Social entrepreneurship has gained significant relevance in the business world, as it focuses not only on economic benefits but also on generating a positive impact on society.
More and more entrepreneurs are adopting this approach, combining profitability with social responsibility to achieve success both within and outside their home countries.
But what exactly is social entrepreneurship? According to Ecuadorian-Chilean businessman Gabriel Massuh, social entrepreneurship is defined as the initiative that seeks to solve social or environmental problems through a sustainable business model.
These entrepreneurs, known as “social entrepreneurs,” create innovative solutions that not only aim for financial returns but also strive to create social impact and shift the business paradigm.
For many years, Gabriel Massuh Isaías has mastered the fruit industry in Chile with vast experience. With business studies in the United States, he managed to incorporate this vision, becoming a pioneer in the southern country. Today, he leads Bagno, the most important company in the import and export of fruits.
“Our dedicated work and strict commitment to ethical and sustainable standards have positioned us as leaders, and we have met each of our objectives,” Massuh notes.
The Importance of Social Responsibility
Social responsibility is a fundamental pillar of social entrepreneurship. This means that companies must be aware of their impact on society and the environment and act ethically and sustainably.
By integrating social responsibility into their operations, entrepreneurs build a positive reputation and foster customer loyalty while attracting a growing audience that is conscious of social issues.
This focuses on how the company engages its workers, customers, local communities, and society as a whole. According to Massuh, “social responsibility encompasses actions from Corporate Social Responsibility initiatives to internal policies related to inclusion, community investment, and similar practices.”
A social and sustainable enterprise aims to generate a positive impact on society, improving collective well-being and promoting a more equitable environment.
For example, ongoing concern for environmental issues drives companies to compete by implementing improvements and changes in their processes, securing financing for objectives, meeting standards or certifications, adopting internal mitigation measures, or offering education or training programs, all while being active participants in society.
Gabriel Massuh’s Strategies for Profitability
For social entrepreneurship to be successful and sustainable, it is crucial to develop profitability strategies that ensure its financial viability.
Here are some key strategies from entrepreneur Gabriel Massuh:
- Problem Identification
The first step is to identify a social problem that needs a solution. This can range from poverty to lack of access to education or basic services. According to Massuh, “the more relevant the problem, the greater the market interest in the proposed solution.”
- Define a Sustainable Business Model
Creating a business model that doesn’t rely solely on donations or grants is essential. This can include selling products or services that generate revenue, as well as forming strategic partnerships with other organizations or companies.
- Innovation and Creativity
Innovation is key in social entrepreneurship. Creative solutions can differentiate a company in a saturated market. Technology, for example, can provide unique tools to address complex problems more efficiently.
- Impact Measurement
To attract investors and customers, it’s essential to measure and communicate the social impact of the company’s activities. This not only demonstrates the effectiveness of the solution but also helps identify areas for improvement and adjust strategies.
- Customer Education and Awareness
Involving customers in the company’s social mission can be a strong motivator, Gabriel Massuh points out. By educating consumers about the impact of their purchases, companies can foster an emotional connection that can translate into loyalty and referrals.
There are currently numerous examples of social enterprises that have achieved a successful balance between profitability and responsibility. Social entrepreneurship represents a unique opportunity for entrepreneurs who seek to make a difference.
By combining a profitable business model with a strong social commitment, it’s possible to create companies that not only generate profits but also contribute to the well-being of the community. In a world where customers increasingly value ethics and responsibility, social entrepreneurship with purpose is a trend that is here to stay.
