10 reasons why social entrepreneurs matter
Post on 31-Mar-2016
212 Views
Preview:
DESCRIPTION
TRANSCRIPT
What is social entrepreneurship and why is it important? In a global business world replete with
economically oriented announcements, social
entrepreneurs bring another perspective to
social trends, highlighting key factors that
promote social welfare or launching initiatives
that improve living conditions in specific areas.
In essence, social entrepreneurs improve people’s
lives by spearheading essential projects that
initially don’t have a profit motive – even if,
later, these initiatives bear economic fruit.
Social entrepreneurs play a key role in today’s
society, and here’s why:
1. They Draw Attention to a Pressing Problem
Social initiators – another term for social
entrepreneurs – improve the lives of citizens
by highlighting pressing problems that might
plague a neighborhood, country or group of
people. A case in point would be Rafael Alvarez,
founder of Genesys Works – a Houston-based
organization that teaches low-income high
school juniors basic IT skills they can later use to
land jobs post-graduation.
2. They Create Economic Value
By creating jobs, producing income and
nurturing an entire network of business
partners – suppliers, shipping companies,
lenders, utilities companies – social
entrepreneurs contribute to the economic
Emad Rahim
Reasons why
renewal of the region or country in which they
live and operate. One should also factor in the
multiplier effect, where employees of socially
oriented organizations have the opportunity to
spend their income and grow the local economy.
3. They act as Catalysts for Social Change
Muhammad Yunus, the founder of Bengladesh-
based Grameen Bank, epitomizes the ability of
social entrepreneurs to spearhead positive changes
not only locally, but also globally. The Grameen
Bank has received plaudits for promoting
microfinance and microcredit, lifting millions
of underprivileged customers out of poverty by
funding local projects at favorable conditions.
4. They Generate Social Value“Social value” is the general improvement you
see in a society – typically across the board. We
already mentioned the direct economic impact
social entrepreneurship has on people. Other
advantageous influences include sustainable
environmental practices, high literacy for the
underprivileged, a free flow of information
among citizens, reduced health hazards, and
increased innovation from educated and
healthy citizens.
5. They Inspire Others
Social initiators inspire others to do good, and
sometimes, great things – simple as that. Their
ability to espouse great ideas and bring others
on-board serves as a powerful catalyst in the
creation of a virtuous circle. Take Bill Gates, for
example, who after several years in the business
world decided to embark upon a global campaign
for better literacy, access to basic healthcare, and
increased innovation in the key sectors of health,
the environment, education and democracy.
Besides the most prominent cases, there are
lesser-known, but also highly effective, social
entrepreneurs who bring about change every day
in the communities where they live and work.
Examples range from New York-based leadership
entrepreneur Jean Desravines to William Foote
and Sara Horowitz, respectively founders of Root
Capital (a lender to farmers in poor countries), and
the Freelancers Union, which provides reasonably
priced health insurance to the self-employed.
6. They can Influence Government Policy
All around the world, movements inspired or
spearheaded by social initiators have gathered
strong popular support, which in turn has
helped the political willpower needed to make
fundamental changes. Whether it is in public
health, environmental awareness, occupational
safety or education, socially oriented initiatives
have transformed the way we live, work and vote
on the fundamental issues of the day. The example
of Benjamin Rattray – the founder and CEO of the
online petition website Change.org – is enriching
in the sense that it shows how a simple platform
can serve as a powerful lever for social change and
influence at the federal, state and local levels.
Social Entrepreneurs 10
Matter
CEO MAGAZINE26
SOCIAL ENTREPRENEURS
7. They Create Unique Opportunities
Social entrepreneurs, by their very actions and
initiatives, can provide unique opportunities for
millions of individuals around the world. For
example, Sam Goldman and Ned Tozun created
D.light Design to provide portable solar lamps
to the world’s 1.5 billion people who don’t have
access to electricity. In lieu of dangerous and dirty
kerosene lamps, D.light provides users with solar
lamps that are clean and can deliver up to 12 hours
of light, thereby lifting millions out of poverty by
facilitating study, access to the Internet and TV,
and the launching and running of businesses.
8. They Reshape Corporate Social Responsibility
Corporate social responsibility (CSR) has gained
momentum in the business world recently, but
some social entrepreneurs want to make sure
companies don’t use CSR simply as a public-
relations ploy. The concern for real and sustainable
CSR has prompted Jay Coen Gilbert, Bart
Koulahan and Andrew Kassoy to launch B Lab.
The organization certifies businesses complying
with a variety of social and environmental criteria,
emphasizing things like financial transparency,
employee ownership and Fair Trade certification.
9. They can Change People’s Behaviors
In their quest for a better world, social initiators
often come up with simple and easy-to-implement
solutions that change or improve people’s
behaviors. Daniel Yates, for example, has created
Opower to help people reduce their energy
consumption. The organization’s system allows
customers to easily compare their electricity
and gas consumption with their neighbors, then
provides energy saving advice on everything from
LED lighting to equipment monitoring.
10. They Save Lives
Perhaps the most noteworthy impact of social
entrepreneurs is their ability to save lives...
literally. Not the lives of seniors, young adults,
teenagers – you name it – but new lives in
difficult and impoverished environments. Jane
Chen’s Embrace Global initiative has received
accolades for creating the Thermpod, a device
that keeps low-birth-weight babies warm even
when there is a power outage in hospitals and
clinics. Looking like a miniature sleeping bag, the
Thermpod provides a lifesaving four to six hours
of heat on a single 30-minute charge.
RecapSocial entrepreneurs matter for a host of
reasons, from the mundane to the significant.
They save lives, transform local economies and
influence government policy. They usually
venture into industries where traditional
capitalism doesn’t want to go, reshaping the
way we live, think, consume and interact at a
national and global level.
Biography
Ø Emad Rahim is an award – winning entrepreneur, educator, author and community leader. He currently serves as the Assistant Dean of Business at Strayer University and Professor at the Jack Welch Management Institute. He is the appointed Endowed Entrepreneur-in-Residence for Oklahoma State University and Visiting Scholar at Rutgers University. You can follow him on Twitter @DrEmadRahim.
Social entrepreneurs, by their very actions and initiatives, can provide unique opportunities for millions of individuals around the world.
SOCIAL ENTREPRENEURS
27CEO MAGAZINE
SOCIAL ENTREPRENEURS
top related