Peek (2020) argued that many reasons might inspire someone to launch a business, such as financial gain, passion, freedom, or the desire to develop an empire. However, in recent years, a new kind of entrepreneur known as the social entrepreneur has developed, providing a distinctive viewpoint on the success of entrepreneurship.
Social entrepreneurship, just like entrepreneurship, defies a single definition, as there are differing opinions about what constitutes social entrepreneurship. Some believe social entrepreneurship relates only to businesses that make money and work towards improving a designated problem by selling something to consumers. Others say business owners who work to resolve a social problem using donations or government money are also social entrepreneurs. According to Poatob (2017), social entrepreneurship is an evolving and quickly changing business field that scrutinises the practice of detecting, starting, and growing successfully mission-driven for-profit and non-profit ventures, that is, organisations that strive to advance social change through innovative solutions. This implies that social entrepreneurship is, at its most rudimentary level, doing business for a social cause. Similarly, Peek (2020) espoused that social entrepreneurship involves individuals, start-ups, and entrepreneurs developing solutions to address social issues. They explore business opportunities that positively affect their community, society, or the world. While often confused with non-profit organisations, social entrepreneurship is a for-profit endeavour focusing on creating social or environmental changes.
Panwar (2020) argued that social entrepreneurship is a blend of trade and social issues, focusing on the positive impact of their business on society. It differs from philanthropy in that it focuses on the social or ecological change achieved while obtaining the benefit. Social entrepreneurship encompasses various methodologies aimed at influencing positive change in society, with a particular focus on disadvantaged populations, including the poor. It is argued further that social entrepreneurship is a business strategy where organisations invest in strategies to address cultural, social, or environmental issues while making a profit. Social entrepreneurs seek unique business ideas that are closely connected to society and provide cultural and social solutions. This approach is popular among booming entrepreneurs who use these issues to establish their businesses. Profits are estimated based on the changes they have made in society or the environment, rather than traditional metrics like revenue generation or stock price rises (Bhasin, 2019).
Social entrepreneurship can also be referred to as a benevolent enterprise, as the primary goal is to solve societal problems. This is supported by the argument by Bhasin (2019) that occasionally, social entrepreneurs work as “non-profit” organisations whose main objective is to collect funds for charitable courses. A social entrepreneur is someone who creates innovative solutions to community-based issues, taking on the risk and effort to create positive societal changes. They believe this practice connects individuals to their life’s purpose, helps others find theirs, and makes a difference while earning a living. Ethical practices like impact investing, conscious consumerism, and corporate social responsibility programmes facilitate their success (Hayes, 2023). A social entrepreneur may launch a company that employs physically challenged individuals to run restaurants. These eateries are established to give physically challenged people a job and foster their independence. Social entrepreneurs combine business and social issues in a way that improves the lives of people associated with the cause. They do not measure their success in terms of profit alone; success for social entrepreneurs means that they have improved the world; however, they define that. For instance, Facebook, Twitter, mobile phones, Instagram, WhatsApp, etc. are all products of social entrepreneurship that were developed to solve the problem of communication that was brought about as a result of distance.
Social entrepreneurship involves innovative business strategies aimed at addressing social and environmental issues, such as poverty, inequality, environmental sustainability, and access to education and healthcare. These entrepreneurs often develop new products, sustainable business models, or collaborate with stakeholders to achieve goals. They measure success based on social and environmental outcomes, rather than just financial profit. Examples of social entrepreneurship include businesses providing clean energy solutions to underserved communities, supporting fair trade and ethical supply chains, and providing employment opportunities for marginalized populations. This growing field has the potential to drive significant positive change globally.
The Growth Mindset (n.d.) expanded on the discussion that social entrepreneurs take a different tack when solving communal issues by emphasising the livelihoods, morals, and integrity of individuals. In addition to having excellent managerial and business abilities, they are driven to serve others in their professional lives. This has contributed to the rise in popularity of social entrepreneurship since it provides solutions for everyday problems like unemployment and poverty. They are now a great benefit to society because of their distinctive style. Hayes (2023) maintained that the primary goal of social entrepreneurs is not to profit but to implement widespread improvements in society. However, it must be emphasised that they must be financially savvy to succeed in such a course.
Welfont Group (2018) and Hayes (2023) identified four types of social entrepreneurs: community social entrepreneurs, non-profit social entrepreneurs, transformational social entrepreneurs, and global social entrepreneurs.
Community social entrepreneurs create ventures to serve the social needs of a community within a narrow geographical area, with the active participation of people living within the community. Community social entrepreneurs focus on the needs of the area and build strong relationships within the community to leverage resources and create partnerships. These ventures become more sustainable over time due to the stakes of all parties involved.
