Social Entrepreneurship’s Amazing Effect on Inclusive Economic Growth.

What is Social Entrepreneurship? How is it different from regular entrepreneurship?

Although there is not one definition for social entrepreneurship, it can generally be classified as, “a non-profit private organization dealing with producing of goods and rendering of services, which is directly linked with their clear objective that the community should benefit from their activity. They rely on collective dynamics while involving different types of stakeholders in their management bodies” (Financier Worldwide 2020). Such organizations lead to the benefit of everyone because they benefit the economy and environment without seeking anything for themselves. To the benefit of the economy, it is a good thing that social entrepreneurship is growing in size, scope, and support. As these organizations expand, those who charge money for their services will benefit from those who do not, as they will also get to enjoy the benefits of the free services.

According to Economic Impact Catalyst, the major difference between regular entrepreneurship and social entrepreneurship is that “social entrepreneurs prioritize positive social, environmental, or cultural outcomes [compared to the traditional entrepreneurship methods]. They leverage market mechanisms to generate revenue, which is then reinvested to create lasting, measurable, and scalable social change.”

Social entrepreneurs can have a big impact on economic development, as they can create jobs, increase productivity, and contribute to the overall well-being of a community, which can create a more prosperous economy.

It also addresses the challenges that are presented by displaying “innovative solutions, social entrepreneurs generate new markets, industries, and employment opportunities, thereby fostering economic growth” (Graham 2023). Overall, social entrepreneurship creates positive impacts on society in many ways. Social entrepreneurship focuses on the market mechanisms to create lasting, measurable, and scalable social change inside of the economy.

As Financier Worldwide states, “An unprecedented number of organizations are using it as a strategy to address social problems across emerging markets. Many of these projects are improving people’s health, safeguarding the environment, and creating more economic opportunities.” In simple terms, social entrepreneurship is for the benefit of everyone. With many nonprofit organizations all around Instagram, each with its own mission and way of doing things, there are many ways that people can get jobs and become more involved in their communities. This also relates to SDG 8: A Goal for Economic and Social Justice, which states it is one of the 17 goals adopted by the UN in 2015 to end poverty and protect the planet by 2030. By creating and reinforcing social entrepreneurship, the idea of more jobs and people coming out of the poverty line promotes the idea of economic growth not

only in those of the top percentiles but also in the bottom few. Those who do not have jobs will be able to get a fresh start with these organizations, and those at the top will be able to donate and help confidently by knowing that they will be making a difference. I believe that the start of these organizations can not only help economically but can help society grow as a whole.

With adolescents armed with the knowledge of how to create nonprofits and the leadership skills of managing one’s own small organization, the future will lead to better growth in strong leaders, that can tie back into a strong economy.

As the economy grows with free services such as graphic designing, cleanups, and fundraisers for organizations that support education and justice, these social entrepreneurs are creating the opportunity for the rest of the population to live in the opportunity of economic growth.

REFERENCES

Fancier Worldwide. (2020). The impact of social entrepreneurship on Economic Growth. Financier Worldwide. https://www.financierworldwide.com/the-impact-of-social-entrepreneurship-on-economic-growth

Graham, D. (2023, August 29). The catalyst for change: The role of social entrepreneurship in economic development. Economic Impact Catalyst. https://economicimpactcatalyst.com/social-entrepreneurship/

Chloe Chang, 15, USA.