Understanding the concept of social entrepreneurship is fundamental for companies and entrepreneurs who want to generate a positive impact on people’s lives, as well as solve real societal problems.
In this article, you will learn more about what this initiative is, its main characteristics, and how this form of entrepreneurship can help you transform your causes into transformative and sustainable businesses.
What is social entrepreneurship?
This is a form of entrepreneurship where the main focus is on offering products and services capable of making a positive impact on society, proposing effective solutions to urgent and real problems faced by it.
To achieve this goal, social entrepreneurs use management techniques and viable business models, combined with creativity and innovation, to transform the lives of the people around them and ensure the sustainability of their projects.
Differences between social entrepreneurship and traditional entrepreneurship.
These two models differ from each other in several aspects. In the traditional model, the main objective is to identify business opportunities that can generate financial returns for the company and its investors.
Meanwhile, as mentioned earlier, the social entrepreneur focuses on creating products or services that solve social problems, always prioritizing the well-being of the community and not just profit.
But make no mistake, although profit is not the main objective of social enterprises, this does not mean that they cannot accept profitable proposals that are capable of generating some type of income.
Who is impacted by social entrepreneurship?
The target audience for social enterprises, for the most part, consists of disadvantaged communities or groups facing some type of social challenge. This includes:
- Groups in situations of socioeconomic vulnerability: low-income individuals, unemployed individuals, homeless individuals, refugees, among others;
- Marginalized communities: minority ethnic groups, indigenous populations, isolated rural communities, etc.;
- Children and youth at risk: orphans, children in extreme poverty, victims of abuse, etc.;
- Communities impacted by environmental issues: communities affected by pollution, scarcity of natural resources, environmental disasters, deforestation, etc.;
- People with disabilities (PWDs): individuals who face any type of disability, whether physical, mental, intellectual, or sensory.
Why is social entrepreneurship important?
This aspect of entrepreneurship plays a crucial role in building a just society, making it a powerful tool capable of promoting social inclusion and community empowerment.
Furthermore, social enterprises act as a complement to the public and private sectors, providing essential services in areas where resources are typically scarce or poorly managed by these sectors.
Three main elements of social entrepreneurship
Below are the three main elements that constitute any social entrepreneurship initiative:
Diagnosis
Before creating a social enterprise, it is necessary to conduct a thorough analysis of society in order to identify any injustice or need that causes the exclusion or suffering of a segment of the population.
Issues such as extreme poverty, hunger, lack of access to quality education, marginalization of certain groups, victims of abuse, unemployment, and human rights violations are just a few examples of injustices that require attention.
Identifying the opportunity
After diagnosing the problem, the entrepreneur needs to find a way to transform it into a business opportunity, developing a solution that helps the impacted group address this problem.
This stage will require reviewing data, analyzing trends, consulting subject matter experts, identifying which areas need to be modified, and understanding the main needs of the stakeholders.
Creating a new stable equilibrium
Once the opportunity has been identified, the social entrepreneur will work to create a new stable equilibrium that resolves or alleviates the suffering of the affected group, providing a better quality of life and well-being for this group or for society in general.
Examples of social entrepreneurship in Brazil
Brazil boasts numerous inspiring examples of social entrepreneurship in a variety of fields. Here are a few notable initiatives:
Asta Network
The Asta Network is an initiative whose main objective is to connect partner companies with micro-entrepreneurs in the craft sector, giving them the opportunity to generate income and achieve their long-awaited financial freedom.
In addition to training these professionals, they have been responsible for generating over R$20 million in direct income, impacting more than 15,000 people directly and 45,000 indirectly in 234 different municipalities.
Gastromotiva
Gastromotiva is a non-governmental organization that combats hunger and food waste through gastronomy, providing healthy and complete meals to populations in situations of social vulnerability.
It is also important to highlight that Gastromotiva offers various free courses and training in culinary arts, allowing more and more people to have the opportunity to work in the food industry.
Arapoty Institute
Founded in 1998 by social entrepreneur Kaká Werá Jecupé, the Arapoty Institute is a non-profit organization that aims to spread indigenous traditions to young people and help villages located in the South and Southeast of Brazil to work sustainably.
They offer various awareness and forest preservation programs involving local indigenous communities.
Have you learned what social entrepreneurship is?
We hope our article has helped you understand what this aspect of entrepreneurship is and how you can use this tool to transform and positively impact the lives of those around you.