Year: 2020

Marketing education is a program designed to prepare secondary and postsecondary students to conduct the critical business functions associated with directing the flow of products and services from the producer to the consumer. A fundamental understanding of the marketing concept and basic marketing skills are essential not only to students entering the field of marketing but for everyone entering the workforce. Marketing education courses provide students with knowledge and skills that are highly transferable and will last a lifetime.

The discipline of marketing is built upon three areas of interdisciplinary content. These foundations of economics, human resource skills and marketing concepts are necessary to understand and apply the nine functions of marketing. Students study and apply the marketing functions that include:

• Distribution
• Financing
• Marketing-information management
• Product planning
• Promotion
• Purchasing
• Risk management
• Selling

Course work in the marketing education curriculum is expanded to include application and integration of technology, higher-order thinking skills, problem solving and core academic competencies.

Students also have opportunities to develop leadership, social, civic, and career skills in marketing through their participation in DECA, an association of marketing students. DECA provides well-planned activities that can be integrated into the curriculum and projects that promote occupational competence.

Levels of Education in Marketing

Most of the students currently being served by marketing education are at the secondary level. While some states and local school districts do operate courses/classes at the middle school level, most of the students are being served at high school level. It is estimated that between 5,000-6,000 marketing programs are in place at the secondary level of instruction.

Marketing programs are also in place at the postsecondary level. They may be called mid-management, marketing and management, or just marketing. These programs are in place at many of the community colleges and two-year institutions around the United States.

Marketing programs at the college and university level most often are taught through colleges of business. Some, however, are offered through colleges of education and actually prepare people to become marketing education teachers.

Medicare influences most of the healthcare decisions of patients 65 and up. Unfortunately, original Medicare can have gaps in coverage that steer people away from making the right decisions for their health.

It is not surprising that many seniors look for human assistance to enroll in a health plan during Medicare’s Annual Election Period (AEP), usually with a sales or phone rep. However, what is surprising is the growing number of agents/brokers used, and their increasingly significant role in the decision-making process. In fact, according to Deft Research, nearly 20% of Medicare seniors worked with an agent in 2018, with switchers being 6x more likely to do so than non-switchers. Agents can help with many activities such as comparing benefits and prices of Medicare Advantage (MA) plans, checking if primary care providers or preferred hospital systems are in-network or if certain prescription drugs are covered. Overall, Deft found that nearly half (46%) of all MA members who received help from agent/broker cited the agent/broker as the guiding influence in their plan selection.

In addition to agents/brokers, there are other influencers Medicare marketers should consider engaging and empowering – providers, financial planners, elder lawyers and CPAs. These are professionals that are regularly asked by their Medicare-eligible clients to provide guidance and recommendations about their healthcare coverage options.

Implementing an influencer strategy requires relationship building – you can’t simply arm influencers with marketing materials and hope for the best. A relationship needs to be established and cultivated to understand the needs of the influencers; where they may have knowledge gaps, how they want to position their role in the decision-making process, etc. Then solutions must be developed that fit their individual, unique needs.

For each type of influencer, there are different deliverables and tactics to consider.

For brokers and agents

• Collateral that can be used to educate agents/brokers, but also used by agents/brokers to sell
• Customizable marketing materials
• Content distribution platform where agents/brokers can request and customize materials

For providers

• Marketing materials designed to take advantage of waiting room real estate (note: Centers for Medicare and Medicaid Services (CMS) has specific rules about provider marketing)
• Provider-branded direct mail targeting provider patients

For financial planners, elder lawyers and CPAs

• Collateral that can be used to educate influencers, but also used by influencers to educate their book of business
• Co-present a Medicare education seminar or workshop inviting the influencer’s book of business

Don’t forget health plan employees; arm them with tools to make them a referring channel:

• Develop an education and incentive program for employees
• Arm all employees with ambassador cards business card-sized collateral pieces with a phone number and URL where those interested can get more information. (Note: CMS does not permit employees to sell who are not licensed, however, these cards are just referring the health plan to the consumer.)
• Reward participating employees on a monthly basis to maintain program momentum

With human assistance being a major enrollment channel, it is important to consider how healthcare marketers can properly inform key influencers and help them facilitate the decision-making process.

Sanitation marketing is an emerging field that applies social and commercial marketing approaches to scale up the supply and demand for improved sanitation facilities. While formative research is the foundation of any sanitation marketing program, essential to understanding what products the target population desires and what price they’re willing to pay for them, components such as the marketing mix, communications campaign, and implementation are also critical to the design and implementation of effective program.

Creating sanitation demand is usually done by a combination of public and private sector actors. In Vietnam, promotion was through cooperation of the village health workers, the local leader of the Vietnam’s Women Union, and the village head, and local masons trained by the programme. In Peru it was the local entrepreneur, the local health worker and the schools. Cambodia uses local sales agents to market a sanitary toilet.

Studies in Vietnam and Kenya also showed that low-income users also want attractive models and materials that meet their aspiration of higher status product. An example are the coloured plastic latrine platforms in Kenya.

A study of 21 cases of sanitation promotion in two case study collections showed that mostly an outside agency contacts a community and offers a package. However, project staff do not always cooperate with community members. Furthermore hygiene behaviour change is seen as separate from sanitation practices in most programmes. It is also pointed out that social marketing and social mobilization are more effective methods of changing behaviour than the promise of health benefits.

