Social Entrepreneur

AAA

DEFINITION of 'Social Entrepreneur'

A person who pursues an innovative idea with the potential to solve a community problem. These individuals are willing to take on the risk and effort to create positive changes in society through their initiatives.


Examples of social entrepreneurship include microfinance institutions, educational programs, providing banking services in underserved areas and helping children orphaned by epidemic disease. The main goal of a social entrepreneur is not to earn a profit, but to implement widespread improvements in society. However, a social entrepreneur must still be financially savvy to succeed in his or her cause.

INVESTOPEDIA EXPLAINS 'Social Entrepreneur'

While most entrepreneurs are motivated by the potential to earn a profit, the profit motive does not prevent the ordinary entrepreneur from having a positive impact on society. As Adam Smith explained in "The Wealth of Nations" (1776), "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest." Smith believed that when individuals pursued their own best interests, they would be guided toward decisions that benefited others. The baker, for example, wants to earn a living to support his family. To accomplish this, he produces a product, bread, that feeds and nourishes hundreds of people.

RELATED TERMS
  1. Social Identity

    A company's image as derived from its relationships. An organization's ...
  2. Social Responsibility

    The idea that companies should embrace its social responsibilities ...
  3. Human Capital

    A measure of the economic value of an employee's skill set. This ...
  4. Social Capital

    An economic idea that refers to the connections between individuals ...
  5. Domini 400 Social Index

    A market cap weighted stock index of 400 publicly traded companies ...
  6. Dow Jones Sustainability World ...

    A global index consisting of the top 10% of the largest stocks ...
Related Articles
  1. Social Finance Careers: Creating A Better ...
    Entrepreneurship

    Social Finance Careers: Creating A Better ...

  2. Go Green With Socially Responsible Investing
    Personal Finance

    Go Green With Socially Responsible Investing

  3. Extreme Socially Responsible Investing
    Options & Futures

    Extreme Socially Responsible Investing

  4. Socially (Ir)responsible Mutual Funds
    Mutual Funds & ETFs

    Socially (Ir)responsible Mutual Funds

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center