What is Social Entrepreneurship ? How it helps?

India is one of the developing countries, where 21.9% of the country’s population lives below the national poverty line in 2011 as estimated by the Asian Development Bank. Not only India but the entire world is facing problems like poverty and environmental issues. 

Social entrepreneurship serves as a ray of hope to social, cultural, and environmental issues. It serves as a link between traditional profit-making and social welfare. It focuses on not only generating profit but also on the positive impact that business makes on society. It also serves as a problem for social enterprises as investors and donors want to know about the value generated. The social value generated by the enterprise is not easily measurable. Since investors don’t take much interest in investing in social enterprises. These enterprises are mostly low on funds. Hence, it reduces the ability of social enterprises to experiment, and innovate. Social enterprises have to deal with the complex demands of investors. Even when they have an innovative product or service to offer. Investors may like the product or service, but they want the enterprise to inculcate their priorities in the business execution. Social enterprises also fail to gain media attention or communicate the value created by them to society. Economies of scale are also one of the main issues of social entrepreneurship as they are mostly small scale. Locating the right manufacturer who supplies the inputs at low rates. Rates are often low when one orders in bulk. Since social enterprises are mostly small scale, they can’t order in large quantity as they have less capital and difficulty in inventory management.