It is likely that when you hear the term “Social Entrepreneurship or Social Entrepreneur” you won’t understand what it is, since we have always associated the concept of an entrepreneur as part of the business world, while the social aspect makes us think of NGOs.
The truth is that the idea of social entrepreneurship breaks down the barriers that exist between the two concepts to create a hybrid under which those initiatives that, with market logic, seek to bring about social change.
Social entrepreneurship is not a new concept, but it is gaining strength as companies become more aware of their commitment to their new environment. That is why we see more new and existing businesses joining this business model, under the approach of a single premise, “more is more.” We understand that the business world should not be perceived as something separate from society. Instead, we should focus on it not only to provide, grow or generate revenue but to contribute, solve and give back.
After experiencing the COVID-19 pandemic, many companies, businesses, and individuals changed their perspectives on life. It is no coincidence that social entrepreneurship is becoming a business model capable of responding to today’s consumers while combining two concepts that until now, the market didn’t pay attention to: Growth and Contribution.
The question is, how do you identify social entrepreneurship? Some characteristics that differentiate social entrepreneurship from traditional entrepreneurship are:
- They seek a balance between generating a positive social impact and generating economic profitability.
- They do not necessarily depend on donations or grants.
- They are perfectly scalable businesses.
- They have clear values and ideals.
- They seek to solve a current problem.
- They operate as a traditional company: They are for-profit, generate revenue, offer employment, are profitable, etc.
- They seek and are committed to innovation.
- They seek collaboration with other entrepreneurs in the face of competition and monopoly.
- People are loyal to these brands not only for what they sell, but for everything they stand for.
In short, we are talking about a new way of understanding the market. So, if you are a business owner looking to make your actions meaningful and those actions are devoted to improving the world, then you too could be a social entrepreneur.