Social Entrepreneur in Social Enterprises in Relation to Business Enterprises

Subject: Sociology
Type: Reflective Essay
Pages: 10
Word count: 2504
Topics: Social Work, Entrepreneurship

Executive summary

Entrepreneurship in any organization or firm aims at gaining or creating new ideas and concept from the dynamic and ever-changing environment, to be able to attain the set goals and objectives. It is simply the process of designing, launching, and the willingness to develop, and run a new project or business. Enterprise means a risky project or activity in which individuals choose to take the initiative to run a business or invest in it. In this study on entrepreneurs, we find social and business enterprises in which the entrepreneurs play different roles in regard to the goals laid out. An entrepreneur is simply an individual who organizes, plans and operates a risky activity or business venture (Abu-Saifan, 2012). A social entrepreneur designs and launches projects, products with the aim of improving the well-being, or making a social impact for the people while a business entrepreneur launches and designs activities that will maximize the profits of a business.


Entrepreneurs are entitled as either social or business entrepreneurs about the form and goals of the enterprise they are working and taking part. The role of a business entrepreneur will slightly differ from that of a social entrepreneur due to the difference in their goals and part to play within the enterprises. A social business is simply a company or organization driven by it cause or goals rather than by profits (Yunus, 2007). Business enterprises majorly aim at maximizing their profits while the goals of social enterprises are to make a social impact. This paper brings out the differences between the two forms of enterprises, and whether a social entrepreneur can act and behave as it would be expected of him in a business enterprise, without draining the social entrepreneurship perspective. In this paper, am trying to bring out, if it is possible or not, for a social entrepreneur to perform while aiming at maximizing profits without corrupting the social ideology within the enterprise.

Differences between social enterprise and business enterprise

A social enterprise is an organization or firm formed, that directs its operations and minimizes the use of its resources to attain or solve a certain challenge in the society or make a social impact. Business enterprise is a firm or an organizational activity involving financial, commercial, and industrial aspects in providing of goods and services, that is, to strive with a motive of gaining profit. The aim and purpose of the social enterprise is to make a social impact, make a change in the environment surrounding it while a business enterprise purpose is to improve or raise its profits. The two enterprises are constructed under the basis of the above ideologies which makes them differ not only regarding goals and purpose but also in their structural model, policies, and fund allocation (Heminway, 2013).

A business enterprise acquires its funding from investors, loans from banks, and from capital from stakeholders which it uses to acquire profits with the aim of benefitting its investors, stakeholders, and personnel. It simply allocates its funding in new areas that can bring forth profits, while a social enterprise allocates funds it acquires in areas necessary to make a social impact and improve the well-being of those in the society. Social enterprises acquire fewer investors in comparison to business enterprises which increases the value contribution within it (Abu-Saifan, 2012). The funds acquired from stakeholders, investors, loans; by the social enterprise are utilized or invested to gain profits and make a change within the society and pay up the debts and loans. The structural model of the two enterprises differ. The social enterprise entails entrepreneurs and personnel who are deeply aware about the environment; personnel such as individuals who have studied on criminology, social aspects, environmental development, or even disaster control, while that of business enterprises has personnel who have specified in the field of business and its environment (Dees 1998). 

The necessity for a social entrepreneur with a business perspective.

A social entrepreneur directing the enterprise with the perspective of maximizing profits has several advantages, such as motivating the employees. The personnel are more motivated when the enterprise shows development. The entrepreneur will open and strive more to bring success and profits to the company. The entrepreneur will bring forth more profits in the enterprise which will help in paying up loans (if any) and debts and fund the enterprise in solving the environmental challenge. He or she may also design ways to motivate employees such partly compensating members when profits of their products are extremely high. The entrepreneur shows more focused and acts more driven to make a financial impact which motivates his colleagues (Baron & Markman 2000). This may not affect the social ideology since the profits gained will be used to solve the social challenges. It also positively impacts the social enterprise since motivated members contribute more and become more passionate about reaching the purpose of the enterprise and to develop it financially. 

