SOCIAL

ENTREPRENEURSHIP
Bse – 1 (nc)

SUBMITTED BY: SUBMITTED TO:

Galan, joyce anne Rheyjhen M. Cadawas, LPT, MAEd
Valenzuela, merry jeane
Redor, dianne
Mercado, jackielyn
Introduction
A social entrepreneur is a person who pursues
novel applications that have the potential to
solve community-based problems. These
individuals are willing to take on the risk and
effort to create positive changes in society
through their initiatives.
Learning Outcomes:
• Understanding Social Entrepreneurs
• Types of Social Entrepreneurs
• 6 P's of Social Entrepreneurial Enterprises
• Social Entrepreneur vs. Other Social Concepts
• Examples of Social Entrepreneurship
Guide Question:
• How Do You Become a Social Entrepreneur?
• How Do Social Entrepreneurs Make Money?
• Do Social Entrepreneurs Pay Taxes?
Understanding Social Entrepreneurs

While most entrepreneurs are motivated by the

potential to earn a profit, the profit motive does
not prevent the ordinary entrepreneur from
having a positive impact on society. In his
book The Wealth of Nations, the economist 
Adam Smith explained, "It is not from the
benevolence of the butcher, the brewer, or the
baker that we expect our dinner, but from their
regard to their own self-interest."
Smith believed that when individuals pursued their own best
interests, they would be guided toward decisions that benefited
others. The baker, for example, wants to earn a living to support
his family. To accomplish this, they produce a product—bread—
which feeds and nourishes hundreds of people.
A social entrepreneur might also seek to address imbalances in
such availability, the root causes behind such social problems,
or the social stigma associated with being a resident of such
communities. The main goal of a social entrepreneur is not to
earn a profit. Rather, a social entrepreneur seeks to implement
widespread improvements in society. However, a social
entrepreneur must still be financially savvy to succeed in his or
her cause.
Types of Social Entrepreneurs
i. Community Social Entrepreneur
ii. Non-Profit Social Entrepreneur
iii. Transformational Social Entrepreneur
iv. Global Social Entrepreneur
Community Social Entrepreneur
A community social entrepreneur prioritizes the need of a small geographical region,
usually the community it lives in. This type of social entrepreneur is less concerned about
the specific nature of their endeavor; the primary purpose of their entrepreneurship is to
benefit their local area.
This type of social entrepreneur often builds strong relationships in its community, taking
advantage of relationships to leverage how resources flow within its town. Community
members, local organizations, and the community social entrepreneur work together to
make sure the needs of the community are met and partnerships that make sense are
created.
Non-Profit Social Entrepreneur
Non-profit social entrepreneurs are the more common type of social entrepreneur where
the entity has a broad stated goal that benefits someone but not necessarily their direct
community. With the introduction of remote or online social entrepreneurship, it is now
easier to create entities with broader mission-driven purposes.
Non-profit social enterprises usually operate very similarly to a business. The primary
difference is the net profits of the non-profit enterprise are often returned back to the
entity for further develop into programming. Instead of there being investors to make
money, a non-profit social entrepreneur strives to spend as much money it can towards its
mission.
Transformational Social Entrepreneur
As a start-up non-profit social enterprise grows, it often shifts into becoming a
transformational social entrepreneur. As local non-profits grow, so can their
mission. A transformational social entrepreneur look to scale an operation from a
single program to benefitting various areas. For example, consider the broad reach
of Goodwill; what started as a small non-profit social enterprise transformed into a
much richer, broader entity with many more rules and regulation.
Global Social Entrepreneur
Sometimes, social entrepreneur endeavors aren't limited by borders or geography.
Sometimes, people may try to solve overarching social concepts such as poverty,
depression, or lack of living conditions. Usually, the social entrepreneur may try to
solve an issue in a specific region. However, these deep-rooted issues are often not
specific to a region. Many of the solutions discovered in one area may be
attributable to another.
These types of organizations easily have the greatest reach. For example, consider
the breadth of the Bill & Melinda Gates Foundation. Their endeavors to find
vaccinations for various diseases impacting those around the world are a clear
example of global social enterprises.
Important:  Social entrepreneurship continually
evolves; what may be a local communal non-
profit one year may model into a global social
enterprise the next.
6 P's of Social Entrepreneurial Enterprises
People
Most social entrepreneurs start their endeavors by identifying what people they
want to benefit. Sometimes, this is the people in their specific geographical region.
Other times, this is people within a certain demographic (i.e. people with low
income). Without a clear definition of who the social entrepreneur wants to serve,
they will face difficulty in appropriately defining the scope of their enterprise. This
puts the yet-to-be-created entity at risk of not having a clear vision.
Problem
Social entrepreneurs try to fix problems. More specifically, social entrepreneurs
identify a problem that the people in the previous section face. Usually, during the
brainstorm phase of an entity, the social entrepreneur will link the two together.
For example, social entrepreneurs may try to defeat homelessness in their region.
A social entrepreneur in this situation tries to help certain people (low income
individuals) with a problem (lack of available housing).
Plan
With the people and problem identified, a social entrepreneur
must devise a plan to solve the problem. Social entrepreneurs not
only strive to create a business plan to operate an entity, they must
also determine how this type of entity will receive funding and
remain financially sustainable. The social entrepreneur must also
evaluate how external parties can help it achieve its social goals.
Prioritize
One of the largest challenges for a social entrepreneur is a lack of
available resources to tackle the problem they wish to solve.
Whether that means not enough money, not enough specialized
knowledge, or external forces that cannot be controlled, social
entrepreneurs face many constraints. This means they must
prioritize what they try to solve, how they go about operating, and
what expansion looks like.
Prototype
Because resources are limited, social entrepreneurs often test out
solutions in small markets before expanding. This means creating
prototype products, services, or processes. It also tests out how
different funding and resources can help it achieve its goals. Though
this stage may not foster trust in those who have provided an upfront
investment with the social entrepreneur, other upfront investors may
appreciate seeing a minimum viable product or prototype.
Pursue
With the test case down, social entrepreneurs identify what went
well and what didn't go well. It often surveys those that helped put
the solution together as well as those receiving the benefit. This last
step closes the full loop of activity, though a social entrepreneur
should periodically evaluate each aspect and continually monitor for
ways to better make their social change.
Social Entrepreneur vs. Other Social
Concepts
Social entrepreneurship is related to socially responsible investing
 (SRI) and environmental, social, and governance (ESG) investing.
SRI is the practice of investing money in companies and funds that
have positive social impacts. SRI has also grown in popularity in
recent years.

