These days, entrepreneurs are not simply in it for the money. More and more people are investing in different business ventures with two main goals. One is to gain enough revenue to grow a successful brand. The other is to fulfill a corporate social responsibility. But why be a social entrepreneur when one can simply start a charity organization?
Social Entrepreneurship embraces innovative ideas for a social cause. It uses a multiple-purpose model that aims to sustain business operations while achieving the company’s core mission. Entrepreneurs grab business opportunities while keeping in mind the world’s shortcomings.
Why Consumers Are Supportive of Social Entrepreneurship
Consumers these days are more involved in social issues. Everyone has at least one social issue they are passionate about. But since not everyone has the resources to fight for what they believe in, they choose to patronize brands with the same beliefs.
They also want more businesses to be more responsible companies. This is one reason why sustainability is such a big issue in today’s market. Consumers want businesses to be eco-conscious and actually take part in advocating for the environment.
It is due to this reason why businesses are leveraging business opportunities while solving social issues. There is already a market full of consumers expecting businesses that will just solve their individual problems. They also want businesses to be built with a purpose other than making money.
Now, more for-profit organizations are taking the lead by changing their business models into one that is more socially responsible. They do this not only to gain public sympathy and additional customers. More entrepreneurs are embracing philanthropy as a way of giving back to the community.
With the help of innovation, companies are now able to maintain a sustainable and consistent supply chain while meeting consumer demands. Their efforts are not meant merely for positive public relations. They are actually using their platform to support good causes.
Similarities of Successful Social Entrepreneurs
Effective social entrepreneurs share common characteristics which help drive their businesses to success like the following.
They Make Smart Decisions
Ever wonder why the mega-rich still take a loan for their homes? More billionaires are now mortgage borrowers even if they can afford to pay their houses in case. Here’s why.
When you buy a house with hard cash, you can negotiate a better price and not have to worry about monthly mortgage payments. But with a mortgage, you get to finance the home purchase for a cheap cost. This allows you to fund other endeavors which can help generate more income.
The same goes for running a business for a cause. You should avoid draining your bank account just to buy real estate for your business or to make brand new equipment purchases. You need to weigh in the advantages and disadvantages of cash financing with your other available financing options.
Getting a business loan makes sense so you can finally build business credit. You get to reinvest your profit in your business and still be able to finance your business needs. Successful social entrepreneurs make sure they make smart decisions both in their personal lives and in their business.
They Know How to Effectively Communicate Their Brand Mission
Social entrepreneurs know that a business won’t sell just because there is a market for it. They know that the key to business success is to sell unconventional ideas while advertising positive social and environmental change. They make sure they communicate their mission to consumers to entice them to support their brand.
Entrepreneurs make sure consumers know what change they wish to make in every marketing material they create. They know how emotions play a huge role in every individual’s buying decision. Take Tommy Hilfiger’s “Moving Forward Together” campaign.
We all know the company for its socially-driven campaigns. But what makes them stand out during the pandemic is their timely and conscious effort to support sustainable fashion. The company was successful in advertising its brand while using its sustainability mission to promote change.
They Are Community-Driven
Social entrepreneurs believe that their brand’s potential for growth depends on their network. They choose to work with like-minded people in reaching their goals. It shows on the partnerships they create, the offers they market, and the influencers they choose to work with.
They know that their brand image matters. This is why they chose not just to blindly grow their network. They start a community-oriented mindset and continue to surround themselves with a supportive network.
Just because you chose to be a social entrepreneur does not necessarily mean your business will already be successful. You are still going to run a business and face numerous challenges. But if you keep in mind these three habits of highly successful social entrepreneurs, you are already boosting your chances of success.