Social entrepreneurship and social enterprise essay sample

While business entrepreneurship is the tool to revive the economy through improving the wealth of individuals, social entrepreneurship emerged to solve pressing social problems. Learning on practices of their colleagues from business, social entrepreneurs created new forms of corporate structure in the US and UK. Among them, the community interest company, the social business, and the low-profit limited liability company. For the last decade, nonprofits changed the way they approach social problems without depending on scarce dollars from the federal budget.

Social entrepreneurship is a new concept explained mainly through social innovation and social enterprise. The latter is the school of thought and practice that studies the application of revenue earned through business practices in the social sector. Social innovation tries to establish new practices that would address social problems even better than the existing ones. The schools approach social change from different perspectives, and though only one of them focuses on business practices, both of them are relevant to social entrepreneurship.

It is common to view social entrepreneurship as the way nonprofit organizations generate their income. Nevertheless, people who call themselves social entrepreneurs do not like to be associated with the resources only. The redistribution of income and the ability to solve problems often requires much more ingenuity and talent than a mere fundraising. At this point, we shall distinguish social entrepreneurship as an innovative approach towards the problem from social enterprise that brings us practices to get the revenue. Social impact happens only when assets are invested into a promising idea that provides the effective solution to current social problems.