social entrepreneurship

The importance appliance of Social entrepreneurship

Introduction

Social enterprise space has evolved rapidly from a concept that required explanation to a trend everyone is eager to join. Business schools have drastically increased their social entrepreneurship course and club offerings, and many businesses and startups can get away with calling themselves a social enterprise. Company which concern also about making a positive social impact instead of just emphasize on financial impact only.

A strong business model and management-style is critical to success, and it’s contributed to a sustainable social enterprise as much as the next person. Yet, a social entrepreneur can run the most transparent, well-managed, profitable social enterprise in the world, and still not be solving the social problem their business is founded upon. 
 

Its also about applying practical, innovative and sustainable approaches to benefit society in general, with an emphasis on those who are marginalized and poor.

A term that captures a unique approach to economic and social problems, an approach that cuts across sectors and disciplines grounded in certain values and processes that are common to each social entrepreneur, independent of whether his/ her area of focus has been education, health, welfare reform, human rights, workers' rights, environment, economic development, agriculture, etc., or whether the organizations they set up are non-profit or for-profit entities.It is this approach that sets the social entrepreneur apart from the rest of the crowd of well-meaning people and organizations who dedicate their lives to social improvement.

Content

A social entrepreneur identifies and solves social problems on a large scale. Just as business entrepreneurs create and transform whole industries, social entrepreneurs act as the change agents for society, seizing opportunities others miss in order to improve systems, invent and disseminate new approaches and advance sustainable solutions that create social value.

They need to care as much about human rights and policy as they do about management hacks. This is not to say that social entrepreneurs aren't already knowledgeable about socioeconomics, but they need to remember to think beyond the business and to understand the systems at large we are hoping to impact. For lasting, transformative and positive social change.

For Instance, Social entrepreneurs tackle major social issues, from increasing the college enrollment rate of low-income students to fighting poverty. They operate in all kinds of organizations: innovative nonprofits, social-purpose ventures, and hybrid organizations that mix elements of nonprofit and for-profit organizations.

The important of social entrepreneurship

The first major economic value that social entrepreneurship creates is the most obvious one because it is shared with entrepreneurs and businesses alike job and employment creation. Estimates ranges from one to seven percent of people employed in the social entrepreneurship sector. Secondly, social enterprises provide employment opportunities and job training to segments of society at an employment disadvantage (long-term unemployed, disabled, homeless, at-risk youth and gender-discriminated women). 

Social enterprises develop and apply innovation important to social and economic development and develop new goods and services. Issues addressed include some of the biggest societal problems such as HIV, mental ill-health, illiteracy, crime and drug abuse which, importantly, is confronted in innovative ways. 

Next to economic capital one of the most important values created by social entrepreneurship is social capital (usually understood as “the resources which are linked to possession of a durable network of ... relationships of mutual acquaintance and recognition"). Examples are the success of the German and Japanese economies, which have their roots in long-term relationships and the ethics of cooperation, in both essential innovation and industrial development. 

Social entrepreneurship fosters a more equitable society by addressing social issues and trying to achieve ongoing sustainable impact through their social mission rather than purely profit-maximization. In Yunus’s example, the Grameen Bank supports disadvantaged women. Another case is the American social entrepreneur J.B. Schramm who has helped thousands of low-income high-school students to get into tertiary education.

Social entrepreneur focus οn social problems to make a positive change, further motivating common people to persuade the same. Corporate social entrepreneur саn reap strategic benefits with combination οf commercial aims аnd social objectives.

Within the last decade more and more entrepreneurs are focusing their work on resolving social problems.  Whether it’s poverty or climate change, these important issues deserve the efforts of these eager entrepreneurs, and their work will benefit society not just through the jobs they create or the sleek product they deliver, but by the people they help.

Distinct frοm business entrepreneurs whο seek value іn thе creation οf nеw markets, social entrepreneurs aim fοr the  value іn thе form οf transformational change thаt wіll benefit underprivileged group οf people аnd eventually society аt large.

How to get Fund to Social Entrepreneurship

Leveraged non-profit ventures 

The entrepreneur sets up a non-profit organization to drive the adoption of an innovation that addresses a market or government failure. In doing so, the entrepreneur engages a cross section of society, including private and public organizations, to drive forward the innovation through a multiplier effect. Leveraged non-profit ventures continuously depend on outside philanthropic funding, but their longer term sustainability is often enhanced given that the partners have a vested interest in the continuation of the venture.

Hybrid non-profit ventures 

The entrepreneur sets up a non-profit organization but the model includes some degree of cost-recovery through the sale of goods and services to a cross section of institutions, public and private, as well as to target population groups. Often, the entrepreneur sets up several legal entities to accommodate the earning of an income and the charitable expenditures in an optimal structure. To be able to sustain the transformation activities in full and address the needs of clients, who are often poor or marginalized from society, the entrepreneur must mobilize other sources of funding from the public and/or philanthropic sectors. Such funds can be in the form of grants or loans, and even quasi-equity.

Social business ventures 

The entrepreneur sets up a for-profit entity or business to provide a social or ecological product or service. While profits are ideally generated, the main aim is not to maximize financial returns for shareholders but to grow the social venture and reach more people in need. Wealth accumulation is not a priority and profits are reinvested in the enterprise to fund expansion. The entrepreneur of a social business venture seeks investors who are interested in combining financial and social returns on their investments.

Conclusion

To sum up, social enterprises should be seen as a positive force, as change agents providing leading-edge innovation to unmet social needs. Social entrepreneurship is not a panacea because it works within the overall social and economic framework, but as it starts at the grassroots level it is often overlooked and deserves much more attention from academic theorists as well as policy makers. This is especially important in developing countries and welfare states facing increasing financial stress.

"Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry."

Bill Drayton, CEO, chair and founder of Ashoka