This article basically deals with the concept of social entrepreneurship. What is it and what is the need for Social entrepreneurship in this world. Social entrepreneurship is considered as an initiative brought into the practicability by the entrepreneurs for the various objective fulfillment through the help of different reforms and launching of the different networks all over the world.
Social entrepreneurship is all about recognising the social issues and achieving a social modification by using entrepreneurial principles, processes, and operations. It’s all regarding creating a pursuit to utterly outline a selected social downside and so organising, making, and managing a social venture to achieve the required modification. The modification might or might not embrace a radical elimination of a social downside. It should be a period method that specializes in the development of the prevailing circumstances.
The entrepreneurs in this field are related to non-profit sectors and organizations. However, this doesn’t eliminate the necessity of constructing a profit. In spite of everything, entrepreneurs would like capital to hold on to the method and convey a positive modification within society. Along with social issues, social entrepreneurship additionally focuses on environmental issues. Child Rights foundations, plants for the treatment of waste merchandise, and girl’s management foundations are a few samples of social ventures. Social entrepreneurs may be those people who are related to non-profit and non-government organizations that raise funds through community events and activities. In modern times, there are many standard social entrepreneurs who have contributed loads towards society. The founder and manager of Grameen Bank, Muhammad Yunus, may be an up to date social businessperson who has been awarded an altruist Peace Prize for his venture in the year 2006. The venture has been unendingly growing and benefiting the ostracized section of society.
Rang De is another sensible example of a non-profit social enterprise. Established in the year 2008 by Ramakrishna and Smita Ram, it’s an internet platform from wherever rural and concrete poor folks in the Republic of India will access micro-credits with a rate of as low as 2% once a year. Lenders from all across the country will directly lend cash to borrowers, track investments, and receive regular payments on-line.
The St. George Foundation is another nationally-recognized social enterprise. Awareness among the ladies is provided through the help of education, vocational education, cooperative farming, business development, and savings designing with the introduction of the Women’s management Program. By using the principles of social entrepreneurship, these organizations are addressing the social issues and convey a positive modification within society.
There are many alternative organizations which are seen as a positive change maker within the society. Some of the organizations such as, the Canadian Social Entrepreneurship Foundation, Schwab Foundation for Social Entrepreneurship, The Skoll Foundation, NIKA utility, Newman’s Own, and Ashoka, their main aim is social modification and unendingly rising the prevailing conditions within the society.
The field of social entrepreneurship is speedily growing and attracting the eyes of various volunteers. It’s currently becoming a typical term in university campuses. The rationale behind the increasing quality of this product is that people get to try what they had been thinking for a long time. The extraordinary folks place their sensible concepts and convey a modification in society against all odds.
Social Entrepreneurship: A Background with innovative minds
Social entrepreneurship may quite be an entrepreneurship initiative that aims at seizing a social downside for conveying a couple of transformations within the same. The one who takes up the challenge is termed a social businessperson, and he/she uses the principle of entrepreneurship with the intent of making social capital and not being primarily profit targeted.
Social entrepreneurship aims to push the reason for social and environmental goals that have swayed the days to return. Such entrepreneurs are typically a vicinity of or associated with some non-profit-making organizations (NGO’s). Though profit creating is essential to this idea however it should not be the only real purpose of the organization. Andrew Mawson worked extensively upon the conception of social entrepreneurship and extended the same to bring forth reform within the community structure. He additionally set the muse of the Bow centre in east London. For this, he was bestowed upon the nobility of Lord Mawson and he’s employed for developing partnerships for regeneration work initiated by him.
Social entrepreneurship is comparatively a brand-new term. It came into notice simply a couple of decades ago. However, its usage may be found throughout history. There have been many entrepreneurs who established social enterprises to eliminate social issues or bring positive modification within society. Vinoba Bhave, the founding father of India’s Land Gift Movement, reformer, the founding father of the cooperative movement, and Nightingale, founding father of the initial school of nursing and developer of contemporary nursing practices may be enclosed during this class. They had established such foundations and organizations in the nineteenth century that’s abundant before the conception of Social Entrepreneurship employed in management.
