In recent years, the term “social entrepreneurship” has become increasingly popular. But what is Social entrepreneurship? It is the process of designing, launching, and running a business or organization that seeks to solve a social problem. It combines the passion of a social mission with the discipline and business acumen of the best for-profit enterprises.
Many problems in the world need to be fixed, but it takes more than just one person to do it. This is what social entrepreneurship is all about. It’s about taking on the challenge of finding creative solutions to social problems and positively impacting the world.
What is Social Entrepreneurship?
Social Entrepreneurship means that an individual or a group of people have taken up the responsibility to solve the dominant society’s problems. It could be a low-key matter or a large-scale drive that interests the masses.
What’s important here is that the activity or initiative solves a problem and leads to a positive change in someone’s life. Anyone can devise a solution to an issue and become a social entrepreneur, be they institutions or individuals. Strong will, good intentions, and a practical approach are driving forces.
Since we just learned what is social entrepreneurship? It’s time to look at its statistics to understand its importance.
Social Entrepreneurship Statistics
Hubspot surveyed more than 1000 customers, and they found that;
- 45% believe that brands should do more to support social issues
- Racial justice (52%), climate change (50%), and income inequality (43%) are the most critical problems that respondents want to see businesses take a stance on.
- Ages 18-35 are likelier to buy based on social issues and originality than older groups.
- All age groups are likewise more likely to buy from companies lowering their environmental impact, make corporate donations, treat employees nicely, and support small businesses.
- 56% said companies should contribute a portion of their profits to charity
- 66% said they are more likely to buy from a company that contributes a portion of its profits to charity.
- 66% say businesses should actively try to diminish their environmental impact
- 46% declare they are likely to buy from a company that actively attempts to lower its environmental impact.
Types Of Social Entrepreneurship
There are different types of social entrepreneurship. Here we will discuss four types of social entrepreneurship:
1. Community Social Entrepreneur
Community social entrepreneurs are those changemakers that work on a small-scale. A community social entrepreneur can be anyone, whether a young individual educating underprivileged kids in a town, a group of college students conducting sanitation and plantation drives in a city, or one or more institutions working for social good.
Community social entrepreneurs work in particular geographies and communities but for different causes. They do everything from hygiene and sanitation to job and food distribution services, from plantation and environment safety to employing deserving ones. These types of social entrepreneurs believe in instant change and aim for more.
2. Nonprofit Social Entrepreneur
These social entrepreneurs consider reinvesting profits. So, along with the initial cost, they put their earnings into the cause.
For example, if the initial project were to enlighten kids from underprivileged backgrounds and acquired more funds than required to boost the initiative, they would employ the surplus to educate women and grow their portfolio.
People with a business-oriented mindset like this type of social entrepreneurship. Not just that, but businesses and organizations chose nonprofit social entrepreneurship to utilize their social goodwill for the cause.
3. Transformational Social Entrepreneur
These entrepreneurs establish businesses that can solve a purpose that government initiatives and other companies can’t.
Transformational social entrepreneurship means handling an organization where you employ skilled people, think of unique ways to stay relevant in the market, follow government guidelines, and do everything a company does.
The larger vision for transformational social entrepreneurs contains a collaborative set-up of numerous businesses serving society collectively and individually. Some models of transformational social entrepreneurship are CRY (Child Rights and You), and Goonj.
4. Global Social Entrepreneur
Global social entrepreneurs work on a larger scale and concentrate on changes needed at the international level. They place social responsibility above profits.
They usually unite with organizations working on similar causes in distinct regions/countries. The Make-A-Wish Foundation is one of the most appropriate examples of this type of social entrepreneurship.
Social Entrepreneurship Examples
1. TranSanta
TranSanta is a remarkable, community-led social entrepreneurship venture. It operates an Instagram account that features and highlights stories from transgender youth in need.
These people create Target wish lists of items they require — and interested community members can anonymously buy and send them what they require.
