Difference between a Social entrepreneur and Business entrepreneur

Having knowing what is a social enterprise, perhaps some of us in BZSE will feel more inspired to want to set up a social enterprise, to do their part for the community. But what if our idea of a social enterprise isn't what a social entrepreneur is? Exploring the difference between a social entrepreneur and a business entrepreneur can enlighten us and gives us a better understand between the two.

These are really basic, that we should know by now. But yet, many people are confused with the terms, and some even abused it. Some people make use of the term "social enterprise" to gain the trust and even sympathy of the public, using government's funding, and other benefits. 

A social entrepreneur, like a normal business entrepreneur, values profit. But unlike a business entrepreneur whose aim is to generate profits and is accountable for the shareholder, a social entrepreneur aim is to create a social benefit for the community or even a transformation in the community that may lack in a few things, such as resources or aids. 

Social entrepreneur would usually want their business to be non-profit. Don't be mistaken. This merely means that the business owner will not be taking back any profit that the business earned, nor will it be given to shareholders (most social enterprise do not issue shares). The profits will either go to improvement of the business or to help the community. For businesses who wishes to move towards the for-profit route, they can use the profits and plough it towards a cause that they believe in. An example would be NIKA water, where they sell bottled water. They are a for-profit company, but 100% of their profit goes towards supporting clean water projects in Uganda, Kenya, Sri Lanka and Nicaragua.

With a strong beliefs and passion to make a change, social entrepreneur are indeed hard to come by. As mentioned in the previous post, some people abuse the name "social enterprise" and even bring a bad name to it. Although I may not have an answer, I do think it's an issue to address. A possible method is to do annual check, to ensure that the fund being used is not just for the improvement of the business, but rather, to help the community. All these are for the greater good of the community. A small criteria can also help a long way, such as the beneficiaries have to make up 30% of the company's employees, or that the profit plough back has to be at least 30%.

These can, hopefully, lessen the number of bogus social enterprises in Singapore or even push aspiring social entrepreneur to think of a better way to help the community.

Article: Difference Between Social Entrepreneurs & Business Entrepreneurs - Daria Kelly Uhlig