Social entrepreneurship is a form of entrepreneurship characterized by three essential ingredients: an entrepreneurial idea with a business model contained, an organizational structure of a company based on democratic principles, and an operation based on the principles of non-profit. Social entrepreneurship is a form of entrepreneurship characterized by three essential ingredients:

The entrepreneurial idea , which is the basis of each enterprise, solves an acute social problem and contains a business model that ensures financial sustainability of the company and profit.

The organizational structure of the company is based on democratic principles and equality of all employees . The company operates according to the principles of non -profits – profits invest in their own business.

At first glance, perhaps the definition is clear and understandable. Yet I have the feeling that “in practice” many people do not understand this definition, so let me also write about what social entrepreneurship is not. There is no solution that has fallen from Mars and has led to such changes that we will no longer need to work and we will live only from the social.

Social enterprises are not a group of volunteers who work for free. Social enterprises are not companies that receive permanent subsidies from the state. Social entrepreneurship is not a marketing “twisted” wing, which should be written on the website.

In essence, it involves the use of entrepreneurial skills, knowledge and tools in solving social problems. An individual moves a social enterprise because something is disturbing in society. Benefits of the community community are set before their own personal gain. She sees a problem and tries to find a solution that carries a business model that allows for sustainability and development.

Social entrepreneurship creates high added value in a financial sense, but it has an enormous impact on the community. Typically, social entrepreneurs are addressing areas that are not interesting for classical women entrepreneurs because they do not bring high (financial) returns. Areas that could be solved by the state, but they do not know to or can not do it. They often solve the accumulation of a variety of waste and materials, fight unemployment, educate, promote a healthy lifestyle, increase food self-sufficiency, create accessible tourism products, etc.

Social enterprises do not generally generate high added value in the financial sense, but they achieve a huge impact (social capital) on the community in which they operate. I say on a number of occasions that social enterprises make people happier and encounter confusion with their counterparts. Yet, in the situation in which we currently live, it is worth asking whether we were born into this world, to be rich, or to be happy?

Social entrepreneurship is therefore not a romantic, nor a parking lot for some “faltered” female entrepreneurs who would work out of despair in half for free. It is a polygon where, due to aggravated circumstances, only the most capable ones can be trained, which the classical company would easily manage, but most of them mean that they help the environment in which they operate – they save the world.

In any case, it should be emphasized that the biggest challenges for social entrepreneurship are also the biggest advantages. Because social enterprises solve community problems, they come from it and grow together with people from the very beginning. This is the best advertising for the social enterprise.

When customers find out that you are really working for them to help them make you honest to invest your profits back to the environment where they live, they begin to truly respect and reward you. Once it’s clear to them that being a social enterprise is not just an inscription on the website but a philosophy of the company, they become your most loyal fans, which no classic entrepreneur will overcome with a more favorable offer. At one point, the customers realize that more than they financially help the social enterprise, more they help themselves.

Source: Mladi Podjetnik,Tomaz Stritar, 24.07.2017