A sustainability case study in Vietnam showed that three years after the pilot had ended, raising and meeting demand had still gone on without external support. Challenges were to meet the more specific technical and financing services of the poor, monitor sanitation access poor-specific and over time, and include key hygiene behaviour changes in monitoring.

Background information and materials referred to in the article:

• A definition of sanitation marketing is the use of business principles and unsubsidized markets to make it possible that local providers meet the demands of non-poor and poor local households. (Sijbesma et al, 2010)
• The WELL project of WEDC developed a factsheet on the principles of marketing goods and services with a development benefit, such as toilets.
• In Peru the local entrepreneur, the local health worker and the schools created sanitation demands.
• Cambodia uses local sales agents to market a sanitary toilet (video below).
• Studies in Vietnam and Kenya also showed that low-income users also want attractive models and materials that meet their aspiration of higher status product.
• A study of 21 cases of sanitation promotion in two case study collections showed that mostly an outside agency contacts a community and offers a package but that project staff is not always assisted by community members.
• A sustainability case study in Vietnam showed that three years after the pilot had ended, raising and meeting demand had still gone on without external support.

Financial Literacy

Financial literacy is the confluence of financial, credit and debt management and the knowledge that is necessary to make financially responsible decisions—decisions that are integral to our everyday lives. Financial literacy includes understanding how a checking account works, what using a credit card really means, and how to avoid debt. In sum, financial literacy impacts the daily issues an average family makes when trying to balance a budget, buy a home, fund the children’s education and ensure an income at retirement.

A lack of financial literacy is not a problem only in emerging or developing economies. Consumers in developed or advanced economies also fail to demonstrate a strong grasp of financial principles in order to understand and negotiate the financial landscape, manage financial risks effectively and avoid financial pitfalls. Nations globally, from Korea to Australia to Germany, are faced with populations who do not understand financial basics.

The level of financial literacy varies according to education and income levels, but evidence shows that highly educated consumers with high incomes can be just as ignorant about financial issues as less-educated, lower-income consumers (though in general, the later do tend to be less financially literate). And it seems consumers are hesitant to learn. The Organization for Economic Co-operation and Development (OECD) cited a survey conducted in Canada that found that choosing the right investment for a retirement savings plan was more stressful than a visit to the dentist.

Declining Financial Literacy

In past generations, cash was used for most daily purchases; today, it’s rarely flashed particularly not by younger shoppers. The way we shop has changed as well. Online shopping has become the top choice for many, creating ample opportunities to use and overextend credit an all-too-easy way to accumulate debt, and fast.

Meanwhile, credit card companies, banks, and other financial institutions are inundating consumers with credit opportunities the ability to apply for credit cards or pay off one card with another and without the proper knowledge or checks and balances, it is easy to get into financial trouble.

Many consumers have had very little understanding of finances, how credit works and the potential impact on their financial well-being for many, many years. In fact, the lack of financial understanding has been signaled as one of the main reasons behind savings and investing problems faced by many Americans.

Every few years, FINRA, the finance and banking regulator, issues a five-question test as part of its National Financial Capability Study, which measures consumers’ knowledge about interest, compounding, inflation, diversification, and bond prices. Only 34% of those who took the test got four out of five questions correct, which suggests that the basic economic and financial principles that underpin these problems are widespread, touching every state in the country in different ways.

Trends Making Financial Literacy More Important

Compounding the problems associated with financial illiteracy, it appears financial decision-making is also getting more onerous for consumers. Five trends are converging that demonstrate the importance of making thoughtful and informed decisions about finances:

1. Consumers are shouldering more of the financial decisions

Retirement planning is one example of this shift. Past generations depended on pension plans to fund the bulk of their retirement lives. Pension funds, managed by professionals, put the financial burden on the companies or governments that sponsored them. Consumers were not involved with the decision-making, typically did not even contribute their own funds, and they were rarely made aware of the funding status or investments held by the pension. Today, pensions are more a rarity than the norm, especially for new workers. Instead, employees are being offered the ability to participate in 401(k) plans, in which they need to make investment decisions and decide how much to contribute.

2. Complex options

Consumers are also being asked to choose among various investment and savings products. These products are more sophisticated than in the past, asking consumers to choose among different options offering varying interest rates and maturities, decisions they are not adequately educated to make. Deciding on complex financial instruments with a large range of options can impact the consumer’s ability to buy a home, finance an education or save for retirement, adding to the decision-making pressure.

3. Lack of government aid

A major source of retirement income for past generations was Social Security. But the amount paid by Social Security is not enough, and it may not be available at all in the future. The Social Security Board of Trustees reported that by 2034 the Social Security trust fund may be depleted, a scary prospect for many. So now, Social Security acts more like a safety net that barely provides enough for basic survival.3

4. Longer life spans

We are living longer. This means we need more money for retirement than prior generations did.

5. Changing environment

The financial landscape is very dynamic. Now a global marketplace, there are many more participants in the market and many more factors that can influence it. The quickly changing environment created by technological advances such as electronic trading makes the financial markets even swifter and more volatile. Taken together, these factors can cause conflicting views and difficulty in creating, implementing and following a financial roadmap.

6. Too many choices

Banks, credit unions, brokerage firms, insurance firms, credit card companies, mortgage companies, financial planners and other financial service companies are all vying for assets creating confusion for the consumer.

Why It Matters?