Non-profit social entrepreneurs focus on social wealth, reinvesting profits to expand services. However, motivation to generate funds may be lower due to the availability of funds. Non-profit social entrepreneurs have a broadly stated goal that benefits someone but not necessarily their direct community, often operating similarly to a business but with net profits returned to the entity for further development.
Transformational social entrepreneurs create enterprises that meet social needs not adequately met by governments and businesses. They may recruit excellent volunteers but face challenges in complying with interrelated rules, regulations, and politics. Transformational social entrepreneurs often scale operations from a single programme to benefit various areas, such as Goodwill, which transformed from a small non-profit social enterprise into a richer entity with more rules and regulations.
Global social entrepreneurs aim to complete the transformation of a social system to meet major social needs and change the fabric of society worldwide. Their scope is international, and they aim to create an enterprise that will stand the test of time. Global social entrepreneurs tackle overarching social concepts such as poverty, depression, or living conditions, often not specific to a region. These organisations have the greatest reach, such as the Bill & Melinda Gates Foundation, which works to find vaccinations for various diseases affecting people around the world.
To appreciate and embrace the impact of social entrepreneurs for the betterment of the world is to understand how such a fate is achieved. It is of relevance to emphasise and understand how social entrepreneurs matter in this ever-changing contemporary society. Social entrepreneurship, as argued by the Growth Mindset (n.d.), creates opportunities, reshapes corporate social responsibility, gains the government’s attention, inspires change, and creates employment opportunities, among others.
Social entrepreneurship is crucial as it creates opportunities for the less privileged, providing them with a better life that they have been deprived of for a long time. It is not just about creating a new business but also about creating jobs and making money by making people’s lives better. Social entrepreneurs often start their companies to create jobs, provide growth opportunities, make money, or help others achieve personal goals. They also help develop products and services that are beneficial for society as a whole, allowing people who otherwise lack access to these products or services to use them. Thus, social entrepreneurs contribute to a better quality of life for those who are not well off.
Social entrepreneurship is crucial, as it teaches big corporations the responsibility of giving back to society. Companies that support less fortunate individuals benefit themselves by instilling good values in young people and encouraging them to take responsibility for their actions. Social entrepreneurs use their resources to solve societal problems, viewing them not just as opportunities for profit but also as opportunities for social change. Motivated by a passion for solving social problems through business solutions, they believe that businesses can positively influence people’s lives and put this belief into action by creating new businesses or improving existing ones.
Social entrepreneurship is crucial as it attracts government attention to daily societal problems and engages people in solving them, creating a more inclusive and just society. Social entrepreneurship can attract resources from governments, the private sector, or individuals through grants or tax exemptions. The World Bank has identified social entrepreneurship as one of its five drivers for poverty reduction, with many NGOs working to address issues like lack of food supply, unemployment, and gender equality. Governments and NGOs need to work together to find solutions to these issues, which affect millions of people worldwide. Social entrepreneurs can help attract government attention and provide solutions through their initiatives.
Social entrepreneurship is a business approach that aims to solve social problems like poverty and discrimination by creating opportunities for those excluded from the economic mainstream. It focuses on creating businesses that benefit all people, not just a few. Social entrepreneurs consider their local community and global problems, using private sector resources to promote social change. Motivated by a desire to improve the world or financial gain, they use their business skills and knowledge to promote social change.
Social entrepreneurship is a crucial aspect of society, as it not only creates employment opportunities but also contributes to the community. Social entrepreneurs are individuals who are dissatisfied with their current lives and decide to make a difference through their business ventures. They create a market for products not produced in the mainstream economy that are needed by millions of people. This concept allows individuals to combine their passion with a business plan to create new products or services in untapped markets, allowing small businesses, large corporations, or even governments to contribute to the community.
Rahim (2015) highlighted the following as some of the reasons social entrepreneurs matter in this ever-changing society:
- They bring attention to an urgent issue. Social initiators, also known as social entrepreneurs, enhance citizens’ lives by drawing attention to urgent issues that may affect a community, nation, or ethnic group.
- Social entrepreneurs create economic value by creating jobs, producing income, and nurturing a network of business partners, such as suppliers, shipping companies, lenders, and utility companies. They contribute to the economic renewal of their region or country, and their employees have the opportunity to spend their income and grow the local economy.
- They create social value, which encompasses the overall improvement in society, including sustainable environmental practices, high literacy rates, information sharing, reduced health risks, and increased innovation from educated and healthy citizens. These entrepreneurs have the potential to lift millions out of poverty and contribute to a more equitable society.
