5 Things Every Successful Social Enterprise Knows

A social enterprise (SE) is an organization – either for-profit or nonprofit – committed to a social mission while also following the market-driven approach and financial principles needed to run a sustainable business. In other words, if you’re committed to using your business to do good in your community, you may already be a social entrepreneur.  

Social entrepreneurs face additional challenges and can burn out quickly if they take too much on alone. Successful social entrepreneurs avoid these pitfalls through careful strategy and hard work. 

Here are five things every successful social entrepreneur knows.  

1. A social enterprise is a business. 

An SE is a business based on positive social impact. Social enterprises don't need to be charities or even nonprofits. They can use any business structure, but all SEs are businesses.  

Some globally successful examples of SEs are  

• Better World Books, an online bookseller financing international literacy programs 

• Seventh Generation, an eco-friendly cleaning product manufacturer that donates ten percent of profits to environmental charities 

• Warby Parker, an eyeglass maker that donates a pair of glasses to the needy for every pair of glasses bought.  

Your social enterprise can be much smaller in scale. There is limitless room in the SE space for pioneers with so many groups who need help and so many creative ways to help them.   

A functional social enterprise is not simply a passion project. It must be a sustainable business to help those in need. You may be moved to help underserved or underprivileged populations, but a social enterprise can only make a positive impact if the business itself is successful.  

If you want to help people, but the responsibility of running a business seems overwhelming, consider volunteering or working with a charity. If you simply want to help communities in need, running a business might not be the most direct pathway. A successful social entrepreneur embraces both the business and the mission. 

2. You need a social-enterprise-specific business plan. 

One definition of a social enterprise is a business that puts its mission on par with profit. This goal can make for a more complex business plan. It means you'll likely need to commit to making less profit because of the inherent "give-back" element and additional social-enterprise-specific training or support you may need to provide to your staff. A social-enterprise-specific business plan starts with these ideas.  

You'll need to factor in the potential ramifications on your pricing model, assess your ability to support overhead, and consider the need for specialized human resources support. Put simply – your business plan must address more moving parts.   

3. Stay focused on a single mission. 

Say, for instance, you're a florist who employs only former felons. Maybe your mission is "Providing ex-offenders with economic advancement and dignity through ornamental horticulture." Business is booming, and your flower shops are making way more than anticipated. You love nature, and you've always felt guilty using gas-guzzling flower delivery vans and foam arrangement supplies. You may have the urge to replace them with hybrid vehicles and eco-friendly packaging alternatives. Maybe you can afford the switch, but only barely.  

Despite your good intentions, this plan convolutes your business model and draws focus away from the population you want to help. Expansion on too many fronts can sink even the most successful business.  

Stay focused on your original mission. It might be tempting to tackle more than one cause as you succeed, but your social enterprise can only address one or two things well. Don't worry about all the other good you could be doing. Successful social entrepreneurs know the scale of their business can grow, but the scope of their mission should not.  

4. Avoid burnout by defining roles and boundaries. 

A social entrepreneur might be a natural giver. A generous and kind disposition is almost a requirement, but it's easy to over-commit to the people you serve. You may want to help in every possible way, but you need to define boundaries. For instance, if your mission is to provide socks to the homeless, you can't spend your days finding shelter or running errands for them too. You will always encounter opportunities to help beyond the scope of what you can do while running a business. 

Healthy boundaries are good for you and good for the community you serve. Just as you can lose focus by committing to too many ideas, you can burn out by committing to too many individuals. It may feel more gratifying to help on an individual level, but with a social enterprise, you can help many people. If you focus on the big picture and the long haul, you can do a great deal of good.  

5. You can't do everything yourself. 

Social entrepreneurs don't necessarily come from traditional paths like business school, so you may not have the business connections of a recent graduate. Your business idea may have started in community outreach and service, where the concept of networking might seem like a lofty notion. 

Social entrepreneurs are a scrappy breed who often operate from a do-it-yourself mentality. This framework can be helpful in emergencies, but taking too much on yourself could mean the end of your business.  

A Social enterprise is inherently social. You'll need to utilize every available resource, including people. Even if networking isn't second nature to you, you'll need to connect with investors, other businesses, and your staff. Successful social entrepreneurs rely on their community.   

For other resources, check out your local CDFI. ECDI offers education, financial guidance, legal advice, and more. Social Ventures, SEA change, and Give Back Hack provide invaluable knowledge and resources. 

As a successful social entrepreneur, don’t be ashamed to ask for help in your mission to help others.