Financial literacy is crucial to help consumers save enough to provide adequate income in retirement while avoiding high levels of debt that might result in bankruptcy, defaults, and foreclosures. A 2008 study from financial services company TIAA-CREF showed that those with high financial literacy plan for retirement and, in essence, have double the wealth of people who do not plan for retirement. Conversely, those with low financial literacy borrow more, have less wealth and end up paying unnecessary fees for financial products. In other words, those with lower financial literacy tend to buy on credit and are unable to pay their full balance each month and end up spending more in interest. This group also does not invest, has trouble with debt, and a poor understanding of the terms of their mortgages or loans. Even more worrisome, many consumers believe that they are far more financially literate than they really are.

And while this may seem like an individual problem, it is broader in nature and more influential on the entire population than previously believed. All one needs to do is look at the financial crisis of 2008 to see the financial impact on the entire economy that arose from a lack of understanding of mortgage products. Financial literacy is an issue with broad implications for economic health and an improvement can lead the way to a global economy that is competitive and strong.

• Financial literacy is the education and understanding of various financial areas including topics related to managing personal finance, money, borrowing, and investing.
• Trends in the U.S. show that financial literacy among individuals is declining, with only 34% of respondents correctly answering four out of five questions posed by FINRA on the topic.
• At the same time, financial literacy is more important than ever as people manage their own retirement accounts, trade personal assets online, and carry student, medical, credit card, and mortgage debt.

Digital literacy refers to an individual’s ability to find, evaluate, and compose clear information through writing and other media on various digital platforms. Digital literacy is evaluated by an individual’s grammar, composition, typing skills and ability to produce text, images, audio and designs using technology. While digital literacy initially focused on digital skills and stand-alone computers, the advent of the internet and use of social media, has caused some of its focus to shift to mobile devices. Similar to other expanding definitions of literacy that recognize cultural and historical ways of making meaning, digital literacy does not replace traditional forms of literacy, and instead builds upon and expands the skills that form the foundation of traditional forms of literacy. Digital literacy should be considered to be a part of the path to knowledge.

Digital literacy is built on the expanding role of social science research in the field of literacy as well as on concepts of visual literacy, computer literacy, and information literacy.

Overall, digital literacy shares many defining principles with other fields that use modifiers in front of literacy to define ways of being and domain specific knowledge or competence. The term has grown in popularity in education and higher education settings and is used in both international and national standards.

History

The rise of digital literacy

Digital literacy is often discussed in the context of its precursor media literacy. Media literacy education began in the United Kingdom and the United States as a result of war propaganda in the 1930s and the rise of advertising in the 1960s, respectively. Manipulative messaging and the increase in various forms of media further concerned educators. Educators began to promote media literacy education in order to teach individuals how to judge and access the media messages they were receiving. The ability to critique digital and media content allows individuals to identify biases and evaluate messages independently.

Danah boyd stresses the importance of critical media literacy, especially for teens. She advocates that critical media literacy skills are the first step in identifying biases in media content, such as online or print advertising. Technical skills and knowledge of navigating computer systems further helps individuals in evaluating information on their own. Barriers in acquiring technical skills and computer knowledge set forth a limit for individuals in fully participating in the digital world.

In order for individuals to evaluate digital and media messages independently, they must demonstrate digital and media literacy competence. Renee Hobbs developed a list of skills that demonstrate digital and media literacy competence. Digital and media literacy includes the ability to examine and comprehend the meaning of messages, judging credibility, and assess the quality of a digital work. A digitally literate individual becomes a socially responsible member of their community by spreading awareness and helping others find digital solutions at home, work, or on a national platform. Digital literacy doesn’t just pertain to reading and writing on a digital device. It also involves knowledge of producing other forces of media, like recording and uploading video.

Digital divide

Digital divide refers to the disparities among people – such as those living in developed and developing world – concerning access to and the use of information and communication technologies (ICT), particularly computer hardware, software, and the Internet. Individuals within societies that lack economic resources to build ICT infrastructure do not have adequate digital literacy, which means that their digital skills are limited. The divide can be explained by Max Weber’s social stratification theory, which focuses on access to production rather ownership of the capital. The former becomes access to ICT so that an individual can accomplish interaction and produce information or create a product and that, without it, he or she cannot participate in the learning, collaboration, and production processes. Digital literacy and digital access have become increasingly important competitive differentiators for individuals using the internet meaningfully. Increasing digital literacy and access to technology for peoples who have been left out of the information revolution is of common concern. In an article by Jen Schradie called, The Great Class Wedge and the Internet’s Hidden Costs, she discusses how social class can affect digital literacy. This creates a digital divide.

Research published in 2012 found that the digital divide, as defined by access to information technology, does not exist amongst youth in the United States. Young people report being connected to the internet at rates of 94-98%. There remains, however, a civic opportunity gap, where youth from poorer families and those attending lower socioeconomic status schools are less likely to have opportunities to apply their digital literacy. The digital divide is also defined as a emphasizing the distinction between the “haves” and “have-nots,” and presented all data separately for rural, urban, and central-city categories. Also, existing research on digital divide reveal the existence of personal categorical inequalities between young and old people. An interpretation also identify digital divide between technology accessed by the youth outside the school and inside the classroom.

Social workers work in various fields of service such as community development; child protection; child and family welfare; youth programmes; disability; health; education; the workplace; and social policy development. Social Workers are sought after in any context related to people and their environments. Because the focus of social work is so broad, from everyday life to highly complex situations, practitioners deal with all kinds of people that are impacted by different aspects of situations.

