What Is Social Business?
Make Social Business Your Business!
Social business is a fairly new term that has been coined to describe an enlightened type of capitalism. A social business develops a business model around addressing a problem. There are a variety of ways which the business addresses social problems, but this distinctive feature should help the business, as well as the larger society.
Social businesses are not, typically, non-profits, though it is easy to confuse the two. The social business will strive to make a modest profit, though some percentage of this profit should be used to further business objectives. Typically, investors will get their investment back, without earning a return. There are some notable exceptions to this though.
How Do Social Businesses Solve Problems?
As I mentioned above, there are a variety of ways that a social business might strive to solve some local, national, or international problem. Consider a few examples of ways that some of these new enterprises seek to solve problems.
- A traditional manufacturer may donate some of its good, or a percentage of income, to a worthy cause or to needy people. For example, on new social business gives a bar of soap to needy people for every bar of soap that customers purchase.
- The way that the company does business may help further some goals. For example, a business may focus on distributing renewable energy or using recycled goods.
- Another business may strive to bring people, who need something together with people who can provide it. In this case, the social business may function as a middle man, and take a modest fee for services. Peer to peer lending sites and car sharing services are an example of social businesses. They do take a fee for services, and they do make a profit. The cut to the middle man is more modest than the traditional business model – like banks or rental car companies – that usually service the market.
- To understand the difference between a social business and a non-profit, contrast Prosper vs. Kiva. With Kiva, investors get together to make interest free loans. With Prosper, investors do hope to earn returns on their money.
Social Business Is Good Business
This website has generated a lot of interest in starting a business as a solution to increased income for middle age and retirement. Maybe you already have a dream about a business idea you would like to develop? Could a social aspect help you increase your business, while helping you feel great about the enterprise you are starting?
Many social businesses have found the pushing the doing-good aspect of their business models is also great advertising. I do not mean to sound cynical, because I am actually quite enthusiastic about this idea. Maybe your extra income or retirement business start up could benefit from this model. If a company can pay salaries, generate a profit, and help further worthy goals, that sounds like good business to me!
Come Together! Right Now! Over the Over50Website.com. Also check out our latest project, BeHappyYourself.com.
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I guess, in a way, Over50web.net could be considered a social business. It exists to pull together boomers and seniors together online – but does have ads to support the work.
[...] to the bad guys, and sometimes the good guys do not get a lot of notice. But this new term, social business, tends to refer to enterprises that really focus on helping some worthy cause as a big part of [...]
[...] to the bad guys, and sometimes the good guys do not get a lot of notice. But this new term, social business, tends to refer to enterprises that really focus on helping some worthy cause as a big part of [...]
[...] to the bad guys, and sometimes the good guys do not get a lot of notice. But this new term, social business, tends to refer to enterprises that really focus on helping some worthy cause as a big part of [...]
[...] Visit us for more business ideas for women that almost anybody could begin! We also encourage you to learn more about social business. [...]