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. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center