Most social workers develop special expertise in their chosen areas, such as addressing the social needs of employees in large companies, working with the often neglected senior citizens of our country, helping communities find better ways to deal with problems such as crime and abuse of alcohol or drugs, and working with young people who are neglected or abused.

All social workers assist people in “direct” ways, for instance, by being involved in developing, empowering and changing individuals, families, groups and communities and indirectly through administering people-serving organisations; supervising or providing consultation to other professionals; and conducting research that could help the profession increase its knowledge about the interactions between people and society, and to learn better ways of intervention into difficult circumstances or when these transactions between people and their environments fail to occur.

Social Work as a multi-disciplinary profession

In addition to Social Work theory, the profession’s knowledge-base is derived from Psychology, Sociology and other related fields. During training, specific practice skills are developed through skills training workshops and field instruction placements at various organizations under the supervision of experienced social workers.

Registration as a Social Worker

All social workers, irrespective where they work or what services they provide, are required to register as social workers with the South African Council for the Social Service Professions (SACSSP). Registration is one way of ensuring a basic standard of professional conduct when someone practices as a social worker. Registration with the Council is compulsory. In view of the fact that social workers unite to address the needs and problems of people in society, they are encouraged to join the professional association which speaks with one voice on important social and professional issues.

Ethical Behaviour required of a Social Worker

Perhaps the most distinguishing feature of professional social work is that professionals have the authority vested in them by the law and that their actions influence the lives of people. To ensure that people are protected against unethical practice and abuse of power, professionals must be familiar with basic principles and values about how to intervene in people’s lives. Therefore, prior to the commencement of the field work practice in the first year of study students are required to subscribe to the following declaration:

The most important principles are contained in a code of professional conduct, which all social workers must follow. Practitioners are sanctioned by the South African Council for Social Service Professionals should they not follow these principles in practice.

Social workers aspire and subscribe to the ethical values and principles of social justice; respect for people’s worth, human rights and dignity; maintaining high standards of competence; behaving with honesty and integrity; upholding professional standards of conduct; showing care and concern for others well-being; and elevating service to others above self-interest.

Social workers pursue these values by being aware of their own attitudes towards people and society, and by being open to changing themselves.

Social workers help relieve people’s suffering, fight for social justice, and improve lives and communities. Most people think of social workers when they think of poverty alleviation and child welfare. Many social workers do that kind of work and we do much more.

Some of society’s most notable helpers were social workers. Jane Addams is the founder of our profession. Frances Perkins was President Franklin D. Roosevelt’s Secretary of Labor, and Dorothy Height and Whitney Young were both civil rights legends. All of these people were social workers. They made great contributions to our society during some of our most troubling times. These pioneers laid the path for social workers of today. They set a great example for our commitment to advocacy, social justice, and helping individuals, families, and communities who need us most.

We can be found in hospitals, helping people cope with acute conditions and chronic illness. We provide therapy and community health centers and help prevent students from dropping out of school. We help prisoners as they reenter communities and provide rehabilitative support in drug and alcohol centers.

We provide outreach and long-term care in nursing homes and homeless shelters. We are clinical therapists to members of the military and veterans. And we are first responders during natural disasters.

Social workers are executive directors of nonprofit organizations, community organizers, and professors. We are corporate leaders and members of Congress.

Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or environmental issues. This concept may be applied to a wide range of organizations, which vary in size, aims, and beliefs. For-profit entrepreneurs typically measure performance using business metrics like profit, revenues and increases in stock prices. Social entrepreneurs, however, are either non-profits, or they blend for-profit goals with generating a positive “return to society”. Therefore, they use different metrics. Social entrepreneurship typically attempts to further broad social, cultural, and environmental goals often associated with the voluntary sector in areas such as poverty alleviation, health care and community development.

At times, profit-making social enterprises may be established to support the social or cultural goals of the organization but not as an end in themselves. For example, an organization that aims to provide housing and employment to the homeless may operate a restaurant, both to raise money and to provide employment for the homeless.

In the 2010s social entrepreneurship was facilitated by the use of the Internet, particularly social networking and social media websites. These websites enable social entrepreneurs to reach numerous people who are not geographically close yet who share the same goals and encourage them to collaborate online, learn about the issues, disseminate information about the group’s events and activities, and raise funds through crowdfunding.

Modern definition

Grameen Bank founder and Nobel Peace Prize winner Muhammad Yunus (left) with two young social entrepreneurs (right)

The concept of Social Entrepreneurship emerged in the 1980s and since then has only been gaining more momentum. Despite this fact, after decades of efforts to find a common ground to define the concept, no consensus has been reached. The dynamicity of the object and the multiplicity of the conceptual lens used by researchers has made it impossible to capture it, in such a way that scholars have compared it with a mythological beast Scholars have different backgrounds, generating a great disparity of conceptualizations. These should be arranged in 5 clusters of meaning, according to the focus given and the conceptual framework assumed by the researcher. The first group of authors focuses on the person of the entrepreneur, being the mainstream definition. J. G. Dees argues that Social Entrepreneurship is the result and the creation of an especially creative and innovator leader.