There were entrepreneurs throughout the nineteenth and twentieth century who created efforts to eradicate social evils. There are several societies and organizations that job for Child rights, lady’s management, save surroundings, save trees, treatment of waste merchandise, etc. except for addressing the social problems, social entrepreneurship additionally includes recognition and addressing the environmental issues and monetary problems for rural and concrete poor.
These days, the conception of social entrepreneurship has been widely used which too in numerous forms. The institution of Grameen Bank by Muhammad Yunus, Ashoka: The Innovators for the general public by Bill Drayton, Rang De by Ramakrishna and Smita Ram, and SKS Microfinance by Vikram Akula.
All huge brands and corporations are adopting the concept of social entrepreneurship and attempting to handle the problems in our society by gap faculties in distant areas, educating ladies for birth control, creating its potential for farmers and poor people to access low-interest credits, establishing plants for waste treatment, planting trees and going inexperienced.
The conception of Social Entrepreneurship has additionally been enclosed as a separate branch of management courses. Even youth is additionally trying forward to volunteering their services and sensible concepts to bring social modification through social entrepreneurship.
Who may be a Social businessperson?
Entrepreneurs who used to venture in new areas with the intention of constructing profit out of identical. After all they are socially accountable and additionally have the requirement to contribute to the well-being of the society within which they operate; however, this obligation is secondary. In social entrepreneurship, this obligation of contribution to social well-being is primary and in an exceeding method, profit takes a back seat or is additional or secondary however, still essential to survival.
social businessperson is someone who takes up a pressing social downside and meets it with an innovative or path-breaking answer. Since profit creation may be a secondary objective, thus those who are burning and determined regarding what they are doing, they possess a high level of motivation and are visionaries who aim at conveying a couple of modifications within the method of care.
By definition, social entrepreneurs are nice folks’ recruiters who give their concepts or solutions in an exceedingly method that several folks, who are either a part of the matter or close to it, recognise the necessity for modification and find aboard the modification bandwagon. so, mobilizing the plenty for conveyance regarding modification may be a hallmark of a social businessperson.
Social entrepreneurs operate to adjust the face of society. Be it health, sanitation, education, they’re gifts everyplace. There are folks even who work on and regarding modification within the fashionable innovations as a result of their impact has been prejudicial to human life. They work towards rising systems, making new solutions, birthing honest practices.
Some of the notables who inspire others for social entrepreneurship:
Susan B Anthony: She was the Co-Founder of the primary women’s temperance movement and a distinguished Yankee civil rights leader for women’s rights within the nineteenth century.
Vinobha Bhave: A distinguished figure in Indian fashionable history and was the founder and leader of the Land gift movement that helped reapportion land to untouchables.
Maria Montessori: A pioneer in education developed the Maria Montesorri approach to early education in youngsters.
Florence nightingale: She set the muse for the primary faculty of nurses and worked to enhance the hospital conditions.
Margaret Sanger: She was the founder and leader of the Planned Parenthood federation of America, championed the birth control system round the world.
These are samples of some those who fought for what they believed in and caused varying degrees of modification in their several spheres of labour. Social entrepreneurship has witnessed a boom within the past few years with additional and additional folks obtaining drawn to it. There’s currently a healthy competition and world category graduates are forsaking profitable jobs to figure and contribute in purposeful ways in which towards society.
As Bill Drayton would say it competently ‘Social entrepreneurs aren’t content simply to present a fish or teach the way to fish. They are going to not rest till they need revolutionized the complete fishing industry’. Such is the passion and therefore the commitment needed to be referred to as a social business person that it should not be deflected to mention that it’s more difficult than ancient entrepreneurship.
