“Responsible Entrepreneurship” and “Social Entrepreneurship”
Differences and similarities
What is “responsibility” in business?
So, what is “social” entrepreneurship instead?
Why we shouldn’t confuse responsible entrepreneurship and social entrepreneurship
Practitioners and experts in the field already know that. As impact investing is on the rise, the risk of “impact washing” and “green washing” is just around the corner.
Many companies are indeed trying to put positive spins on environmental and social activities they carry out. Truth is, they don’t act towards solving societal issues once and for all. Furthermore, at times, they even downplay facts and provide misleading information about side, negative externalities they create. So, to avoid disorientation, it becomes fundamental to draw a boundary line between responsible entrepreneurship and social entrepreneurship.
Responsible entrepreneurship often lead to incrementally improving (or simply compensating for) current business practices and operations. But in order to truly happen, systemic change needs radicality. And radicality is the foundation of social entrepreneurship. We must take the courage to start acknowledging that, otherwise the notion of “impact” may get diluted. Several long-term risks for both businesses and society may derive, including eroding trust, mixing up fakes and real impact makers, and most importantly failing at supporting those organizations who are actively tackling emerging, social challenges.
As some would say.. “if everything becomes impact, no impact will ever be truly achieved”.
In this article, we explored differences and similarities between responsible entrepreneurship and social entrepreneurship and understood why we shouldn’t confuse the two.
At Social Business Design, we analyze how existing social enterprises and social businesses concretely drive positive change. We hope that by sharing business models and tools adopted by successful entrepreneurs, a new generation of change-makers may ease its way towards impact creation. For that, if you found this content useful, feel free to further explore the platform! 🙂
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