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Monday, 10 August 2015

Social Entrepreneurship Revolution

A social enterprise is an organisation that applies business strategies in order to maximise social welfare, rather than simply earn profit. 

In the capitalist system, many firms see profit maximisation as their key goal. In order to do this, costs are minimised and sales revenue is maximised. In doing this, there are a lot of negative impacts: environmental concerns, loss of quality, raise in cost of living and minimisation of individual welfare. Although there are some great impacts such as wealth creation, a lot of industries exploit natural resources and the general public.

Is social entrepreneurship the answer? 

Through social entrepreneurship, profits are often reinvested in worthwhile causes (think Bryson House and the YMCA). These cause often, in turn, have tremendous social impacts in helping communities.

Making the profit motive a secondary objective works for many diverse industries. Having a principled mission, social enterprises set goals like many other organisations; but these goals generally have positive social impacts.

A revolution is coming and it is socially motivated. 

Many socially motivated entrepreneurs and seizing markets by storm, developing great programmes and making money while they do it. A social enterprise is the middle ground between charities and private enterprise. They take money in return for goods and services, but the profit is redirected into worthy causes. Everyone wins.

Building a business around a social cause is great for marketing and business growth. People will talk about your business. People will develop brand loyalty over your stance for social development.

Social enterprises build communities and reputations alike. 

Gaining a reputation, every project you develop will be watched and followed. The public will flock to those who take initiative.

The past is profit maximisation. The future is development. 

The best way to develop is reinvestment and everyone can become involved. 

It all starts with you. 

J Stefan Devlin

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