Social Entrepreneurship follows the same path to success as a, business entrepreneurship. There goals are radically different. It looks to create positive changes in the world. They must make a profit to do this, so those can spend those profits on charitable actions. There are some social entrepreneurships:
Grameen Bank : This “bank of the poor” is a special type of creditors that offers micro loans to impoverished people in developing countries. This small loans give people the means to be self sufficient and they are always paid in full.
TOMS : This stylish footwear company was formed after their founder, Blake Mycoskie, visited Africa and was shock to find most people couldn’t afford a pair of shoes. For every pair of TOMS sold, the company donates one pair of shoes to people in need.
Seventh Generation : Along with producing cleaning and personal hygiene products that have a reduced harmful effect on the environment, this social entrepreneurship donates 10 percent of their pre-tax revenue to non-profits and other social entrepreneurships.
trepreneurs launch companies that create change and profit through their product and/or service offerings. When you use business to solve a problem, make life more convenient, or do something better than it had been done before, you are an entrepreneur.
For the sake of this discussion, when we talk about business entrepreneurship, we’re talking about a specific type of entrepreneur. This entrepreneur wants to use their business to make money. They will develop, bootstrap and launch a company specifically for the sake of turning a profit. While they are looking to affect change through their company, there is no specified social mission attach to their business.
1. Who’s Investing in Your Entrepreneurship?
Many social entrepreneurships seek their first-phases of funding from philanthropists. Although these investors want to see a return-on-investment (ROI) they’re more likely involve in the business due to its social mission. A traditional, business entrepreneurship usually seeks capital from a venture capitalist firm and they’re all about the ROI and nothing else.
2. How Are Profits Use?
A business entrepreneurship uses their profits to grow the company and pay shareholders. You get involve in a business entrepreneurship for the sake of making money and increasing your personal wealth. Although social entrepreneurships engage in for-profit activities, their profits may be donate to charity or use for other philanthropic efforts. There may be no shareholders in a social entrepreneurship, and even the entrepreneur may not make much personal wealth from their business. Instead, it’s about the mission.
3. How Do You Define Wealth?
Both types of companies want to affect serious change, disrupt the existing market and make money by offering a better solution. A business entrepreneurship defines wealth as dollars made through these actions. Money is the goal of the business. A social entrepreneurship values wealth accumulation and the profits generated by their company. However, a social entrepreneur sees money as just a tool to affect real change throughout the world.