Social entrepreneurship is very close to any other type of business. Such companies take a special care of their clients, search for opportunities to implement it, act within their limited resources, and seek innovation. Naturally, social enterprises also aim at earning income and paying salaries to their workers. Even non-profit organizations do it. The difference lies in clearly-shaped social goal, the core mission of a social company. Think of Muhammad Yunus and his Grameen Bank. The primary aim of microloans was supporting the poorest social classes of Bangladesh, not earning revenue on interests.
Social enterprise is a business-like organization focused on social benefits. Years ago, people who aimed at providing social benefits did it in form of charities that were not always effective. Today we understand that a social service is a business as well and it must uphold business standards to grow and perform its functions. Financial discipline, efficient operations, sound strategy, and effective planning made nonprofits revise their altruistic goals. The task of social enterprises, however, is not easy at all. They must uphold their high social values and earn basic income to keep the business alive at a time.
Social entrepreneurs support a positive social change but they do it in a clever way. Microfinance institutions, education programs, and services for economically vulnerable social classes always search for ways to cover more of their target group. They think strategically and look for ways to earn enough money to be useful to those who cannot pay. Social businesses have huge future prospects as their target sector is enormous in many countries.
Online entrepreneurship is not as risky as it was a decade ago. The internet is close both to owners and clients so everyone can achieve their goals.Creating a web-based service or product, you still have to put in a lot of money, time, and efforts in the venture. You also need to know much about finance, marketing, and human resources to run your online business. Or perhaps you need partners who know such things better than you do. Despite any difficulties, there is a great room for doing business online.
In this vast and complicated digital world, hundreds of marketing consultants emerge. Today is the best time ever to start a business that would teach others to do business. People gather a team of marketing experts, analysts, designers, and copywriters who would help to turn any startup into a respectable business. If you have enough expertise in digital marketing, it is high time to start a digital agency.
With the expansion of online shopping, everyone is concerned about delivery. Transportation is either weak or expensive, especially for people that place orders on foreign websites. Developing a safe and fast delivery service will make online shopping easier for many people. Some companies have already grasped the idea of delivery by drones, and there is a huge prospect in this direction.
The internet is the right place to provide education. Large educational websites already offer courses from top-level universities for a reasonable price. Taking into account a crowd of graduates who strive to enter the college, one can benefit from providing quality education for a price that does not require taking a loan.
Investing is a serious question for an entrepreneur as it directly determines whether the venture is possible to implement of or not. There are various sources of funding. First, an entrepreneur can use their own capital or partially borrow from their family. Next, they can take a bank loan. People can also find a wealthy co-owner or a rich investor to raise their venture. And last, business owners can refer to crowdfunding.
Crowdfunding happens when a number of small investors finance an emerging business project. If the entrepreneur wants collective financing for their business, they search for investors on social media or use crowdfunding websites. In the US, the pool of potential investors is regulated. By this, unsophisticated investors without a considerable wealth are protected from putting too much money into the venture. New businesses often fail so that small investors risk losing their money in the venture.
Having no big investors at hand, entrepreneurs can raise hundreds of thousands or millions of dollars through crowdfunding. Kickstarter and Indiegogo are the major websites that attract thousands of small investors to fund million-dollar startups. In 2015, a company that developed a cheaper alternative toApple watch got $20 million on Kickstarter. Small investors surely like to put their money into projects that look successful, but even some small and amusing ventures can receive funding from online investors.
Investors get their benefits from crowdfunding. In a reward-based project, they participate and receive a gift from the company. For example, gamers eagerly invest in new video games and get copies of these games for their participation. Equity-based crowdfunding allows investors to get an equity position in the venture, and there is no need for entrepreneurs to give all the control to capital investors.
Entrepreneurs technological novelty yet before it settled in every household. Automation of lines allowed 20th-century factories multiply their production and cut costs on manufacturing. As technology reached every single customer, its importance for businesses skyrocketed. Today we have online entrepreneurship solely based on the web. Businesses offering non-digital products cannot get started without the internet either. To escape digital marketing is to run a dull business with few customers.
Modern technology is more than a productivity booster; we use it for multiple purposes in business. Communication is the first one. Smartphones staffed with apps instantly connect users with service providers. Companies can easily reach existing clients through email, text messaging, or social networks. We have no faster tool for communication than the internet so far.
The next call for technology is marketing. Businesses create their own website and put banners and links within the partnering sites. With Google and social networks, online advertising is precisely targeted and highly efficient. We cannot reach such a quality of promotion with leaflets and printed press.
Technology allows entrepreneurs to provide timely and efficient customer service. A good company offers a variety of ways to contact them. Call center, online chat, emails, and more let customers solve problems right away and contact support teams.
Consumers get multiple benefits from tech-savvy companies, but businesses also improve their corporate life through the web. Telecommuting allows employers to work everywhere, and cloud services let owners safely store their information without the fear of losing it. Digital technologies make accounting, advertising, and other activities much faster. Companies can optimize merely using the latest systems and installing updates regularly.
Looking at the happy faces of world-famous entrepreneurs, we do not think about the losses they bore on the way to success. These are technical obstacles and strategic failures that often cost thousands of dollars and years of implementation. Every entrepreneur thinks that they will not fail like the others but they eventually do and get wiser as they restart after a failure. Here are a few typical obstacles that entrepreneurs typically run into on their way to success.
First, entrepreneurs never ask their clients. Hiten Shah, the co-founder of KISSmetrics, once spent $1,000,000 on a perfect web-hosting company without understanding what their customers really wanted. They did not understand the market of users. Sandi MacPherson, the editor-in-chief of Quibb, created the product without being an expert in it, which failed her.
Second, they try to do everything by themselves. Leo Laporte, the founder of the TwiT network, believed that he could do well without a co-founder in the media business while he did not know anything about finance, marketing, advertising, and human resources.
Third, people lose control over their funding. Michael Hyatt, the best-selling author, stimulated the growth of his business and borrowed money for it. As the bubble busted, Hyatt appeared to have spent the capital he never had.
Fourth, entrepreneurs try to cover several startups at a time. Dharmesh Shah, the co-founder of HubSpot, once abandoned his team. He attempted to create a new startup as he felt bored by the old one. Shah failed to ride two horses at the same time.
And last, some owners put their interests over those of their users. Noah Kagan, the founder of AppSumo, once wasted his career on Facebook as he wanted more attention to himself, not to the business. As Kagan was fired, he learned how to get famous through doing amazing work.