2. Belu
Belu is a British, environmentally conscious organization that sources and supplies water to hotels, restaurants, and catering companies with a minimal carbon footprint. 100% of its net profits are granted to WaterAid — a business that delivers clean water solutions to underserved communities.
3. Cracked It
This London-based smartphone repair service is staffed by “at risk” and previously imprisoned youth. The organization teaches life skills and delivers income and employment opportunities for these poor and typically discriminated-against community members.
4. 734 Coffee
734 Coffee is a social venture committed to supporting Sudanese refugees. The business operates with local co-op farms in Gambella to grow and harvest coffee. It then markets its products to U.S. retailers and gives a portion of its profits to fund scholarships for Sudanese refugees.
5. SOIL
Sustainable, Organic, Integrated Livelihoods (or SOIL) is a nonprofit research and development organization that helps implement sustainable, low-cost solutions to the sanitation crisis in Haiti.
The organization helps community employment by staffing locally, contributing 92% of every dollar it receives to back and enact its environmental improvement efforts.
6. Tranquiliti
Tranquiliti is an organization committed to improving, supporting, and encouraging the mental well-being of young people in The United Kingdom. Since 2018, the organization has functioned with teachers, students, and mental health professionals to deliver mental health services in schools.
The organization seeks to improve students’ psychological well-being and academic performance by creating positive, supporting learning environments.
7. Books to Prisoners
Books to Prisoners is a traditional nonprofit organization — working out of Seattle, Washington — that supports tackling the issue of prison recidivism in the United States.
The organization takes book donations from community members and established bookstores to be repackaged and sent to imprisoned individuals — encouraging education and literacy to make prisoners’ transitions into society more accessible and more seamless after they’re released.
The program also welcomes monetary donations to support operating costs — including rent for office space, book packaging, and shipping costs.
8. Surfrider Foundation
Surfrider Foundation is a volunteer and activist-driven organization committed to environmental stewardship — supported by chapters and communities across the United States. The program helps campaigns raise awareness for pollution, marine life protection, clean water, and coastal preservation.
9. TOMS
TOMS might be the world’s renowned social entrepreneurial outlet — in many ways. The company began on a one-for-one model: A customer would buy a pair of shoes, and TOMS would give a pair to an underprivileged child.
But the company has evolved since its inception. Now, purchasing a pair of TOMS shoes or sunglasses helps deliver shoes, sight, water, safe birth, and bullying prevention services to people worldwide.
10. Ben & Jerry’s
Most people know Ben & Jerry’s for its intricate ice cream, but there’s much more to the organization than its product. The business is also committed to employing profits for good.
The business proactively encourages social progress by aiding environmentally friendly farming and manufacturing, racial justice, LGBTQ+ issues, or other causes.
For instance, Ben & Jerry’s ice cream is priced quite higher than other brands. Still, that model isn’t rigorously for increasing profit margins — that additional revenue supports the company’s ability to pay its workers a livable wage.
Conclusion
Social entrepreneurship is a growing field with many potential benefits. With the right mix of creativity, passion, and business acumen, social entrepreneurs can create positive change in the world.
As more people become aware of the potential of social entrepreneurship, we can expect to see even more innovative and impactful solutions to the world’s most pressing challenges.
If you have a social entrepreneurial idea, don’t be afraid to pursue it. The world needs more people who are committed to making a difference. We hope this blog helps you understand what is social entrepreneurship? And much more about it.
Read More
- How to Surround Yourself with Successful People
- 10 Roles of Entrepreneurship in Economic Development
- An Ultimate Guide on Characteristics Of An Entrepreneur
- Top 10 Young Entrepreneurs
- An Ultimate Guide on Characteristics Of An Entrepreneur
Business Talk is a digital business magazine that caters to CEOs, Entrepreneurs, VC, and Corporates. While working with entrepreneurs and business executives, we focus not only on their achievements. Our mission is to shed light on business entities, including their innovations, technological benchmarks, USPs, and milestones/accolades.