Social entrepreneurs can include a range of career types and professional backgrounds, ranging from social work and community development to entrepreneurship and environmental science. For this reason, it is difficult to determine who is a social entrepreneur. David Bornstein has even used the term “social innovator” interchangeably with social entrepreneur, due to the creative, non-traditional strategies that many social entrepreneurs use. For a clearer definition of what social entrepreneurship entails, it is necessary to set the function of social entrepreneurship apart from other voluntary sector and charity-oriented activities and identify the boundaries within which social entrepreneurs operate.[8] Some scholars have advocated restricting the term to founders of organizations that primarily rely on earned income (meaning income earned directly from paying consumers), rather than income from donations or grants. Others have extended this to include contracted work for public authorities, while still others include grants and donations.

Social entrepreneurship in modern society offers an altruistic form of entrepreneurship that focuses on the benefits that society may reap. Simply put, entrepreneurship becomes a social endeavor when it transforms social capital in a way that affects society positively. It is viewed as advantageous because the success of social entrepreneurship depends on many factors related to social impact that traditional corporate businesses do not prioritize. Social entrepreneurs recognize immediate social problems, but also seek to understand the broader context of an issue that crosses disciplines, fields, and theories. Gaining a larger understanding of how an issue relates to society allows social entrepreneurs to develop innovative solutions and mobilize available resources to affect the greater global society. Unlike traditional corporate businesses, social entrepreneurship ventures focus on maximizing gains in social satisfaction, rather than maximizing profit gains. Both private and public agencies worldwide have had billion-dollar initiatives to empower deprived communities and individuals. Such support from organizations in society, such as government-aid agencies or private firms, may catalyze innovative ideas to reach a larger audience.

Prominent individuals associated with social entrepreneurship include Pakistani Akhter Hameed Khan and Bangladeshi Muhammad Yunus, a leader of social entrepreneurship in South Asia. Yunus was the founder of Grameen Bank, which pioneered the concept of microcredit for supporting innovators in multiple developing countries in Asia, Africa, and Latin America. He received a Nobel Peace Prize for his efforts. Others, such as former Indianapolis mayor Stephen Goldsmith addressed social efforts on a local level by using the private sector to provide city services.

Characteristics in Social Entrepreneurship

Bill Drayton founded Ashoka in 1980, an organization which supports local social entrepreneurs. Drayton tells his employees to look for four qualities: creativity, entrepreneurial quality, social impact of the idea, and ethical fiber. Creativity has two parts: goal-setting and problem-solving. Social entrepreneurs are creative enough to have a vision of what they want to happen and how to make that vision happen. In their book The Power of Unreasonable People John Elkington and Pamela Hartigan identify why social entrepreneurs are, as they put it, unreasonable. They argue that these men and women seek profit in social output where others would not expect profit. They also ignore evidence suggesting that their enterprises will fail and attempt to measure results which no one is equipped to measure. About this, the Schwab Foundation says that entrepreneurs have “A zeal to measure and monitor their impact. Entrepreneurs have high standards, particularly in relation to their own organization’s efforts and in response to the communities with which they engage. Data, both quantitative and qualitative, are their key tools, guiding continuous feedback and improvement.” Ashoka operates in multiple countries.

Entrepreneurial quality builds from creativity. Not only do entrepreneurs have an idea that they must implement, they know how to implement it and are realistic in the vision of implementing it. Drayton says that, “Entrepreneurs have in their heads the vision of how society will be different when their idea is at work, and they can’t stop until that idea is not only at work in one place, but is at work across the whole society.” This manifests through a clear idea of what they believe the future will look like and a drive to make this come true. Besides this, entrepreneurs are not happy with the status quo; they want healthy change. This changemaking process has been described as the creation of market disequilibria through the conversion of antagonistic assets into complementarities.

Social impact measures whether the idea itself will be able to cause change after the original founder is gone. If an idea has intrinsic worth, once implemented it will cause change even without the charismatic leadership of the first entrepreneur. One reason that these entrepreneurs are unreasonable is that they are unqualified for the task they take on. Most entrepreneurs have not studied the skills needed to implement their ideas. Instead, they bring a team of qualified people around themselves. It is the idea that draws this team.

Ethical fiber is important because leaders who are about to change the world must be trustworthy. Drayton described this to his employees by suggesting that they picture a situation that frightens them and then place the candidate in the situation with them. If they feel comfortable in this scenario, the entrepreneur has ethical fiber. One distinguishing attribute of entrepreneurs is that they rarely take credit for making change. They insist that the change they have brought about is due to everyone around them. They also tend to be driven by emotion; they are not trying primarily to make a profit but to address suffering. Muhammad Yunus says about this characteristic, “He (or she) competes in the marketplace with all other competitors but is inspired by a set of social objectives. This is the basic reason for being in the business.”

Challenges in Social Entrepreneurship

Because the world of social entrepreneurship is relatively new, there are many challenges facing those who delve into the field. First, social entrepreneurs are trying to predict, address, and creatively respond to future problems. Unlike most business entrepreneurs, who address current market deficiencies, social entrepreneurs tackle hypothetical, unseen or often less-researched issues, such as overpopulation, unsustainable energy sources, food shortages. Founding successful social businesses on merely potential solutions can be nearly impossible as investors are much less willing to support risky ventures.

The lack of eager investors leads to the second problem in social entrepreneurship: the pay gap. Elkington and Hartigan note that “the salary gap between commercial and social enterprises… remains the elephant in the room, curtailing the capacity of [social enterprises] to achieve long-term success and viability.” Social entrepreneurs and their employees are often given diminutive or non-existent salaries, especially at the onset of their ventures. Thus, their enterprises struggle to maintain qualified, committed employees. Though social entrepreneurs are tackling the world’s most pressing issues, they must also confront skepticism and stinginess from the very society they seek to serve.

