What are Social Entrepreneurs?
What is social entrepreneurship? Social entrepreneurs use their skills and creativity to address social problems. They are driven by a desire to make the world better for people, animals, or the environment rather than just making money. Social enterprises can take many different forms but they all have some common characteristics:
- social impact foremost;
- social value creation as the primary objective;
- social justice in terms of fairness and equity;
- concern for community well-being; and
- sustainability in terms of economic, environmental, and social aspects.
This blog will look into why we need social entrepreneurs, as well as the general characteristics of social entrepreneurship, and finally the risks involved for a social entrepreneur.
Why do we need Social Entrepreneurs?
In social entrepreneurship, social impact is foremost. This means that social value creation, social justice and community well-being are at the forefront of any project or venture undertaken by a social entrepreneur:
Social Value Creation:
In order to create social value in society today we need entrepreneurs with innovative ideas who can design and deliver quality products for low prices (or free) while generating sustainable jobs and protecting natural resources.
Social Justice:
The goal should be to provide benefits from economic activity to all members of society; this can only happen when there is fairness across sectors in terms of income distribution, ownership structures, employment relations etc.
Community Well-Being:
The interaction between cultural, economic, environmental, social, and political aspects important to both the community and the individual.
Positive change
Combining the three factors above, we can see that Social Entrepreneurs seek to have a positive impact on society as a whole, they are social ventures that provide social innovation. This allows for the status quo to change in the local community. Social Enterprises are important in providing resources, economic or otherwise, as well as sustainable solutions in a world where corporate social responsibility and conscious consumerism are becoming the norm.
Some of the Characteristics of Social Entrepreneurship
Social Entrepreneurship is defined by many characteristics, with some Social Entrepreneurs focusing more on one aspect, whilst not applying others. Such characteristics may include:
- Focusing on developing countries
- Creating social and/or environmental impact
- Non profit organizations
- Focus on low income communities
- Focus on health
- Gender empowerment
- Support for education initiatives
- Working in a grassroots organization or rural areas,
- and many more.
Remember, the main goal of a Social Enterprise is to improve the social well-being of the respective group.
Risk for Social Entrepreneurs
That being said, there are some risks to being a social entrepreneur. For example, social entrepreneurs may be unable to complete projects due to lack of funding. Social entrepreneurship also requires a great deal of time and effort in order for it to succeed, and sometimes the cost of failing is worse than the cost of trying. For some social enterprises there is the potential for short-term failure or long-term success.
Social enterprise often does not turn into profit making ventures, which means they are less likely to compete with more traditional business models.
Additionally, social enterprises can face hardships when trying to find someone who will take responsibility for risk management as well as prioritizable risks that come from investing in social enterprise ventures.
Successful Social Entrepreneurs
Successful social entrepreneurship is difficult to define. Social entrepreneurs range from those who start with a social mission and figure out the business model later, to those whose social missions are intertwined with their business models from day one.
The key point in any successful social venture can be boiled down to research, an understanding of what they see needs fixing within society, the social impact hereof, and the financial flexibility to do so.
In short
Social entrepreneurship is an exciting venture that can have a significant positive impact on the world. However, it also comes with its own set of risks and challenges for those who are involved in this type of business. In order to minimize these risks while maximizing potential rewards, social entrepreneurs should carefully consider their motivations before jumping into any new project or venture. For more information about what you need to know as an entrepreneur, visit my website.