What is Social Entrepreneurship?

What is Social Entrepreneurship? -
There are many definitions of entrepreneurship expressed experts, one of whom is Peter Drucker, who stated that entrepreneurship is an activity carried out in order to consistently convert good ideas into creative and lucrative business activities.

In the middle of the high social inequality, poverty and inequality of wealth, yet it takes the role of a new idea in the field and entrepreneurship to reduce social problems. One of the solutions that can be selected are developing social entrepreneurship or social entrepreneurship.

The notion of social entrepreneurship is also very diverse. In essence, social entrepreneurship is the ability to understand the social problems by using entrepreneurial skills to do social change (social change), mainly covering the field of welfare (welfare), education and health (Santosa, 2007).

Social Entrepreneurship
Social entrepreneurship entrepreneurship is very different that often we encounter, namely commercial entrepreneurship. The tendency of commercial entrepreneurship is to measure the success of past financial performance and certain materials, whereas social entrepreneurship is not the case, its success is measured through the extent of the benefits that can be felt by the community and able to make social change in a positive direction.

Another difference lies in the mechanisms being used. On commercial entrepreneurship, the mechanism works is trying to understand the market in order to provide products and services as well as profit for the entrepreneur. Whereas mechanisms on social entrepreneurship is empowering disadvantaged communities have the opportunity to achieve a level of well-being.

Indeed, the initial concept of social entrepreneurship is more directed at empowerment in the areas of development that is voluntary (voluntary). Practice is often done in the form of social institutions, such as foundations, orphanages, educational or other donation paguyuban. So, social entrepreneurship is not emphasized in an attempt to generate profit but rather non-profit. If there is a profit, rather than being the primary purpose of social entrepreneurship, because it is primarily for the benefit of social empowerment.

Bangladesh is an example of successful countries developing social entrepreneurship, and countless successful empowering communities less fortunate. The success of Bangladesh is inseparable from the role of Dr. Muhammad Yunus, founder of Grameen Bank. Social entrepreneurship being developed by Yunus enshrined a sense of concern over the social conditions of his country.

Jonah saw a reluctance initially from formal financial institutions such as banks to channel loans to the poor. So, the bank assesses the poor is not a target of the main shoot and for potential clients. So, Jonah is a breakthrough for summing up the need to cut the circle of poverty. Yunus believes that poverty was created not because of laziness and ignorance, but because of fundamental problems in the system (structural poverty), namely the absence of capital.

On the other hand, if the poor wanted to ask lending to formal financial institutions, often stuck on collateral issues. Finally, Jonah also founded the social entrepreneurship in the form of banking that is ready to supply credit for poor citizens with guarantees worth more than any collateral, i.e. "social capital."

Social capital, among others, self-esteem, community control mechanisms for social, kinship, existence, gotong royong to potential, and hard work. Grameen Bank has managed to prove that social capital is the main force to empower communities. It can be seen from the results of his work, with social capital Grameen Bank managed to make 54% its customers away and leaving the poverty line. While 27% would still be around the poverty line, 16% in the development process and the remaining 3% stated failed due to certain factors (Sharif, 2006).

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