The current entrepreneurial space is dynamic. Businesses have to consistently and creatively review their business strategies for growth and survival. Traditionally, most entrepreneurs were primarily concerned with making a profit and their business well being without serious scrutiny of the business idea. Currently, companies have to stretch its mandate to determine its impact on the general welfare of the society. Besides being attracted to lucrative return on investment, what is the societal problem that the business seeks to solve? Exclusive profitability or social impact is one of the significant questions that current crop of entrepreneurs has to answer going forward.
Social enterprises principally operate with the agenda of value creation for the society besides generating income. The solutions they present should always be in line with creativity/innovation, people-centered and environmental friendliness, cultural consciousness. It forms the basis for understanding the concept of social entrepreneurship. It`s passionate risk-taking that involves innovative plus practical answers towards benefiting the society through the business operations.
Globally, social entrepreneurship is gradually getting embraced by both start-up entrepreneurs and existing entrepreneurs. Firms are as well responding to corporate social responsibilities, finding a way of creating a real network, communication, and support to the people and society. Many ventures going the social direction continues to thrive in the current entrepreneurship space truly. There exist insightful reasons for the current change of events that every entrepreneur needs to understand.
Ease of raising capital; one the biggest nightmare for many entrepreneurs is raising money. Currently, social business ideas with a stronger considerable solution to societal problems find it easier to attract financing. There are government schemes and incentive programs to support such ventures. The ethical factor in this investment industry plays a role in easing capital acquisition at favorable and lower market rates.
Attractive to support from like-minded; the social aspect of the business makes easier to attract many people onboard from experts to employees at more lower costs compared to other sectors.
Marketing and promotion made slightly easy; bringing out the social problem and outlining a proper plan for the solution goes well in attracting the attention of media platforms and people in general. Such positive initiatives sell well in the society. The higher the uniqueness of the solution the enterprise brings, the higher the amount of publicity.
Cost-effectiveness is a significant consideration; many consumers take into account the element of cost in every decision towards a product/service. The solutions provided by social enterprises are always in the form of product or service offered at a reasonable price compared to the profit-minded ventures. It`s a fact that many essential amenities such as schools, hospitals managed by social enterprises are more affordable to the people all over the world.
The wave of Millennials; currently, the Millennials has a massive influence in the entrepreneurship space. They are doing things differently and have a different mindset compared to the previous generation. They are not carried away with the corporate careers as previously evident. Being the future business leaders to transform the world, it shows an exciting business direction in store. The youthful business leaders are taking front seats with startups, inventing more social ventures and are positioning themselves as the change agents to the world. To them creating remarkable positive social impact is beyond choice but a necessity.
Considerable focus aiming at better business practices and values; presently, consumers expects more from companies, it`s never enough to focus entirely on corporation`s financial soundness, it must now take more effort towards creating a mission for social impact to thrive. The traditional businesses are increasingly reviewing their business models to support corporate social responsibility to achieve the social effect. The people find it easier to do business with firms that value and support their needs by coming up with unique and timely solutions.
Social enterprises continue to transform lives; Social entrepreneurship has a measurable impact on lives of many people all over the world. The solutions they provide through product/services and opportunities to locals have gone down in saving and positively impacting many lives. Many studies have demonstrated measurable economic impact in the society and state through social ventures. Employment opportunities are in upscale with thousands of jobs created accommodating every group in the community especially the disadvantaged people who have undermined. The social programs and programs continue many gaps in the society and are driving many people to their support, and the community believes that this is the perfect way to go.