Guide to Social Entrepreneurship
With the growing needs of accountability and responsibility from companies, many business models have been resurfacing lately to resolve the social problems. Social entrepreneurship is a unique concept because its motive is not to seek profit but to contribute to social justice, nation-building, environment protection and many other objectives.
What is Social Entrepreneurship?
Social entrepreneurship has way deeper meaning than the usual corporate social responsibility that most corporations employ. Its essence lies in helping but it does not only rely on the external charity. This game changing business model adopts a new formula for success- combining capitalism with good deeds mentality. When social mission marries business discipline, social entrepreneurship takes birth. While businessmen work for their aim to create market for their products with the sole purpose of making profit, the social entrepreneurs work for their community and make every effort to face the challenges and bring about positive change.
There are some basic characteristics which are common in every social entrepreneur – sustainability, reach, innovation, social impact, healthy impatience, feedback hungry and values monitoring and measuring.
Types of social enterprises
Social enterprises can be broadly classified into three-
Hybrid non-profit
Funds are primarily used to support its operations and causes. Apart from grants from the private sector, funding comes from government and market failures.
Leverage non-profit
Uses traditional way to face the challenges and tackle the issues. Incorporate innovative ways to fulfil and aim.
Social business venture
Uses set-up businesses in line with the enterprise to support its initiatives.
Difference between social entrepreneurship and commercial entrepreneurship
The major aspects which differentiate a social entrepreneurship from a commercial entrepreneurship are-
Goal/objective
Great impact and sustainability are the two priorities of social enterprises and profit takes the back seat. On the other hand, commercial enterprises are only after money and their expectations always revolve around profit. The needs of society come secondary when enough money is earned. They always focus on the surplus which can be spent on the corporate social responsibility.
Creation of wealth
When we talk about money, commercial enterprise takes all its endeavors to gratify the needs of customers so that profit comes rolling in. On the other hand, Wealth is not a primary concern for social enterprise but it uses it to support its causes.
Why social entrepreneurship is the new business model-
Motivation is the ultimate factor
The biggest requirement of any business to reach the zenith of success is doing something which keeps one motivated. When it comes to social enterprise, making a real and lasting impact on people’s lives is what keeps one going.
Close connection with your life purpose
Social motives give your life a real purpose to achieve. There is no better way to serve the world selflessly.
Opens the world of happiness
When you help others to find their life purpose, you feel an internal satisfaction that cannot be compared with any happiness of the world. Even the projects and programs are also designed keeping in mind the real purpose of the organization.
Reshali Balasubramaniam
Head of HR, HR Counselor and adviser at https://work.lk/. Do you offer a Service? Signup for an account at work.lk