What is
Social Entrepreneurship?
In today's global landscape, social entrepreneurship has emerged as a powerful force driving positive change at the intersection of business and social impact. Whether it's addressing poverty, environmental sustainability, or access to education and healthcare, social entrepreneurs are pioneering innovative solutions that prioritize social and environmental objectives alongside financial sustainability.
We also recognize that Social entrepreneurs can also be leaders within non-profit organizations. While the term "entrepreneur" often conjures images of individuals starting businesses with the aim of making profits, social entrepreneurship expands this concept to include those who start ventures with the primary goal of addressing social or environmental issues.
Non-profit organizations are often at the forefront of social entrepreneurship. These organizations are structured to pursue missions that benefit society rather than generate profits for shareholders. Social entrepreneurs within non-profits leverage innovative approaches to tackle various societal problems, such as poverty alleviation, education access, healthcare provision, environmental conservation, and more.
Non-profit leaders who exhibit traits commonly associated with entrepreneurs—such as creativity, vision, risk-taking, and resilience—are essentially social entrepreneurs. They identify pressing social needs, develop innovative solutions, mobilize resources, and create sustainable models for social change. These leaders may establish non-profit organizations or lead existing ones, driving impact through their entrepreneurial mindset and dedication to social causes.
Here is an excerpt from the Book, The Social Entrepreneur, by two of Ardent’s Co-Founders Christopher A. Crane and Lloyd Reeb.
Defining terms early is always helpful. Two experts in the field offer good definitions:
“Social entrepreneurship addresses social problems or needs that are unmet by private markets or governments.”*
“Social enterprises are private organizations dedicated to solving social problems, serving the disadvantaged, and providing socially important goods that were not, in their judgment, adequately provided by public agencies or private markets.”**
Our definition, based on our personal experience, our research, and those we have mentored, is:
Social entrepreneurship is the work of using free market principles to address human needs (physical, emotional, social, educational, and spiritual) in innovative, scalable ways that exceed the impact a traditional nonprofit or for-profit or government agency can or[…]”
In summary, Social entrepreneurship involves leveraging business principles to tackle social, spiritual, and environmental issues that traditional markets or governments haven't adequately addressed. It encompasses ventures aiming for both social impact and financial sustainability with multiple bottom lines.
*Sarah H. Alvord, L. David Brown, and Christine W. Letts, “Social Entrepreneurship and Societal Transformation: An Exploratory Study,” Journal of Applied Behavioral Science 40, no. 3 (September 2004): 260–282, doi.org/10.1177/0021886304266847.
**J. Gregory Dees, “Social Enterprise: Private Initiatives for the Common Good,” Harvard Business Review 76 (Winter 1998): 54–58.