Another reason social entrepreneurs are often unsuccessful is because they typically offer help to those least able to pay for it. Capitalism is founded upon the exchange of capital (most obviously, money) for goods and services. However, social entrepreneurs must find new business models that do not rely on standard exchange of capital in order to make their organizations sustainable. This self-sustainability is what distinguishes social businesses from charities, who rely almost entirely on donations and outside funding.

Social Marketing Professionals

Due to recent emergence of social media as a viable marketing platform, the educational requirements for social media marketers remain unclear. The majority of professionals in this career track possess a Bachelor’s degree in marketing, graphic design, web development, information technology or communications. There are a number of Master’s in Business Administration programs that offer coursework in social media marketing that may be essential for professionals seeking a management or executive position. The majority of successful professionals in this field must exercise their own initiative in finding online resources to advance their knowledge of social media programs and tools.

There are a number of organizations that now provide online training programs and certifications for prospective social media marketers. For the moment, there is no central regulatory body for social media marketing, so the educational standards and course materials may differ considerably. It is advisable to research any organization for industry reputation before enrolling. The most reputable of these training programs are offered by

eMarketing Association: The eMA offers three programs that provide certification and the Certified eMarketer (CeM), Certified eMarketing Associate (CeMA) or Certified Social Marketing Associate (CSMA) designation

There are also a number of educational institutions that offer courses in social media marketing through their normal curriculum or their extension programs. These courses are typically more rigorous and academic in nature but may carry significantly more weight with prospective clients and employers.

• UCLA Extension
• San Francisco State University
• University of San Francisco

These academic certification programs may be offered online or through campus locations.

Industries of Employment

Social media marketing initiatives can be found in virtually any industry as companies routinely establish a presence on the major social programs of Facebook, Twitter and others.  The industries that have shown the most success through sales generation from social media activity are retail (18%), information (17%), arts and entertainment (15%) and finance and insurance (11%), according to the 2012 The State of Social Media Marketing Report.  The number of people who are on social network rose from 400 million in 2007 to 1.2 billion in 2011, and this number is expected to increase in the future, as mobile devices keep social media users connected almost continuously.  eMarketer reports that 58.5 million Americans used social media through a mobile device in 2012 and this number is expected to balloon to 79.1 million by 2015.

The enormous expansion and influence of social media will mirror a growing investment from businesses.  According a 2011 study by IBM, 82% of Chief Marketing Officers polled planned to increase investment in social marketing campaigns in the next three years.  This indicates widespread and growing enthusiasm for businesses to engage in social media marketing.

The number of positions in social media marketing should multiply rapidly as more companies enter this marketing channel and energize growth in the industry. According to U.S. Bureau of Labor Statistics, the number of jobs in social media marketing is expected to increase by 21% for 2013, which translates into tens of thousands of jobs in this career field.

Salary

The annual income of a social media marketing professional can differ significantly due to geographical location, industry of employment, educational background and years of experience. Due to the relative recent development of social media as a marketing channel, the most highly paid marketing professionals exhibit breadth of knowledge about social media programs and tools.

According to Indeed.com a social media strategist in New York City could expect a salary from $55,000 to $103,000 in 2011, while a similar position in Phoenix, Arizona could earn from $36,000 to $68,000. A social media marketing manager in New York City could receive from $73,000 to $116,000, while a marketing professional in a similar position in Phoenix, AZ could expect $48,000 to $77,000.

The majority of entry level positions in social media marketing pay from $24,566 to $36,625.  Social media marketing positions are expected to increase, but a disproportionate number of these will be in entry level jobs, while competition for the few management positions should increase dramatically.

Professional Associations

There are a number of internet marketing professional associations that include social media marketers and provide support to the industry.

• Search Engine Marketing Professionals Organization
• American Marketing Association
• Business Marketing Association
• eMarketing Association
• Digital Marketing Association

These organizations can be critical in establishing relationships with prospective clients, employers and industry experts.  Networking is a vital activity for a successful social media marketing career and professional organizations can be instrumental in their development.

Social media marketers are also encouraged to seek out professional associations in their region or metropolitan area, as they may have information about local marketing conditions.

The expression ‘fixed capital’ often considered to be analogous to ‘fixed assets’ denotes the employment of capital in permanent assets and other non-current assets. The fixed assets are assets of a permanent nature that the business does not intend to dispose of, or that could not be disposed of without interfering with the operation of the business.

The investment in the fixed assets is the first initial step in establishing a corporation. The investment in non-current assets is also called fixed capital. Such assets include items in which capital is locked up for a long period.

Although they do not indicate the investment in physical productive facilities, yet they are necessary for the conduct of the business and considered essential part of the capital arrangement.

They include long-term receivables, advances to subsidiary or affiliate companies, goodwill, patents, copyrights, long term investment in other companies and pre-paid expenses.

Thus the fixed assets are held by a company with the object of earning revenue directly or indirectly and not for the purpose of sale in the ordinary course of business. The fixed assets include land, buildings, plant, machinery and other fixed equipment, furniture and fixtures, vehicles, livestock etc.

