Unive rsiti Te k nologi Malaysia (UTM) Em ail: [email protected] The purpose of this paper is to emphasize the importance of the holistic entrepreneurship values toward developing students’ self-development (HEVS-D) based on Islamic philosophy. This article presents guideline for students on how to go about entrepreneurship activities based on Islamic ideology. Several articles consulted in the process of this technical review to give insight on the relevance of a holistic approach to entrepreneurship teaching and learning in vocational high schools around the globe. This article finally, presents an alternative approach as a complement to practice in teaching and learning of holistic-entrepreneurship education in vocational high schools in Indonesia. "Cultural Differences and Geography as Determinants of Online Pro-Social Lending" GORDON BURTCH, Unive rsity of Minne sota - Twin C itie s - C arlson School of Manage m e nt Em ail: [email protected] ANINDYA GHOSE, Ne w York Unive rsity - Le onard N. Ste rn School of Busine ss Em ail: [email protected] SUNIL WATTAL, Te m ple Unive rsity - Fox School of Busine ss and Manage m e nt Em ail: [email protected] We analyze patterns of online lending between individuals using data drawn from Kiva, a global crowd-funding platform that facilitates pro-social (peer-to-peer) lending. Our analysis, which employs a data set capturing more than three million individual lending transactions between 2005 and 2010, considers the dual roles of geographic and cultural distance on lenders’ decisions about which borrowers to support. Although cultural differences have seen extensive study in the IT literature as sources of friction in extended interactions, we argue and demonstrate their role in individuals’ selection of an online transaction partner. We find evidence that lenders do prefer culturally similar borrowers. An analysis of marginal effects indicates that an increase of one standard deviation in cultural differences would be associated with approximately 430 fewer lending actions, at the average, for a given pair of countries; (a loss of more than $10,000). We further find that lenders treat cultural differences and physical distance as substitutes. A one standard deviation increase in physical distance is associated with a 25% decline in the cultural effect, at the average. Finally, we offer some empirical evidence of the potential for IT-based trust mechanisms to overcome culture’s effects, considering, in particular, Kiva’s reputation rating system for micro-finance hq.ssrn.com/Journals/IssueProof.cfm?abstractid=2256502&journalid=966554&issue_number=29&volume=6&journal_type=CMBO&function=showissue

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partners. We discuss the implications of our findings for pro-social lending, online crowd-funding, and electronic markets more broadly. "Microcredit in Developed Countries: Unexpected Consequences of Loan-Size Ceilings" ANASTASIA COZARENCO, Aix -Marse ille Unive rsity (Aix -Marse ille School of Econom ics), C NR S & EHESS Em ail: [email protected] ARIANE SZAFARZ, Unive rsité Libre de Brux e lle s, Solvay Brusse ls School of Econom ics and Manage m e nt, C e ntre Em ile Be rnhe im (C EB) & C ER Mi Em ail: [email protected]

In most developed countries, regulators have imposed loan-size ceilings to subsidized microfinance institutions (MFIs). Entrepreneurs holding above-ceiling projects then need to secure partial funding by a bank before applying for microcredit. In turn, the MFI is tempted to free ride on bank screening and serve better-off applicants. We frame this intuition into a theoretical model. Next, we test the theoretical predictions by exploiting a natural experiment provided by a French NGO, which turned itself into a regulated MFI. We investigate the impact of the French EUR 10,000 loan-size ceiling by using difference-in-differences probit estimation. After the change in status, the approval rate rises and the financed projects are significantly larger. Our findings suggest that imposing a low loan-size ceiling to MFIs can have unexpected and socially harmful consequences. An alternative could be to regulate the target pool of borrowers of subsidized MFIs. "Fairness and Microcredit Interest Rates: From Rawlsian Principles of Justice to the Distribution of the Bargaining Range" Business Ethics: A European Review, Vol. 22, Issue 3, pp. 277-291, 2013 MAREK HUDON, Unive rsité Libre de Brux e lle s (ULB) - Solvay Brusse ls School of Econom ics and Manage m e nt Em ail: [email protected] ARVIND ASHTA, Burgundy School of Busine ss - C ER EN Em ail: [email protected]

