Introduction to Social Entrepreneurship
By: Abbey McCauley: Logistics Director
Do you have a great business idea? Do you also want to contribute your skills and talents to reduce social and/or environmental problems? Then social entrepreneurship might be for you!
During this past fall semester, I had the opportunity to learn about social entrepreneurship in COMM 410: Strategies for Social Enterprises. This course aimed to introduce critical functional areas and business strategies relevant to address societal and environmental issues. Our class focused on how social entrepreneurship can be used as a business solution to achieving profit while prioritizing creating a better world. Here are some facts about social entrepreneurship that might interest you!
What is social entrepreneurship?
Social entrepreneurship is an approach to making profits while also addressing a social goal. According to Ana María Peredo in the Journal of World Business, social entrepreneurship is “emerging as an innovative approach for dealing with complex social needs.” While traditional business models focus on generating profit, social entrepreneurs take this one step further by using profit to create social benefits. An example of a social enterprise would be a company selling products, and half of its revenues go to a social cause.
You might be thinking, what makes this business method different from non-profits? Social enterprises and non-profits have varying structures and funding. Social enterprises can make profits, which they reinvest into their business or donate to support a social campaign. Meanwhile, non-profits do not profit from their activities and receive funding from donations or grants. Benefits are reaped from both social enterprises and non-profits. However, it is argued that social enterprises can create more market value beyond their intended target market.
why is social entrepreneurship important?
As you have read, social entrepreneurs are working towards addressing some external goal besides profit. I believe there are many other significant impacts that social enterprises make in our society:
Creates communities of passionate and like-minded people: you can work every day with those who want to achieve a social impact.
Allows for innovation: social entrepreneurs work to fill the gaps that public and private sectors do not provide.
Promotes social progress and awareness: customers can use their money for good and learn more about social issues in their community.
some awesome social enterprises to check out:
TOMS Shoes: 1/3 of profits from their shoe and accessory sales goes to “grassroots good” which includes causes for mental health, increasing access to opportunity, and ending gun violence. They are also a Certified B CorporationTM!
4ocean: For every product sold, one pound of plastic gets pulled from the ocean. They sell bracelets, clothes and reusable beach products. As well, 4ocean is a Certified B CorporationTM.
Common Good Solutions: this consulting firm helps social enterprises succeed! They offer consulting, career coaching, online learning and social finance planning services to social enterprises. Their vision is “to see every business enrich its local community and the lives of its customers and employees.”
Inspired by:
COMM 410: Strategies for Social Enterprises Course Material By Kareem Roberts
What is social entrepreneurship? By BDC
Social entrepreneurship: A critical review of the concept by Ana María Peredo