There have been many companies which turn their images to be charitable ones. Most of them are eligible to resolve the social problems with different approaches. Well, the opportunities are not limited to reputable businesses only. Even the entrepreneurs have the same chance as them to run their own social entrepreneurship. You might have been wondering about what is social entrepreneurship, how does it apply, what are the benefits, etc. You’ve come to the right page since I will answer all the possible questions for you.
The definition of social entrepreneurshipIt is not entirely appropriate to tie the social entrepreneurship activity with the non-profit organizations. In fact, many businesses do not only rely on the external charity. The business models of social entrepreneurship can be in many forms. Sometimes, it is more prevalent to make a business model which combines the profits with the social purposes.
When a social deed meets the professionalism, then the social entrepreneurship emerges to the surface. There is a huge difference between business and social entrepreneurship.
Business people conduct their activities solely for making profit. Meanwhile, social entrepreneurs work for the community to bring up the changes or movement in theirs but profit is still one of their objectives.
Social vs CommercialThere is a gray area between the social and commercial entrepreneurship. First things first, the objective is completely different. Commercial enterprises take profits as priority. The social enterprises do not only focus on money. They have attached the social movements as well in their agenda. So, it is not exaggerating to say that social entrepreneurs put the money after social duties. Wealth is not a primary concern for social entrepreneurs. If you are into social entrepreneurships, the wellness of the people should be your primary concern.
The Social Entrepreneurships ClassificationsNow that you’ve known about what is social entrepreneurship, you will need to comprehend the main classifications of the social enterprises before building your own business.
Business VentureThe social enterprise with the intent of profiting can be called as business venture. Mostly, it is in the form of small business. While in the progress you are contributing to the community, the sole purpose of this body is to make profits. Then how you will use your profits, it is up to you. Entrepreneurs who involved in this project will need to develop the idea based on their findings on community.
Non-Profit BusinessNon-profit business is purely non-profit. You are running your organization not for a profit. In many cases, big portions of the income is distributed for the sake of the causes. Some niches which have strong ties with non-profit form are charitable, literary, religious, artistic, science, education, wildlife, natural reserve, and so on. In this case, the shareholders or investors of this business do not benefit financially.
Hybrid Non-Profit BusinessFunding sources for this type of social enterprise can be wide array from both private sector and government. The funds will be used for the causes and core operations. It gives the businessman a flexibility in assigning the job roles. It is a great idea to implement this type of non-profit business if you are working with fewer volunteers or employees.
Leverage Non-Profit Business
Leverage is harnessing the available resources because of limited funds. You will use creative ways to break the barriers, face the challenges, and handle the matters. So, you’d rather to focus on efficiency. In the model of leverage non-profit business, you will need to know the keys to keep the operational budget low while maintaining the service to your community. That way, you will be able to contribute to the community without high operational costs.
The Benefit and Importance of Social Entrepreneurship
Social entrepreneurship is mostly great influence for the nation. the entrepreneurs get out of the box to find the real solutions for the problems. Being a social entrepreneur has set you in the specific path. And it won’t be easy because you will do against the conventional ways of thinking. However, the innovation that you make can really change society in more creative ways. The existence of social entrepreneurship does not only promise, but also overcome the problems in the society in “unique approaches”. here are the significances of social entrepreneurship in the society.
The Better Problem Solver
Entrepreneurs have the obligation and eligibility to find the problems in the society and solve them with their innovative approaches. That means you will have tons of opportunities that many conventional businessmen cannot have. Since business venture is dependant on profits, the social entrepreneurs can make huge changes even with the limited budget to start with. You don’t have to be rich for helping people.
Your Unique Selling Points
Having the cutting edge gives you an absolute advantage. Being social and influencing can be your business's unique selling point. In fact, more and more people tend to purchase products or services that they believe to have positive impacts to the society and environment. We have known how the effect of green movement has changed a massive amount of people around the world. It is only the nature of human. People are more convenient to support something ethical.
Inspirations for the Next Generations
Depending on how impactful your project, you will be a source of inspiration for the youngsters and people in general. There will be an impact that you might not have considered before. Well, it is sensible enough since you are giving something useful to the society. People will recognize you from your efforts. Social enterprises are more known for their good names. Your project will inspire a lot of people so that they have a proposition to work with social purpose rather than money. Social enterprises focus to work with purpose and value people’s efforts. It can conveniently change the mindset of people who work for a salary to work for a specific purpose.
The Most Advanced Stage in the Development
Being a social entrepreneur means that you have the chance to be the pioneer of something. Since you own a cutting edge solutions to offer, the community will recognize your contribution and achievement so well.
