Social Entrepreneurship: What It Is and Why Everyone’s Talking About It

Social Entrepreneurship: What It Is and Why Everyone’s Talking About It

Entrepreneurs used to be enterprising, savvy founders who started businesses for one reason and one reason only: to make money. But times have changed, and the emergence of social entrepreneurship has shifted several founders’ motivations from profit margins to social responsibility.

In this post, I’ll review the concept of social entrepreneurship, share some perspective on what a socialpreneur is, provide a few examples of successful social entrepreneurship ventures, and suggest some social entrepreneurship ideas for you to try on your own.

Let’s dive in.

Table of Contents:

• What is social entrepreneurship?
• Socialpreneur vs. Entrepreneur
• Social Entrepreneurship Ideas
• Socialpreneurs You Should Know About
• Social Entrepreneurship Statistics
• Social Entrepreneurship Is Here To Stay

For instance, both a mutual aid fund dedicated to assisting small businesses in marginalized communities and a corporation that uses its proceeds to support education for women in third-world countries could be considered socially entrepreneurial outlets. Some social enterprises might not follow any sort of typical organizational structure; they might be run entirely by volunteers who do not receive a paycheck or individual contributors who participate of their own accord.

While socialpreneurs still abide by most core tenets as conventional entrepreneurs, there are key differences between the two groups. To help you distinguish these terms from each other, I’ll explain the nuances of each term in the next section.

Let’s go over some real-life examples of small business social entrepreneurship, as well as larger enterprise businesses that engage in social ventures.

Some businesses are purely founded for (and sincerely dedicated to) contributing to social good. Check out a full list of them below:

1. TranSanta

TranSanta is a truly unique, community-led social entrepreneurship venture. Its Instagram account features and highlights stories from transgender youth in need.

The individuals behind TranSanta create wish lists of items that they need and interested community members can anonymously purchase and send them those items. Through their website, the organization amplifies queer-owned businesses, ensuring that potential gift-givers have a place to look for relevant gift items — whether it be a book on trans studies or a guided planner — that align with the actual identities and experiences of those who’ll receive them.

2. Books to Prisoners

Books to Prisoners is a traditional non-profit organization based in Seattle that helps tackle prison recidivism in the United States.

The organization accepts book donations from both community members and established bookstores to be repackaged and sent to incarcerated individuals, promoting education and literacy in the interest of making prisoners’ transitions back into society simpler and more seamless after they’re released.

The program also accepts monetary donations to support operational costs, such as rent for office space, book packaging, and shipping costs.

3. Beauty 2 The Streetz

Beauty 2 The Streetz (B2TS) is a California-based nonprofit organization founded in 2017. It’s dedicated to serving the homeless community in Los Angeles’ Skid Row. The organization provides essential services such as food, clothing, hygiene products, and beauty treatments — including haircuts, hair coloring, and makeup applications — to restore confidence and self-worth among individuals experiencing homelessness.

Throughout the last year, B2TS has gone viral on social media platforms (mainly Instagram and TikTok) for its video content highlighting the distribution of resources to the unhoused community of L.A., the importance of mental health among houseless individuals, and even free hair washes for folks who struggle with hair care while navigating homelessness. Check out their Refinery29 feature below:

4. Thrive Causemetics

Thrive Causemetics, founded in 2015 by makeup artist and product developer Karissa Bodnar, is a U.S.-based beauty brand that intertwines vegan and cruelty-free cosmetics with a strong philanthropic mission. Bodnar’s brand operates on a “Bigger Than Beauty” philosophy, pledging that for every product purchased, a donation is made to help communities of all walks of life thrive.

By seamlessly integrating beauty products with a mission to uplift and empower, Thrive Causemetics has distinguished itself as a brand dedicated to making a positive difference in the world.

5. Belu

Belu is a British, environmentally conscious organization that sources and provides water to hotels, restaurants, and catering businesses with a minimal carbon footprint. Its net profits are 100% donated to WaterAid, another organization working out of Malawi that provides clean water solutions to disadvantaged populations throughout Africa..

6. TGIN (Thank God It’s Natural)

Thank God It’s Natural – better known as TGIN – is a haircare and skincare brand that focuses on providing high-quality, natural products designed for textured and natural hair. Founded by Chris-Tia Donaldson in 2013, TGIN seeks to empower individuals to embrace their natural beauty while offering effective, plant-based solutions free from harsh chemicals. The brand actively supports breast cancer awareness, especially among Black women, through its TGIN Foundation.

Though Donaldson passed in 2021, her legacy has lived on through the TGIN Foundation; it provides financial assistance, resources, and education to women undergoing treatment and promotes early detection and prevention.

