There are business models that go beyond selling a product or service, this is the case of social enterprises. A way to show that you can create a company that has a positive social impact.

First of all we must understand that they are social enterprises, in general terms they can be defined as companies that are driven by a good cause and whose objectives are aimed at social impact and the common good.

As an example of social enterprise we have the Toms slippers that were born under the premise of giving a pair of shoes to every barefoot child in the world. From this a whole solidarity movement was created, driven by the brand.

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The principles of social enterprises

This type of business model are differentiated because they have a series of principles, among which we can mention:

  • They are directed by a cause: social enterprises are characterized because their priority is to have a social impact, such as combating poverty, improving education and health or creating environmental awareness.
  • They are based on sustainability: their finances and their business models must be sustainable in the long term.
  • Inclusive and environmental policy: their values ​​reject discrimination, that is why inclusion and the environment is important for them.
  • Rejection of forced labor: This type of company takes into account that its employee has a fair treatment and works in a decent environment.
  • Enjoy the work: Both managers and employees enjoy working in companies and the cause they happily pursue.

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Why are social enterprises important?

Social enterprises have their importance in the impact they generate in the community. Most of these are innovative because they always involve a change or an advance for society.

On the other hand, the benefit of social enterprises and those that distinguish them from foundations is that they are self-sustaining, do not need donations to maintain themselves, but offer a product or a business model that generates profits constantly. Also, they are a good source of employment.

But the best thing about social companies is how their investment works, that is, an entrepreneur can make an investment in any social enterprise and that investment will have its return and will be able to continue investing this money, explains Andrés Oppenheimer in his book Crear o Morir.

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In conclusion, the creation of social enterprises is important because of their capacity to generate positive changes and jobs for the community. What benefits the economy and the sustainable development of any country.

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Social enterprises build better communities