Dissecting Social Enterprise

Credit: Tanveer Islam/Wikimedia Commons

Contrary to popular belief, saving the world doesn’t have to be at odds with making a buck. Particularly after Muhammad Yunus started the Grameen Bank in 1983, there are more and more examples, in the US and beyond, offering support for the idea that achieving social aims can be good for business.

The what

The concepts of social enterprise, social capitalism and social entrepreneurship all function by adopting market-driven strategies or business models in order achieve a social aim. While profit is often an important concern, the predominant aim remains pursuing a social goal. Non-profits and for-profits can both function as social enterprises. 

The why

Particularly after the economic downturn, non-profits have seen donations and grants decline. Social enterprise is important because it fosters self-sufficiency and the ability to scale operations to an extent that functioning as a charity would never allow.