Social entrepreneurship

Social entrepreneurship

What is social entrepreneurship?

Social entrepreneurship is a special form of entrepreneurship in which economic and social objectives are integrated; it is an innovative model for resolving social and ecological challenges and enhancing inclusive growth.

Social entrepreneurship is also defined as a continuous implementation of economic activities under certain conditions for work and employment of mainly marginalized groups of people. The primary objective of social entrepreneurship is to strengthen social cohesion and solidarity, as well as to strengthen the capacity for innovation in different economic sectors and socially useful areas. The goal is to generate social value whereby the community will benefit from the entrepreneurial activities. Social enterprise is a new business model with a social objective, which is not yet (sufficiently) treated in the Macedonian economy, but it is practiced throughout the world.

Characteristics of social enterprises:

  • Using entrepreneurial principles, they seek to serve the community, and not maximize the profits for the owners;
  • The profits made are for the most part reinvested for achieving the social goals, i.e. for a specific social change;
  • They offer innovative approaches for sustainable and balanced development;
  • They generally act in two directions; 1) they provide goods and services to marginalized and underdeveloped communities and/or 2) employ persons from vulnerable groups of citizens;
  • They are market-oriented businesses, i.e. they provide financial sustainability through successful operation in accordance with the market mechanisms (and not predominantly grants).