Socially responsible investors will often eschew investments in

companies that produce or sell addictive substances (like alcohol,
gambling, and tobacco). They may also seek out companies that are
engaged in social justice, environmental sustainability, and
alternative energy or clean technology efforts.
Socially conscious investors screen potential new
investments for environmental, social, and governance
(ESG) criteria. This set of standards considers how a
company performs as a steward of nature, how it manages
relationships with employees, suppliers, customers, and the
communities where it operates, and how it treats its
company’s leadership, compensates its executives, and
approaches audits, internal controls, and shareholder rights.

Fact fact
According to ZipRecruiter, the average annual salary as of
January 2023 for a social entrepreneur was just above
$53,000 per year.
Examples of Social Entrepreneurship
The introduction of freshwater services through the construction of
new wells is another example of social entrepreneurship. A social
entrepreneur may have the goal of providing access to
communities that lack stable utilities of their own.

In the modern era, social entrepreneurship is often combined with

technology assets: for example, bringing high-speed internet
connectivity to remote communities so that school-age children
have more access to information and knowledge resources.
Another example are microfinance institutions that provide banking
services to unemployed or low-income individuals or groups who
otherwise would have no other access to financial services.
The development of mobile apps that speak to the needs of a
particular community is another way social entrepreneurship is
expressed. This can include giving individuals ways to alert their
city administrations to problems such as burst water mains,
downed powerlines, or patterns of repeated traffic accidents.
There are also apps created to report infractions committed by city
officials or even law enforcement that can help give a voice to the
community through technology.

Other examples of social entrepreneurship include educational

programs, providing banking services in underserved areas, and
helping children orphaned by epidemic disease. All of these efforts
are intended to address unmet needs within communities that
have been overlooked or not granted access to services, products,
or base essentials available in more developed communities.
How Do You Become a Social Entrepreneur?
You can become a social entrepreneur by considering who you
want to help and what problem you want to solve. Once you
have a targeted idea, it's often best to gather resources,
understand where your limitations are, and decide what
external parties you want to help craft the enterprise.
How Do Social Entrepreneurs Make Money?
Social entrepreneurs raise capital for their enterprises by
connecting with other members in the community.
"Community" does not necessarily need to mean physical
location, as some enterprises may collaborate around the
world for a common social cause. A social entrepreneur may
collect grants, upfront donations from major donors (in
exchange for public recognition), or use personal capital.
Do Social Entrepreneurs Pay Taxes?
It depends. Social entrepreneurs are usually not personally exempt
from paying taxes. This means that almost all individuals are taxed on
the income they make, regardless of whether or not the enterprise they
work for is a social enterprise. On the other hand, most social
entrepreneurs incorporate their enterprises as a non-profit entity so
their enterprise can operate tax-free.

The Bottom Line

Some people craft a business to make a lot of money. Other times,
people start an enterprise for social good. The latter type of individual
is called a social entrepreneur, and they often start by identifying the
people and problem it wants to help. Though there are many
similarities between a social venture and a full-for-profit enterprise, the
core difference is a social entrepreneur prioritizes the good it creates
for its community or recipient base.
Reference:
Social Entrepreneur: Definition and Examples (in
vestopedia.com
)
Thank you!