Social entrepreneurship refers to the act of developing and selling marketable solutions, in the form of products and services, to tackle social issues. Therefore, unlike traditional enterprises, social entrepreneurship is not only focused on making a profit but also on creating positive impact in the community. There is a wide range of social issues that can be tackled by a social enterprise, such as food insecurity, mental health, gender equality, and education.
The concept of social entrepreneurship has been around since the start of the 1980s, but only in recent years has it gained significant traction. As the hyper-aware younger generation, particularly millennials and Generation Z, enter the workforce, most (an impressive 94%) bring with them a passion and desire to change the world for the better. Let’s examine five reasons why social entrepreneurship is becoming more popular!
Social Entrepreneurship Makes the World a Better Place
Social entrepreneurship is aimed at addressing societal issues by innovating novel solutions. In recent years, more conversations around environmental, economic and social sustainability have been started and are still going on. As a result, more people are aware of the issues plaguing the world around them. The ability to hit two birds with one stone, that is making profit while bettering the world, is an attractive premise to many people.
Social Entrepreneurship Provides a Greater Sense of Purpose
One of the main draws of social entrepreneurship is that it is more fulfilling for the social entrepreneur than a traditional enterprise that is solely focused on profits. Because humans spend roughly ⅓ of their life at work, being able to serve a cause that helps others and is important to you will help you to derive more meaning in life, rather than working simply in pursuit of making money.
Support Networks for Social Entrepreneurs are Becoming More Widely Available
The rise of social entrepreneurship sets in motion a positive feedback loop that further increases its prevalence. Due to growing interest in social entrepreneurship, support organizations are popping up and governments are offering partnerships and an array of financial resources to encourage and facilitate such ventures. Therefore, starting a social enterprise has become easier than ever before, which has encouraged aspiring social entrepreneurs to take the plunge.
Consumer Interest in Social Enterprises is Growing
With the growth of technology, it is nearly impossible to live under a rock and be unaware of social issues. Youths refer to maintaining a general sense of awareness of the world around us as staying woke. Among other things, they believe in making their voices heard through their money. Therefore, youths are generally more interested in doing business with companies that aspire to do good in the community.
Investor Support for Social Enterprises is on the Rise
Investors are aware of the burgeoning consumer interest in social enterprises, and they are not staying silent. Today, both individual and institutional investors are more interested in supporting companies with a social mission, as they believe that these companies will thrive in the future. For example, throughout 2020, green energy companies have consistently outperformed their fossil fuel counterparts and the S&P 500 index. The financial support and rewards social entrepreneurship offers has also lured individuals to start their own enterprises.
Those are five reasons why social entrepreneurship has been gaining traction and attention as of late. Are you interested in becoming a social entrepreneur? Have a business idea that could make the world a better place? Start your entrepreneurial journey today by joining . You will get to be introduced to the key global issues and the United Nations’ Sustainable Development Goals, understand business functions, and develop critical thinking and communication skills. Then put your new skills to good use by participating in innovation challenges, like the Harvard Innovation Challenge Southeast Asia II.