Here is Why Social Entrepreneurs are Silent Revolutionaries Profit generation is not the sole objective of Social entrepreneurs, let's explore the subject a little more

By Dr. Gayathri Vasudevan

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Shutterstock.com

Often, large-scale social problems such as poverty, energy, waste, water, education, health and jobs are the responsibility of the State. However, these problems are complex in nature and need the innovativeness and agility that an enterprise can bring to the table for it to be solved. State Institutions lack typical characteristics that enterprises have – greater focus on outcomes and ability to explore various models to solve complex problems. That is where social entrepreneurs come in. A social enterprise is a business first but has an equal interest in the social impact of their businesses as opposed to only generating revenues and profits or to only solving a social problem. However, this does not mean that a social enterprise is a not-for-profit. The social entrepreneur's business model is sustained through profit generation, like any other business. The difference is that profit generation is not the sole objective of these businesses, it's the overall social impact created by the products and services of the businesses.

Social entrepreneurs and innovation

Today, Asia is home to a large number of social entrepreneurs. These social enterprises often have innovative solutions to the age-old social problems, using new technology or engaging the community in innovative and exciting new ways. Because of this, social entrepreneurs are often seen to be silent revolutionaries- the harbingers of change. Very often their objective is to change people i.e. customers behaviour encouraging increased societal participation, especially from the hitherto economically marginalized communities. Let's take an example - Ensuring employment in villages through eco-tourism, making handlooms and handicrafts popular. The main objective of the enterprises in this sector is to generate jobs locally and stem migration while preserving local heritage. The way to do this is to draw the average tourist to places which they would hitherto not considered accessible or fashionable. For this the enterprise would need to compete with hotels and the attractions that popular tourist destinations provide. The enterprise will fail if it does not adhere to the fundamental principles of business – average occupancy, regular footfalls and focus on operating margins.

Difference between a traditional and social enterprise

It has been observed that social enterprises are also inherently different from other traditional business in the ways in which they attract talent. While the founders often have a highly ethical and moral worldview, this genre of enterprises are also seen as very practical and down to earth. Idealism is often ineffective when dealing with social issues that need eye for detail and process innovation. In addition to this, employees of such social enterprises must also be exceedingly goal oriented and must possess clear metrics in order to execute the objectives and goals defined by the social enterprises. So they often attract youth or mid-career seasoned professionals looking to create a comfortable and stable career.

Is it a growing trend

The last question that needs to be addressed is – are the number of social entrepreneurs growing in the world? In my opinion, in order for social entrepreneurship to truly grow, investors and professionals require to see a lot more easily replicable models that can be implemented across various geographies and industries. If there are larger numbers of replicable models, more people would be motivated to become social entrepreneurs themselves, leading to large-scale, effective solutions against the social problems that have been plaguing our collective human society for centuries now.

I would like to end by cautioning that all problems cannot be solved by social enterprises. Different types Capital – philanthropic and government expenditure are the right forms of capitals for many social problems. At the same time, we also need to recognize that different types of institutions too need to coexist to solve social problems. Social enterprises and social entrepreneurs are also a group that need to be counted !!

Dr. Gayathri Vasudevan

Co-Founder & CEO, LabourNet Services India Pvt Ltd.

LabourNet is a Social Enterprise that enables livelihoods by focusing on ‘Real income Increase’ for informal sector workers. We provide ‘Vocational Education & Training Services’ and ‘Decent Work’ opportunities to the above segment. LabourNet is a platform which facilitates financial inclusion and social security measures to workers.

Marketing

The One Mistake Is Putting Your Brand Reputation at Risk — and Most Startups Still Make It

Many businesses pour resources into branding and marketing but overlook PR — yet it's PR that builds the trust, credibility, and reputation that turn attention into lasting revenue in a crowded market.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

What's Open on Easter Sunday? Costco and Target Will Close, But One Major Retailer Will Be Open. Here's What To Know.

The stock market was closed for Good Friday on April 18. Here's what's closed for Easter Sunday, April 20.

Side Hustle

This Couple Started a Side Hustle to Improve a 'Terribly Made' Bathroom Essential. Now the Business Earns More Than $3 Million a Year.

Michael Fine and Lisa Schulner-Fine launched lifestyle brand Quiet Town in 2016 and have been growing it ever since.

Branding

Creating a Brand: How To Build a Brand From Scratch

Every business needs good branding to succeed. Discover the basics and key tips to building a successful brand in this detailed guide.

News and Trends

Kolkata-Based Lab-Grown Diamond Brand Jewelbox Secures USD 3.2 Mn

The startup will primarily use the funds to expand its retail footprint, growing from eight stores to 30 locations by the end of this year.