Non-profit organisations are institutions that have emerged to meet some of the needs of society. Social entrepreneurs are the actors of these institutions. Therefore, social entrepreneurship is the process of creating such an organisation. But how does this all come to play?
This article discusses the general idea of social entrepreneurship, the types of other businesses, and great examples of non-profit organisations.
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What is Social Entrepreneurship?
Social entrepreneurship refers to entrepreneurial activities that focus on solutions for social and environmental problems. Like other entrepreneurial ventures, innovation is key in social entrepreneurship. Eventually, it can appear as new products and services, production and distribution methods, and organisational models.
Though, impactful social enterprises need to take advantage of the market and business methods to create a business model. Elements such as accountability, strategic planning, discipline, and flexibility are important as well as financial gain. In this sense, the main purpose of a social entrepreneur is not to make a profit, but to contribute to society and to make improvements in this area. Of course, for this to be sustainable, the social entrepreneur must be capable and able to raise enough funds in one way or another. To achieve this sustainability, one could adopt one of various social entrepreneurship business models.
Other Types of Social Entrepreneurship
Social entrepreneurship takes many other forms:
Non-Profit: Non-profit social enterprises, or NPOs, provide a service not available on the market or in the government. Hence, public and private companies can collaborate on such an enterprise. It carries out activities through donations and grants provided by people. Also, for long-term sustainability, the support of people and institutions is essential.
For Profit: The main purpose of a social enterprise for profit is to solve a problem. This enterprise makes a profit with its products and services to continue its activities. But the main goal is not profit maximisation; it is to grow the enterprise and reach more people. It is operated with the support of investors who expect a financial and social return on their investments.
Hybrid: Hybrid social enterprises sell products and services to cover their expenses. In other words, a phrase such as live off of one’s hump can be used for this model.
Examples of Non-profit Organisations
Now let’s look at some inspiring examples of social entrepreneurship:
1. The Warby Parker
The Warby Parker eyewear company has gifted more than 4 million glasses to the needy thanks to the “Buy a Pair, Give a Pair” campaign they have conducted to date. Also managed to take steps that would deeply shake up the optical industry and do an enviable job. -of course, as a natural result of this, countless companies have been created to imitate them.
2. Good Eggs
Good Eggs is an online grocery and food delivery service that offers fresh, locally produced vegetables, fruits, and meal kits for various organisations. According to the company’s mission, more than 70% of food, wine and spirits supply from local sources and every product to be delivered meets this strict standard.
3. Uncommon Goods
Uncommon Goods is an American online catalogue retailer based in Brooklyn. Basically, independent manufacturers form the backbone of the company. The company provides its producers with a market opportunity to sell the goods they produce with the motive of making a positive impact on our society and the planet. At the same time, they work with artists to minimise the environmental effects and use sustainable or recycled materials as much as possible.
4. Goldie Box
GoldieBlox is an award-winning multimedia company that produces content unique to children. It is known as the first to break the pink aisle rule in toy stores and challenge sexist stereotypes with the world’s first female engineer character created. Accordingly, the company offers toys, books, applications, videos, and animation, which will encourage girls to build a confident, strong future. It demonstrates an excellent example of social entrepreneurship by creating products.
5. United by Blue
This is not an ordinary outdoor clothing store. United by Blue is committed to removing one kilogramme of waste from many oceans or watersides on earth per every item sold. The company has managed to clean up over 45,000 tons of waste since its inception.
This business is a sustainable brand that supports the rights of workers in Sub-Saharan Africa. The company, which opened its own factories in 2012, produces each of its shoes in these factories located in Addis Ababa, Ethiopia. In 2013, the company was also awarded the title of the first shoe manufacturing plant in the world with a fair-trade certificate.
The LSTN company uses the proceeds from the sales of speakers and headphones to provide hearing aids to people in need through its partner, the Starkey Hearing Foundation.
8. Love Your Melon
This clothing brand presents a beret to every child who is fighting cancer in America. The company also supports many non-profit organisations that fight against paediatric cancer. 50% of the profits from each Love Your Melon product go to non-profit business partners or are spent on beret donation events that last throughout the year.
9. Tom Szaky
Szaky, who dropped out of Princeton University, evaluated the money he received from an investor named Suman Sinha by making fertiliser in his own garage. His venture, which began with small sales, soon turned into a million-dollar business called TerraCycle.
He realised that could be useful to the community in evaluating and recycling waste. So, he started putting products that were difficult to recycle back into use. He presented solutions for recycling waste to municipalities and factories.
Szaky pays a donation of 2 cents for each piece of product that is converted because he cares about the environment. Considering that Terra Cycle is currently a company worth $3.2 billion, imagine how big a donation of 2 cents per converted product is in a year.
That’s a Wrap on Non-profit Organisations
All in all, non-profit organisations play an important role in society by working to improve the lives of others and do good deeds for society. Truly, they are often at the forefront of social change and provide much-needed services to those who are most vulnerable. NPOs provide a way for individuals to pool their resources and skills to achieve common goals. They also offer employees an opportunity to use their talents for good, without being motivated by profit.
Moreover, NPOs play an essential role in democracy. They are holding powerful institutions and individuals accountable. They help to ensure that everyone has a voice in the decisions that affect their lives. To sum up, non-profit organisations are a vital part of society, as these types of organisations work to make the world a better place for all.