Topics that relate to social entrepreneurship are becoming more popular every day. However, it is very difficult to give an unambiguous definition of this concept. What social entrepreneurship? Activitiescorresponding to this direction, to which categories are related in the first place? Why? Data and other issues no less exciting for the society are considered in this article.
The concept of social entrepreneurship
What social entrepreneurship? Activities, characterizing it, are determined in a very interesting way. Thus, social entrepreneurship should be understood as entrepreneurial activity, which is primarily aimed at mitigating or resolving social problems.
It is important to note that social entrepreneurs form a business model with unique characteristics. Her profit is to increase social welfare. It is necessary to supplement that social entrepreneurship, activities, corresponding to it, differ from a business with a corporate social type of responsibility (CSR). The fact is that in the second case, only a part of the profit, and not its entire amount, is directed to solving problems of a social nature.
Associated Definitions
Social entrepreneurship development closely related to the following definitions:
- Social impact is nothing more than a targeted focus on mitigating or solving pressing social problems; sustainable social results of a positive nature that can be measured.
- Innovation is the use of new techniques that can increase the degree of social impact on society.
- Financial sustainability and self-sufficiency is nothing more than the ability of a socially oriented structure to solve social problems as long as there is a need for this, and at the expense of those incomes that come from one's own economic activity.
- Duplication and scalability - a slight increase in the scale of the economic activity of the social structure (both nationally and internationally) and the dissemination of the model (experience) in order to increase the degree of social impact.
- Entrepreneurial approach - the ability of an entrepreneur included in subjects of social entrepreneurship, to see market failures, to accumulate resources, to find opportunities, to form new solutions that can positively and long-term influence both individual social groups and society as a whole.
Social Entrepreneurship: Governance and Models
Through the analysis of the currently relevant activities, the following models of social entrepreneurship can be distinguished:
- Charity sales. Usually these include service stores or marketable products. As a rule, their proceeds are transferred directly to a charity fund. Vivid examples of such structures are the following stores: BlagoBoutique, Thank you, White Horse art gallery and so on.
- The solution of the issue of the employment of mothers with children up to three years of age, persons with disabilities, as well as individuals who are in difficult situations. For example, in the store “Naive? Very! ”The formation of souvenirs is carried out by people with mental disorders, and the restaurant“ In the Dark ”employs exclusively blind people.
Additional directions
As it turned out, characterizing social entrepreneurship activities do not have a clear framework. Therefore, in the literature, as a rule, only approximate models (directions) of the corresponding activity are given. The options given in the previous chapter are by far the most common. However, the following points are inferior to them to a minimum:
- Social Entrepreneurship Organizations to create services that are not provided in full by the state. A striking example of this situation can serve as a kindergarten "Cornflower", located in Moscow.
- The provision of services of a unique orientation, for example, the taxi service "Invataxi" implements a transport service exclusively for the disabled.
- Socially oriented entrepreneurshipaimed at the development of the territory and local society. For example, the Kolomenskaya Marshmallow Museum, which displays exhibits of vanished taste, and the formation of an urban brand around marshmallows, as well as the project for the delivery of environmentally friendly products LavkaLavka, implemented to support rural producers living in the Moscow Region.
Small businesses
Socially oriented The projects presented in previous chapters are organized through the application of the efforts of subjects of social entrepreneurship. So, the following structures and citizens can play the role of the latter:
- Commercial type organizations.
- Nonprofit type organizations.
- Individual entrepreneurs.
Signs of social entrepreneurship
Subjects of social entrepreneurship are engaged in the organization and promotion of activities, which correspond to the following characteristics:
- Social impact. In other words, the activity of the structure, one way or another, is aimed at mitigating with respect to pressing problems of a social nature.
- Social entrepreneurship (examples presented above) is determined by such a sign as innovation. Thus, in the process of its own activities, the company must use new unique working methods.
- A sign of financial stability. In other words, the enterprise is obliged to solve the problems of the social plan at the expense of the income that it receives from its own economic activity.
- And finally social entrepreneurship in Russia is scalable. That is, the structure, one way or another, has the ability to transfer previously acquired skills to other enterprises, markets and even other countries.
What follows from this?
Having fully analyzed the features presented in the previous chapter, it can be judged that because of such an interesting entrepreneurial approach, the category considered in the article is significantly different from ordinary traditional charity. Why? The fact is that in addition to the social effect, the activities of social companies are aimed at making a profit, which is very important for business entities today.
Development in different countries
To date, social entrepreneurship in the Russian Federation is not as widespread as in other countries. Clouswatcher, strategic director of the Russian Laboratory for Social Innovation, expressed his point of view on this subject. He explained that social entrepreneurship is a newly formed economic sector, so many points in this case are debatable.
Thus, social entrepreneurship, as a rule, is either a non-profit or a commercial field of activity. Specialists of the Laboratory of Social Innovations believe that the direction considered in the article exists and develops in accordance with its own laws.This means that absolutely any entrepreneur who has formalized obligations to regularly implement a certain set of actions of a social nature to solve socially significant problems can be considered a social entrepreneur.
Pages of history
In the 1980s, the concept discussed in the article became popular in society thanks to the activities of Bill Drayton, who founded Ashoka. However, the direction appeared in reality long before this moment. Thus, in the Russian Federation, social entrepreneurship appeared at the turn of the nineteenth and twentieth century.
A striking example of such an enterprise can serve as the House of industriousness, which was founded by father John of Kronstadt. Subsequently, such structures began to rapidly gain popularity in society. In accordance with their meaning, they implemented the function of labor exchanges, where every person in need had the opportunity to find a job.
Nevertheless, social entrepreneurship gained real popularity only at the turn of the twentieth and twenty-first centuries. It is no coincidence that in 2006 the world Nobel Prize was awarded for the first time. It is important to supplement that it was received by the founder of the organization Grameen Bank, which is microfinancial in nature, Muhammad Yunus.
Expert point of view
According to experts, the category of social entrepreneurship significantly increases the indicators of economic efficiency. Why? The fact is that it introduces into circulation those resources that were not previously used in similar quantities. Moreover, this provision applies not only to unused material (for example, industrial waste), but also excluding the use of human resources. So, the latter include socially forbidden groups, which include the poor, ethnic diasporas, and so on.
So, Coimbatore Prahalad in his own works formulated a very interesting approach to social entrepreneurship. In accordance with this provision, the following can be noted: if you do not consider the poor as a burden or sacrifice, but see consumers and entrepreneurs in them, then a large number of opportunities open up not only for the poor, but also for business.
Conclusion
In accordance with the foregoing, we can conclude that, working in relation to the disadvantaged or poor, the business has the opportunity not only to be profitable, but also to significantly expand the market, as well as attract a large number of new consumers. In order for this state of affairs to become possible, large-scale companies need to work closely with state organizations of local authorities and civil society.
It is important to note that the foreign experience associated with supporting social entrepreneurship is very wide in scope. Separately, it is worth noting the activities of organizations in South Korea. Why? The fact is that it is there that the promotion of socially oriented business is today a priority task of national importance. Thus, all social entrepreneurs in South Korea are mandatory certified. This gives them a significant advantage in terms of competition with ordinary entrepreneurs engaged in commercial activities.
In our country, this type of activity has not yet become widespread, but society is developing, so such a business will soon become very popular.