Social enterprises are children of crises, a good part of them are the result of the concern of an entrepreneur, or group of entrepreneurs, to change social realities and work on projects that have a real impact on the world.
In fact, the difference between sustainable social enterprises and other types of enterprises (financial or cultural) is the clearly social orientation of the projects, which, however, do not become philanthropic because they must be financially sustainable over time.
In changing or critical environments, when social policies begin to suffer cuts or less attention is paid to what is “important” in order to attend to what is “urgent”, that is when social enterprises manage to break through.
But is the desire to want to change things enough for a social enterprise to work? The answer is no”. Undoubtedly, the desire to make a difference in the environment and be part of the solutions instead of perpetuating problems is a powerful motivation to undertake a social project, but it is not enough.
That is why today we want to show the 10 keys to the success of social enterprises that constitute the basis for that good idea to materialize, grow, prosper over time and can achieve the desired social change.
1. The profile of the social entrepreneur
Not everyone is cut out to run a social enterprise. The profile of this entrepreneur is very specific because, although he shares the essence of a commercial entrepreneur, they have their own, very marked characteristics.
For example, it is a person who wants to improve people’s quality of life, innovation-oriented, creative, capable of balancing the urgency of satisfying people’s needs with the social transformation that will make this coverage of needs sustainable over time. .
In addition, it has a collective social vision that deprives individual interests, credibility, trust in teams and in the beneficiaries of social action, has a strong personal and professional ethic, as well as the certainty that it is acting to generate an impact on people’s lives.
2. A powerful idea and impact capacity
This is the part that almost all social entrepreneurs have covered: an idea that changes people’s lives for the better. That generates an impact, whether it is political, social, economic or environmental, the social entrepreneur breathes his idea every day with the desire to make it a reality for the benefit of a community or group.
This idea may be circumscribed to a local level, however, a social enterprise does not have geographical limits because many of the social problems are shared by different populations and even far from each other. But a powerful idea can be replicated in every place where the same social problem needs to be solved, to generate a positive social impact.
3. Have a social purpose
The goal of a social venture is to create social value rather than personal wealth. Its goal is social innovation and it focuses on collective problems rather than individual needs.
Although financial success is an important goal to achieve in order to sustain the project, it moves to a second place on the list of priorities. This, of course, completely transforms the vision of traditional business-oriented entrepreneurship.
However, these objectives can be achieved in very different ways. For example, the profits of a business (or business venture) can be used for a social purpose. Another option is for the enterprise itself to meet its objective of positive social impact thanks to its own actions.
4. Tons of creativity
There is no successful social entrepreneurship without large doses of creativity. Not only to find the “powerful foundational idea” but to overcome the obstacles of the day to day, being recursive and finding solutions out of the ordinary.
We said at the beginning that social enterprises flourish in environments of uncertainty, thanks precisely to the fact that they learn to make creative decisions, novel solutions and new ways of doing things.
5. Have a strong ethic
The commitment of a social enterprise with societies is difficult to break. Social entrepreneurs are motivated to create value and solve problems in their environments. However, there are not few obstacles that are in the way, so having non-negotiable ethical values and principles is very important to stay “in the lane” and not divert efforts towards the personal benefit of those involved.
6. Be guided by a Mission
One of the aspects that helps to form an ethical code in social enterprises is to have a clear mission and share it with the team. This is aligned with the objectives item, however, a mission is much more powerful.
When we talk about social-oriented missions, the level of commitment multiplies exponentially. When the quality of life of people or the future of the environment are involved, you cannot fail.
Missions are also powerful motivators for a team. They are part of the reasons to go to work and commit: because they feel that it is worth it and that they are contributing something to the world. The power of solidarity should not be underestimated.
7. Different business model
Social enterprises are characterized by being responsible organizations with their collaborators, with the environment and with their surrounding communities. They understand that people are the center of their actions and they ensure that their own internal organization is committed to diversity, plurality, gender equity and flexibility.
8. Have mixed sources of financing
This is one of the most challenging keys to success for social enterprises because without financing, no project will last. The sources of financing for a social enterprise can be public or private. Most have mixed sources and also seek to generate their own income.
9. Breathe innovation
This may be, along with creativity, one of the most important keys to the success of a social enterprise. Innovation is practically part of the definition and the essence of these projects. Finding innovative solutions is part of what makes a social enterprise unique, they are distinguished by the ability of their members to imagine the future in different and unexpected ways and work to make that “difference” a reality.
Social enterprises work outside the established, just where the traditional has failed to provide answers. That is why the decisions of its leaders are based on innovation, proactivity and the absence of fear of taking on challenges.
10. Focus on education
The literature on social entrepreneurship stands out to the extent that a person has more academic training, their knowledge and interest in social innovation increases. That is why the emergence and success of social enterprises is more likely among people committed to the well-being of society who also have the necessary training to be able to undertake successful social projects.
As we pointed out, good ideas and positive intentions are not enough, social enterprises require leaders with very specific skills that drive them towards concreteness, sustainability and success. And people with higher educational levels are more oriented to achieve it.
That is why in the Specialization Program in Business Innovation of the Technological University of Peru we focus on training professionals to become agents of innovation that can provide innovative solutions to the social problems of the country, the region and also the world.
If the problems are common, then so are the solutions provided by social enterprises that seek to improve people’s quality of life.
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