Even though investing in established markets is a tried and true way to do business, they are incredibly saturated, resulting in high competition and low returns. The best alternative to this kind of investment lies in emerging markets. These are markets in countries that, despite being underdeveloped, have the standards and sufficient economic growth to allow beneficial investments to be made.
In the third world, emerging markets are often tightly bound to social entrepreneurship. Through this practice, entrepreneurs fund, develop and implement solutions to social issues that positively affect the country’s native population. This article will go into this subject while providing social entrepreneurship examples.
What Is Social Entrepreneurship?
Widely considered a new mecca for economic development, social entrepreneurship has been steadily gaining attention among business people, entrepreneurs and investors from all around the globe. Acting in diverse fields such as education, health, environment and general development, social entrepreneurship strives to create social transformation while generating a healthy income.
Through innovation and modern business practices, social entrepreneurship builds reliable and stable organizations that are capable of transforming local economies and social paradigms.
Although its goal tends to be poverty alleviation, the best social entrepreneurship examples also aim at producing positive changes in the problematic social and cultural situations that all third world countries suffer from.
This is hugely important considering that the World Bank’s latest reported figure of global population living under the poverty line is a whopping 902 million people. However, thanks to initiatives such as social entrepreneurship, that number is expected to fall to 700 million in the next decade.
Besides creating and operating organizations that generate profits in a practical and sustainable manner, social entrepreneurs promote positive change and development to improve the quality of life in developing societies. Unlike traditional investment models, social entrepreneurship makes a point out of achieving systemic social change on a large scale.
It does this by using new technologies, business techniques and social strategies in order to modify outcomes in a positive way. With the objective of obtaining transformative results, it also makes a point of applying alternative approaches to otherwise traditional processes.
Without a doubt, the best social entrepreneurship examples are those that focus on social and/or ecological value creation without losing sight of the financial aspects that make them sustainable over extended periods of time. Grounded in a comprehensive set of values, social enterprises work across sectors and disciplines to achieve their ultimate objectives.
7 Examples of Social Entrepreneurship
Initially established as a reaction to unfair milk trade practices in India, this dairy cooperative soon managed to create regular sources of income for dairy farmers in the country. To do so, the organization used a three-tier model that would later be known as the “Amul Model.”
It affiliates a traditionally structured milk cooperative to both a union (at the district level) and a federation (at the state level). Through this three-tier model, Amul can produce food at an excellent value while creating more secure and fair-paying jobs for the local population.
Often, social entrepreneurs end up doing the important work that other organizations simply will not do. Such is the case with Sanergy, a sustainable sanitation company that operates in Kenya.
One of the most culturally successful social entrepreneurship examples on this list, Sanergy operates by effectively creating a network of small sanitation centers all over the country. Simultaneously to its sanitation services, Sanergy recycles and converts waste into by-products such as organic fertilizers.
Founded in 1977 by pharmacologist Dr. Ibrahim Abouleish, Sekem is an Egyptian company that focuses on medicinal, herbal and gastronomical products. With a commitment to social, personal and environmental development, Sekem uses biodynamic farms to ensure a sustainable development that benefits local communities.
In addition to providing economic development, the company has created rooted organizations that directly assist local communities. One of the most important ones is a school for young children that emphasizes on creativity and analytical thought.
4. Pro Mujer
Without a doubt, one of the best social entrepreneurship examples is Pro Mujer. Currently counting with a strong presence in five different Latin American countries, this excellent organization is oriented towards micro-finances in view of economic development for underprivileged women.
It offers financial, educational and health-related services that aim at improving women’s quality of life. Since its founding in 1990, this social enterprise has helped over two million women in Argentina, Bolivia, Mexico, Nicaragua, and Perú.
5. Jaipur Rugs
Currently operating from Atlanta, Georgia, this company assists artisans in different locations of India by connecting them directly to global markets. Named after the Indian city it started in, Jaipur Rugs administers and manages the production of high-quality floor coverings, distributing them all over the world.
Founded by the legendary NK Chaudhary back in 1978, Jaipur Rugs prides itself on offering rugs of the highest quality while empowering the artisans that produce them.
6. Ladakhi Women’s Travel Company
Created with the intention of elevating both female trekkers and travel guides, this wonderful social enterprise aims at cultural and ecological enlightenment with an emphasis on female empowerment. Cooperating with the local population, Ladakhi Women’s Travel Company provides tourists with eco-friendly educational tours, treks, and homestays.
7. Semilla Nueva
Among the best social entrepreneurship examples is Semilla Nueva, a socially-oriented startup that assists local farmers through experimentation and the innovative implementation of new agricultural technologies in Guatemala.
These technologies differ from traditional ones in their sustainability and lowered environmental impact. Additionally, Semilla Nueva strives to improve the quality of Guatemalan agricultural practices, augmenting the nutritional values and economic results of their resulting products.
Just from these social entrepreneurship examples, it can be concluded that this practice is rightfully on the rise. It serves a purpose that is twofold: helping people in developing countries while tapping into emerging economies that are capable of producing important profits. If you enjoyed this article, share it with like-minded peers!