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. Intangible Asset

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

    An investment that is considered socially responsible because ...
  4. Social Responsibility

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

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

    An economic idea that refers to the connections between individuals ...
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

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center