A social entrepreneur identifies a need in society and then innovates and implements an entrepreneurial solution to address that need. Social entrepreneurship is about identifying opportunities within the social arena and effecting change by developing innovative solutions (product or service) for those opportunities to impact communities positively.
In other words, it’s about working on businesses that limit the number of problems they create and maximize the number of solutions they offer and their impact on people and the planet.
Social entrepreneurs are a type of business owner with significant social missions. Social impact investors invest in these types of social businesses. They invest in companies that seek to generate both financial and social returns. These investments can be found in the giving circles for purposes of economic development, social missions, or public benefit purposes.
In this article, we’ll explore what it means to be a social entrepreneur as well as find out how you, too, can start your own social enterprise and disrupt the status quo!
What is Social Entrepreneurship, and who is a social entrepreneur?
The term “social entrepreneurship” was coined in the late 1990s by Professor Mohammed Yunus, considered the father of social entrepreneurship. Yunus is a Nobel Peace Prize laureate and the founder and Managing Director of Grameen Bank, which pioneered micro-lending to help poor women start their businesses.
David Bornstein, author of “How to change the world: social entrepreneurs and the power of new ideas,” defines social entrepreneurship as “a third way between for-profit and nonprofit organizations.”
A social entrepreneur identifies a need in society or communities and then innovates and implements an entrepreneurial solution to address that need. Social entrepreneurship is about identifying opportunities within the social arena and effecting change by developing innovative solutions for those opportunities. In other words, it’s about working on businesses that limit the number of problems they create and maximize the number of solutions they offer.
So what do social enterprises have to do with social entrepreneurs? It’s just a matter of spinning things around. A social enterprise is an organization that uses entrepreneurial methods to achieve its goals a create a positive Impact (Social and environmental impact). Usually, these goals are related to building positive change in society or the environment or achieving another positive goal that benefits the greater good.
So what do social enterprises have to do with social entrepreneurs? It’s just a matter of spinning things around. A social enterprise is an organization that uses entrepreneurial methods to achieve its goals a create a positive Impact (Social and environmental impact). Usually, these goals are related to building positive change in society or the environment or achieving another positive goal that benefits the greater good.
What are the types of social entrepreneurship, and how does it create an impact on communities?
The types of social entrepreneurship are numerous, and much of the categorization is based on the idea that employment is one of the core values and part of a general framework for a particular dispute. Many scholars argue that creating social enterprises or startups is one of the most beneficial tools to empower marginalized people and communities.
A Purpose-Driven Social entrepreneur is also known as a change agent. They identify problems in society and then implement an innovative solution. Their purpose is not to make a profit only but to create positive change in people’s lives.
How do you start a social venture, and you will make a social impact?
Some people are naturally blessed with the ability to start successful social enterprises. People that have this innate skill are called “unicorns.” However, everyone can still start a social enterprise even if they don’t have these qualities. Why? We all know that starting a business is hard – our parents taught us that. But you can still start your own social enterprise with the following steps:
1) Identify problems in society and communities. The most common topics for social ventures are reducing poverty, improving health care systems, and making the world a better place.
2) Research your problem from different angles. You want to identify the root causes of the problem and think of potential solutions that can be implemented on a smaller scale.
3) Brainstorm ideas for your social enterprise based on what you’ve learned.
4) Research other social enterprises to get ideas for your own enterprise. This will help you evaluate which industries are successful and why.
5) Create your Business Model and/or Business Plan based on what you’ve learned about the industry and your own goals based on Market studies and, first, the traction that you got from your product or service.
5) Create your Business Model and/or Business Plan based on what you’ve learned about the industry and your own goals based on Market studies and, first, the traction that you got from your product or service.
6) Find the right Founders / Partners who will support you in your entrepreneurial venture
7) Approach investors if they need to raise capital, especially with the impact investing ecosystem.
You don’t just have to approach investors. You can also create partnerships and go through startup incubators, which help your entrepreneurial ideas become a reality.
8) Make it happen! Your ventures are now part of the Social Enterprises and Social Entrepreneurship world, and remember it’s a long journey and venture!
Which industries are good for Social enterprises?
There are many different industries that social entrepreneurs can work in: from health care to education and everything in between. Here is a list of some of the most popular industries that social entrepreneurs are working in:
- Healthcare:
When it comes to healthcare social enterprises, there are many pros and cons to consider. On the one hand, healthcare is an area where there is a great need for clean water and healthy food. On the other hand, healthcare is expensive and complicated to ensure that people get the best care possible. You can also help people access their own health care by working in a medical setting as nurses or doctors for communities in need.
- Education:
Education is another popular industry for social ventures because it’s a great way to educate people about how our world works and how they can participate within it in meaningful ways. You can also offer debt-free schooling for all students and create opportunities for individuals to learn a skill that they wouldn’t be able to get otherwise.
- Finance:
Finance is an area where social entrepreneurs can help people worldwide invest their money in ways that eliminate harmful practices like slave labor and investing in companies that fund terrorism. Some other industries you may want to consider are the banking industry and any type of financial services that businesses and ventures use.
- Technology:
Technology is an important industry for social entrepreneurs because it has many different applications for everyone, from charities to startups looking to create products or software programs. You can also work in the energy sector, even for those who don’t have a background in science.
- Creative Industry:
The creative industry is one of the most common industries that many people go into because creativity and entrepreneurship are closely related concepts. The word “creative” stems from the Latin word “creation,” which means creating something new or bringing a work of art into existence. You may combine your social organization with your creative side by creating products like art or photography or services like design management or advertising that promote change in society.
- Food Industry:
The food industry offers opportunities for social ventures in many different ways. Food plays a huge role in our lives, and that’s why many people devote their time to solving problems like hunger or access to healthy food. You may also help the environment by working with agriculture (such as in organic farming) or by creating new ways of producing and distributing products.
- Clean Water:
Many different industries make our water supply clean and drinkable, but what about those harmful pollutants like heavy metals? Many things can be done to make water pipes more efficient or even simply safer.
Ready to make an impact and disrupt the Status Quo?
In conclusion, there are many different industries that a social venture can go into to solve issues for communities and do businesses.
It’s important to keep in mind that there is no one-stop solution for every social issue or even one Business Model.
For example, not everyone will be interested in the health care industry because it can be a sensitive subject, and not everyone wants to deal with the media attention that sometimes comes with starting a social enterprise.
Think about what you’re interested in and how you can apply it to underserved communities by taking these steps.
