Social entrepreneurship is a combination of innovation, the right use of resources and the opportunity to deal with different critical challenges both social and environmental ones.
Social entrepreneurs focus on changing the systems and practices that are causing poverty no matter where in the world, and help them get a better lifestyle that would accommodated their living situation. This can be accomplished by either making up a profitable, or non-profitable organizations, depending on the decision made, the main goal is to create a sustainable system change that’d benefit the community.
Thus, the key concepts of social entrepreneurship are innovation, market orientation and systems change.
Social entrepreneurship can turn passion into profit. It can provide a variety of benefits to organizations looking to tackle social, cultural or environmental challenges.
Social entrepreneurs tend to work with the purpose of creating value for the society and generate income, too. The solutions they provide are most likely to be innovative, creative, unique, cost effective, people and environment friendly.
The first potential benefit of social entrepreneurship is the opportunity to increase financial sustainability and independence. Secondly, organizations that follow traditional, old fashioned models of funding through grants and donations usually have a tough time growing the size or scope of their services, but with the added financial resources from a business allows the organizations to spend capital on creating new services that otherwise couldn’t be funded. Furthermore, the business investment will allow the scope of the business and social service to grow and gain benefit from it. In essence, social entrepreneurship offers a system for an organization to make their funds go further. The promotion is also easy for these businesses. The media and the public are always paying attention, and if a social issue is being tackled with a solution, it’s very easy to market the idea. But keep in mind, the amount of publicity gained, often rest on on the amount of uniqueness and creativity of the solution.
Social entrepreneurs are drivers of change. Together with institutions, networks, and communities, social entrepreneurs create solutions that are efficient, sustainable, transparent, and have measurable impact.
A few examples of social entrepreneurs and their systems-changing solutions include:
- Muhammad Yunus’ Grameen Bank which spearheaded microfinance globally.
- Wendy Kopp’s Teach for America which transforms educational opportunities for low income groups whilst recruiting top university students to work in America’s worst performing public schools
- Brands like TOMS Shoes and Warby Parker have combined fashion and social good to create a major niche foothold in their industry. TOMS gives away one pair of shoes, and Warby Parker one pair of glasses, to someone in need with each sale. They are making a major impact on easing the lack of glasses and footwear in other countries and sharing those good feelings of charity with their customers.
Additionally, customers are also more willing to actually spend more for products when they know the company is giving back: “50 percent of global consumers said they would be willing to reward companies that give back to society by paying more for their goods and services”,
At the end, many entrepreneurs are making more money now than ever before, there is more to go around when it comes to funding non-profit organizations. This allows entrepreneurs to spend more money on causes that they are passionate and care about.
Reference: https://www.entrepreneur.com/article/236326