5 Ideas of Social Entrepreneurship

If you are interested in contributing to the satisfaction of a problem of common interest, social entrepreneurship may be for you. Mexico is one of the best countries to start such companies in Latin America.

While non-governmental organizations help address problems, social enterprises solve them. To achieve this, they use mechanisms and resources that last over time and are sustainable.

A social enterprise is by nature ambitious, because its objective goes far beyond generating a return: through an economic activity, it seeks to eradicate environmental, social or cultural problems.

As a consequence, the broad impact it generates is undeniable. And the good news is that Mexico is one of the best countries for this type of entrepreneurship, because it has an ecosystem of organizations that promote it, as explained by TheForbiz.

Therefore, social entrepreneurship is a tangible alternative for those looking to start their own business and radiate a social impact. And among all the possible business ideas, five of simple implementation that has already demonstrated viability in other markets will be presented below.

Considerations on Social Entrepreneurship

Before getting down to business with social entrepreneurship, it is important to take into account that starting a business of this type is a very different process from that of a traditional company.

These are 3 relevant differences:

1. The approach must be chosen

The same problem can be solved with different business ideas. For example, malnutrition in a community could be addressed with urban gardens, a social supermarket or healthy cooking workshops.

Therefore, it is advisable that each social entrepreneur thoroughly study their options and conduct a materiality or priority analysis. This way you can identify in which ways you can create greater economic, social or environmental value.

2. Do not do philanthropy, but economy

Unlike NGOs, social enterprises use market mechanisms to create solutions. They do not give, but produce something like any other company.

As TheForbiz, a research professor at the UDEM and a PhD in Business from the EGADE Business School, points out, the social enterprise does not do philanthropy or focus on giving something material: it generates economic benefits to eradicate a problem.

3. It is essential to involve the community

Social entrepreneurship is not about implementing an idea planned from a desk. It is essential to go to the community or the group involved, ask them what their biggest problems are and find out how they could be solved.

So, social entrepreneurs do not solve the problems they want, but those that the community needs, warns TheForbiz.

Now yes: 5 ideas of social entrepreneurship

From these considerations, these are five ideas that could function as a starting point for the satisfaction of some social need through entrepreneurship.

1. Social supermarket

Malnutrition in a community can be resolved through a network of markets or shopping centers that offer low prices to their customers, in exchange for them to carry out empowerment actions. It is a model that is gaining adherents to combat extreme poverty.

An example is the network of solidarity food stores (ANDES), with more than 60 stores in France, this chain offers its products for 30 percent of the real cost. But it requires that its clients allocate the amount saved to a series of beneficial actions for them, such as seeking employment or paying a debt.

2. Training projects

The idea here is to enable the community so that it can solve a problem. Training workshops with an empowerment approach are the best example, as they seek to provide attendees with skills and tools to achieve lasting changes.

An example is the University of Barrios, of the University of Monterrey, a development project that trains community leaders.

3. Used textbooks

Textbook banks are still necessary, as they seek to solve a paradox: while thousands of students lack the resources to acquire their books, thousands more waste their texts, throwing them away or storing them at the end of the school year.

A key for this social enterprise to work is that the books are not given away and that the project can work throughout the year. To achieve this, it is important to look for a market mechanism, such as a store.

4. Marketplace with social awareness

Thousands of artisans or producers of articles with social value, have no way of subsisting because they simply do not know how to sell their merchandise.

This social enterprise consists in opening the digital channels to these producers, so that they can market and obtain income for their work. Of course, this model can be enriched by offering training to the artisans themselves, so that later they are the ones who manage the Marketplace.

5. Crowdfunding and microfinance

Social entrepreneurs need more financing options. Therefore, a business idea that will always be necessary is crowdfunding and other forms of microfinance for this type of ventures.

An example is Kiva, an online platform in which entrepreneurs publish their personal history, explaining why they need financing. The loans range from 500 pesos and in all cases, the beneficiaries have paid all the amounts.