More than 80% of consumers think companies should aggressively adopt environmentally and socially aware policies, creating demand for business professionals with advanced insight and understanding of practices that affect positive change in those areas.
As consumers, employees and investors grow more willing to support companies that put altruism ahead of profit-maximization, social entrepreneurship is rapidly expanding as a business strategy across public and private sectors as organizations are finding their willingness to do good benefits growth.
Some examples of successful social entrepreneurships listed by The Impact Investor include:
- TOMS, an early adopter in the space, started giving away one pair of shoes for each pair it sold. The company has given shoes to more than 100 million underprivileged children.
- Lush toiletries provide financial support to grassroots humanitarian organization and uses ethically sourced ingredients in its products.
- Good Eggs food delivery sources 70% of its products locally and empowers employees to influence company policy and earn living wages by giving everyone a stake in the business.
“A social enterprise is often confused with non-profit organizations, but the main difference is that social businesses are for-profit, but they use that profit to achieve corporate social responsibility,” according to the online resource.
Who Are Social Entrepreneurs, and How Do They Form Their Organizations?
Social entrepreneurs are optimistic change agents who place serving the greater environmental and social good over the pursuit of profits. However, they are also businesspeople who follow the steps to establishing an organization, according to the U.S. Chamber of Commerce, which recommends starting with a business plan that includes:
- Articulating a mission statement that describes in detail whom the organization will serve, what problem it will solve and how it will solve it
- Researching like-minded organizations, conferences and leadership development for businesses that put the “interests of people and planet above shareholder gain,” according to the Social Enterprise Alliance
- Identifying how the organization’s products or services differ from existing offerings (the ideal unique selling point will be a breakthrough that will maximize start-up investing)
- Involving team members, business partners and supporters for feedback on what the organization intends to accomplish
- Developing and adopting a business model that includes internal organization and external partnerships and a strategy for acquiring human and financial capital
- Acquiring initial funding sources, typically from impact investors that provide capital to social entrepreneurs to create measurable social benefits and generate favorable financial returns,” according to Investopedia
- Making an action plan or master to-do list that includes deadlines for achieving annual, monthly, weekly and daily goals and evaluating their impact
“If you feel called to make more of a difference in the world and want to make a living while doing it, you’ll need a clear roadmap for your journey,” the Chamber of Commerce notes.
What Does it Take to Become a Social Entrepreneur?
In addition to a big heart and a vision for making a positive change, an advanced business education equips entrepreneurs with the insights and know-how to chart a course that will “get the business from a flash of inspiration to off the ground,” as the Chamber describes it.
The Master of Business Administration (MBA) program offered online by Northern Kentucky University (NKU) includes electives that help students understand the entrepreneurial mindset, recognize opportunities and idea validation and develop expertise in planning and developing for social impact organizations.
Graduates are also equipped with advanced business skills in social-venture creation, marketing and management for starting or running non- or for-profit organizations with a social mission.
Learn more about NKU’s online Master of Business Administration program.