7. Rare Beauty

You may already be familiar with Rare Beauty for several reasons (the biggest probably being its founder, actress and singer Selena Gomez); however, through its advocacy for mental health awareness and resources, it has become way more than “just a cosmetics brand.”

Since its inception in 2020, Rare Beauty has been committed to building its Rare Impact Fund, the brand’s philanthropic initiative dedicated to increasing access to mental health support and reducing the stigma surrounding mental health issues.

Thus, the Rare Impact Fund has become a core part of Rare Beauty’s brand identity; through its unique integration of purpose and business, Rare Beauty has become a leader in both the beauty industry and corporate social responsibility.

8. SOIL

Sustainable, Organic, Integrated Livelihoods (or SOIL) is a nonprofit research and development organization that works to implement sustainable, low-cost solutions to the sanitation crisis in Haiti.

The organization supports community employment by staffing locally, and it donates 92% of every dollar it receives to support and enact its environmental improvement efforts.

9.TOMS

TOMS might be the world’s preeminent social entrepreneurial outlet; in a lot of ways, it put the concept on the map. The company started on a one-for-one model: A consumer would buy a pair of shoes, and TOMS would give a pair to a child in need.

But, in recent years, the business has taken social entrepreneurship to the next level. Now, buying a pair of TOMS shoes or sunglasses helps provide shoes, sight, water, safe birth, and bullying prevention services to people around the world. Moreover, in the last four years, TOMS has also partnered with Venice Family Clinic to provide impact grants focused on mental heath programming and in-kind donation eyewear.

10.Ben & Jerry’s

Most people know Ben & Jerry’s for its elaborate ice cream flavors, but there’s much more to the organization than its product. The business is also dedicated to using profits for good.

The company‘s stated mission is «to create linked prosperity for everyone who’s connected to our business — suppliers, employees, farmers, franchisees, customers, and neighbors alike.»

The business proactively promotes social progress — whether that be by supporting environmentally friendly farming and manufacturing, racial justice, LGBTQ+ issues, or a host of other causes.

For example, Ben & Jerry‘s ice cream is priced significantly higher than other brands, but that model isn’t strictly for increasing profit margins — that extra revenue supports the company’s ability to pay its workers a livable wage.

11. Warby Parker

Warby Parker is an American prescription glasses, sunglass, and contact lens D2C retailer. The business employed a “Buy a Pair, Give a Pair” program — similar to TOMS’ model. By 2019, the company had donated over 5 million pairs of glasses to communities in need. .

Today, Warby Parker continues its “Buy a Pair, Give a Pair” program while supporting other notable social entrepreneurship causes, such as Pupils Project, a program that works with local organizations and government agencies to give free vision screenings, eye exams, and glasses to schoolchildren.

They’ve also partnered with other small-name organizations – such as VisionSpring and RestoringVision – to, as their 2023 Impact Report states, “create equitable access to vision services and eyeglasses for individuals in poverty or extreme poverty.”

12. Pattern Beauty

Pattern Beauty, founded by actress and activist Tracee Ellis Ross in 2019, is a haircare brand created specifically for textured hair. With a range of shampoos, conditioners, stylers, and tools, Pattern Beauty emphasizes moisture-rich formulations, inclusivity, and embracing the diverse diaspora of curly and oily scalps.

Similarly to Rare Beauty’s social good model, 1% of every Pattern Beauty purchase is donated to a nonprofit of their consumers’ choice. Thus far, they’ve funded over 80% of health equity and environmental justice organizations.

Social Entrepreneurship Ideas

So, you want to do some good, but you’re not quite sure where to start? Here are a few social entrepreneurship ideas and some guidelines for how to develop an idea that’s all your own:

1. You could start a mobile business that provides free or low-cost resources to underresourced rural areas.

Just like Beauty 2 The Streetz, you could take a stab at starting your own mobile business. Whether it be a food truck or a traveling van, the possibilities of this particular social entrepreneurship venture are truly endless.

Mobile businesses allow you to meet people where they are, breaking down barriers like transportation and accessibility while creating a direct, meaningful impact on nearby neighborhoods. By combining mobility with an impact-driven mission, you can build a business that not only serves a practical need but also bolsters community connection.

2. You could start a refurbished tech business (just don’t copy BackMarket).

If you have some old tech lying around, you could do some (entrepreneurial) good. By starting a refurbished tech business with a social impact twist, you could breathe new life into pre-owned electronics, reduce e-waste, and make technology more accessible to low-income communities.

What’s even better? Refurbishing and reselling items like laptops, tablets, and smartphones at affordable prices can enable more people to access tools for education, work, and communication. And, if you need some inspiration for what this business model could look like … take a few notes from BackMarket (then make it your own).

3. You could create a second-chance employment organization.

If you’ve ever thought about starting a social entrepreneurship venture, you might want to consider building a business that truly carves out space for people who’ve been overlooked. By starting a second-chance employment organization, you can do that and more, all through creating opportunities for individuals with criminal records or those facing systemic barriers to traditional employment.

