If you are here to learn the benefits and risks of social entrepreneurship, then you are in the right place!
In fact, before you try to understand the benefits and risks of social entrepreneurship, you should understand the main concept. By understanding the benefits and risks of social entrepreneurship, it would be possible for you to make your journey smooth.
It’s possible that social entrepreneurship can bring a positive change in your society. Thus, you would be playing an active role in your community.
Let’s discuss the benefits and risks of social entrepreneurship.
What Is Social Entrepreneurship?
It’s hard to agree on one definition for social entrepreneurship. Social entrepreneurship helps in finding solutions to the issues that are prevailing in society, culture, and the environment.
This approach can be adopted by an entrepreneur, a group, or even an individual. It can be for-profit or non-profit. A social entrepreneur can be from different backgrounds or careers.
A social entrepreneur can help in making this world a better place. Social entrepreneurship is different from a non-profit organization. Under social entrepreneurship, profit can be generated but it’s used for the betterment of society.
Non-profit organizations have tax-exempt status by Internal Revenue Service (IRS) and rely on fundraising. A social entrepreneur can be selling a product or service and working for the betterment of society. However, social enterprise is a blanket term that you can commonly find.
Let’s discuss the advantages and disadvantages of social entrepreneurship.
Social Entrepreneurship Advantages
Social entrepreneurship can be great for your society, but it’s important to know what to expect.
You can expect the following pros:
1. Using Creative Skills for Society
If you are a social entrepreneur, you are using your creative skills for the benefit of society. It’s a win-win as it would be great for you and your environment.
As a social entrepreneur, you would be thinking in an innovative way. In fact, your thinking style would be creative and different from the rest around you.
Basically, under social entrepreneurship you are not just thinking about yourself, it’s about the whole society. In fact, think about it! If you are doing a business that helps everyone grow, then isn’t it great!
2. You Focus on Ethics
You are not just focusing on the money. It’s good to be ethical. In fact, the world should run on ethics. You can promote this trend as a social entrepreneur. There is enough corruption around the world, and you don’t need more.
Take a closer look at the world around you. In fact, if you check the news, you would know what’s going on around the world. But observe the people who are leaving an impact on society.
Focusing on ethics is important for the success of your company. It could be in your mission statement too. It’s great to teach others the value of ethics. When people follow basic ethics, life can be much more interesting.
3. You Can Be Inspiring
You are doing something different from the society which is actually for the society. It’s possible that you can become a source of inspiration for many people around you. Many people can learn from your style.
It’s possible that many people would start social entrepreneurship by just looking at what you are doing! It’s important to leave your mark behind when you leave this world. Who knows who can benefit from your cause?
If you are establishing a company or a cause that can run behind your back successfully then it’s great! You would feel that you have played your part in this world.
4. Working with Like-Minded People
You would be working with people who are like you! You would be having your own tribe. Thus, it would be great for you, your business, and for your society. It’s hard to find the right people who think just like you. Because of social entrepreneurship, you would have the privilege to work with such people.
It’s good to work with like-minded people. When you have the company of the right people, it would be easy to work for a cause and thus, you can expect your company to perform better. Like-minded people can bring out the best in you.
When you are with your tribe, you would know that people understand your situation. In fact, it’s easy to discuss your challenges with your kind of people!
5. You Don’t Have to Report to A Boss
One advantage of social entrepreneurship is the fact that you are your own boss! Basically, you need not report to a boss. So, you can work according to your own terms.
If you don’t see yourself stuck in a 9 to 5 job, then it’s time to take action and do something for yourself and society. It’s important that you are playing an active role without being discouraged for the good cause.
It’s good that you don’t have a boss! Plus, when you understand the culture, you would be a good boss. You would know what your employees expect from you.
In fact, it would be great to work like a boss as you can easily follow ethics. At times, it’s a clash when it’s an ethical issue, but legally okay. You can easily follow your heart as you would be thinking about the bigger picture here.
6. Sky Is The Limit
Another benefit of social entrepreneurship and working as a social entrepreneur is the fact that the sky is the limit! You can select your own working style. You can think of unique ways to solve a problem. Your creativity has no boundaries when you don’t have to think about your job. You are responsible for your own self and your own decisions.
You would know what’s better for your cause. You can ask your employees or coworkers to chime in ideas that would be best for society. You would be working not just for the growth and success of the company, but also for the community!
Basically, you are trying to make this world a better place. Through social entrepreneurship, you are doing something better for the coming generations.
