Many people in the nonprofit sector have heard of the term “social entrepreneurship” without really understanding what it means. Some people thought it is similar to what nonprofit organizations do, while others thought it is a kind of moneymaking venture to pursue a social cause.
Perhaps the most widespread meaning of the term is one that takes the role of visionary individuals who risk everything to generate social change. It is more about people who are taking the lead to break old systems to embrace the new.
These ventures are, in fact, significant to the economy and the society as a whole. Though there are legitimate endeavors, some are just out there making false claims.
The real ones are the types of social entrepreneurs doing their unique activities. They attract support from the public and investments from philanthropic individuals and organizations.
Social entrepreneurs implement programs and projects designed toward poverty alleviation. Most of all, the poor people should directly benefit from these programs and projects, rather than a trickle down public service scheme.
How Do They Do It?
- Training and employing a significant number of impoverished people in its business activities.
- Offering fair salaries and benefits to impoverished people being employed.
- Making credit available to impoverished people at affordable rates without resorting to unfair lending schemes.
- Providing technical, financial, or material assistance and support to enable poor families to run their own small businesses.
What are the Categories of Social Entrepreneurs?
Social entrepreneurs can also be categorized as any of the following:
- Producing products and/or services that meet consumer needs.
- The merchandise items should be something essential to human life such as food and water, housing, education, and healthcare, and available to poor people at affordable prices.
- Providing practical alternatives toward meaningful initiatives.
- It should be something that to promote environmentally friendly practices and contribute efforts and resources toward nature conservation and others.