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Social Enterprise, Trading at the same time Improving the Social Environment?

By pauline Nov 13, 2021

Most of you must be familiar with the term entrepreneur. Yes, this field has been discussed for a long time as one of the important professions that can make a person independent and at the same time spur the financial condition of society in general. The reason is because entrepreneurs are able to create new jobs opening the way for many people to be able to earn income.

However, did you know that there is one type of entrepreneur who does not only carry out trading activities, but also tries to provide good benefits to the social environment? The term is known as social enterprise and has actually been echoed by many people. Including, influencers and other prominent people.

We understand entrepreneurship as a cool work activity because it is able to meet needs with its own abilities, without having to depend on other people’s salaries. Usually, an entrepreneur has a goal to develop a business brand so that it is known by many people and ends up providing as much profit as possible.

Well, by running a social enterprise, you don’t just trade for profit to meet all your needs. But it also has a goal to improve the welfare of social life in the surrounding environment. Seems much cooler and nobler than just being an ordinary businessman, right?

Actually, this social enterprise-like activity has often been carried out by a number of non-profit organizations. The influence of these organizations may be the trigger for many young entrepreneurs to set up businesses, as well as social organizations.

So, what is the practice of this social enterprise? Instead of being confused and asking questions, let’s first look at the discussion about what a social enterprise is and some companies that have successfully pursued the following business field.

What is Social Enterprise?

Social enterprise or social enterprise is a business idea by combining the basic concept of seeking profit, and human obligation to help each other and be useful for the social environment. By carrying out this concept, a company will maximize revenue, while carrying out the benefits that can be given to the community or the surrounding environment.

In other words, the basic principle of social enterprise is to generate profits through doing business and turning it around to fund various social programs that have been planned. So, the sales proceeds from doing business don’t just go to the owner’s account and are enjoyed by one party only. The existence of the company or a business will be more felt for other people in general.

The History of the Creation of the Social Enterprise Concept

The concept of social enterprise business was originally developed in England around the 1970s. This business method turned out to have a response back to the Traditional Commercial Enterprise, a business model that is only concerned with the profits of the owners of a company’s capital.

The position of this social enterprise is neutral, not leaning towards a corporation or social activity like a non-profit organization. The perpetrators of this business concept seek a balance between making a profit and financing a social goal. For example, providing shelter for families with low incomes and conducting job training to facilitate potential employment.

The funds used to carry out various social activities of course come from the profits from the products sold. Because it is increasingly popular and loved, this business concept is starting to be understood by people from abroad and continues to grow more rapidly until this moment.

Several Fields That Can Be Selected As The Foundation for Building a Social Enterprise

There are many social problems that can be solved by establishing a social enterprise. Basically, anything that blocks your mind related to environment or social can be the background for establishing a social enterprise. However, in general, there are 4 things that are often the triggers and drivers for establishing a social enterprise, including:

Creating Renewable and Affordable Energy

Even though it has entered the digital era, the current digital economy still relies on fossil energy. Coupled with greenhouse emissions, climate change is a problem that is difficult to avoid. Therefore, efforts to support the creation of renewable and more affordable energy sources are being carried out.

Encouraging Job Creation and Economic Growth

Another area that is the main reason for the establishment of a social enterprise is to create decent jobs and economic growth. So, by becoming an entrepreneur and also creating job opportunities, the problem of unemployment, forced labor, to human trafficking and slavery can be sought to eliminate.

Responsible Consumption and Production

The world trend towards conscious shopping or understanding that the products purchased need to be produced in a good way have also reached this business concept. In order for sustainable economic growth to be achieved, it is necessary to change the way of production.

An example of this problem is that agricultural irrigation systems consume about 70 percent of human water absorption. Excessive production and consumerism also make many agricultural products unused to rot.

Not to mention the wasted products from the food industry. Like, restaurants and supermarkets. Now, through social enterprise, you can support production and consumption more responsibly.

Real Actions to Prevent Climate Change

Humanity is faced with the greatest risk of climate change. The impact also spreads very quickly and widely as carbon emissions that have soared in the last decade have contributed to increasing global temperatures and melting sea ice.

Because of these problems, every business is expected to be able to contribute in reducing the effects of climate change. In addition, attention and support are needed so that this problem can be resolved more effectively.

By pauline

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