(Newswire.net — November 2, 2019) — November 2, 2019) –

Written by Isabel Dos Santos.

 Today, I’d like to introduce you to the concept of social entrepreneurship. But before we begin, it’s worth discussing conventional entrepreneurship which is laden with rewards for business owners and stakeholders alike. From concept to creation, successful entrepreneurial activities must overcome challenges and embrace opportunities. I’ve found that this process begins with ideation. Every venture must have a raison d’être – a reason for its existence. Businesses must solve problems in society. Whether it’s a product, or a service, your business must add value for the consumer. It is precisely this imbalance that presents entrepreneurs with opportunities to fill a void in society, and build sustainable bonds within the community.

‘Over the years, I’ve found that the most successful entrepreneurs go above and beyond the call of duty and actually establish a value chain with their communities. This wades into another area of entrepreneurship known as social entrepreneurship. The precise definition of this management activity is a little more complex than meets the eye. The two words, social and entrepreneurship must be viewed in perspective. Let’s see how we can put them together.

Many prominent foundations and businesses are engaged in social entrepreneurship activities, such as the Schwab Foundation, the Ashoka Foundation, and my own companies. For starters, a social entrepreneur provides transformational benefits to society. The outsized payoffs of this level of commitment entail a far deeper connection between the business and the community. It’s about building lasting bonds between entrepreneurs and their stakeholders. These rock-solid relationships close the gap between ‘us’ and ‘them’, connecting entrepreneurs to communities. 

Entrepreneurship by its very definition indicates a business owner’s ability to identify opportunities and act in such a way as to introduce a product or service to the market. It takes time for an entrepreneur to realize a profit, and to impact society. Interestingly enough, the term entrepreneur is usually bestowed upon somebody who is successful at introducing a product or service to the market. Many failed business-minded people are not labelled entrepreneurs, since they routinely fail to convince investors to buy into their concept. I attribute much of my success to the external projects I’ve been engaged in over the years. 

Now I’d like to briefly explore the social component. There appears to be a benefit not related to the profit motive here. Any entrepreneur who invests in the well-being of a local community, or the greater good for the purposes of social good is engaging in a form of social entrepreneurship. What motivates the entrepreneur to act in the interests of society? Altruistic objectives? Philanthropy? The greater good? I’ve found that it appears to be a combination of many different elements, notably identifying opportunities and pursuing a vision designed to achieve a better state for all people. Profit is typically regarded as a byproduct of a clear vision and a mandate to do good.

Social Entrepreneurs Are Driven by a Vision Not by Profit

As bizarre as it sounds, a social entrepreneur is one who is strongly motivated by the realization of specific social objectives as. I have been a grass-roots ‘change advocate’ since I can remember. My focus remains on the well-being of communities across Angola. For example, the strawberry plantations in Humpata in the province of Huila brought transformational change to a community. My teams invested in the education, and skills training of a group of local farmers and as a result some 120+ women are now financially independent and able to support their families, and drive local enterprise.  Profit is not the driving force for a social entrepreneur – it’s the societal good.

Understand Why Success Breeds Success

We must realize that any business is best served when stakeholders are able to afford its products and services. While social entrepreneurs certainly don’t envision profits when they engage in philanthropic activities, the long-term positive externalities of such behaviour are ultimately good for economic growth and development. Therefore, when a social entrepreneurship project invests in transformative change by implementing improved telecommunications infrastructures, upgraded transportation networks, the eradication of malaria, or the widespread development of educational initiatives, it is clear that society benefits. We see things like improved per capita GDP, improved living conditions, greater purchasing power, and ultimately a better economy for all. No business can survive if its customers cannot afford to keep it going.

Enlist the Support of Team Members and Community Members

Social projects are big. It’s no mean feat taking an idea and translating it into action without the support of team members and community members. Strong leaders are inspirational leaders since they can drum up excitement for their ideas and get people on board with them. The concept of transformative change is only possible if enough people – the right people – can make a vision and mission come to fruition. Collaborative leadership, effective management, and like-minded people are your most useful tools to get the job done. When people are sold on a concept and they believe in its merits, there is a much greater likelihood that the initiative – the social entrepreneurship program – will develop a life force of its own. 

Funding for Your Social Entrepreneurship Projects

Seed funding is needed to bring about the type of change you want to see with social entrepreneurship. Nowadays, crowdfunding has become a popular way to raise money for big projects. Other traditional methods include short-term loans, long-term loans, bank loans, family loans, or self-financed capital. If the idea is good, there is a much greater probability of securing the necessary financing or assistance from funding sources. Investors often want to have their names associated with important social projects, and will likely jump at the prospect of becoming part of a transformative change. I believe that it’s important to vet investors who may be eyeing the profit aspect of the social project rather than the social mission itself.’

In my discussions with entrepreneurs across Angola, and worldwide I’ve touted this 4-step guide. It is designed to offer insight into what motivates a social entrepreneur in the first place. It’s easy to get lost in the weeds when the profit motive is injected into the equation, but social entrepreneurship is about transformative change with a clear vision and mission statement. The goal, and not the money, is what makes this such a valuable proposition. Onward, we go.