What is Social Entrepreneurship?
Why does Social Entrepreneurship Matter?
Characteristics of a Social Entrepreneur
Business Entrepreneurship vs. Social Entrepreneurship
Social Entrepreneurship FAQ
If you want to build a company that makes a real difference in the world, social entrepreneurship is a great place to start. In today's startup culture, businesses that succeed and resonate with the next generation of buyers and decision-makers are not solely focused on making money. Companies that serve a greater purpose are better positioned to attract opportunities, and they create positive change to leave a lasting impact.
Building socially-conscious companies takes hard work and dedication. Here's a guide to help you succeed.
My name is Milan, and I'm the founder of three impact-driven companies. I believe in building socially conscious companies to maximize social impact. It sounds simple, but it gets complex quickly. The gist: You can’t change the world without also changing the systems and mechanisms that perpetuate positive change.
What is Social Entrepreneurship?
Social Entrepreneurship: solving pressing social issues through the creation and funding of businesses.
Social entrepreneurs combine the heady pursuit of profit with a desire to improve society. They are individuals who apply business logic to bring about change in their communities, using innovative methods and approaches. Social entrepreneurs are important actors of social transformation, catalyzing inclusive growth and enacting change.
90
%
of Gen Z consumers believe that companies should take part in alleviating environmental and social problems.
Source
Why Does Social Entrepreneurship Matter?
Because social entrepreneurship is so important today, my personal mission in life is to sustainably make the lives of people better. I do that through my work as a social entrepreneur as the founder and CEO of Audo, founder and chairman of Nota, and co-founder and chairman of Guin Music.
Now is a crucial time for social entrepreneurship. Social media has increased the public’s awareness of the need for fair business practices, and consumers and investors care more than ever about a company’s mission and vision.
Here are some more reasons why social entrepreneurship is an important way to bring about change:
Characteristics
of a Social Entrepreneur
A social entrepreneur is an innovative thinker who seeks to address a social problem in a new and effective way. Diving into the world of social impact often involves taking risks to help make positive changes in society. Because of the high risk involved in social entrepreneurship, it is often necessary for social entrepreneurs to make sure that their ideas are easily understandable and user-friendly.
Social entrepreneurs share certain common characteristics
Purpose-driven and solution-oriented mindset
Committment to social welfare
High emotional quotient (EQ)
Collaborative spirit
Innovative approach towards problem-solving
Philanthropic ideology
Curiosity to seek alternatives
Open-minded and believer in civil discourse
Faith in team efforts
Business Entrepreneurship vs. Social Entrepreneurship
Social Entrepreneurship
Targets social gaps and brings positive change with their goods and services
Focused on a greater cause for collective social development
Product needs address a social cause or gap
The definition of success is solving a social issue while generating ROI
Business Entrepreneurship
Products and services are focused solely on making profits
Revolves around an individual gain
Product need arises out of market trends and demands
The definition of success is making money for the shareholders and private investors
Social Entrepreneurship
FAQ
01
How are social entrepreneurs different from non-profit organizations?
Social entrepreneurs are ROI-oriented and stand apart from non-profit organizations. However, the profits funnel back into working towards the social cause.
02
What are the four types of social entrepreneurship?
The four most common types of social entrepreneurship are:
Community Social Entrepreneurs - deal with the social needs of a community in a small geographical area.
Global Social Entrepreneurs - work to address global social needs. For example, access to education or climate change.
Transformational Social Entrepreneurs - target issues government and traditional businesses are not handling.
Non-profit-Social Entrepreneurs - create problem-solving solutions for society without material benefits.
03
How can I start my social enterprise?
A clear roadmap to starting your social enterprise is:
Find a cause you’re passionate about
Dig into the cause and create an innovative solution
Devise a solid plan to get funding, build a team, and monetize
Build in public by taking your audience along for the ride as you develop a product or service
04
Why is social entrepreneurship gaining popularity?
Social entrepreneurship is on the rise because companies want to make a profit while solving social issues. Their goal is to bridge the best of both worlds and create a better reality for us as a collective.
05
How do social enterprises make money?
Social enterprises make money by selling products or services geared toward an issue they are trying to solve.
06
How do social entrepreneurs build teams if they don’t have much capital?
Social entrepreneurship gives us the opportunity to make a direct impact on the world. Today, a job is more than the money we make. Social entrepreneurs assure their team can cherish this sense of purpose.