Social Entrepreneurship Definition: We explain what social entrepreneurship is and what the objectives of these enterprises are. Classification, characteristics, and examples. Please read other MTV articles for more information. If you share it, it will be of little help to us.
What is social entrepreneurship?
A social enterprise is a type of enterprise distinct from the typical private, for-profit enterprise and also from the public sector enterprise, whose mission is to meet the social, environmental, or other needs of the community in which it operates.
Seen in this light, social entrepreneurships apply market methods to achieve social objectives. This includes both non-profit organizations and companies with commercial purposes but a social mission.
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Therefore, rather than maximizing shareholder returns, these types of companies set goals for social impact in their communities or the world, such as funding pro bono activities, supporting micro-enterprises, protecting the most vulnerable, etc.
Social enterprises are often funded by the state or private investors, but generally speaking, they aspire to a certain degree of autonomy and freedom that necessarily requires self-sustainability. Cooperatives, unions, many NGOs, and community organizations are good examples of social enterprises.
Objectives of Social Entrepreneurship
The objectives of these types of companies are often referred to as the “triple bottom line,” as they involve success in three integrated areas: financial objectives, social objectives, and environmental objectives.
This means that every social enterprise aspires in some way to balance these three aspects of its core mission: economic success, social responsibility, and environmental responsibility.
The nature of these objectives can be quite varied, beyond that. From poverty reduction to mass sexual education to climate change awareness, everything can be of interest to an undertaking of this type.
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Types of Social Entrepreneurship
Broadly speaking, social entrepreneurships can be classified into four categories, according to their fundamental objective:
Promotional social entrepreneurships
Those whose objective is to disseminate a type of idea, conduct, or behavior in support of a social or ecological cause.
Specialist social entrepreneurships
Those formed by professionals with a high degree of specialization in a matter of social interest, who fulfill the role of disseminating specialized knowledge, educating, or informing the general population.
Local action social entrepreneurships
Those whose goal is to solve specific, specific problems that afflict the society in which they operate.
Long-range social entrepreneurships
Those that aim to address broad-based issues, considered to be of international or universal importance.
They can also be classified according to the source of their funding as:
Dependent social entrepreneurships
Those that receive money from another institution, whether private (commercial) or public (state).
Independent social entrepreneurships
Those who are self-managed or prefer to maintain their autonomy free from monetary compensation.
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Characteristics of Social Entrepreneurship
The broad characteristics of a social enterprise are:
- It prioritizes social action over profit.
- It aims to resolve or at least alleviate problems of community, social, or even global interest, for the improvement of human life.
- It pursues its goals using methods and discourses typical of the commercial or business world, especially advertising.
- It provides employment in the same way as commercial companies.
Examples of Social Entrepreneurship
Some examples of social entrepreneurship are the following:
Interruption
This Argentine company, founded in 2000, aims to promote fair trade and certify agricultural products using ethical and responsible methods. Its success was such that it opened a branch in New York in 2003 and in Peru in 2012.
Yaqua
This Peruvian bottled water brand maintains that it is neither a company nor an NGO, and dedicates 100% of its profits to solving the water availability problems of the small national communities within its reach, in a critical situation where nearly 8 million people in Peru lack access to drinking water.
Social Factory
A Mexican social enterprise founded in 2007, it aims to revalue and formalize the textile trade of hundreds of indigenous women workers in five Mexican states, promoting equal opportunities, equity, and fair trade in a country famous for its mistreated minorities.
Apps for Good
This company, founded in London in early 2010, has as its primary objective the independent development of technological applications, not by its workers, but by the communities themselves. To this end, they offer courses in educational institutions and promote open source so that people can provide themselves with the technological solutions they need to improve their lives.
