Social businesses are a specific kind of enterprises that social cause is interwoven with profit. As these type of businesses are mission-driven, to serve a social cause, and at the same time, they are financially supported, through the use of commerce, in order to maintain their sustainability.

Types of Social Businesses: Activity Model

The social mission and activity, behind this type of enterprises, are designed to address social needs. However, there are different kind of models, that can be applied, to enhance their functionality as social businesses.

First of all, there is the type of entrepreneurship that their operation is founded in innovation. In particular, an innovative product is designed in order to provide solutions that serves a social problem. Another kind of operation plan, is the social enterprises that their design is based on the provision of employment for disadvantaged social groups. Finally, there is also the entrepreneurial model, that achieves social impact through giving back. Namely, we refer to enterprises that offer back socially, in case of a purchase.

Characteristics Social Entrepreneurship Should Encompass

The idea behind a business, that is socially motivated, should take into account encompassing the following qualities:

• Entrepreneurs should choose a cause that truly represent them, to make their mission. Address a social need that they can actually understand the significance of contributing to the solution.
• Thinking out of the box, in terms of contribution to the set cause. Hence, an innovative approach is imperative.
• Sustainability is a quality that is of twofold use. The entrepreneurs should apply this characteristic, both for providing sustainable solutions, to the social mission they chose, and for the business operation plan.

Institute of Entrepreneurship Development (iED) fully supports the business model of social entrepreneurship; as, it acknowledges the economic and social contribution. Hence, the institute’s participation in European projects, of pertinent content, is imperative.

Among the projects iED participates, is “ASE: Alliance for Social entrepreneurship” is an Erasmus+ project, that is developed to foster skills that are pertinent to enterprises that their business activity revolves around providing solutions to a social cause.