The Characteristics of a Social Enterprise

The characteristics of a social enterprise are not so different from those of a traditional enterprise, but when we speak of a social enterprise, it is because it puts society and the problems it wants to solve at the center. We do not say that it does not generate profitability, of course, but if we made a list of the characteristics of a social venture, its focus would be headed by transforming reality in a positive way.

Social entrepreneurship arises to respond to a social or environmental need, and at the same time generate an economic return. It is based on a business model to achieve social, environmental, ethical and financial purposes in response to a problem. In other words, it consists of the use of market strategies to solve deficiencies in a sector of society.

There are different models of social entrepreneurship. It may be a project that arises with the need to solve a social problem, such as Fresh Water that seeks to improve the quality of life of people without access to drinking water. But it can also be a company that creates a spin-off in which it allocates part of its resources to collaborate profitably with its environment, and even, and even more interesting, an organization that decides to link its business and have a more B side, then its purpose is no longer only economic, but the generation of a triple impact:

• Social benefit.
• Positive environmental impact.
• Economic and financial revenue.

This triple impact is what truly differentiates social entrepreneurship from the merely commercial type. This plane is the one that predominates and is located as the center of the actions and decisions of the organization.

Note, however, that this statement does not mean that they are non-profit associations, rather, it refers to the fact that economic benefits go to the background, but of course, they continue to exist because they are the ones that will give it to the idea or the project, a sustainable and exponential future.

Why does social entrepreneurship arise?

Like so many other things, social entrepreneurship is born as a response to a socioeconomic model that generates many deficiencies in certain sectors of society. That is, they seek to be a solution to the problems that governments have not been able to solve (due to various factors) and it is based on the assumption that in an increasingly complex society, it cannot be a single body that is responsible for solving the things that are not going well.

On the other hand, it is also favored by a paradigm shift. Today, society is much more empathetic, proactive, and entrepreneurial; Probably, globalization and the possibility of daily living the misfortunes of others through the media have awakened this social side in many people, and we are now more aware of what is happening in our environment.

Due to this, a private entity assumes these types of roles are highly regarded, which is a benefit for the reputation of entrepreneurs. This whole pack has created the ideal circumstances for these organizations to emerge and gain more and more ground in the communities.

In short, it is about the emergence of new actors in society. With tactics similar to those prevailing in the capitalist world, even emulating productive, communicative, and distributive techniques, companies and public and private organizations get down to work to create a better world. Would you like to become a social entrepreneur? Please share your valuable comments.