Social entrepreneurship is committed to solving social and ecological problems. Read here to find out what is behind it, what difficulties arise and what examples there are.
The principle of social entrepreneurship is not a new phenomenon. In 1983, Mohammed Yunus founded a bank in Bangladesh that made it possible for people with little financial security to take out loans. Since then, Yunus has been regarded as a pioneer in social entrepreneurship. In 2006, he was awarded the Nobel Peace Prize for his company. That makes the idea over 40 years old. Since then it got a lot of acknowledgment.
In the following sections, you can find out what constitutes social entrepreneurship, what it is all about, and if you can find it in an online casino. Where can you find such social entrepreneurship?
Social entrepreneurship: no uniform definition
If you enter the term social entrepreneurship into a search engine, you will get countless hits – including both practice-oriented and academic articles. However, although the term is on everyone’s lips, there is still no generally accepted definition. Instead, various definitions are circulating, which vary in scope and sometimes focus on different issues.
However, profit orientation always takes a back seat in social entrepreneurship. Instead, according to the Gabler Business Dictionary, social entrepreneurs strive for “entrepreneurial thinking and action for the benefit of society and to solve or improve social ills”. The success of such companies is measured in terms of social benefit, not financial success. Social entrepreneurship aims to solve local, national, and global social and environmental problems.
Social Entrepreneurship: Legal Aspects
Various legal forms are suitable for social enterprises. In principle, setting up a social enterprise is not too different from setting up a profit-oriented company. No matter what type of company is to be founded, entrepreneurs should always think about which legal form is most suitable beforehand.
There are several options for setting up a social enterprise:
- e. V.: Registered associations do not aim to make a profit but to fulfil a social mission. At least seven members must form an association, and a board of directors must also be formed.
- gGmbH, gUG and gAG: These legal forms also do not aim to make a profit but rather to pursue a social mission. One or more persons can find them. Liability is limited. The business purpose must be charitable, benevolent or ecclesiastical. Profits are not distributed but reinvested.
- UG, GmbH and AG: Entrepreneurial, limited liability, and stock corporations pursue a social or commercial mission. They can also be found alone or as a team. Liability is limited.
Tip: The non-profit legal forms gUG, gGmbH and gAG have advantages and disadvantages. Advantages include, for example, tax benefits and the option to collect donations. However, the tax office must recognize the company’s non-profit status every three years.
Examples Of Social Entrepreneurship
To give you a better idea of the concept of social entrepreneurship, we would like to introduce you to five companies that have put it into practice:
- Serlo: With Serlo, Simon Köhl founded a free learning platform for pupils, which gives them access to free learning material. Material is available for various subjects. Such as mathematics, biology, chemistry and computer science. So in many different areas.
- Foodloop: The Foodloop app by Christoph Müller-Dechent informs consumers about reduced food that is nearing the end of its best-before date and will soon be thrown away by the supermarket. The app can save food from the garbage can and reduce food waste.
- Ecosia: The green search engine Ecosia plants trees with its revenue. You can find all the information about Ecosia here: Ecosia: How does the sustainable Google alternative work?
- Einhorn: Waldemar Zeiler and his company, Einhorn, offer vegan and sustainable condoms and menstrual products. The company invests 50% of its profits in social and sustainable projects.
- Viva con agua: Viva con agua is a non-profit organization that aims to improve the water supply in developing countries. To this end, it uses the income from two companies the organization has founded – the sale of mineral water under the Viva con agua brand and the rental of ecological sanitary facilities (e.g. for festivals) under the Goldeimer label.