How Social Entrepreneurship Helps Society

Entrepreneurs are, by definition, innovators, risk-takers, and doers. They identify problems, come up with solutions, and apply them. Entrepreneurship is a vast field with many different paths to take. One of those paths is social entrepreneurship. But what does that mean? What sets social entrepreneurs apart from “regular” entrepreneurs? In this article, we want to take a moment to talk about how social entrepreneurship helps society.

What is Social Entrepreneurship? 

Social entrepreneurship focuses on having a positive impact on society. While some entrepreneurs focus on a specific industry, social entrepreneurship seeks to achieve lasting change on social, cultural or environmental issues. 

Beyond the product or service, the goal of social entrepreneurship is the mission itself, where success means a positive impact. Social entrepreneurs refer to their activity as a movement rather than a company/product, and call what they create a social enterprise. This can often be confused for a non-profit organisation. Here are some key differences: 

Non-Profit

The key element of a non-profit is that it doesn't aim to create revenue for its activities. These projects usually get funding through private donations or public funding and are exempt from taxes. NGOs or civil organisations fall into this category. 

Social Enterprise 

Unlike non-profits, social enterprises do generate revenue. However, they use this income to further attend to their cause. Normally, if a social enterprise generates enough money, it can cover its operational expenses and put money towards its initiative. Most of the time they are self-sufficient, although they may receive donations or grants. These are not exempt from taxes.

Now we know what social entrepreneurship means and the type of companies that are born from it. Let's take a look at some areas of action that show how social entrepreneurship helps society.

Saving Food 

According to the World Food Programme, the world currently produces enough food to feed every person on the planet. Of that amount, about 1.3 billion tonnes per year, almost a third of the total amount, is wasted before consumption. This waste happens in every stage, from the harvest to the final retail and consumption. 

Several social enterprises are working on this problem and helping reduce food waste. One example is Too Good To Go. This app allows users to find restaurants, convenience stores or bakeries that, by the end of the day, have leftover unsold products, and sell them for a lower price. The user chooses an available pick-up time to go to the establishment and get their order. There is a small catch, though. Since businesses do not always know exactly what is going to be left at the end of the day, the offer of products changes every day. What you buy on the app are called “magic bags”, and contain a collection of non-specific products. Along with saving food, this app also allows you to save a few euros, which is always a good thing.

In association with more than 17,000 businesses, Too Good To Go is connecting consumers and companies in a virtuous circle where everyone benefits and contributes to tackling food waste.

Making Banking Sustainable

Traditional banking has had an enormous influence on climate change. According to a report from Banking On Climate Chaos, the world's 60 biggest banks financed fossil fuel companies up to €2.3 trillion, only in 2021.

Social entrepreneurs, focusing on how financial institutions affect the climate, are trying to turn the situation around and develop alternatives with a positive impact on the planet. One of them is Tomorrow Bank. This 100% digital company offers banking services and products for monthly fees. Then, they invest in projects that support sustainability around the world. Customers can also invest money in sustainable projects themselves. 

The services we use have an impact on the environment. By choosing financial institutions that are committed to the planet, both social entrepreneurs and users collaborate to reach a more sustainable future.

Using the Internet the Right Way

The Internet is something we use every single day. Our lives are online 24/7, whether it is for work, communication, or finding entertainment and information. In this routine, there are tools we often use but don't think twice about the way they operate. 

Some social entrepreneurs are paying attention and developing projects focusing on taking advantage of these tools and making them a positive force for change. A great example is Ecosia, a search engine that plants trees through users’ searches. There are ads linked to the search that generate revenue, and they use that revenue to finance reforestation projects. The more you search the web, the more trees are planted. Ecosia works with local communities worldwide to support biodiversity, having already planted more than 900 tree species across more than 35 countries.

Searching the web is something we do several times per day without even thinking about it. Projects like Ecosia allow us to contribute to ecological efforts in a simple, non-intrusive way. 

Promoting Education

Education is a field that is in constant development, and it is something that, when done right, will always have a positive impact on society. 

One of the main resources social entrepreneurs use when developing projects in education is technology. Technology has allowed education to reach places and people that otherwise could not access it. The use of technological tools to promote education is known as EdTech.

Additionally, there are plenty of education ventures that exist outside the technological sphere. One of those is SEEd, an academy that engages with students through social entrepreneurship formation, encouraging them to develop social enterprises that positively impact society. Through classes, workshops, and developing a network of peers, SEEd is a social enterprise of today that helps educate the social entrepreneurs of tomorrow. 

Helping Those Who Need it Most

Focusing on vulnerable groups is one great way how social entrepreneurship helps society. That was the inspiration for Blooders, a platform that helps people who need transfusions find suitable blood donors. Or TERN, a social enterprise that helps refugees start their own businesses and become entrepreneurs. Another example is NaTakallaman, an organisation which hires displaced people as online tutors, translators or cultural exchange partners. 

These are only a few examples of how social entrepreneurship helps society, especially those within our communities who are at a disadvantage. People in need of health services, refugees trying to start over, or individuals trying to connect and preserve their language and culture. This goes to show how many overseen areas there are and how much work is still to be done. 

Inspiring Others and Helping Society

Unfortunately, in our world, there are still a lot of social, cultural and environmental challenges to tackle. Fortunately, there are a lot of social entrepreneurs who take on these issues and contribute positively to society.

By learning more about social enterprises, we discover services and organisations that not only improve our personal lives, but contribute to solving many important issues. Furthermore, as part of the entrepreneurial community, these projects inspire us to take action and tackle these issues. So, to our innovators, risk-takers, and doers: you’ve seen how social entrepreneurship contributes to society. Now it's your turn.