The best part about this sort of social entrepreneurship venture is the focus on industries with transferable skills — like manufacturing, food operations, customer service, or tech — where you can help build pathways to long-term success for folks who truly need it.

4. You could design pay-what-you-can resources for low-income creatives.

If you’re used to getting creative, you might want to think about how you could turn your skills into a purpose-driven venture. By offering your resources at a pay-what-you-can model, you can make your talents accessible to a broader audience, especially those seeking ways to get started. Whether you’re a graphic designer, brand strategist, or UX/UI expert, this approach allows you to serve people who might not typically have access to high-quality services or products.

Not only does this create an opportunity to give back, but it also builds goodwill and loyalty among your customers, many of whom may pay it forward when they can.

5. You could start an educational subscription box service.

As a socialpreneur, you have the opportunity to change people’s lives in a very unique way. As parents and teachers shift away from traditional educational resources, there’s a growing demand for innovative and inclusive tools that cater to diverse learning styles and needs. By creating a venture focused on modern, interactive learning materials — such as gamified apps or hands-on kits — you can help bridge gaps in education while encouraging creativity and critical thinking.

6. You could start an inclusive coworking space.

Have you ever thought about giving WeWork a run for its money? If you haven’t, you should. With the growing demand for flexible workspaces and community-driven environments, there’s plenty of room to innovate in the co-working industry. By creating a co-working space that caters to a specific niche — like creatives, other socialpreneurs, or parents who need on-site childcare — you can offer a unique value proposition that big players might overlook.

7. You could start a program that provides creative outlets for mental health recovery.

If you’ve got a knack for bringing folks together, I’m telling you this right now: You could totally turn your talent into a successful socialpreneurship venture. You can test the waters by developing a program that offers creative experiences and opportunities for personal growth, such as art workshops, storytelling circles, or community-building retreats.

By marrying your creativity with a sense of intentionality, you’re not only providing fun and engaging activities but also creating spaces where people can learn, grow, and connect on a deeper level. Your program could become a catalyst for empowerment and collaboration, turning your passion for uniting people into a thriving, impactful business.

8. You could start a mentorship network that pairs professionals with students from disadvantaged backgrounds to guide them toward career success.

Have you ever wanted to give back to the next generation of leaders? Well, if your answer’s yes, what if I told you that you could? By starting a mentoring network for youth, you can create opportunities for young people to connect with experienced professionals who can guide them in their educational and career journeys.

Whether it’s through one-on-one mentorship, group workshops, or career-focused events, you can empower the next generation with the tools and confidence they need to succeed. Not only would you be shaping future leaders, but you’d also be building a community rooted in growth, learning, and mutual support.

9. You could start a training program for youth to learn trades.

If you haven’t heard the news, trades are all the rave right now. According to the National Student Clearinghouse Research Center’s Executive Director, Doug Shapiro, community colleges with a high focus on vocational training “shot up by 17.5%” in Spring 2024. By starting a training program targeted towards young people, you can equip them with in-demand skills that lead to stable, high-paying careers. Your program could focus on trades like carpentry, electrical work, plumbing, or even emerging fields like green energy installation.

With a hands-on approach and partnerships with local businesses, your training program could become a cornerstone for building a skilled, empowered, and future-ready workforce.

10. You could start a podcast or media platform dedicated to amplifying the voices of underrepresented communities.

If you’re a lover of media or content creation, you might want to consider expanding your interest into a social impact platform. Imagine creating a digital space where stories from underrepresented communities can be shared, amplified, and celebrated. Whether it’s a podcast series or a media collective, your platform could go beyond just entertaining an audience — you could educate, inspire, and empower aspiring creatives to take action.

How to Pick a Social Entrepreneurship Idea

1. Define your passions and areas of interest.

When it comes starting out as a socialpreneur, determining your niche is the most important step; if not, one of the most important ones. Ask yourself these questions:

• What problem am I passionate about solving?
• Who do I want to serve?
• What unique skills or resources do I bring to the table?
• What’s currently missing in the market or my community?
• How can I align profit with purpose?

Once you answer them, you can proceed to step two …

2. Identify existing market gaps.

Once you know what you’re passionate about, it’s time to determine the gaps in existing products or services and how you can fill them.

For example, if the food pantry you volunteer at can’t distribute fresh, donated fruits and vegetables before they spoil, think about how you could provide a service that makes it faster and easier to get fresh produce to the underserved communities in your area.

3. Find your key strengths and skills.

Are you an excellent writer or a salesperson extraordinaire? List your strengths and skills, and define how they can serve your mission. This is also an excellent time to identify your weaknesses — so you know who to call upon for help.

