Social Entrepreneurship: Roles and Responsibilities

Modern businesses are acutely aware of their reputation with consumers regarding ethics and social responsibility. In the past, philanthropy was often seen as a pursuit of successful businesspeople after accumulating wealth in the private sector. Now, that paradigm is no longer the case. Many new business leaders are looking to take on roles as social entrepreneurs, aiming to achieve financial success while working toward a good cause or to create a positive impact.

Whether working within a nonprofit and shifting their business practices toward financial success or implementing ethical strategies into the operational model of a for-profit organization, social entrepreneurship is changing how we do business. With an educational foundation like a Master of Arts (MA) in Social Impact and experience in the workplace, skilled graduates have the opportunity to make a positive difference while working toward their professional goals.

What Is Social Entrepreneurship?

Navigating the modern world of business is an exciting and challenging role for many new graduates. More than ever, future business leaders can make balancing both financial success and a positive mission equally important for their organizations. Social entrepreneurship combines these elements — it is a model that leverages business skills and acumen to address cultural, environmental, and social issues that will have a positive impact on their communities.

Social entrepreneurship generally employs a for-profit business model with an emphasis on environmental sustainability, social justice, or another cause. They help organizations in generating revenue that supports these causes.

Why Is Social Entrepreneurship Important?

Social entrepreneurship can not only help in building a successful company but also creating one that makes a positive difference in the world. Whether that be by working in or founding a nonprofit organization or by implementing ethical or philanthropic practices into a company’s business model, social entrepreneurs can make ethical and positive practices an integral part of business in many ways.

What Does a Social Entrepreneur Do?

Depending on the organization, the day-to-day responsibilities of a social entrepreneur can vary. For some, the business model involves providing education, aid, or resources to a local community. Whether those resources involve providing financial solutions, making physical donations, or administering welfare supplies, these projects require social entrepreneurs to perform duties such as developing strategies, budgeting, delegating tasks, and providing resources directly to the community.

In other organizations, the key aspect of social entrepreneurship is focused on business practices, such as ethical consumerism, impact investing, or corporate responsibility. An example of this type of organization is Toms, the shoe company that initially pledged to donate a pair of shoes for every pair sold. It now allocates a third of its net annual profits to a charitable giving fund. A social entrepreneur at the head of this type of organization may find themselves coordinating resources and collaborating with suppliers to ensure that their business model is efficient and sustainable.

Roles in Social Entrepreneurship

The different types of careers in social entrepreneurship include the following:

• Community Social Entrepreneur: These individuals work with organizations that typically focus on addressing the needs of a small or specific community, providing services such as building community centers, helping community members with loans or finances, or working with local associations.
• Nonprofit Social Entrepreneur: These individuals guide nonprofits with a business model that reinvests all earnings back into the organization or its cause — focusing solely on the social good and often aiming to provide resources to those less privileged.
• Transformational Social Entrepreneur: These individuals work to bridge the gap between social needs and what government agencies and other businesses are able to fill.
• Global Social Entrepreneur: These individuals look to achieve positive change on a global scale, aiming to shift social systems on a national or international level. They often have very lofty goals to improve the lives of entire populations; many of the world’s largest charitable or philanthropic organizations function at this scale.

With a wide variety of avenues available to talented candidates, working as a social entrepreneur can provide graduates with the opportunity to dedicate their careers to causes that they’re truly passionate about. While financial savvy is still an important part of nonprofit and philanthropic business success, social entrepreneurship can be highly fulfilling, allowing future leaders to be proud of both their organizations’ business practices and the impact they leave in their communities.

Salary and Career Outlook

Careers in social entrepreneurship are an innovative new area of business. A hybrid business model that combines the charitable or philanthropic efforts of a nonprofit organization with those of a for-profit business model, social entrepreneurship can function in organizations large and small and across various causes. Because social entrepreneurial organizations vary in scale, the opportunities and salaries available to candidates can fluctuate as well.

Salaries for careers in social entrepreneurship can depend on the size and type of organization; the industry the organization operates in; and a candidate’s level of education, work experience, and seniority. According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for social and community services managers, including careers in social entrepreneurship, was $77,030 as of May 2023. The BLS expects employment to increase by 8% between 2023 and 2033, faster than the average for all occupations.

How to Become a Social Entrepreneur

Achieving success in social entrepreneurship requires advanced skills, qualities, and knowledge of the business sector and work geared toward social impact. While candidates aren’t required to complete a specific degree or program, higher education, such as a master’s degree in social impact, can be very beneficial.

Additionally, depending on the industry a graduate hopes to work in, they may choose to complete specialized or field-specific certifications. These may include business-related programs, a self-guided study in a field such as investing, or a public health certification (for those working in health and welfare programs).

Aside from education, building valuable workplace experience can be critical for social entrepreneurs. By taking the time to gain experience within their industry, graduates can make better-informed decisions and have context for what’s achievable within a certain project or budget.

Pursue a Fulfilling Career in Social Entrepreneurship

Social entrepreneurship can be challenging, but it’s an opportunity for talented business professionals to use market innovation to make a positive difference. Whether by creating their own companies, applying tools such as impact investing, or helping organizations create strategies around corporate responsibility or positive innovation, becoming a social entrepreneur can be an exciting and worthwhile challenge for skilled graduates.

An advanced degree like the online MA in Social Impact from Claremont Lincoln University can be a valuable asset for graduates looking to pave their way as social entrepreneurs. As a fully online program with an interactive learning platform that provides students with the flexibility they need to succeed, the social impact program from CLU was designed to equip graduates with the practical skills they need.

Discover how CLU can help you toward success in social entrepreneurship.