{"id":808,"date":"2019-01-21T20:27:22","date_gmt":"2019-01-21T16:27:22","guid":{"rendered":"http:\/\/cipr.am\/?p=808"},"modified":"2025-05-13T19:22:02","modified_gmt":"2025-05-13T15:22:02","slug":"4-must-knows-about-social-entrepreneurship","status":"publish","type":"post","link":"https:\/\/cipr.am\/hy\/blog\/4-must-knows-about-social-entrepreneurship\/","title":{"rendered":"Social Entrepreneurship: 4 Must-Knows about SEs"},"content":{"rendered":"

What is social entrepreneurship? <\/span><\/p>\n

Read this article, if you have heard about social entrepreneurship and want to understand the concept behind. Look through it, if you wonder what is the difference of social entrepreneurship with doing business?<\/span><\/p>\n

\u00a01. Social entrepreneurship vs. business<\/h2>\n

Social entrepreneurship is a kind of entrepreneurship\/business that aims at solving social problems through entrepreneurial practices – creating a competitive product, selling it in market, generating revenues, etc. Business activities and existence in the market is the driving force of the company. It ensures its financial standing, thus contributing to the solution of social problems. <\/span><\/p>\n

The primary purpose of this kind of businesses is the solution to a social problem. Profit comes second.<\/span><\/strong><\/p>\n

\"Traits<\/a><\/h2>\n

2. How businesses do it better?<\/span><\/h2>\n

But how business methods have appeared to solve social problems? <\/span><\/p>\n

There are numerous benevolent organizations, charities that have very long tackle social inequalities and poverty. It is also government function to deal with these problems. How businesses do it better? Benevolent organizations have reached to an understanding on poverty reduction on long run, which can simply be put this way:\u00a0<\/span>\u201cgive<\/span><\/a>\u00a0a<\/span><\/a>\u00a0man<\/span><\/a>\u00a0a<\/span><\/a>\u00a0fish<\/span><\/a>\u00a0,<\/span><\/a>\u00a0you<\/span><\/a>\u00a0feed<\/span><\/a>\u00a0him<\/span><\/a>\u00a0for<\/span><\/a>\u00a0a<\/span><\/a>\u00a0day<\/span><\/a>;\u00a0teach<\/span><\/a>\u00a0a<\/span><\/a>\u00a0man<\/span><\/a>\u00a0to<\/span><\/a>\u00a0fish<\/span><\/a>\u00a0,<\/span><\/a>\u00a0you<\/span><\/a>\u00a0feed<\/span><\/a>\u00a0him<\/span><\/a>\u00a0for<\/span><\/a>\u00a0a<\/span><\/a>\u00a0lifetime<\/span><\/a>\u201d. <\/span><\/p>\n

Business practices and competition are the driving force that will make people work hard and build their well-being by themselves. <\/span><\/p>\n

3. Types of Social Enterprises (SE)<\/span><\/h2>\n

Social entrepreneurship in Armenia is very often associated with non-profit and non-governmental organizations (NGOs) in the way they earn money for their mission. However, there are numerous kinds of organizations coming from different spheres, that can be considered social enterprises, from for-profits to non-profits. <\/span><\/p>\n

Non-profits have long tackling social problems, and motivation of doing business comes from the willingness of those organizations no more be reliant on external funding and focus on their mission. <\/span><\/p>\n

\"types<\/p>\n

There are also different legal types of SEs that many countries adopt by law and define their work. These legal types are adopted and put into action based on country specifics, and consider several factors, such as traditions, society structure, types of successful unions, societal needs and problems, etc.<\/span><\/p>\n

There is no\u00a0<\/span>adopted concept or legal form of\u00a0<\/span>SE in Armenia. Companies in our country, who distinguish themselves as social enterprises, operate both as business entities (mainly LLCs) and as foundations and NGOs. <\/span><\/p>\n

However, there is no evidence that legal forms limit SE efforts and service to public good.<\/span><\/p>\n

4. How to determine social enterprises? <\/span><\/h2>\n

Are there specific characteristics? Yes, there are. However, opinions vary among scientists and entrepreneurs.\u00a0 \u00a0<\/span><\/span><\/p>\n

Below, see several factors, that I consider very important to be called a social enterprise. My thoughts come from extensive research of academic disputes and analysis of exemplary social enterprises.<\/span><\/p>\n