4. Decide on a business model.

Being a social entrepreneur is not always the same as starting a nonprofit. Determine whether and how you’ll monetize your idea and design a fitting business model.

Whether you’re interested in a cross-compensation model like Rare Beauty and Warby Parker or complete stewardship like Books to Prisoners, it’s important to understand how your business will be structured.

If you’re still feeling stumped, don’t worry. Starting a business is a tedious, involved process, but it is possible. In the next section, check out a list of successful social entrepreneurs that you can refer to as inspiration.

Socialpreneurs You Should Know About

1. Jazzmine Raine

Raine is the founder of Hara House, the first zero-waste guest house in Bikaner, Rajasthan, India. The area is a tourist destination with a vibrant environmental scene.

Of the house’s profits, 20% go to helping local youth get involved in economic opportunities, social justice, and environmental education. The youth help run the guest house, tours, and community center.

2. Muhammad Yunus

Yunus is the founder of Grameen Bank, a Bangladesh-based institution that provides small loans to those living in poverty. 97% of its borrowers are women, and 97% of those women have paid back their loans.

The bank manages a net income of over $10 million, has 2,568 branches, and covers 93% of all villages in Bangladesh. Yunus’ work has also earned him a Nobel Prize. See his Talks at the Google session on “The New Economics of Zero Poverty” below.

3. Scott Harrison

Charity: water CEO and former INBOUND speaker Scott Harrison founded his nonprofit to bring clean, safe drinking water to people in developing countries.

It tracks every dollar raised for the project it funds, and private donors cover its operating costs — so 100% of the money it raises can fund their water projects.

To date, it has funded 171,469water projects, helped almost 19 million people get clean water, and work with local partners in 29 countries. Check out Harrison’s INBOUND 2018 keynote below:

4. Shirley Raines

Raines discovered socialpreneurship through, unfortunately, profound personal loss. After tragically losing her young son, Shirley found herself searching for a purpose that would honor his memory and bring healing to her life. Her path became clear when she volunteered with the homeless community and discovered her unique ability to connect with people through compassion, conversation, and beauty services.

Today, as the face of Beauty 2 The Streetz, Shirley – with the help of local volunteers – transforms lives on Skid Row by providing essential resources like food, clothing, and hygiene products. Her unique approach addresses the often-overlooked emotional and psychological needs of individuals experiencing homelessness, helping them feel seen, valued, and dignified. Though B2TS is a relatively new organization, its demonstrated impact speaks its projected success.

5. Durell Coleman

Coleman is the founder and CEO of DC Design, a social impact design firm that uses design thinking to solve some of the world’s biggest problems. His firm has addressed challenges in the criminal justice and foster care systems in the United States.

It has also designed solutions for refugee camps and worked with executives at global enterprise organizations like Sony, Oracle, and Santander.

6. Emily Kirsch

Kirsch started Powerhouse after working with solar startup Mosaic to put solar panels on houses in Oakland, California. Today, Powerhouse supports clean energy entrepreneurship through a network of energy-focused co-working spaces.

It also offers venture backing for early-stage energy startups. Powerhouse also facilitates a series of signature events, from the Suncode hackathon to Powerhouse Circle and even a monthly podcast called “Watt it Takes.”

7. Tony Weaver Jr.

Weaver is the founder and CEO of Weird Enough Productions, a media company focused on creating stories that inspire positive media images of black men and other minority groups.

With every piece of content they create, they also produce a lesson plan for teachers to introduce media literacy to their students.

Now that we’re well acquainted with social entrepreneurship, let’s examine some key statistics that could shape its future evolution.

Social Entrepreneurship Statistics

According to a recent report from Business for Social Responsibility (of 2,204 U.S. adults), here are a few statistics highlighting the sentiments of consumers as they relate to companies/brands and their approach to social impact causes:

• Consumers are 4 times more likely to stay loyal to brands supporting social issues.
• Gun violence and mass shootings (78%), voting rights and ballot access (77%), racial
• inequality and discrimination (72%), and caregiving and childcare support (69%) are top of mind for workers and consumers.
• Over 60% of adults agree that companies should promote DEI initiatives, even when facing external pressure to avoid these issues, with less than 18% disagreeing.
• Nearly half (43%) of consumers believe companies should take stronger action to promote social justice, particularly through workplace practices and community engagement, while only 10% think companies should scale back their efforts.

Social Entrepreneurship Is Here To Stay

In the age of heightened competition, social responsibility is a differentiating factor that allows many companies to appeal to specific buyer demographics.

Plus, consumers — now more than ever — trust brands that they believe are committed to impact that matters. So, if you’re still interested in becoming a social entrepreneur, you couldn’t pick a better time. Formulate your plan, put it into action, and take those steps toward making the world a better place.