Social Enterprises around the World and Their Legal Incorporation
To get financial gain if not wealth, the social enterprises come up with innovative people-friendly solutions to bring a positive modification in the society. What makes them different from the commercial world is their basic aim; they work for those who live below average personal income and supply versatile operating surroundings to folks. Although the concept of social entrepreneurship has been around since the 1960s and is promoted by several people, however, the institution of The Grameen Bank in Bangladesh was the primary instance where the conception was completely used under the leadership of Muhammad Yunus and it tried to handle the problem of individuals living below personal income, and step by step has evolved as a powerful identity.
The Skoll Foundation: North America
Founded by Jeff Skoll, the primary president of eBay, the Skoll Foundation supports the social enterprises and highlights their work by establishing their partnerships with Sundance Institute and News Hour with Jim Lehrer. NIKA utility is another social enterprise in America. The corporation sells drinking water within the country and brings clean water to the developing world with its profits. It uses its 100% profit within the activity.
Grameen Bank – Bangladesh
A social enterprise isn’t a brand-new concept however it started changing into common solely in the Sixties. There could also be different rules and rules for social enterprises around the world however their basic concept remains identical. Their final aim is to serve the folks of the society WHO are at an all-time low of the pyramid. In Bangladesh, Muhammad Yunus incorporated the Grameen Bank, a microfinance organization that creates little loans to folks living in rural areas while not requiring collateral. The bank doesn’t believe charity however in giving facilitation to folks as an initiative to interrupt through the economic condition cycle.
Echoing inexperienced: the United States
Based in NYC, Ringing inexperienced may be a nonprofit organization that operates in social sector finance. For the last twenty years, it’s been operating during this field encouraging and serving young entrepreneurs to launch new organizations.
Rang Diamond State: Republic of India
Rang Diamond State may be a net profit on-line organization in the Republic of India that lends little loans to people attending to begin a brand new or grow their existing business. It’s a winning concept to assemble the 2 components of Republic of India one in all that is with success progressing whereas one is overlooked because of a shortage of resources. Supported within the year 2006 by Ramakrishna NK and Smita Ram, Rang De nowadays may be a major on-line platform within the country.
Schwab Foundation for Social Entrepreneurship
Founded by academician Klaus Schwab the main purpose of the Schwab Foundation for Social Entrepreneurship is to push social innovation. The muse doesn’t offer grants however addresses social issues and provides platforms at the country, international and regional levels.
Omidyar Network
Established in 2004, the Omidyar Network may be a philanthropic fund that fosters economic advancement. With a network of for-profit corporations, the network encourages participation within the areas of state transparency, microfinance, social media, and property rights. Headquartered in Redwood town, California, it had been established by state capital Omidyar and his married wife Pam.
The Selfemployed Women’s Association (SEWA)
The SEWA is a trade union which was legally incorporated in the year 1972 by Ela Bhatt for earning their livelihood in the area of Hawkers and vendors, home-made producers, manual labourers and service producers, and all these areas are very much difficult to organize during the year 1972.
Bangladesh Rural Advancement Committee (BRAC)
The BRAC was legally incorporated in the same year when SEWA incorporated i.e. in the year 1972 by Fazle Abed who was at that time a corporate executive in Bangladesh. Bangladesh Rural Advancement Committee’s main focus is to break the cycle of poverty which is continuing for so many years in Bangladesh.
Basic Laws which should be known for a successful enterprise
This statement i.e. Basic laws which should be known for a successful enterprise is said because, for the success of any incorporation, basic laws should be known who run the enterprises and it is difficult for every enterprise to hire a legal and professional advisor because it might be costly for the small enterprises. So, in those circumstances, the owner or entrepreneur should be well versed with the basic knowledge of the law that helps in conducting the enterprises i.e. Real estate law, tax law, Intellectual property law, Insurance law, Employment law, Federal equal employment opportunity laws, and many others laws. There is no requirement of in-depth knowledge of these laws, only basic knowledge is enough for controlling enterprises.