Some definitions of fixed capital:

“Fixed capital is the funds required for the acquisition of those assets that are to be used over for a long period- such assets as land, buildings, machinery, equipment and tools.” :Shubin

“Fixed Capital comprises of fixed assets and other non-current assets”:F.N. Chiumiriatoo

“Fixed capital is invested in the fixed or long-run assets. The amount of fixed capital need, therefore, varies directly with the amount of fixed assets owned or used by a business.” :Wheeler

“Fixed capital is comparatively easily defined to include land, buildings, machinery and other assets having a relatively permanent existence.” -Hoagland

From the analysis of the above definitions, it is clear that fixed capital consists of investment in permanent assets which are necessary for conducting the operations and expansion of a business unit. Thus, fixed capital is used for meeting the permanent requirements of a business enterprise. It is the capital which is invested in fixed assets and non-current assets to generate profits for a company.

Importance of Fixed Capital:

Fixed capital plays a vital role in the establishment of business enterprises. It is required for acquiring fixed (tangible and intangible) assets, which is the preliminary requirement for starting a company. There are certain enterprises (manufacturing and public utilities) which cannot think of running in the absence of adequate amount of fixed capital.

Fixed capital is not only required for financing the acquisition of fixed assets, but also for initial period of its working in order to establish itself. It is also needed for making improvements and expanding the existing set up of a business enterprise. Thus, it appears that adequate amount of fixed capital is an essential pre-requisite for the success of an industrial concern.

Right from the very beginning, when the idea to set up an industrial unit generates in the mind of the entrepreneur, the initial investment is made in fixed assets, only then, enterprise will be in a position to work smoothly.

The amount of fixed capital required varies from business to business because of the following factors:

(1) Methods of handling production:

If a company is manufacturing all parts of a product, its fixed capital needs will be more, in comparison to an enterprise which is assembling parts produced by other concerns. For example, a bicycle factory which manufactures its own parts and then assembles them into a bicycle, needs huge amount of fixed capital. On the other hand, if a company assembles the parts manufactured by other firms, it will require small amount of fixed capital. Thus, the method of handling production also affects the magnitude of fixed capital.

(2) Mode of acquiring fixed assets:

Fixed assets can be either purchased or acquired on lease basis or taken on rent. In the first case, the requirement of fixed capital will be very high.

(3) Diversity of manufacturing lines:

If a company manufactures and markets its goods itself, it needs more fixed capital than a company engaged only in manufacturing a product. A trading concern buying and selling the goods produced by others will need very little fixed capital. Thus diversity of production lines also determines the fixed capital requirements.

(4) Nature of industry business:

The business enterprises engaged in rendering personal services, merchandise, commerce and trade may need very little fixed investment, while industries manufacturing heavy and capital goods are likely to invest a major part of their funds in fixed assets.

Similarly, a public utility undertaking (say, an electricity supply company, water supply undertaking or a railway company) would need heavy investment in fixed assets and equipment. Thus the nature of business determines the amount of fixed capital to a large extent.

(5) Kinds of products:

If the company is engaged in the manufacture of complicated goods like refrigerators, T.V. sets, motor vehicles, engines etc., it may need large amount of fixed capital than a business enterprise which produces simple consumer items like powder, cream, toothpaste etc. Thus the type of product manufactured also governs the amount of fixed capital.

(6) Size of the business unit:

A large scale firm requires more fixed capital than a small enterprise. The bigger the size of plant, the larger would be the amount of fixed investment. For instance, capital-intensive companies require huge amount to be invested in fixed assets as compared to labour-intensive companies.

Issue of share is the best method for the procurement of fixed capital requirements because it has not to be paid back to shareholder within the life time of the company. Funds raised through the issue of shares provide a financial floor to the capital structure of a company.

A share may be defined as a unit of measure of a shareholder’s interest in the company. “A share is a right to participate in the profits made by a company while it is a going concern and in the assets of the company when it is wound up.” (Bachan Cozdar Vs. Commissioner of Income tax). The share capital of company is divided into a large number of equal parts and each part is individually called a share.

Under the provisions of Section 86 of the Indian Companies Act, 1956, a public company or a private company which is subsidiary of a public company can issue only two types of shares i.e. equity shares and preference-shares. However, an independent private company can issue deferred shares as well.

Preference Shares:

Preference Shares are those shares which carry priority rights with regard to payment of dividend and return of capital.

According to Sec. 85 of the Indian Companies Act, preference share is that part of the share capital of the company which is endowed with the following preferential rights:

(1) Preference with regard to the payment of dividend at fixed rate; and

(2) Preference as to repayment of capital in the event of company being wound up.

Thus, Preference shareholders enjoy two preferential rights over the equity shares. Firstly, they are entitled to receive a fixed rate of dividend out of the net profits of the company prior to the declaration of dividend on equity shares.

Secondly, the assets remaining after the payment of debts of the company under liquidation are first distributed for returning preferential capital (contributed by the preference shareholders).

Types of Preference Shares:

(i) Cumulative and non-cumulative preference shares:

The holders of cumulative preference shares are sure to receive dividend on the preference shares held by them for all the years out of the earnings of the company. Under this the amount of unpaid dividend is carried forward as arrears and becomes the charge on the profits of the company.

If in any particular year they are not paid dividend, they will be paid such arrear in the next year before any dividend can be distributed among the equity shareholders. But the non-cumulative preference shareholders are entitled to their yearly dividend only if there is sufficient net profit in that year. In case the earnings are not adequate, dividends are not paid and the unpaid dividend is not carried forward for payment out of profits in subsequent years.

