Bill Drayton was the first person in the world to use the words "social enterprise" and "social entrepreneur" in 1980. A social entrepreneur named Ashoka created a network where social entrepreneurs will meet and draw attention to business models that progress with the understanding of social entrepreneurship around the world.
The social need determined by social entrepreneurship is firstly desired to be solved free of charge. As a result of the production of goods or services, the primary goal is not to make a profit, but it can find the opportunity to make a profit afterward.
What Does Social Entrepreneur Mean? Who Is Considered a Social Entrepreneur?
Social entrepreneurs find solutions to social problems by finding unique techniques. They are seen as leaders who produce and implement solutions to social issues with a sense of social responsibility.
They are developing a business model not only for the pursuit of profit but for the greater social good. For example, The priority of an initiative that aims to change the understanding of consumption by finding a business model that produces environmentally friendly products is not to make a profit but to prevent climate change by reducing its carbon footprint.
Social enterprises are emerging to provide the necessary service to a community with insufficient service areas, combine charitable activities with technological infrastructures, or attract more attention. Thanks to social enterprises, companies, institutions, and individuals can quickly develop and finance solutions to social challenges. The founders of the organizations that take a permanent and practical step to solve the problems are called social entrepreneurs.
There are many non-profit social enterprises. Just like associations and foundations, the purpose of such social enterprises is to meet the deficiencies of service or production. However, the institution does not make a profit with the service or output produced, and it only executes itself. Likewise, there are many for-profit social enterprises. Although their primary aim was not to profit, they enlarged the enterprise by thinking they could only serve more people by making a profit.
If we give an example of social enterprise, Wikipedia is an example of social enterprise. Its primary purpose is not to make a profit. However, by making a profit, it has transformed its visibility and information into a platform area everyone can access.
What are the Differences Between Entrepreneurship and Social Entrepreneurship?
Entrepreneurship evaluates economic opportunities by producing goods or services or changing the usual process. Profit is gained by transforming economic opportunities into new values.
While entrepreneurs focus on new needs and stay at the top of the supply-demand relationship, social enterprises aim to be long-term by following new approaches.
Startups are trying to create a new business or business. However, there are social enterprises that want to make a change in the sociological field by changing the usual social order. They are advancing to be the pioneer of change in both areas. However, one aims to improve the existing order, while the other aims to create a new space.
While the main purpose of enterprises is to make a profit, the first purpose of social enterprises is to be the pioneer of change and increase the welfare of society, as mentioned before.
Why has Social Entrepreneurship suddenly become a hot topic?
Social entrepreneurship is now considered a socially responsible investment (SRI) and environmental, social, and corporate governance (ESG) investment. Therefore, the demand for social entrepreneurship is increasing day by day. Companies sign agreements with institutions and organizations established within the principles of social entrepreneurship, including a net positive understanding.
Author:
Mina Üstün
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