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.

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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.

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