(ii) Participating and non-participating preference shares:

The holders of these preference shares are entitled to fixed rate of dividend and in addition they are also granted the right to share the surplus net profits of the company, left after paying a certain rate of dividend on equity shares. Thus, participating shareholders obtain return on their investments in two forms (a) fixed dividend (b) share in surplus profits.

The preference shares which do not carry the right to share in the surplus profits are known as non-participating preference shares.

(iii) Redeemable and irredeemable preference shares:

Redeemable preference shares are those which, in accordance with the terms of issue, can be redeemed or repaid after a certain date or at the discretion of the company. The preference shares which cannot be redeemed during the life time of the company are known as irredeemable preference shares.

(iv) Convertible and non-convertible preference shares:

If the preference shareholders are given the option to convert their shares into equity shares within a fixed period of time such shares will be known as convertible preference shares. The preference shares which cannot be converted into equity shares are called non- convertible preference shares.

(v) Guaranteed Preference Shares:

In case of conversion of a private concern into a limited company or in case of amalgamation and absorption the seller guarantees a particular rate of dividend on preference shares for certain years. These shares are called guaranteed preference shares.

Advantages of preference shares:

(1) Suitable to Cautious Investors. Preference shares mobilise the funds from such investors who prefer safety of their capital and want to earn income with greater certainty.

(2) Retention of Control. Control of the company is vested with the management by issuing preference shares to outsiders because such share-holders have restricted voting rights.

(3) Increase in the Income of Equity Shareholders. Preference shares bear a fixed yield and enable the company to adopt the policy of “trading on equity” to increase the rate of dividend on equities out of profits remaining after paying fixed rate of dividend on preference shares.

(4) Flexibility in the Capital Structure. In case of redeemable preference shares, company may feel at ease to bring flexibility in the financial structure as they can be redeemed whenever a company desires.

(5) No charge on Assets of the Company. The company can raise capital in the form of preference shares for a long term without creating any charge on its assets.

Disadvantages of preference shares:

(1) Permanent Burden:

Preference Shares Impose permanent burden on the company to pay fixed dividend prior to its disbursement among other types of shareholders.

(2) No Voting Right:

The preference shares may not be advantageous from the point of view of investors because they do not carry voting rights.

(3) Redemption during the period of Depression:

Preference shareholders will suffer the loss, if the company exercises its discretion to redeem the debentures during the periods of depression.

(4) Costly:

Compared to debentures and Govt., securities, the cost of raising the preference share capital is higher.

(5) Income Tax:

Since preference dividend is not an admissible deduction for income tax purposes, the company has to earn more, otherwise the dividend on equity shareholders will be affected.

Ordinary Shares/Equity Shares:

Equity shares or ordinary shares are those ownership securities which do not carry any special right in respect of annual dividend or the return of capital in the event of winding up of the company.

According to Sec. 85(2) of the Indian Companies Act.

“Equity shares (with reference to any company limited by shares) are those which are not preference shares”. A substantial part of risk capital of a company is raised from this source, which is of permanent nature.

Equity shareholders are the real owners of the company. They get dividend only after the dividend on preference shares is paid out of the profits of the company. They may not receive any return, if there are no profits. At the time of winding up of the company equity capital can be paid back after every claim including that of preference shareholders has been settled.

According to Hoagland, ‘ ‘Equity shareholders are the residual claimants against the assets and income of the corporation.”The financial risk is more with equity share capital. So equity shares are also called “Risk Capital.”

As the equity shareholders have higher risk, they also have a chance of getting higher dividend if the company earns higher profits. Equity shareholders control the affairs of the company because by possessing the voting rights they elect the directors of the company.

Advantages of Equity Shares:

(1) No Charge on Assets:

The company can raise the fixed capital without creating any charge over the assets.

(2) No-Recurring Fixed Payments:

Equity shares do not create any obligation on the part of company to pay fixed rate of dividend.

(3) Long term Funds:

Equity capital constitutes the permanent source of finance and there is no obligation for the company to return the capital except when the company is liquidated.

(4) Right to Participate in Affairs:

Equity shareholders, being the real owners of the company, have the right to participate in the affairs of the company.

(5) Appreciation in the value of Assets:

Investors in equity shares are rewarded by handsome dividends and appreciation in the value of their shareholdings under boom conditions.

(6) Ownership:

Equity shareholders are the real owners of the company. They alone have voting rights. They elect the directors to manage the company.

Disadvantages of Equity Shares:

(1) Difficulty in Trading on Equity:

The company will not be in a position to adopt the policy of trading on equity if all or most of the capital is raised in the form of equity shares.

(2) Speculation:

During the period of boom, higher dividends on equity shares results in the appreciation of the value of shares which in turn leads to speculation.

(3) Manipulation:

As the affairs of the company are controlled by equity shareholders on the basis of voting rights, there are chances of manipulation by a powerful group.

(4) Concentration of Control:

Whenever the company intends to raise capital by new issues, priority is to be given to existing shareholders. This may lead to concentration of power in few hands.

(5) Less Liquid:

Since equity shares are not refundable they are treated as illiquid.

(6) Not always Acceptable:

Because of the uncertainty of the return on the equity shares, conservative investors will hesitate to purchase them.

Deferred Shares:

The shares which are issued to the founders or promoters are called deferred shares or founders shares. The promoters take these shares for enabling them to control the company. These shares have extra ordinary rights though their face value is very low.

The holders of deferred shares can get dividend only after preference and equity shareholders shall have received their dividend.

Now-a-days, these shares have lost their popularity. At present in India public companies cannot issue deferred shares.