Product design is much more appealing and better than before to the customer since the entrepreneur tries to maximize profits. For the success of the enterprise, creating a product that they love, will make not only recurring customers but also attracts new customer in the market (Abu-Saifan 2012). The social entrepreneur with a business perspective will generate appealing products that will generate more profit and direct the organization further towards attaining profits and funds to facilitate achievement of the social goals, or its major purpose. He or she strives to find out what customers want to increase the profits of the enterprise through designing the product with a view of customer’s wants. An example is TOMS shoes (Mycoskie 2012), which is a social business thus through changing designs increased its profitability. This will not divert the aim of the enterprise, for the profits will be used to enable the fulfillment of the social goals. This proves that a social entrepreneur can perform certain functions of profit-maximizing enterprises to better the chances of reaching the social goal.

The social entrepreneur with the perspective of maximizing profits is a competitive advantage of the enterprise in the dynamic and ever-changing market. He or she should be innovative and with his or her perspective, they will strive more towards attaining more sales of their produces (Jesen, 2012). He or she will be up to date in the business field and thus the organization will be able to compete with the profit enterprises. Thinking as a profit-maximizing entrepreneur creates more advantage since the aspect of risk-taking is greater. Thus, the entrepreneur is more willing and enabled to increase the profits, thus drive the organization towards its social goals (Lounsbury & Glynn 2001). The entrepreneur will bring forth both social and financial benefit to the enterprise. He or she will give the enterprise capability to fight and compete with business enterprises and make a larger social impact due to rapid development.

The entrepreneur will aim at balancing the needs of the beneficiaries or stakeholders and customers. Unlike a simple social entrepreneur who is concerned mostly with the stakeholders and hence, losing customers, a profit maximizing-social entrepreneur will consider both. In the formulation of social enterprises, the individual will need to convince people such as investors, customers and others on the benefits of the idea in the social impact and financial impact (Ireland et al. 2001). Thus, the entrepreneur will need to balance both the needs of the customer and those of the beneficiaries, since the beneficiary attracts customers but still needs them for the enterprise to run. An entrepreneur with a profit-maximizing perspective will know the need of taking into consideration the wants of both parties and thus maintain both their supports and contribution (Chahine, 2016). An example is Mohammed Yunnus, who claims that success comes when market needs are met. The Social entrepreneur plays this role and benefits the enterprise without affecting his social perspective.

Profit-maximizing enterprises take into regard, strategic pricing based on their aim to increase their profits. The social entrepreneur will tend to take into strategic consideration pricing, thus trying to create a value charge for their products that suit or comes close to satisfying the customer’s expectations. They at times place higher prices for the goods since customers also buy the goods with knowledge and satisfaction that they are supporting a beneficial cause. Mycoskie believes that fairness enhances consistent profitability. Such an entrepreneur enables the enterprise to acquire profits and help disadvantaged individuals by placing low prices or giving free products without incurring losses. A social entrepreneur can comfortably take up this role without corrupting his social ideology.

A social entrepreneur with profit-maximizing perspective will be able to bring forth more appropriate marketing strategies. As known, to acquire more customers, supporters of the cause or even investors, the enterprise must market its products and view effectively hence a necessity to market the social mission. The entrepreneur will be able to create or innovate a social mission that ties to the business perspective, that is, the social mission relates to profits gained (Chahine, 2016). This will draw customers and investors and show the stakeholders the direction of the enterprise. Thus, it is possible for a social entrepreneur to act with an agenda to maximize profits. The tie between business and social agenda of the enterprise will also ensure that the entrepreneur’s social ideology of the enterprise does not get corrupted (Schmelter et al. 2006). An example is Toms’ shoe business proposal ties to its social impact that is for every shoe sold; another is donated. In this case, social mission acts as a safety net for the entrepreneur that is, it helps him to avoid the misinterpretation of the enterprise’s goals due to profits it acquires.