7. More Jobs Are Created
Because of social entrepreneurship, it’s possible to create more jobs. In fact, you are playing an active role in the economy. You would be focused on hiring more people, but for a better cause, that’s beneficial for the whole society, culture, and the environment.
When you tell people about the benefits of social entrepreneurship and how it’s possible to create more jobs, it would be great! It can create a ripple effect and soon you would observe the change if you are doing everything right. It takes time and effort, but it would be worth it!
Social Entrepreneurship Disadvantages
You might face the following:
1. Hard to Build Trust And Credibility
It’s hard to build credibility these days. Even if your cause and mission are genuine, it would be hard to win trust. You have to put in enough time and effort to build your trust. You have to take your time to build trust and credibility. It’s important that you stand behind your cause.
In fact, you should also believe in it from the core of your heart. People are smart and it’s easy to guess for some people if someone is just trying to pretend for the sake of revenue or profits.
It would take some time, but it would be worth it once you are able to gain the trust. You are representing your company. It’s important that you do what you say! You are setting an example for others around you.
2. Only A Few Know About Social Entrepreneurship
Not everyone is on the same boat when it comes to social entrepreneurship. In fact, if you start asking people about it then only a few would know what’s actually it is. When you get yourself into social entrepreneurship and you realize that people are not aware, it’s best to create awareness.
Nowadays, you can take advantage of social media and spread good causes. You can become an influencer who is trying to bring a positive change in society through an interesting business model that genuinely cares about society.
It’s okay if others are not aware of the idea yet! You can create awareness. Good things can start with you. When you are thinking about everyone else, things would eventually fall into place.
3. More Support May Be Required
When you are doing something better for society, you need more support. It might be hard as everyone could possibly not be on the same page.
Basically, you have to work harder than normal. When there are not enough supports, it’s possible that you might feel; demotivated. It’s important that you keep working for the goal. You have to play your part and everything else would be okay!
It might be hard to get more support, but usually, it’s an issue in the beginning. Once you are able to gain trust and credibility then the support would follow. Just try your best and wait for the results. If your cause is genuine and you have worked hard, you need not worry!
It’s natural to feel overwhelmed, but you can talk to an expert about the issues you currently face. It’s best to get an expert’s advice on matters that you are not sure about.
4. Lack of Financial Support
You might face a lack of financial support when it comes to social entrepreneurship. Gradually, you have to work for your goals. It’s best to work for the betterment of your community.
Your small efforts can make a big difference. Because of the lack of financial support, you might find it hard to operate your company. It’s important that you stay strong during such times. It’s best to explore your options when you are looking for financial support.
You can ask friends, family members, or maybe look for angel investors. You can also check crowdfunding resources as it’s an increasing trend.
5. Solution Can Be Long Term
As a social entrepreneur, you are working towards a cause. In fact, you would be trying to solve a problem through appropriate research and process. It’s important for you to keep in mind that the solution can be long-term.
You can’t expect a solution overnight. Understanding the problem is important for you so that you can find a potential solution, but it would take some time and effort.
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Tips to Keep In Mind for Social Entrepreneurship
Keep the following tips in mind when you are a social entrepreneur:
- The journey can be hard and tiring. You might feel alone as you would be fighting for a cause. It’s important for you to understand that not everyone has the same mindset. It’s important that you change the mindset of people for the better.
- You might find people who would discourage you! It’s important that you stay connected to your main cause. You should know why you started your company in the first place.
- Start building trust and credibility. If you have a strong character, then it would be a lot easier for you to gain trust. Think about it, if you don’t do what you say then who is going to believe you!
- You are not just working for yourself, but for the whole community. It’s important to keep this fact in your mind.
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Wrapping It Up
When you understand the benefits and risks of social entrepreneurship, you would know what to expect. In fact, if you want to become a social entrepreneur it’s best to familiarize yourself with the benefits and risks of social entrepreneurship. This journey can be hard for you, but you have to keep the good cause in mind.
You are not working just for yourself, but for the whole society to which you belong. You have to maintain accountability. It might take some time to establish, but it would be worth it! In fact, you can become a source of inspiration for others around you.
Bijay is an entrepreneur and start-up founder having more than 14 years of IT industry experience. He is the co-founder of TSInfo Technologies, a SharePoint development company.
A dedicated professional and very passionate about public speaking and also wrote thousands of technical blogs in various technologies. He also wrote a lots of blogs on entrepreneurship, investment, startup, business, manage money tips, etc.