What Is Social Entrepreneurship?
Social entrepreneurship is fueled by technological advancements, which have shaped the changing ecosystem in which we live. In this new context, skills – which were not as a priority before – have acquired a fundamental weight in our society. Thus, there appeared organizations, businesses, media, boys and girls who adopted a new way of accelerating the change towards a more just world.
This is how social entrepreneurship appears. This is based on the same economic model as a capitalist enterprise, but with the fundamental objective of combating a social problem.
Starting from this common thread, we will develop the keys to social entrepreneurship, and we will do so because they explain why this concept is rooted in the current system.
Definition of social entrepreneur
A social entrepreneur is a person with a project that creates social value. That is, a person who, through a business, uses strategies that generate social benefits.
Therefore, the ultimate goal of a social entrepreneur is the creation of a fairer society through the sale of goods and services. Thus, we find social entrepreneurs working in multiple sectors: financing of social programs, design of educational tools or improvement of health management.
In fact, in the European Union, more than 11 million citizens have jobs linked to social entrepreneurship. This represents 6% of total employment in the area.
The importance of social entrepreneurship
At first glance, it may seem unrealistic that the main objective of a business is to solve a social problem. Here we have to keep in mind that social entrepreneurship is not synonymous with non-profit organization. Social entrepreneurship subsists thanks to the profits it produces, even if social entrepreneurs concentrate their activity beyond this profitability.
Thus, we see that its importance lies in the fact that society is increasingly interested in moving towards a more sustainable world. According to a report produced by Forética in 2015, 50% of consumers claim to choose products based on ethical criteria.
Consumers are more and more demanding and companies must adapt to these needs. As a result, social entrepreneurship today plays a key role in the fabric of businesses.
The benefits of social entrepreneurship: why is it fashionable?
When it comes to understanding the life of a social project, it is necessary to take into account the niche of the market it occupies. The following factors explain the reasons behind social entrepreneurship:
- The need to respond to the crisis and confront austerity policies. With the failure of the current model, consumers have started to think that businesses are not meeting human needs and serving the common good.
- The appearance of influential publications, which encouraged this type of organization. The dissemination of social values in companies has created a favorable climate for social entrepreneurship
- Appearance of courses, guides and university degrees in social entrepreneurship that have trained and educated future entrepreneurs in social values
- Technological innovation, which has simplified the creation of new business models and opened up a new range of possibilities to improve people’s lives
- The weight of “responsible consumers”, who base the act of purchasing on ethical values and who are ready to pay more for this premium of social value. Thus, globally, 46% of consumers would pay more for products that generate social benefits
To conclude
So, after analyzing the current system, we find that the key to social entrepreneurship is how it redefines the success and benefits of a business. Today, these two concepts are remembered for social responsibility, philanthropy and transformation.
Ultimately, the future of a business depends on its responsible behavior towards its customers, employees and suppliers. Hence the attractiveness of those companies which strive to prioritize or reconcile the resolution of social problems with the objective of obtaining other types of profitability for their commercial activity.
Our thoughts The axes of social skills are not innate. We all come into the world with the tools to communicate with others.
