Social entrepreneurship is a form of business that aims to create positive social or environmental impact while also generating profit. Social entrepreneurs are not satisfied with the status quo and seek to find innovative solutions to the world’s most pressing problems. In this article, we will explore what social entrepreneurship is, why it matters, and some examples of successful social entrepreneurs.
Table of Contents
- What is Social Entrepreneurship?
- Why is Social Entrepreneurship Important?
- Innovative Solutions
- Force for Good
- Inspiring Example
- Examples of Social Entrepreneurs
- Conclusion
What is Social Entrepreneurship?
The term “social entrepreneurship” was first coined by Bill Drayton, the founder of Ashoka, a global organization that supports social entrepreneurs. According to Drayton, “The life purpose of the true social entrepreneur is to change the world.”
Social entrepreneurs differ from traditional entrepreneurs in that they are not driven by profit alone, but also by a mission to create positive change in society. However, they also differ from charities or non-profits in that they use business principles and models to achieve their goals and ensure their sustainability.
Social entrepreneurship can take various forms and operate in different sectors and scales. Some social enterprises are for-profit, while others are non-profit or hybrid. Some sell products or services directly to the beneficiaries, while others use intermediaries or cross-subsidies. Some focus on local communities, while others have a global reach.
Why is Social Entrepreneurship Important?
Social entrepreneurship is important because it provides innovative solutions to society’s most pressing problems, it can be a powerful force for good in the world, and it serves as an inspiring example for other businesses to follow.
Innovative Solutions
Social entrepreneurs are often able to identify and address the needs and gaps that are overlooked or ignored by the mainstream market or the public sector. They can leverage their creativity, passion, and expertise to design products or services that are affordable, accessible, and effective for the people who need them most.
For example, LifeSpring Hospitals is a chain of maternity hospitals in India that provides high-quality health care for low-income women at a fraction of the cost of conventional hospitals. The founder, Anant Kumar, applied lessons from the low-budget airline industry to create a no-frills service that does not compromise on safety or quality.
Another example is BloomBack, a Singapore-based social enterprise that preserves flowers and enables hospices to re-use arrangements from events. The founder, Hazel Kweh, also provides employment opportunities for marginalized women who face difficulties finding jobs due to personal circumstances.
Force for Good
Social entrepreneurs can also have a positive impact on the environment and society beyond their direct beneficiaries. By aligning their business goals with their social mission, they can create value for multiple stakeholders and contribute to the “triple bottom line” of people, planet, and profit.
For instance, Ben & Jerry’s is a well-known ice cream company that was founded with social responsibility as its core value. The company sources its ingredients from fair trade and organic farmers, supports various social causes and campaigns, and donates a percentage of its profits to charity.
Another instance is Off Grid Electric, a company that provides solar energy solutions to rural households in Africa that lack access to electricity. The company not only improves the quality of life and economic opportunities for its customers, but also reduces greenhouse gas emissions and creates local jobs.
Inspiring Example
Social entrepreneurs can also inspire other businesses and individuals to adopt more ethical and sustainable practices. By demonstrating that it is possible to do good and make money at the same time, they can challenge the conventional wisdom that business is only about maximizing profits.
For example, TOMS is a shoe company that popularized the “one-for-one” model of giving. For every pair of shoes sold, the company donates another pair to a child in need. The company has also expanded its giving portfolio to include eyewear, water, safe birth, and bullying prevention.
Another example is Newman’s Own, a food company founded by actor Paul Newman. The company donates 100% of its profits to various charitable causes through its foundation. Since its inception in 1982, the company has given over $550 million to thousands of organizations around the world.
Check out the 5 most inspiring social entrepreneurship examples in the world here
Examples of Social Entrepreneurs
There are many examples of social entrepreneurs who have made a significant difference in various fields and regions. Here are some of them:
- Muhammad Yunus: The Nobel Peace Prize winner and the founder of Grameen Bank, a microfinance institution that provides small loans to poor people, especially women, to start their own businesses and escape poverty.
- Scott Harrison: The founder and CEO of charity: water, a non-profit organization that brings clean and safe drinking water to people in developing countries.
- Shiza Shahid: The co-founder and former CEO of the Malala Fund, a global organization that advocates for girls’ education and empowerment.
- Blake Mycoskie: The founder and chief shoe giver of TOMS, a shoe company that operates on the “one-for-one” model of giving.
- Marc Koska: The inventor of the K1 auto-disable syringe, a device that prevents the reuse of syringes and reduces the spread of diseases such as HIV and hepatitis.
- Sanjit “Bunker” Roy: The founder and director of Barefoot College, a non-governmental organization that trains illiterate rural women to become solar engineers, teachers, doctors, and more.
Conclusion
Social entrepreneurship is a form of business that combines profit and purpose. Social entrepreneurs are innovators who use their skills and resources to solve social or environmental problems and create positive change in the world. Social entrepreneurship is important because it provides innovative solutions, creates a force for good, and sets an inspiring example for others. Social entrepreneurship is not only a trend, but also a movement that is reshaping the way we do business and live our lives.