Mostly, the profit-maximizing perspective in a social entrepreneur is positive, but at times, it can corrupt his social ideology. The entrepreneur may be a risk to the enterprise since he or she will be willing to take more risks than the enterprise can handle and thus, may lose sight of the goal. Social enterprises are developing and growing but not hasty in taking risks, that is, business enterprises are more of risk takers than social enterprises (Chahine, 2016). An entrepreneur relating to maximizing profits will be willing to jump in to deal, and opportunities that turn to improve profits of the enterprise. At times, he or she may fail to go deep into details of certain profitable deals, which may conflict with the social goals of the enterprise, thus threatening the social ideology of the enterprise.

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Corruption by profits, a social entrepreneur relating to profit maximization may raise the profits of the enterprise impeccably. The entrepreneur, with time, may find it difficult to see the difference between non-profit social efforts and the profit-maximizing efforts. Models for maximizing profit are much easier to attract capital. Thus an entrepreneur may get lost in the rising profits and easy tasks it offers. The entrepreneur may lose sight of what the enterprise was aiming at to begin with. Through constant strive, and business researchers, the entrepreneur’s Pasion may be corrupted or may diminish, and his or her aim may shift to just making money, acquiring more and more income. This rarely happens due to the definite relationship between business and social aim within the social, but at times if loopholes are available, the entrepreneurs lose their way (Emerson 2003). In regard to historical events, such scenarios rarely occur since the majority of the social enterprises offer compensation to members when profits deem to be extreme.

In conclusion, a social entrepreneur can perform with a profit-maximizing behaviour without corrupting the social impact of the organization. As seen in the texts above, such an entrepreneur contributes even more than a normal social entrepreneur, not only in financially but socially. Such an entrepreneur proves to be more focused and drives the enterprise quicker towards attaining its purpose. A social entrepreneur performing with a business perspective adopts some similar characteristics as those of a business entrepreneur. In regard to the paper, a social entrepreneur with a profit-maximizing perspective is more beneficial and profitable to a social enterprise. He or she drives the enterprise towards its social impact through attaining partnerships, and profits that fund its activity.


I opine that a social entrepreneur should have a profit-maximizing ideology. The relation between profit-maximizing enterprise and a social entrepreneur is mostly minimal and seems to be complex, nut fruitful for a social enterprise in the long-run. Hence, advisable for a social entrepreneur to have ideas and several behaviours of a profit-maximizing enterprise. The profit-maximizing behaviour does not affect the social ideology in any way. Apparently, it benefits the individual and the enterprise as well in different ways, such as; it grants the enterprise the business view on matters, the entrepreneur helps the enterprise to raise the profits quicker. The social entrepreneur is more advantageous since him, or she gives the enterprise a competitive ability. The social entrepreneur is more prepared for business challenges that may affect the enterprise in the future, challenges which may have needed a business expert to solve may be avoided. The social enterprise strives faster and grows rapidly with such an entrepreneur since the relationship between business and social goal not only brings forth profits but also helps the enterprise to meet and partner with other more performing enterprises aiming at similar or other social goals. Examples of such partnerships include; TOMS with Microsoft, Facebook, and others (Mycoskie, 2012). An enterprise with an entrepreneur who behaves in a profit-maximizing manner can partner with large profit-maximizing enterprises, which grants the benefit of outsourcing some resources.

Social enterprises are not only making a change in the world but also in the business field, with the aid of such entrepreneurs. A social enterprise with a social entrepreneur who offers business perspective raises the revenue of the society and the state from the increment in its profits. Social enterprise with such an entrepreneur aims at achieving financial and social goals, which is a positive track since the organization thrives faster. Characteristics of such an entrepreneur who relates to profit-maximizing organization, apart from risk-taking and passion, include being community driven thus desire to make positive changes in the community. They are savvy business oriented meaning they have practical business knowledge on how to launch their ideas. Further, they are more determined therefore they can easily spot opportunities. They are good at the network which simply means to know how to talk and aspire others to join the cause, and finally, they are innovative both in social and business perspective. 

Simply, a social entrepreneur should be expected to know profit maximization and business field in any social enterprise. I would recommend this due to the stated benefits and results, and mainly due to the profitability aspect of it. As known, for any major change to occur on a large scale, high amount of funding is required to facilitate it. Hence, a social enterprise will make a social impact or solve challenges on a larger scale and aid many in society. This is due to the high funding acquired from the profits.

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