Often referred to as social entrepreneurship, this trend involves businesses that have a conscious effort to make positive change to the world. Companies often work to improve health and the environment. Others focus on education. Regardless of the cause, consumers are more likely to purchase from a company that is a leader in its industry and takes action.
Businesses that support social causes often find it easier to get top talent. They can also benefit from the increased popularity of cause-related marketing campaigns. Companies that focus on social causes often use innovative business strategies to drive toward their goals. These strategies can include cross-compensation models. Social entrepreneurs often measure success through market share, jobs created, and trees planted. Profit is important, but it is not the end of the story.
Social entrepreneurs often have personal experience with the causes they are working to address. They are willing to take substantial risks to make a difference. In addition, they are not bound by the rules and regulations of larger organizations. They can also become integrated into governmental bodies. They can join training programs or become a part of a local nonprofit organization.
Social entrepreneurs work to improve the social environment by making their ideas easy to understand and implement. Many entrepreneurs are concerned with social issues such as income inequality. They may use their business strategies to develop new products or services that address the issue. Social entrepreneurs are also often concerned with racial justice. They may also focus on improving existing circumstances. They may provide access to communities that do not have utilities.
One example of social entrepreneurship is the microfinance movement. This movement is designed to help millions of people living in rural areas access small loans. Microlending is a low-overhead way to help these communities expand and create meaningful systemic change. The movement was started by Muhammad Yunus, who was awarded the Nobel Peace Prize in 2006.
Social entrepreneurs often have an entrepreneurial background. Some of the early pioneers of social entrepreneurship were Jane Addams, a civil rights activist who founded Hull House Settlement House in Chicago. Others include Scott Harrison, a New York City nightclub promoter who realized that people in Liberia were sick and dying because they had no access to clean water. Harrison started a nonprofit organization called Charity: Water.
Social entrepreneurship is a growing trend in business and investing. Businesses are focusing on addressing societal issues to gain customer loyalty. In addition, consumers are more likely to trust companies that address racial justice issues. In addition, younger consumers, especially those between 18 and 35 years old, are more likely to purchase from companies with good corporate citizenship.
Social entrepreneurs can create a system of interconnected businesses that focus on creating positive change. This can be done through partnerships with governmental bodies and organizations. In addition, social entrepreneurs may create environmentally friendly products and services.
The next Social Entrepreneurship Conference will be held on December 2, at WSU’s Mike Illitch School of Business. There will be six concurrent workshops and a keynote speaker. The conference will also feature venture development sessions and a panel on cultural collectivity.
