We explain what social entrepreneurship is and what the objectives of these companies are. Classification, characteristics and examples.
What is social entrepreneurship?
A social enterprise is understood to be a type of company different from the typical private for-profit company and also from the public company in the state sector, whose mission is the satisfaction of social, environmental or other needs of the community in which it operates.
Seen this way, social enterprises apply market methods to achieve social objectives. This includes both non-profit organizations and companies with commercial purposes but a social purpose.
Therefore, instead of maximizing the participation of their shareholders, these types of companies propose social impact goals in their communities or the world, such as financing free activities, supporting microenterprises, protecting the weakest sectors, etc.
Social enterprises are often financed by the State or by private investors, but in general terms aspire to a certain margin of autonomy and freedom which necessarily involves self-sustainability. Cooperatives, unions, many NGOs and community organizations are good examples of social entrepreneurship.
See also: Environmental movement
Objectives of social entrepreneurship
The objectives of this type of company are often referred to as the “triple bottom line,” as they involve success in three integrated areas: financial objectives, social objectives and environmental objectives.
This means that every social enterprise aspires in some way to balance these three aspects of its fundamental mission: economic success, social and environmental responsibility.
The nature of these objectives can be very varied, apart from that. From poverty reduction, mass sexual education, awareness about climate change, etc., everything can be of interest for a venture of this type.
Types of social entrepreneurship
Broadly speaking, social enterprises can be classified into four categories, according to their fundamental objective:
- Promotional social ventures. Those whose objective is to spread a type of ideas, behaviors or behaviors, in favor of a social or ecological cause.
- Social ventures of specialists. Those made up of professionals with a high degree of specialization in a matter of social interest, who fulfill the role of disseminating specialized knowledge, educating or informing the majority of the population.
- Social enterprises of local action. Those who assume as their goal the solution of specific, specific problems that afflict the society in which they operate.
- Long-range social ventures Those that propose to address wide-ranging problems, considered to be of international or universal importance.
They could also be classified according to the origin of their financing as:
- Dependents Those who receive money from some other institution, whether private (commercial) or public (state).
- Independent. Those who are self-managed or prefer to maintain their autonomy free of monetary remuneration.
Characteristics of social entrepreneurship
The broad characteristics of a social entrepreneurship are:
- It privileges social action over profit motives.
- The resolution or at least reduction of problems of community, social or even global interest is proposed, for the improvement of human life.
- It pursues its goals using methods and discourses typical of the commercial or business field, especially advertising.
- It provides employment in the same way that commercial companies do.
Examples of social entrepreneurship
Some examples of social entrepreneurship are the following:
- Interruption This Argentine company founded in 2000 aims to spread fair trade and certify agricultural products with ethical and responsible methods. Its success was such that in 2003 it opened a branch in New York and in 2012 in Peru.
- Yaqua. This Peruvian bottled water brand claims to be neither a company nor an NGO, and dedicates 100% of its profits to solving the problems of water availability of the small national communities within its reach, in a critical panorama of almost 8 millions of people without access to drinking water in Peru.
- Social Factory. Mexican social company created in 2007 that aims to revalue and formalize the textile trade of hundreds of indigenous workers from five Mexican states, promoting equal opportunities, equity and fair trade in a country famous for its mistreated minorities.
- Apps for Good. This company born in London at the beginning of 2010 has as its primary objective the independent development of technological applications, but not by its workers, but by the communities themselves: for this they teach courses in educational institutions and promote open source so that it can be used by the people. the one that provides itself with the technological solutions they need to make their lives better.
