The origins of social entrepreneurship go back several decades, but it has gained prominence in recent years with the growing recognition of social and environmental problems around the world. Many entrepreneurs have started looking for innovative and sustainable solutions to these challenges, launching initiatives and businesses that aim to generate a positive impact on the community and the environment.
A common definition of social entrepreneurship could be: Social entrepreneurship refers to the creation, implementation and management of innovative solutions to social and environmental problems in a sustainable and scalable manner.l. In other words, social entrepreneurs seek to identify and solve social problems such as poverty, access to healthcare, poor education, gender inequality, environmental degradation, among others, through business models that balance the creation of positive social impact with financial sustainability.
Social entrepreneurs often operate in sectors where the traditional market has failed to meet the needs of the most vulnerable people or in areas where governments have been unable to provide adequate solutions. They use innovative approaches, adapt existing business models or create new ones to address these challenges effectively and sustainably.
There are many successful models of social entrepreneurship around the world:
1. Grameen Bank (Bangladesh): Founded by Muhammad Yunus, Grameen Bank is one of the pioneers of microcredit. It provides loans to low-income people, especially women, to start small businesses. This model has helped millions of people out of poverty and has become an inspiration for many similar financial institutions around the world.
2. TOMS Shoes (USA): TOMS is known for its "One for One" policy - for every pair of shoes sold, the company donates a pair to a child in need. In addition to shoes, TOMS Shoes has also expanded its donations to sunglasses, drinking water and other products. TOMS has shown that it is possible to be financially successful while promoting social welfare.
3. Kiva (USA): Kiva is a crowdfunding platform that allows people to lend small amounts of money to entrepreneurs in developing countries. These loans help entrepreneurs start or expand their businesses and improve their living conditions.
4. Aravind Eye Care System (India): Founded by Dr Govindappa Venkataswamy, Aravind Eye Care System is a network of hospitals offering high-quality cataract surgery at affordable prices. They have adopted an efficient and scalable business model, which has enabled them to treat millions of patients who are blind or have low vision.
5. Ashoka (Global): Ashoka is an international organisation that identifies and supports social entrepreneurs around the world. They provide funding, mentoring and a support network to help social entrepreneurs develop and expand their innovative ideas.
These are just a few examples of social entrepreneurship that demonstrate how business can be used as a force for social and environmental good, while at the same time being financially viable and sustainable.
In Cape Verde we also have examples of social enterprises, although most of them are non-profit organisations using this funding structure to achieve the same goal.
Have you ever thought that companies could also be at the service of society?
