Social entrepreneurship is a corporate perspective from which companies direct efforts and resources to develop innovative solutions for social problems, positively impacting the community.
A social entrepreneurship organization uses its resources and business knowledge to generate profits, not so much monetary, but to collaborate with the well-being of Society.
Currently, both consumption and business vision is changing.
The rise of the Internet and social networks has broadened and brought closer the actual panorama facing Society, creating a profile of a conscious consumer.
Many customers prefer to buy products from those who attend to these social problems. Various entrepreneurs are willing to change the course of companies due to the clear need for change today.
But what does it mean for a business to be social entrepreneurship? What are its objectives? Why is it a boom today?
What is Social Entrepreneurship as a Business Model?
It is a corporate modality carried out by innovative companies that use both a business model – sales – and a focus on solving socio-economic or environmental problems found in Society.
And, due to its structure, this method allows organizations to be autonomous, scalable, and generate profits to continue investing in this type of venture.
Fundamental Aspects of Social Entrepreneurship
Social entrepreneurship is in the constant search to balance the three fundamental aspects of its mission, which are:
- achieve your financial success;
- its reason for being remains based on social responsibility ;
- commitment to the environment.
Characteristics of Social Entrepreneurship
For a business to remain classified as a social enterprise, it must have, at least, the following elements:
its primary objective must be social welfare and the creation of promoting work by and with Society;
most of its profits and income must remain reinvested in obtaining the social objective;
their social actions go above gain;
- It seeks to establish itself as a company through the use of methods typical of the commercial or business field, such as marketing, advertising, and, of course, sales;
provides jobs and career growth opportunities;
- It is established as a store (either physical or virtual) and offers products or services, in the same way as traditional commercial companies do;
- provides innovative solutions to social problems and natural environments; its fight is against poverty, social exclusion, crime, climate change, etc.
Can a Social Entrepreneurship Company be Profitable?
You may think that this type of venture is romantic and almost impossible because its structure is for-profit and social welfare. However, we tell you that it is profitable!
As we mentioned in the beginning, conscious consumers are here to stay. The concern for a better and more sustainable world is becoming more explicit, and many people are willing to cooperate to achieve it.
The need for social and environmental change, the considerable increase in conscious customers, and the demand for products or services from socially responsible companies mean that more and more organizations are taking this initiative.
But How do you make Social Entrepreneurship Profitable?
Keep in mind that it is a company
Although its purpose is social, it is still a company—the reason why it should remain managed as such.
That is, making consistent and controlled decisions through proper administration, advertising, and a good strategy.
Do a market study
Social and environmental problems are everywhere. However, you must validate that you can connect with people through your brand, product, or service. Analyze how far you can go with market research.
Remember the importance of sales
As in any traditional company, you must sell. Yes, you can accept donations, but remember that you do not depend on them, so put yourself forward to the sales strategies.
Use everything in your power
- Find people who are willing to help you, such as brand ambassadors ;
- Use a good digital marketing strategy ;
- Define your brand to connect with real customers;
- Investigates how large traditional companies expand;
- Use your imagination!
Also Read: What Are Hardware and software? And Examples
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