Real estate law is the legal aspect that every entrepreneur should know because the validation of any purchase of the real estate entrepreneur must claim a warranty deed and without it, no purchase of real estate is considered as valid. And these basic documents knowledge and what’s its purpose is so important in order to avoid the future documents related to the problem while conducting the business.
Intellectual property law is considered as that legal knowledge which helps in governing and claiming the ownership of any product made by them and prevent from the copying and borrowing of other ideas or creation without the permission of ownership and copying and borrowing the ideas of others without informing or without taking prior permission is a serious offence and can be booked under Intellectual property law. That’s why every entrepreneur should know this law.
Tax law is another category of law that is considered very much essential for all entrepreneurship. Every entrepreneur is concerned about their taxation policy, tax payment, and rebate and to avoid any risk related to taxation policy and tax payment, it is important to either get advice from their legal advisor and in case there is no legal advisor, the owner himself should be aware of these laws.
Insurance law is now arising in the field of enterprises and earlier it was not so much considered important by the entrepreneurs but with the passage of time and development of all forms of business and also insurance law, it is being considered as important as other laws. Entrepreneurs usually go with the insurance policy and make their enterprises safer and don’t want to take the risk in case of an accident that takes place with enterprises. So, basic knowledge of Insurance law is necessary.
Employment law is very much important for entrepreneurs to consider or resolve the related problem of the minimum wage, child labour ban, overtime condition, employee holidays requirement, and all these things related to employment.
Federal Equal Employment Opportunity laws are considered the most relevant one and in my opinion, also this law knowledge is a must for every entrepreneur in order to prohibit any type of discrimination based on colour, sex, religion, case, or nationality. These laws also bring equal treatment in an organization and help in the protection of disabled people in the organization. This law helps in bringing a good environment and brings effectiveness to the enterprises.
The Fair Labour Standard Act is considered more important only for the employer because this act determines the federal minimum wage and also whether the employee would be freed from overtime or not and all this depends on the employer and the employer act as per this Fair labour standard Act. Usually, it’s employees’ responsibility to work overtime because it’s a compulsory task, and employers need not pay any extra benefits to them for the overtime.
Health Care laws regulate different agencies like, Department of health and human service and others and these agencies which are regulated by Health care laws look after the healthcare facilities provided to the employees and what is the scheme of healthcare coverage and this all is provided to the employees or not.
Privacy law is emerging these days at a rapid pace in every enterprise and organization. Every entrepreneur and customer wants that their data should be kept with privacy and it’s also a duty of the entrepreneur to maintain customer privacy. All the information shared by a customer should be kept with privacy and safeguard their interests. And for all these, entrepreneurs must have basic knowledge of Privacy law.
How does the law affect enterprises?
Law is the most notable thing which changes from time to time and if any entrepreneurs are not well versed with the changed law and amendment in the current existing laws then it will act as a blocker in their path and in their success. If any entrepreneurs want to get success and reach the top position in their field then it is mandatory for them to be updated with the laws and all the related changes that were done from time to time by the government in order to bring better administration in any area.
In order to achieve success in legally incorporated businesses or enterprises, read expert guidelines and update with the guidelines on how the law affects the legally incorporated enterprises so that the entrepreneur must follow to be prevented from bearing any harm. In many cases, different regulations were put down by the government on different enterprises which many entrepreneurs are not aware of, and this situation leads to the bearing of harm and losses to their enterprises.
Law affects enterprises mostly in the area of taxes, relation with employees, minimum wage, international trade, and bureaucracy and if the government makes some changes in these areas then there should be changes in the operating or conducting way. And one policy that directly and severely affects the enterprises is Taxation policies because it is directly connected with the amount and profit earned from the business carried out. So, these ways law affects the enterprises in different ways and that’s why it is very much important to follow the laws and be updated with the laws and amendments in that.
The rise of Social Entrepreneurship and why there is a momentum behind this idea
Having, said that there is another category of entrepreneurship that exists solely for promoting social welfare. These entrepreneurs are known by the name of Social Entrepreneurs and the reason behind this is that entrepreneurs are mainly inclined towards the actualisation of social value and social ethics which is considered as opposite to profit-seeking.
