The term "social entrepreneurship" refers to a distinct approach, a way of catalyzing social transformation that is independent of sector or discipline. Deeply committed to generating social value, these entrepreneurs identify new processes, services, products or unique ways of combining proven practice with innovation, driving through pattern-breaking approaches to resolve seemingly intractable problems. Social entrepreneurs work at the "bleeding edge" of the market, where the risks are the greatest but the potential positive social impact is also enormous. These are men and women who seize the problems created by change as opportunities to transform societies.

If these people are such an important type of leader, what can we do to have more of them? What factors are critical for nurturing and supporting social entrepreneurs? Why is it that over the course of 24 months, and with our own headquarters in continental Western Europe, we have found so few late stage social entrepreneurs in this region? On the other hand, why is it that in India, Bangladesh, Brazil and the USA, social entrepreneurship seems to be in the gene pool?

There are a couple of immediate and obvious reasons. There are countries where citizens simply expect their government to deal with social and environmental issues. They pay high taxes to ensure that this happens. So why should they bother to become involved? Also, inequity is not glaring them in the face at every turn. Certainly it exists, but it has remained well hidden until recently, surfacing increasingly as homelessness, social unrest and crime. In addition, in many countries there is less tolerance for the individual who "sticks out" or is "different" from what is considered the norm. In Australia, they call it "cutting the tall poppy". It is not that social entrepreneurs are ego-focused braggarts. But they are impatient, driven and seize every platform to convince people that their "idea" is worth trying. Some cultures are less tolerant of such singular-minded passion than others.

Given the enormity of the social problems we face around the world, and given the fact that governments often are the least appropriate choice to spearhead and incubate innovative approaches to the problems of sustainable development, it is worth examining, even if superficially, what happens when government steps aside or at least tries to. The countries in transition from socialism to market economies are a case in point. There, the abrupt transition of societies to the market economy left social dislocations and a vacuum to fill as the dominance of government collapsed. These are countries where the state did everything, regulated everything. What happens as the state recedes? Did social entrepreneurs suddenly surface and what kinds of obstacles did they face? Two examples can shed some light on this.

A decade after the collapse of the Soviet system, the faltering economies of former socialist countries have given rise to a significant group of homeless and unemployed people. Social services that used to be provided by the communist system have eroded as state coffers have dwindled. The concept of self/mutual help and private initiative have been non-existent. But two social entrepreneurs from very different professional backgrounds have been able to begin to seize the opportunity created by the vacuum left by the state, to develop a sense of shared responsibility among otherwise indifferent citizens.

Sergei Kostin is a Ukrainian geologist. Shortly after the disappearance of the Soviet Union, he became involved in the restoration of Odessa's major architectural treasures. To aid with this endeavour, he set up a series of workshops to improve skills in carpentry, sewing and icon painting. But in attempting to rescue the old buildings of Odessa, he ended up rescuing instead the exponentially growing numbers of homeless people, prostitutes, street children and drug addicts that roamed its streets. Kostin began the centre offering a series of workshops similar to the ones he had run during his restoration work, seeking to build the skill base of those who had fallen on hard times. But the socially disenfranchised needed more than workshops, he soon discovered. He founded The Way Home to deal with the complex problems that have emerged as the Ukraine tries to transition into a market economy but clings to outdated social policies.

The main issue that Kostin stepped in to resolve was the legal stipulation that exercise of one's rights as a citizen such as access to health care, welfare, as well as voting rights, is dependent on employment and place of residence. The Way Home provides a short and long term solution to a current and growing problem. In the short run, it acts as a registration centre for the homeless and unemployed. Thus, it makes visible those whom the State refuses to acknowledge. The centre provides a wide array of services to these groups, adopting an innovative approach to reaching them and re-integrating them into the wider community. The Way Home also seeks a longer-term policy solution. Kostin and his colleagues manoeuvre within the country's legal system to overturn the antiquated registration system. However, on a daily basis, they encounter political and legal roadblocks purposely set up by the authorities. His style and practices have threatened the status quo, and the authorities find every opportunity to tarnish his reputation. Kostin has turned to the media to educate an apathetic public about the growing problem, alerting the general population that they, too, could suffer job loss and ensuing homelessness. Since its inception in 1998, The Way Home has helped thousands.

In nearby Poland, a democratic system with strong participation of the citizen sector did not appear automatically when Communism collapsed in 1989. Jacek Strzemieczny saw an opportunity to fill the void. He founded the Centre for Citizenship Education (CCE) to address the need for steady but deep changes in social attitudes by giving civic education new meaning. The CCE organization concluded that the school experience should give young people a sense of confidence in their own thinking and judgement, confidence in their own resources, and knowledge about the possibilities to exert influence on matters connected with their local community, their country and the world.

The CCE encourages open dialogue between local and government officials, school administrators and students to improve the quality and relevance of what is taught in schools. This includes changing the teaching methods as well as content. The CCE began by supporting teachers in learning the active teaching method, including providing them and their students with appropriate materials. To gain the support of the local authorities, teachers demonstrated the effects of their teaching, involving the local community and students in this task. Volunteerism and civic participation have dramatically increased since CCE's expansion across Poland, and the Ministry of Education in 1999 announced that the civic education curriculum developed by CCE is the best skill curricula associated with Polish education reform.

Kostin began his efforts eight years after Strzemieczny. The latter has been able to have a rapid and forceful impact on promoting civic participation and strengthening participatory democracy across Poland by facilitating a multi-stakeholder approach. One might predict that in another five years, Kostin, likewise, will have had similar impact, although the going is rough for him at present.

There are five social entrepreneurs from Eastern Europe in the Schwab Foundation's network for outstanding social entrepreneurs (three are women). It has been much more difficult to find any late stage social entrepreneurs in Western Europe, or in other industrially advanced countries like Australia, New Zealand, and Canada. It is not that they are not there. It is that they are at a very initial stage in their development. I have my own theories as to the origins of the disparity. I leave the reader to his or her own reflections and research.