Corporate Governance

Social Entrepreneurship and its Significance in building a strong economy

Social Entrepreneurship

Social Entrepreneurship -A Social entrepreneur is someone who has the potential to pursue a noble application in their business that provides a positive impact on society. While an entrepreneur focuses to earn more profit in the business, social entrepreneur always tries to focus on impact. For example, we may consider Florence Nightingale, who created the first nursing school in the year 1860 that reformed the health care industry and created history. She reformed the hospitals of that time and soon considered herself to be a pioneer of nursing which made her a social entrepreneur. A Social entrepreneur is always ready to take risks and ready to bring a positive transformation in the society by effectively solving the problems.

Social Entrepreneurship

A successful social entrepreneur always focuses on the ethical practices like impact investing, conscious consumerism, Corporate Social Responsibility (CSR) that made them different from an entrepreneur.

The number of social entrepreneurs is increasingly now a days that is helpful for both social and economic development such as:

Firstly, it focuses on the job development crisis, where estimated youth unemployment rate in India which was at 23.22 %. Eventually they have transformed the situation and now 81% of people are employed in the social entrepreneurship sector (part-time/full-time). Social Entrepreneurship sector gives job opportunities to that segment of the society where mostly suffer from employment disadvantage like long-term unemployed, disabled, homeless, gender discriminated women.

Secondly, social enterprises always try to develop and bring innovation in society by introducing new policies, products, and services. Biggest societal problems like illiteracy, mental ill health, HIV, crime, and drug abuse have transformed astoundingly. The introduction of health policy for sex workers, home based care models for AIDS patients, etc. have been a drastic development by these social enterprises.

Thirdly, they empower individuals and communities to provide tools, knowledge, and resources necessary to create sustainable change in society. They address systematic inequalities and create opportunities for marginalized communities by promoting social change and holistic approaches to create a long-lasting equitable society.

Fourthly, they focus on addressing poverty by uplifting the marginalized community of society. Their initiatives to provide access to financial services, education, healthcare, and other essential resources lead to poverty reduction. They try to meet the gap created between various segments of society based on caste, creed, and color. They empower them with skill development and enhance their outcome that helps in creating sustainable livelihoods and breaking the cycle of poverty. For Example: Mr. Ratan Tata, the former Chairman of TATA Sons, has made significant contributions as a social entrepreneur. Ratan Tata launched the Tata Swach, in December 2009 at a price point of Rs 999/- Indian rupees, a low-cost water purifier, to address the issue of clean drinking water in rural areas. This innovative product uses advanced technology to provide safe drinking water at an affordable price, helping to reduce waterborne diseases and improve overall health.

Another remarkable Indian social entrepreneur is Arunachalam Muruganantham, who is widely known for his invention of a low-cost sanitary pad-making machine, which has revolutionized menstrual hygiene in rural India. Muruganantham’s machine has empowered women by providing them with a means to produce affordable and hygienic sanitary pads, thereby improving their health and dignity. His efforts have also created employment opportunities for women in rural areas and challenged the social stigma surrounding menstruation. Muruganantham’s work has gained international recognition and has inspired many others to address social issues through entrepreneurship.

These social entrepreneurs have not only achieved remarkable success in their respective fields but have also made significant contributions to society by addressing pressing social issues and creating sustainable solutions. Overall, social entrepreneurs are change-makers who combine entrepreneurship with a strong social mission. They play a vital role in society by creating sustainable solutions, empowering communities, and advocating for systemic change.