This paper addresses the fairness of microcredit interest rates. Since microfinance institutions provide credit for the poor at relatively high prices, the fairness of their interest rates has been repeatedly debated. We first apply Rawls' principles of justice to the case of microcredit interest rates and suggest some limitations related to the hypothesis of rationality of the borrowers and the level of inequality. We then suggest another framework based on the analysis of the distribution of the benefits generated by the transaction to assess the fairness of interest rates. We conceptualize this as the distribution of the bargaining range between the borrowers' and the institutions' reservation price and discuss what these reservation prices could be in the context of microfinance. "Female Managers in Hybrid Organizations: Evidence from Financial Cooperatives in Senegal" ANAÏS PÉRILLEUX, C atholic Unive rsity of Louvain (UC L) Em ail: [email protected] ARIANE SZAFARZ, Unive rsité Libre de Brux e lle s, Solvay Brusse ls School of Econom ics and Manage m e nt, C e ntre Em ile Be rnhe im (C EB) & C ER Mi Em ail: [email protected]

This paper brings new insights on gender interaction in the management of hybrid organizations. Our database comes from Union des Mutuelles du Partenariat pour la Mobilisation de l’Epargne et du Crédit au Sénégal (UM-PAMECAS), a Senegalese network made of 38 financial cooperatives providing 419,602 members with micro-loans. We use fixed-effect panel estimation to analyze the interplay of female/male-dominated boards with female/male managers. The regressions explain the average loan size and the proportion of loans granted to women. Our results show that male managers mitigate the social orientation of female-dominated boards. In contrast, female managers tend to enhance this orientation. More puzzling is the influence of female managers associated with male-dominated boards. In this case, the presence of a female manager increases the average loan size and reduces the proportion of loans granted to women. In sum, female managers tend to align their objectives on those of the local board even though their hierarchy is at the central level. They avoid as much as possible conflicts with their local board members. ^top hq.ssrn.com/Journals/IssueProof.cfm?abstractid=2256502&journalid=966554&issue_number=29&volume=6&journal_type=CMBO&function=showissue

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About this eJournal This eJournal distributes working and accepted paper abstracts along with course materials and broader field-building publications focused on social entrepreneurship broadly defined. It seeks to be inclusive and a space for all those interested and involved in social entrepreneurship research, teaching and action. The eJournal welcomes and encourages research with applications to social entrepreneurship. Topic areas include, but are not limited to course materials, social enterprise, social entrepreneurial behavior, social innovation, origin/motivation, organizational strategy, funding, governance, institutions/organizations, methodology, theory-building and data.

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Advisory Board Social Entrepreneurship eJournal WILLIAM J. BAUMOL Director, New York University - Stern School of Business, Berkley Center for Entrepreneurial Studies, Professor of Economics, Leonard N. Stern School of Business - Department of Economics GORDON BLOOM Director and Founder of the Social Entrepreneurship Collaboratory at Harvard, Harvard University Harvard Kennedy School (HKS) DEBBI D. BROCK Assistant Professor of Entrepreneurship and Marketing, Porter B. Byrum School of Business, Wingate University SUSAN M. DAVIS Chair of the Global Academy, Ashoka: Innovators for the Public DOUG FOSTER Lecturer in Management Studies, University of Surrey - School of Management JOHANNA MAIR Associate Professor of General Management, University of Navarra - IESE Business School hq.ssrn.com/Journals/IssueProof.cfm?abstractid=2256502&journalid=966554&issue_number=29&volume=6&journal_type=CMBO&function=showissue

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ALEX JAMES NICHOLLS Lecturer in Social Entrepreneurship, Skoll Centre for Social Entrepreneurship, Said Business School, University of Oxford JEFFREY A. ROBINSON Assistant Professor of Management and Organizations, New York University (NYU) - Leonard N. Stern School of Business MADHUKAR SHUKLA Professor of Organizational Behaviour and Strategic Management, XLRI School of Business & Human Resources, Jamshedpur (India) ^top Links: Subscribe to Journal | Unsubscribe from Journal | Join Site Subscription |

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