- Social entrepreneurs like Jane Chen have made a significant impact by creating life-saving devices like the Embrace Warmer. This device, resembling a miniature sleeping bag, provides four to six hours of heat on a single 30-minute charge, ensuring the safety of low-birth-weight babies during power outages in hospitals and clinics.
- They influence government policy. Social initiators have revolutionised public health, environmental awareness, workplace safety, and education via their movements, gaining their political will and global recognition. The way we work, live, and vote on important topics has changed because of these initiatives.
- They create unique opportunities. Millions of people worldwide also benefit from the special opportunities created by social entrepreneurs. For instance, Sam Goldman and Ned Tozun invented light, giving 2.5 billion people who had access to consistent energy portable solar lamps. These safe lights may replace hazardous paraffin lamps with light that lasts up to 12 hours. The deeds and endeavours of social entrepreneurs have a profound effect on society.
The costs and opportunities of environmentalism for small businesses are highlighted below:
The cost of buying energy-efficient machines to protect and conserve the elements of the earth’s ecosystem is very expensive for small businesses, even though the aftermath will reduce the rate of energy consumption. Small businesses lack the financial muscle, so the quest to correct the damage as well as prevent future destruction of the environment becomes highly costly for smaller businesses as there is less demand for eco-friendly products, especially in the Ghanaian context (Clarify Green, 2019).
Again, promoting environmental friendliness on the part of small businesses means the adoption of business activities that support and preserve the environment, which includes but is not limited to using eco-friendly materials for product packaging, which in reality is very expensive, thereby increasing the cost of production. For instance, the use of brown paper bags for product packaging is very expensive and costs more than using polythene bags. Brown paper is environmentally friendly as it can easily decompose, but such practices increase the cost of production, which makes it challenging for small businesses. The argument correlate with the position of Clarify Green (2019) that eco-friendly products are more expensive than traditional products as their manufacturing and production processes cost more.
Small businesses can save money when efficient machines are used. Increasing energy efficiency saves on utility costs. According to Business Queensland (2014), avoiding, reducing, reusing, and recycling can lower costs for small businesses. For example, a few simple changes to how you deal with paper can involve your staff in environmentally friendly processes while saving you money. Reusing existing material in creative ways means that fewer dollars are spent purchasing new stock to create products. Streamlining the transportation of employees or shipping saves the earth as well as a substantial amount of money. Although there is often a bit of money to be spent establishing green business procedures, it saves a lot of money over time (LaMarco, 2019).
Going green does not only foster positive feelings from customers, but it also impacts positively on employees’ morale as they feel safer working for green businesses. Focusing more on your environmental impacts can also help to attract and retain staff, as argued by Business Queensland (2014). Involving workers in company-wide green initiatives boosts morale. Employees feel that their healthcare is prioritised and that they are not simply expendable commodities. This is also a good way to reduce turnover because employees do not want to leave a place that makes them feel as if they are a part of a work community that cares (LaMarco, 2019).
Environmentalism is quite a trending agenda being pursued around the globe by everyone, including businesses, to help preserve, protect, and conserve the ecosystem as their activities have harmed and continue to alter the earth’s natural state, hence the need to pursue such an agenda with their inclusion irrespective of the pros and cons it has for their business.
REFERENCES
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Clarify Green (2019). Why Are Eco-Friendly Products More Expensive? Retrieved from http://clarifygreen.com/eco-friendly-products-cost-more/ on June 22, 2020
Hayes, A. (2023). Social Entrepreneur: Definition and Examples. Retrieved on November 08. 2023 from https://www.investopedia.com/terms/s/social-entrepreneur.asp
LaMarco, N. (2019).What Are the Benefits of Going Green for a Business? Retrieved from https://smallbusiness.chron.com/benefits-going-green-business-3225.html on June 22, 2020.
Poatob, S. (2017). Entrepreneurship: A Guide for Beginners (2nded). Accra: Baggie Technologies.
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Rahim, E. (n.d). Top 10 Reasons Why Social Entrepreneurs Matter. Retrieved on November 08, 2023 from https://www.waldenu.edu/news-and-events/spotlight/2014/top-10-reasons-why-social-entrepreneurs-matter
The Growth Mindset (n.d). 11 Importance of Social Entrepreneurship. Retrieved on November 08, 2023 from https://www.growwithsaad.com/my-career/11-importance-of-social-entrepreneurship/
Welfont Group (2018). Types of Social Entrepreneurs. Retrieved on November 08, 2023, from https://medium.com/@groupwelfont/types-of-social-entrepreneurs-a7dc8ac57e34
