Many of the world’s top business leaders have become famous by entrepreneurship. They contribute toward the development of nations. These entrepreneurs generate employment not only for them but also for many thousands of other people. Entrepreneurs like Steve Jobs, Bill Gates, and others have made their name and fame through entrepreneurship. These entrepreneurs worked basically to generate profits and revenue and hence, these are called Commercial Entrepreneurs. But with the time changing and with the coming up of Corporate Social Responsibility (CSR), entrepreneurs worked on the concept of generating profits and also eradicating societal problems. Such entrepreneurs are called Social Entrepreneurs.
Social and commercial entrepreneurs differ in their approaches to doing business. The common thing between both of these is that both contribute toward the creation of wealth for the nation.
What is Social Entrepreneurship?
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Social entrepreneurs are people who have creative solutions to the problems of society. They have an entrepreneurial zeal to solve societal problems. They act for the betterment of society. They work in various fields. These fields include education, enterprise development, and education. They help build social values.
Social entrepreneurship is basically the process of pursuing innovative solutions to social problems. Social entrepreneurship can solve problems of society and also generate profits.
Social entrepreneurs support the nation. They generate awareness amongst people by catering to social problems. They seek to reduce these problems by making social enterprises. They come up with unique ideas to solve problems of the society and hence, increase the creative base of the country. They act as role models to other types of entrepreneurs. They focus on the general well-being of society. They promote local talent. They promote the national heritage.
What is Commercial Entrepreneurship?
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A commercial entrepreneur is one who makes profits resulting in a private gain. They generate new and valuable goods, services, and jobs. They also generate wealth for the nation.
Differences between social and commercial entrepreneurship
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A social entrepreneur achieves sustainable social change by invention and innovation whereas a commercial entrepreneur achieves economic change by producing new products. A social entrepreneur has an emphasis on social value creation whereas a commercial entrepreneur has an emphasis on profit making. A social entrepreneur finds and makes a new product for solving societal problems whereas a commercial entrepreneur finds a new product for generating revenue and making a profit. A social entrepreneur uses local techniques and skills whereas a commercial entrepreneur uses entirely new techniques.
Myths regarding social entrepreneurship
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There are certain myths regarding social entrepreneurship that inhibit young people to start their own business in this field. Some of the myths are:
Social entrepreneurs face no problem when it comes to selling products. Starting a social enterprise requires less investment. Making a profit in social enterprise is ethically wrong. Social problems are not going to be solved by business. Consumers do not consider socially conscious goods and services. Social enterprises have to be started in a rural area.
Barriers to social entrepreneurship
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Financial investments are difficult initially. There are lesser models available in certain areas like healthcare, education, etc. There are also difficulties in meeting societal expectations. There is also an unavailability in appropriate resources to design social impact assessments.
Investment tips for social enterprise
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Investing in a social enterprise can be intriguing to investors. It may seem risky at first. What can be done is that lenders can pool in their money into a collective investment. Then the fund can be distributed to the social enterprise by a head fund manager. Working together is beneficial as it requires lower costs and can lead to higher returns.
One can speak to a fundraising expert. He can tell you the right way whether you want to invest in grassroots enterprises or start an international project. A financial expert can help you in defining your expectations and goals. Choosing a consultant that specializes in social entrepreneurship can be beneficial.
When starting a social enterprise, it can be difficult as to where to start. Knowing the community is especially important in social entrepreneurship. You should know what their social expectations are.
There are 5 P’s of social entrepreneurship: Persistence, Patience, Purpose, People, and Profits.
Writing a mission statement can be helpful in being precise. You should know who you want to serve and what you are doing to serve them. Be clear of the problem that you wish to solve through your product. Think about your talent, skill set, and resources.
Researching the field is especially important. You should learn more about the social business arena where you would work. You should also reach out to team members for feedback and support. You should also gather outside support. You should have mentors and advisers.
You should develop your business model. It is like a road map for making money. Decide upon how much money you need to invest in the social enterprise.
Investment tips for commercial enterprise
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Start by being more organized. It will help you be on the top. Create a To-Do-List daily. Use different software like Zoom, Microsoft Teams, and the like. A simple Excel spreadsheet can also solve many business organization’s requirements. Keep a track of your records. These are like simple tips to succeed.
Another tip is that you should create a strong foundation for the future. Another tip is that you should invest in your existing business because starting from scratch can be difficult.
Embracing risks is another investment tip. It is very overwhelming to face risk and loss. But you can take a calculated risk. It can be motivating. You should trust your instincts. You should think long-term. You should also align investments with business goals. You should know what your goals are. They should be realistic and concrete. They should not be abstract.
Conclusion
So, here there were some ideas about social and commercial entrepreneurship as investment options. There are many differences between social and commercial entrepreneurship. In social one, there is a focus on bringing about social change whereas in commercial one there is a focus on making profits. There are some investment tips also. The most important tip is that you should consult first before investing.
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