Identifying Social Entrepreneurship Opportunity

Social entrepreneurship is evolving across the globe. it is helping to solve problems like unemployment, civic engagement, social security etc. Primarily, a social entrepreneur offers many benefits to society. In this article, we will talk about how you can identify a social entrepreneurship opportunity.

Social Entrepreneurship Definition

“Social entrepreneurship is the use of start-up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues.” – Wikipedia

Source: PxHere

Entrepreneurs who are profit-centric, usually, measure business performance using parameters like revenues, profits or an increase in stock prices. However, social entrepreneurs focus on generating a positive return to society.

While some such organizations are non-profit, there a few who blend their profit goals with a social cause. A social entrepreneur tries to further social, environmental, or cultural goals in areas like healthcare, alleviating poverty, community development, etc.

Typically, a social entrepreneurship organization works in a complex market. It is possible that such an organization competes with a full-fledged business sector or even a state-subsidized service.

However, a close study of the market reveals that social organizations tend to flock around niche markets where their hybrid business models are best-suited.

Also, the markets are less forceful. Therefore, if you are planning to become a social entrepreneur, then it is important to try and identify niche areas where an opportunity may exist. This also ensures that your efforts and resources are useful and justified.

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How to identify a Social Entrepreneurship Opportunity?

Typically, opportunities in social entrepreneurship are based on the need to create social value which benefits the local community. A social enterprise usually does this by solving a problem or providing assistance in an area of need or disadvantage.

Therefore, creating social value and not wealth is the main driver for social entrepreneurs. Additionally, they need to achieve financial stability to maintain value. Here is a quick glimpse at the market niches which have many social enterprises:

Social enterprises which serve the financially poor population. In these markets, the profit margins are very low and the risks are high. Further, in certain sectors like microfinance, there is a constant debate as to whether a commercial operation can fulfil the needs of the poorest client groups more effectively than modified NGO models. In this niche, some examples of social entrepreneurship organizations are micro-clinics in low-income zones, affordable irrigation tools to poor farmers, etc.
New and challenging markets where the entrepreneur is required to incur heavy expenses to stimulate demand and create opportunities. This is due to the prevalent stigma and the challenges faced in acclimatizing people to newer and more complex technologies as well as challenging perceptions about certain services which need to be provided by the state. Some examples are offering counselling services to people living with HIV/AIDS or other socially marginalized groups, microinsurance products for farmers, etc.
Markets for products which offer environmental benefits but are not fully commercially competitive. Many environment-friendly business lines are completely commercially viable. However, there are many others which are suitable for hybrid social entrepreneurship.

In a nutshell

Therefore, we can state with conviction that the social entrepreneurs (individuals, organizations, or groups) are innovative and proactive risk-takers who attempt to create a sustainable community, social, or industry-wide change to address endemic problems. These entrepreneurs identify, assess, and exploit opportunities in an attempt to create social value. Further, they use a wide range of market-driven resources (and other resources) to create this transformation.

Solved Question for You

Q1. What is social entrepreneurship?

Answer: Social entrepreneurship is the use of start-up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues.

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