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. Dow Jones Sustainability World ...

    A global index consisting of the top 10% of the largest stocks ...
  3. Ethical Investing

    Using one's ethical principles as the main filter for securities ...
  4. Corporate Social Responsibility

    Corporate initiative to assess and take responsibility for the ...
  5. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  6. Socially Responsible Investment ...

    An investment that is considered socially responsible because ...
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. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center