In other words, we can say that social enterprises are those types of entrepreneurship that inculcate positive social values and ethics and create social value instead of carrying out for profit purposes only. It is not like that these social entrepreneurs do not make profits or do not enjoy the proceeds from their ventures and are only busy in inculcating social values and involved in social welfare. Just that they endeavour to do good for society through their firms and profits generated are usually divided in a just and equitable manner or are reinvested into their firms as part of a cyclical process of social welfare.
It can be seen from the debate that social entrepreneurs reflect a positive growing aspect in the mind of capitalists all over the world and with the flow of evolution of social entrepreneurship in the society they are also ready to take over the society and help in the development of the society by working for the welfare of the society. Indeed, the latest edition of the World Economic Forum in Davos, which is an annual gathering of the business and political elite and movers and shakers in the world, had recognized the central theme of the world economic forum i.e. conduct of business for social welfare.
The Pioneer of Social Entrepreneurship: Mohammad Yunus
Some real-world social entrepreneurs are Mohammed Yunus of Grameen Bank in Bangladesh who pioneered the concept of Micro Credit or reaching out with money to those who lacked access to formal banking channels.
Through this endeavour, Yunus managed to vastly improve the lives of poor and the underprivileged wherein through the provision of credit in small amounts to those lacking established businesses that are needed for documentation and other requirements that are sought by the formal financial sector. The experiment in social good proved to be so successful that Yunus was awarded the Nobel Prize for his efforts and what more, he became an example and an inspiration for generations of social entrepreneurs to follow his path and work for the betterment of society rather than for individual gratification. Indeed, this model was adopted by the Government of Andhra Pradesh in India, which launched the SHGs or the Self-Help Groups that are outside of the purview of formal credit and instead, were relying on money lenders to borrow for their small businesses.
Thus, it can be said that Social Entrepreneurs reach those who the eminent management expert, CK Prahlad, calls the Bottom of the Pyramid and ensure that society benefits from their ventures.
Bogus Social Entrepreneurs, Technology, and role of the Government
Having said that, one must also be cautious that there are many who in the guise of being Social Entrepreneurs often take the system for a ride and make huge amounts of money in the process. There are countless examples worldwide of so-called social entrepreneurs who racked up massive profits at the expense of the poor and the underprivileged. Also, we are not stating that Social Entrepreneurship as a concept that emerges all over the world failed due to immoral individuals. Rather, what we are saying is that the governments and the world must encourage and nurture social entrepreneurs and at the same time, put in place safeguards that would serve as a system of checks and balances.
In recent years, the increasing adoption of technology at all levels and in all fields of society has given a fillip to social entrepreneurs. As it is easy to scale up and reap the efficiencies from the economies of scale and at the same time, leverage the synergies from integrating business and social good with technology, there is more than ever a consensus that when used properly, technology can indeed serve society better and encourage social entrepreneurs.
Conclusion
Lastly, whether you are a student aspiring to serve society or an established professional looking to follow your passion, social entrepreneurship can help you in realizing your vision and actualizing your mission. With famous rich business legends such as Bill Gates, Warren Buffett, and NR Narayana Murthy willing to provide and seed capital for social entrepreneurs, there is no dearth of encouragement and incubation for them.
Moreover, governments are also helping social entrepreneurs in their endeavours, and hence, we are at a tipping point as far as social entrepreneurship is concerned. To conclude, the world needs more social entrepreneurs and the ecosystems are also helpful for them to make a difference in society.
Reference
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Social entrepreneurship: the need, relevance, facets and constraints [Online], Available at: https://journal-jger.springeropen.com/articles/10.1186/s40497-018-0094-6 [Accessed on 26th April, 2020].
The emerging social enterprise – Framing the concept of social entrepreneurship [Online], Available at: https://www.thebrokeronline.eu/the-emerging-social-enterprise-d78/ [Accessed on 27th April, 2020].