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Rajnish SharmaTop Contributor
Content Creator || Android App Developer
Asked a question 4 years ago

What makes social entrepreneurship different from entrepreneurship?

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Rajnish SharmaTop Contributor
Content Creator || Android App Developer

Generally: Applying entrepreneurial approaches to social problems.

Somewhat more specifically, organizing a for-profit business (as opposed to a non-profit or government program/agency) to address a social issue:

  • Implying that one has a business model that (one hopes) allows one to make a profit.
  • Typically, organized as an SBC (Social Benefit Corporation) or an L3C (Low Profit LLC) - corporate forms that put mission before fiduciary responsibility to maximize return to investors. (Tailored to meet requirements that allow foundations to make program related investments of endowment funds - i.e., investments in mission-related firms, at a lower profit / higher risk than otherwise mandated by fiduciary responsibility).
  • Following in the spirit of “doing well by doing good.”

Also, Charities have “doing good” as their primary motivation, but they require donor financial support to continue operations. Businesses/corporations/entrepreneurs have profit as their primary motivation, but they sometimes do “good” (it's often called community investment). Social entrepreneurs have social good as their primary motivation, addressing a social need as their main business goal, but they also make a profit.

Businesses that lose money (continuously) are called bankrupt.