You and your team will get top recognition from your sector and from society in general. Many parties will call your method “unique” for offering solutions in creative approaches.
Economic Changes Advantage
As you find solutions for the problems in society, it will be possible to create a new industry wherein you can create jobs for folks. With the available jobs from your enterprises, you will have the chance to change the economy in your area to be better than before. Depending on the type of your business, it can be one of the factors for society transformation. You will eventually see how big the changes you made for the society.
The Characteristics of Social Entrepreneurship
Ones can easily proclaim to be a social entrepreneur. But for the social enterprise doers, it is important to understand the characteristics of social entrepreneurship. Here are the characteristics that you need to know.
The Willingness to Change Something
A social entrepreneur is usually bothered with the way things are. They think that they can change things right away to make a better world. They know that something can be done in order to make a positive impact towards the society.
Passion Over Tertiary
Passion is indeed the real fuel of social entrepreneur. Without it, one cannot proceed for the project. the reason is obvious. When you propose a new thing to the society, there will be two major reactions: positive and negative. Many people cannot overcome the negative traits because they don’t keep their zeal and passion in the same place. They tend to hear what other people say and back off because only a few people support them. Well, no matter what’s your project, there will only be few people who can root your project. Passion is the characteristic needed to keep going on.
The Strong Guts to Make a Change
Social entrepreneurs must take risks to deliver clear messages to change the others. Even though you might have the team on board, it does not mean that you are working with like-minded people. It is important to have a willingness to change the others’ mindset. Only by then, you can make a huge change in the society.
The Willingness to Change the Society for Greater Good
Being a social entrepreneur requires commitment, especially towards the society. This is a characteristic which we cannot find in the usual business person. A social entrepreneur will devote their time, resources, energy, and every relevant thing to make sure their project can change society for the better.
Changing society is not an overnight task. There will be complicated phases to overcome. It requires good amount of effort, time, as well as sacrifices. So, the social enterprises will need to take some milestones before achieving the ultimate goals. The progress can be slower or faster depending on many factors including funds, audiences, marketing strategy, and so on. However, the relentless trait will save the day. It will keep the social enterprise going on without any hassle.
The great thing about being a social entrepreneur is that you will have the freedom to see the problems from the different of views without political restraints. No one will dictate you to do things “right” for them. Social entrepreneurs are open to all solutions. That includes the necessity of adapting to a new thing and alter the strategies if the current ones are not successful. The adaptability is one of the keys to be a successful social entrepreneur.
The Connection with Like-Minded Parties
There’s a chance that your movement is spotted by the other parties who have similar purposes as yours. Then there will be a possibility to collaborate with them. Social entrepreneurs are open to collaboration opportunities. Not only that it can help ones in terms of funding, but also the influences towards the society. Collaboration with the other parties will enhance the progress of your milestones than doing this on your own.
Restless in Innovating
Social entrepreneurs will always find ways to make it. After all, it is their absolute roles. They need to open all of the possibilities to make good changes.
The Pure Intention on Solving the Problems
Since social entrepreneurship is not based on the money purpose, the doers will solve the problem with practicality. Of course, they cannot overlook the importance of the budget. But unlike profit-driven business, social enterprises tend to find the most efficient ways to operate. Therefore, even though you are facing budget problems, you will want to find a way to solve the problems with the existing resources.
Social Entrepreneurship Companies
There have been many successful social enterprises that change the world. Most of them brought positive impacts to their specific society. But the recognition comes from around the world. Here are the social entrepreneurship companies that deserve our support and appreciation.
Uncommon Goods service is arguably one of the most representative social enterprises in the world. This site focuses on providing holiday gifts for their users. The users can browse the online catalogues that they normally do when shopping online. However, there is a huge difference. Uncommon Goods only offer products which are environmentally safe. These come from artists and small manufacturers.
Warby Parker is a great example of Hybrid non-profit business. The business model pushes the donation of every pair of eyeglasses they sold.
Indiegogo has been around for a while. It helps artists, entrepreneurs, startups, and people who want to change the world to meet their shareholders and funders. One of the biggest challenges for entrepreneurs to propose their ideas is that they don’t start with a big capital yet. Indiegogo has such an amazing system to facilitate the big thinkers and funders to meet.
As a social entrepreneur, you might drive your business based on the social purpose. But it is also important to have clear goals, good planning, as well as enough funding to operate your business. Expenses are unavoidable. Therefore, it is sensible to work on the funding. Being an entrepreneur also means that you need to find ways to ensure that you can deliver what you proposed to the community without being bankrupt in the process.