What Is Social Entrepreneurship?

In our world today, there is an increase in the rate of emerging entrepreneurs. So many people have ventured into entrepreneurship and are seeking newer means to solve humanity's problems and make a difference. It is this drive to solve societal issues that brings about social entrepreneurship.

What is a Traditional Entrepreneurship?

Traditional entrepreneurship is the creation of a business with the sole aim of making profit.

What is Social Entrepreneurship?

Social entrepreneurship is the combination of business with the aim of achieving a social cause. A social cause is any problem or issue that affects individuals or a group of people in the society. Such are environmental issues, poverty, human right, health care, equality and more.

What Makes a Social Entrepreneurship different from Entrepreneurship?

Unlike the traditional entrepreneurs which focuses mainly on generating profit, social entrepreneurs focus on bringing about positive social impact and this inturns brings about profit.

1. Health care


2. Education


3. Community development


4. Renewable Energy


5. Environmental sustainability


6. Gender Equality


7. Economic Development


8. Fashion

Types Of Social Entrepreneurship

Community Social Entrepreneurship

This is when an entrepreneur seeks to solve the needs of a small geographical area particularly a community. Social entrepreneurs that operate here are usually individuals or small organisations and they work directly with the members of the community to ensure the needs of the community are met. Example can be a community development projects that provides social infrastructure, access to education and even creating an access to microfinance loans for people living within a community.

Non Profit Entrepreneurship

These entrepreneurs are focused on doing social good. They do not necessary care about the material gain. They believe in putting back all the profit generated from the business back into the business for further achievement of a social cause. An example of a non profit organisation is Charity Water which focuses on providing clean and safe water to people in developing countries. Another example is Ashoka. This is an organisation that has been supporting leading social enterprises around the world. With 3,500 fellows from 92 countries. It provides funding, mentorship, and networking opportunities to social entrepreneurs who are working to create a positive social change.

Transformational Social Entrepreneurship

This is what a non profit social entrepreneurship grows into. It gradually grows from a small non profit enterprise into a bigger organisation that offers social development programs that benefits various areas.

Profit entrepreneurship

This is the creating of a business that addresses a social issue while still making profit out of it. This profit can be used to sustain the business, pay workers and grow as an enterprise.

Global Social Entrepreneurship

The aim of this kind of entrepreneurship is to meet major global social problems such as poverty, healthcare, access to free education or clean water. Organizations in this area are working towards solving major global problems and they can sometimes work hand in hand with other social entreprises to see to it that they acheive their goals. A good example of this kind of entrepreneurship is the Bill & Melinda Gates Foundation which has been committed to fighting poverty, inequity and endeavoring to find vaccinations for various diseases impacting those around the world.

Socially Responsible Entrepreneurship

Businesses in this area support social missions through their business operations. TOMS is a footwear company that donates a pair of shoes to children in need each time a shoe is purchased. The company currently gives out one third of their profits to grassroots campaigns such as the covid 19 funds. This is a very good example of socially responsible entrepreneurship. A company like Tesla Inc. produces electric cars which are climate friendly.

Cooperative Social Entrepreneurship

This is the creating of a business that is owned and managed by it's members and with the aim of addressing a social issue.

Social Innovation Entrepreneurship

Social innovation entrepreneurship involves creating a business model that addresses a social issue through an innovative solution. The use of new technologies, business models, or partnerships can be employed to achieve a social goal.

Benefits Of Social Entrepreneurship

• Positive Impact:
  Encourages other entrepreneurs to channel their businesses towards a social cause.



• Addresses Social Problem:
  It helps to solve social problems thus causing a positive impact on Society.



• Innovation:
  It brings about innovation as new ideas and technologies are put in place to create a positive change on Society.



• Job Creation:
  Social enterprise creates jobs for people who would come to work in companies and business that work towards solving a social problem. Communities that have no access to job creation are also opportuned to become employed.



• Sustainability:
  The businesses created generate income while still fulfilling social goals. This ensures a positive impact on the society over the long term.



• Improved Standard Of Living:
  Through social entrepreneurship alot of lives are improved all over the world either through job creation for people who work in social enterprises or through solving of social problems such as poverty, diseases, gender inequality, education.



• High Rate Of Success:
  Social entrepreneurs have a greater chance of succeeding in the business world as they are able to come up with so many societal problems to solve. Alot of business ideas and opportunities are open for them to explore. Solving this social issues will bring alot of partnerships and patronage and this will lead to a successful business.

How Do Social Entrepreneurs Make Money?

Sales

Social entrepreneurs generate income through the sales of goods and services. An example can be a company that creates a line of products that have a positive impact on Society. People would be eager to buy and when they do, the company generates profit they would use in acheiving further goals.

Grants and Donations

A social entrepreneur may collect grants, upfront donations from major donors such as the government, corporations, individuals, foundations or through the use of personal capital.

Partnerships

Social entrepreneurs raise capital by connecting and partnering with other social enterprises and corporations.

Through the Social Entreprise

Social entrepreneurs start up businesses with the aim of solving social and environmental issues but with the sucess of the enterprise, especially nonprofit organizations would begin to make financial success that can be put back into the social cause, payment of themselves and the employees and even acquiring of other expenses.

Conclusion:

Becoming A social entrepreneur is pretty much about finding a social problem you want to solve and going ahead to solve them while still making profit out of it. It brings about innovation, sustainability and making a positive impact on society and the environment at large.