Social Entrepreneurship

Social Entrepreneurship

Social Entrepreneurship

Social Entrepreneurship – An Emerging New Trend

To learn more about Social Entrepreneurship – Read This Book

Social EntrepreneurshipThere is a growing new trend among business enterprises. A lot of companies are leaning towards being more socially responsible. Today we find more and more companies adopting, as a part of their core operations, a specific social mission, not with the intention of making a profit, but to contribute to making the earth a better place to live. These are the social entrepreneurs.

Implementing innovative strategies to fuel positive social action is social entrepreneurship. There are different types of social entrepreneurial organizations, including for-profit and non-profit organizations. Certain professionals who have their own private practices provide their social services to communities in need on a spontaneous basis. As we analyze the way that these organizations work, the power and potential behind them becomes apparent. There are different models on which the ventures of social entrepreneurs are based on.

Models of Social Entrepreneurship

Social Sector Business

A “Social Sector Business” is a business run for profit which integrates a social mission with focus on maximizing profits. The service offered by such companies or the products marketed by them are geared towards addressing specific social needs. These businesses are also referred to as NJFP or Not Just For Profit. These organizations pay their way through their own earnings.

The Grameen Bank is one of the most successful examples of this particular social entrepreneurship model. It was founded in the year 1983 by Muhammad Yunus to help the poor in rural Bangladesh obtain microloans without collateral. The success of this model is evident with the 7 million borrowers as of December 2007 and the 95% repayment rate.  That repayment rate is phenomenal!  Earning huge profits was not the only benefit of this venture either, this bank was awarded the prestigious Nobel Peace Prize.

Earned Income Non-profit

Another model is the Earned Income Non-profit in which the organization is focusing on a social mission and makes profits by selling its own products and services to those who can afford it. They do not depend on donations and grants. These organizations are referred to as ‘social enterprises.’

An example of this social entrepreneurship model is the Delancey Street Foundation. This foundation was initiated in the year 1971 by John Maher and Mimi Silbert to assist ex-convict, substance abusers and homeless in San Francisco. This organization does not rely on any government funding. Clients carry on businesses and the profits generated goes towards funding this foundation. In fact, 65% of their funding is from client businesses which include a print shop and a moving company. This business, which has had a positive impact on at least 14,000 people, teaches skills and provides marketable job ideas to clients to make a difference in their lives.

Pro Bono Practice

Pro Bono Practice is a model involving professional services groups of health practitioners, lawyers and consultants. They contribute towards a positive change in the society by helping clients who cannot afford to pay. The practice makes money and funds those who cannot afford paying by charging those who can. They also generate funds by selling products or services or even reaching out for sponsors.

Dr. Juan Campos, a chiropractor in San Francisco is an example of this model of social entrepreneurship. Since the year 1988, he has been offering chiropractic services once a year in El Salvador. He has a group of chiropractors travelling with him who pay for their own trip expenses from the income they earn through private practice.

To learn more about Social Entrepreneurship – Read This Book

All of these social entrepreneurship models focus on social issues and integrate business principles to make a significant difference. What they all have in common is the creativity, motivation, spirit and enthusiasm to make a difference in the world.

 

 

 

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