Starting a business that aims not just to profit but also to be an agent of change in the world has become more common in this day and age. With the economic decline brought upon by the COVID-19 outbreak, GenZers are now, more than ever, on the move to make a difference through social entrepreneurship.
If you’re one of them, this article is for you. Here, we’ll talk about social entrepreneurship and its types. Plus, we’ll discuss some benefits and examples, as well as how to be an effective social entrepreneur.
What is Social Entrepreneurship?
Social entrepreneurship focuses on providing solutions to environmental and societal problems through businesses. And its business owners aim to help marginalized sectors. Hence, these enterprises can be non-profit, for-profit, or hybrid models. Nonetheless, the main goal is to be an agent of change by funding programs that support a good cause.
Simply put, social entrepreneurs are after philanthropic change; and profit is just secondary. Thus, they play an important role in having innovative approaches to social issues, such as poverty, education, and healthcare.
Types of Social Entrepreneurship
There are different types of social enterprises if you opt to pursue it and they are the following:
1. Non-profit Social Entrepreneur
A non-profit social entrepreneur is a tax-exempt group or individual that invests funds in a chosen charity or developmental program. Non-profit social entrepreneurs strive to maintain and use their money to sustain their advocacy.
2. Transformational Social Entrepreneur
Entrepreneurs who take the path of transformational social entrepreneurship establish businesses to meet the needs of citizens on a national level. They work on the country’s issues that are usually not addressed by the government or other sectors. As they thrive on helping people, they sometimes partner with government agencies to find the best ways to implement programs to solve the nation’s problems.
3. Community Social Entrepreneur
This type of social entrepreneur heads organizations that work closely with locals. They operate as a cooperative that assists members of the community. They do this by creating job opportunities, putting up grocery stores, and offering financial solutions through low-interest loans. Unlike transformational social entrepreneurs, community social entrepreneurs focus on helping groups in small geographical locations.
4. Global Social Entrepreneur
Another type of social entrepreneurship deals with global issues and helps solve them. They’re part of companies that focus on supporting social missions as part of their core functions. They aim to change the system and make the world more livable.
Social Entrepreneurship Examples
There are a number of businesses that perform their role as responsible enterprises. They take pride in being part of the movement to achieve social and environmental change. Here are some of the top companies that practice social entrepreneurship in the Philippines.
1. Bayani Brew
Bayani Brew supports Gawad Kalinga’s social programs. A part of its profit goes to providing housing and livelihood programs for farmers in different rural areas of the country.
Artwine sells purses, bags, clothing, and other accessories made from felt cloth. Their main beneficiaries are out-of-school youth and their families in Talon Tres, Las Piñas City, Manila.
Bambike manufactures handmade bamboo bicycles. They aim to alleviate poverty while advocating the importance of going green. Moreover, they partner with Gawad Kalinga to provide programs such as scholarships, sponsorship for teachers, and skills training.
4. Benitez Collection
Benitez Collection crafts eco-friendly, handmade accessories such as bangles and beads. They are dedicated to helping women in underprivileged communities by investing 10% of their revenue into Gawad Kalinga’s projects.
Taclob produces environmentally friendly and weather-resistant backpacks made from jeans and used Japanese tarpaulins. A percentage of their sales is donated to organizations that provide workshops on disaster preparedness.
Benefits of Establishing a Social Enterprise
Many people wonder if socially responsible businesses benefit from prioritizing helping others over profit. Fortunately, social entrepreneurship entails a lot of benefits. Here are some of them:
1. Easier to Raise Capital
It’s easier for social entrepreneurs to raise capital. Because of the support from the government and other non-profit organizations (NGOs), many people are encouraged to invest in organizations that foster change. In addition, social enterprises are eligible for grants.
2. Increased Sales Due to Promotion
Customers are compelled to buy because they know they’re helping a good cause. Hence, marketing and promoting the brands of social enterprises are also easy. This results in an increase in sales and a wider network.
3. Professional Connections from Partnerships
With mission-based goals, you can partner with like-minded individuals. Getting them on board is within reach when you’re on the same page—addressing social problems.
Prepare to Weave a Better Future with CIIT BS Entrepreneurship Program
If you want to make a difference and be part of nation-building while thriving as a business owner, social entrepreneurship is the way to go. However, in order to succeed in this endeavor, you need to be ready for what lies ahead. Your passion for helping communities is just one side of a coin. You need to have the skills and knowledge to turn your business plans into reality.
One vital step in this journey is a firm foundation on the ins and outs of the industry. How? By taking an in-depth course in business. With CIIT BS in Entrepreneurship program, you can have the best course to succeed in business. Plus, you’ll be able to take advantage of technology with our innovative software and platforms.
We make sure to prepare our students to be young social entrepreneurs with the knowledge and technical know-how to be leaders and trailblazers in the field. Not just that, you’ll also be part of communities that open opportunities for collaboration. Plus, you can leverage our partnership with startups and multinational companies in the Philippines and abroad.
What are you waiting for? Be part of our innovative community and let us help you weave a brighter future. Learn more about our courses today.