Signs of social entrepreneurship
Social business
There are non-profit organizations that yemen cell phone database rely on voluntary donations. Their activities do not involve production or sales. However, social entrepreneurship operates independently of charitable donations. Such projects involve providing specific services and selling goods. From a financial standpoint, social businesses are more productive than non-profit enterprises.
Signs:
targeted solution of social problems;
an unusual approach to solving social issues;
creation of a set of resources to achieve the set goal;
sustainable course of action, i.e. independence from grants, government support or private investors;
personal motivation of staff, commitment to the company mission;
The profits received are used for the further implementation of ideas, i.e. invested in the business itself.
Taking all these factors into account, it can be defined as social entrepreneurship, a social and economic activity aimed at generating revenue to address pressing social issues. It utilizes a wide range of methods and draws on a variety of resources.
Socially oriented businesses are distinguished by their concern for people as a whole. Beyond profit, entrepreneurs also contribute to a good cause. There are clear criteria for such entrepreneurship, which are outlined in law. According to Federal Law No. 245 of July 26, 2019, companies are considered socially oriented if they meet one of the following criteria (concurrent compliance with several of these parameters is also permitted):
They provide jobs to people with disabilities, single mothers (fathers), refugees, pensioners, former prisoners, and others. The number of such employees must be at least half of the staff, and the cost of paying wages to such workers must exceed 25% of similar items.
Sell goods and services produced by the categories of citizens specified in the previous paragraph. Revenue from the sale of these goods must equal or exceed 50% of total revenue.
Produce goods and services for individuals specified by law
Such enterprises may include organizations that manufacture equipment for the disabled. The profit from sales must be greater than or equal to half of the revenue.
Companies that address social issues and pursue social goals include those selling, for example, natural products and eco-friendly goods. Profitability from such activities must account for at least 50% of total revenue.
Social entrepreneurs' activities vary widely. But their goals are the same: solving social problems. Companies are broadly categorized as:
Enterprises that employ individuals in need of social support. By providing jobs, they can earn money, gain skills, and obtain a profession.
Enterprises that focus their activities on integrating services in areas of social significance. These companies help certain categories of citizens better adapt and implement projects to improve quality of life.