Put another way, socialpreneurs prioritise creating social value over maximizing profits. This is not to say that they cannot make a profit; they simply approach things from a different perspective. Their motivation as entrepreneurs is to address the challenges of the future – such as the United Nations’ Sustainable Development Goals (SDGs) – and contribute to the solution. In doing so, socialpreneurs draw on an arsenal of entrepreneurial tools, particularly during the start-up phase, which centres around finding an innovative solution to a social problem. However, not all socialpreneurs operate in a conventional for-profit setup; in fact, most have non-profit or charitable status. This can be confusing, because socialpreneurs break down the conventional barriers between public welfare and business. Consequently, many of them are now calling for a separate legal status.

Finally, socialpreneurs should commit to a social goal and never deviate from it. This can be achieved through statutes, treaties or an appropriate legal format.

You might be wondering how socialpreneurs make money? Quite simply, the same as everyone else! Many socialpreneurs thrive on the market success of their products and services. But what if these products and services are designed to benefit the very people who cannot afford them? In these cases, socialpreneurs try to make an impact through donations, public funding or charitable foundations.

If pressed for our definition of a social enterprise, we at Hamburg Alliance for Social Entrepreneurship usually refer to the catalogue of criteria,published by the Berlin Senate Department for Economic Affairs, Energy and Public Enterprise in 2023, the same criteria we use to assess eligibility for membership of Social Entrepreneurship City Hamburg. They are:

What is the social entrepreneurship ecosystem (SEE)?

A simplistic definition would be: Everyone connected to or involved in social entrepreneurship. But who exactly are these individuals? The multiple players involved can be broadly divided into three major groups.

Talents:

We need as many people as possible to help tackle and overcome social challenges. That’s why it is so important to publicise this issue and inspire startups and collaborative partnerships, as well as building expertise among existing social enterprises. How can we reach out to the startups of the future? It’s crucial that we kindle the social entrepreneurship flame in schools and colleges, at events and on platforms. This will help grow the ecosystem.

Support:

Going it alone, whether as a socialpreneur or in any other sphere of life, is tough. That’s why the financial and non-monetary support infrastructure is at the heart of the SEE. Support can take many different forms. Consulting, training and financial support for new and established startups and social enterprise personnel is one. Other forms of support include providing office and storage space, acting as a sparring partner for business development, or countless other forms of assistance. We can all play a part here, including the city council, its funding institutions, charitable foundations, the private sector, universities and incubator / accelerator scheme operators. If you’ve got something that might benefit socialpreneurs (and society) – bring it! In this way, we can make the ecosystem strong.

Market & Impact:

Powerful socialpreneurs need impact-driven markets. In other words, an ecosystem is effective when socialpreneurs are given the opportunity to develop sustainable business models and anchor their social innovations in the system – either by accessing conventional markets or by securing long-term funding to allow the ecosystem to operate effectively.

Of course, these three categories do not exist in isolation, but interact with one another, creating mutually reinforcing connections, interfaces and structures which help the ecosystem as a whole to become more resilient.