Social entrepreneurship or social economy business… In recent years, more and more young people have created businesses with a social vocation, that is to say, which meets the social or environmental needs of society.
Social entrepreneurship is attracting growing interest in a society where ecological and social issues are high. Let’s find out together what it is exactly.
A little history…
Social entrepreneurship emerged in the 1980s in the United States and in the 1990s in Europe. Social entrepreneurship is not new, but like any new thing, it takes time to develop and be known.
Over the years, we have witnessed the emergence of new entrepreneurial dynamics with a social purpose, such as the creation of statutes adapted to social entrepreneurs, the establishment of new support mechanisms, and the emergence of new networks in these sectors which are energized.
Social entrepreneurship is another way of doing business where you are not just looking to make a profit. The entrepreneur places economic efficiency at the service of society and the environment.
Social entrepreneurship: A detailed definition
Social entrepreneurship is a much more general term that encompasses the notion of social economy. Social entrepreneurship is an organization of activity with a viable economic project that satisfies purposes of general interest (social or environmental) but for profit.
The entrepreneur must satisfy the real needs of the population while creating his own job.
An analysis of this definition is in order…
What is meant by “viable economic project”?
A viable economic project means it can meet its own financial needs first before meeting the needs of the general interest. A company in a precarious situation will not be able to afford to help others. The business must have a minimum profit.
What do we mean by “purposes of general interest”?
It must meet social and environmental goals. These needs can be present in various sectors such as the aging of the population, access to care, the limitation of waste, the fight against unemployment, etc.
What is meant by “for profit”?
The business must make a minimum profit even if the business does not want to generate large profits. Indeed, the profits generated by its companies can be retained by the company.
Social entrepreneurship aims to use most of its resources for the social or environmental needs against which the company is fighting.
Social entrepreneurship or social business?
Social business is a form of social entrepreneurship. Social business includes all collective enterprises, such as non-profit organizations and cooperatives.
Social entrepreneurship is a social business that must create a minimum of profit.
Here are two examples of social business and social enterprise to better understand the difference between these two close concepts:
- Éco vélo is a social business, as it is a non-profit association in which the association recycles bicycles.
- While Station Service is a for-profit social enterprise that offers a clothing rental service in Quebec.