Social entrepreneurship begins with the same business model as any other traditional business. But the strategies used are about social issues.
That is why social entrepreneurship was invented, which is actually similar to all other forms of capitalist entrepreneurship, but with the overall purpose of solving social problems.
With that in mind, we will talk about the key to social entrepreneurship and explain why this concept is beginning to take root in the current established system.
What is social entrepreneurship?
A social entrepreneur is a person with a project that generates social value. It is a human being who, through his business, uses strategies that are ultimately good for society.
In this way, the goal of a social entrepreneur is to create a better society through the sale of goods and services. We also see social entrepreneurs working to fund social programs, design educational tools, and improve health management.
The importance of social entrepreneurship
At first glance, it may be utopia to think that the solution to social problems may be the main purpose of a business that needs to make money.
At the same time, it is important to keep in mind that social entrepreneurship is not the same as a non-profit organization. Instead, such a company runs around through the advantageous things they produce. Often, social entrepreneurship focuses on economic growth.
As you can see, the importance lies in the fact that society is gradually moving towards an interest in a more sustainable world. According to a 2015 report by Forética, 50% of consumers say they choose products based on their ethical values.
The consumer is becoming increasingly demanding and companies have to adapt to their needs. Therefore, social entrepreneurship plays a major role in the current business model.
Benefits and how it became a trend
When it comes to understanding a social project, one has to take into account what niche in the market it is dealing with. The following factors explain the reasons for the motivations behind social entrepreneurship:
- The need to respond to current crises and meet austerity policies. Consumers began to feel that businesses were not meeting human needs after the current business model failed. That it did not work towards a common goal.
- The emergence of influential publications that encourage the dilution of such social values diluted social values.
- They began to create courses, guides and university degrees in social entrepreneurship, and thus trained the entrepreneurs of the future in having social values.
- Technological innovation has simplified the creation of new business models and opened up new opportunities to improve people’s lives.
- These individuals are willing to pay more for a product of social value. As a result, 46% of the world’s consumers will pay more for products that are linked to social benefits.
After analyzing the current system, one can see that the key to social entrepreneurship lies in its way of redefining a company’s success and benefits. Today, both concepts are often associated with some form of social responsibility, philanthropy, and change.
After all, a company’s future depends on how responsible it is to consumers, employees and distributors. Therefore, it is attractive for those companies that strive to prioritize and reconcile the solution of social problems with the goal of achieving other types of returns for their business.