Social Entrepreneurship in a new context

In their paper “Social Entrepreneurship: A critical review of the concept” published in the Journal of World Business, Paredo and McLean analyze previous literature and explain the concept of social entrepreneurship. The main difference between entrepreneurship and social entrepreneurship lies in motivation.  Social entrepreneurships are primarily driven by social goals, and the desire to benefit society. 

According to the authors, “Entrepreneurs, especially social entrepreneurs, are described in terms that emphasize the value of their contributions. The aim of the description is often to celebrate their accomplishments and encourage others to emulate and/or support them.” 

Thus, the distinction between entrepreneurship and social entrepreneurship exists to build a community and potentially challenge the stereotypical connotation of entrepreneurship associated with capitalism. I believe the concept of social entrepreneurship shows a cultural shift in business expectations. 

While it can be argued that all forms of entrepreneurship involve innovation and problem solving to fix needs, social entrepreneurship is motivated by its social goals rather than solely generating profits. 

The social entrepreneurship model focuses on generating sustainable revenue streams, and helping society. Social enterprises often have long term goals to benefit groups or the planet. Social entrepreneurs are a vital in centering a reset of capitalism around the needs of the most vulnerable.

Entrepreneurship is an amazing tool for change and creating positive impacts in society. If there were more organizations with the mission of impacting global social development goals, undoubtedly our global wellbeing would be better. However, it is uncertain whether the state of the world economy would be significantly different during the pandemic. While the idea of social entrepreneurship drives change long term, social ventures in general may face challenges such as access to funding and ability to re-innovate and adapt to the pandemic. During the pandemic, social enterprises will likely also have to bend their models to serve different needs, and may not allow social entrepreneurs to have direct growth efficiently while serving their mission. I believe all companies should have an interest in societal well-being, and empirical evidence suggests social enterprises are more likely to give up short-term profits for the benefit of society. For-profit social enterprises may still have to re-strategize and cut costs in order to survive and continue to contribute to society. The World Economic Forum's COVID-19 Action Agenda recognizes the vital role of social entrepreneurs and suggests that they may be more likely to exhibit socially responsible behavior during the pandemic. 

COVID-19 may prove to be a catalyst for social entrepreneurship. The pandemic has re-instigated the meaning of community for many individuals. The crisis has created opportunities for more innovation and creative problem solving, and additionally technology is powering social entrepreneurship through increased access to information and resources.

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References

- Ana María Peredo, Murdith McLean,Social entrepreneurship: A critical review of the concept,Journal of World Business,Volume 41, Issue 1,2006, doi.org/10.1016/j.jwb.2005.10.007.

- World Economic Forum. 2020.COVID Alliance For Social Entrepreneurs. [online] Available at: <https://www.weforum.org/reports/covid-social-entrepreneurs-alliance>