Social entrepreneurship is recognizing community problems and taking on the risk of pursuing novel applications that have the potential of solving those social problems. Therefore, a social entrepreneur employs various processes and entrepreneurial principles in a bid to attain positive societal changes through strategic initiatives.
Apart from eliminating a particular social problem, the change may also be a lifetime process. This can focus on improving certain existing circumstances. In this article, you’ll learn more about social entrepreneurship.
How Social Entrepreneurship Works
A social entrepreneur focuses on starting a business for the purpose of uplifting society and not just pursuing profits. Therefore, a social entrepreneur can take action by being philanthropic, producing environmentally friendly products or serving a marginalized community.
Social entrepreneurs have the urge to address unmet needs within underserved communities that do not have access to certain crucial services. These could include educational programs and banking services.
Some of the base essentials that social entrepreneurship ventures focus on providing to these marginalized societies are widely available in developed communities.
In addition, social entrepreneurships may also focus on addressing certain social imbalances. These include solving the root cause of a social problem and eliminating the stigma of being a resident of a marginalized community.
The primary objective of social enterprises is to implement extensive societal improvements rather than earn profits.
However, these social enterprises in the non-profit sector need to be financially savvy in order to succeed in their endeavors. For instance, the construction of new wells to introduce freshwater services in underserved communities requires capital.
Another practical example of a social entrepreneurship venture in the modern-day digital era is investing in technology assets. These include high-speed internet connectivity to equip students in remote areas with vital learning resources.
Hence, while a social entrepreneur may make a living, he or she helps others by connecting with his life’s purpose through social entrepreneurship.
Examples Of Renowned Social Entrepreneurs
The success of a social entrepreneurship uses ethical practices such as conscious consumerism, Corporate Social Responsibility (CSR) and impact investing.
Some of the most reputable social entrepreneurs who associate themselves with events and social activities that focus on changing society positively include:
- Muhammad Yunus – A 2006 Nobel Peace Prize award winner and founder of Grameen Bank. This contemporary social entrepreneur has contributed a lot to the society through his venture.
- Ramakrishna and Smita Ram – The founders of Rang De. This is a non-profit social enterprise. It has the aim of helping Indians living in rural and urban settlements access micro-credit in the year 2008. The online platform allows borrowers to access credit with a low interest rate of up to 2%/year.
- Some of the other organizations that have steered change in society include the George Foundation, Echoing Green and the NIKA Water Company.
Final Thoughts On Social Entrepreneurship
While general business entrepreneurs launch a new business or diversify an existing business model, social entrepreneurship creates social capital. This is done without necessarily measuring performance in terms of Return On Investment (ROI).
Hence, social entrepreneurs associate with non-government or non-profit organizations. However, this doesn’t mean that social entrepreneurship eliminates the need to measure performance in profits.
The entrepreneurs in this field need capital in order to achieve the desired positive change in society.