What is Social Business?
As defined by the Nobel Prize laureate Prof. Muhammad Yunus, social business means tackling social problems using the economic, financial and management instruments proper of business (Yunus, 2005). But social entrepreneurship has a longer tradition in Europe, partially encompassing cooperatives, non-profit or low-profit organizations, local councils, etc.
Despite its many forms, social entrepreneurship in its core is a planned activity aimed at tackling a social problem through a business.
As “normal” business, it generates a profit, which is usually re-invested for social purposes instead of being distributed to stakeholders. In a way, social entrepreneurship means integrating an ethical perspective in business.
Starting up a social enterprise has two positive sides: it generates new jobs, and tackles a social issue at hand.