Become a Social Entrepreneur (Commonly a Non-Profit)

Become a Social Entrepreneur
(Commonly a Non-Profit)
You can start a business by becoming a social entrepreneur. A social entrepreneur recognizes a
social problem and uses entrepreneurial skills and traits to start a business that will address the
social problem and make a significant change. Success for the social entrepreneur is measured by
the impact they have on society as opposed to financial measures.
Your vehicle as a social entrepreneur will most likely be a non-profit organization. Social
entrepreneurship is becoming so popular that a growing number of colleges and universities are
establishing programs focused on educating and training social entrepreneurs.
Creating a non-profit organization is like creating a for-profit business. Just as you would do
when creating a for-profit company, you will need to do some extensive planning before you start
filing incorporation papers and applying for your tax exemption from the Internal Revenue
Services. Running a non-profit organization will take more that just compassion. Much like
starting a for-profit entity, you will have to conduct research and ask yourself several questions.
What non-profit am I interested in starting? What products and/or services will be offered through
my organization?
What needs will my organization fulfill in the community? Who currently provides similar
services in the community (competition)? What competitive advantages do I have over existing
non-profit organizations? What will I do to create demand for my organization and sustain
operations?
As you would need to start a for-profit business, you will need start-up finances. The capital will
enable you meet your start up expenses as well as help you to obtain professional services such as
legal and accounting. You will want to seek legal assistance to incorporate into a non-profit
entity. The professional you use will also help you draft a set of corporate bylaws, which will
serve as the procedure that the Board of Directors, and possibly the members of the corporation,
will utilize to make decisions on behalf of the corporation. Once you have drafted you bylaws,
you will hold an organizational meeting to formally create the non-profit corporation. At this
meeting the bylaws should be adopted, the Board of Directors should be elected, and all other
relevant business should be conducted.
Before developing your non-profit organization, ask yourself the following questions. Do I have
the necessary skills and experience to operate a non-profit organization? What managerial and
financial resources do I have access to? Who will make up my Board of Directors? Where will I
locate my organization? What position will I hold in the organization and how will I be
compensated? The answers to these questions will help you create an operational plan that will
serve as a blueprint for running a successful non-profit organization.
Tech Tip
Examples of Social Entrepreneurs
Below are examples of successful social entrepreneurs:
1. Margarita Quihuis, Hispanic-Net
http://www.hispanic-net.org
2. Muhammad Yunus, Grameen Bank
http://www.grameen-info.org
3. Margaret Sanger, Planned Parenthood Federation of America
http://www.plannedparenthood.org
4. Vikram Akula, SKS Microfinance
http://www.sksindia.com
5. John Muir, The Sierra Club
http://www.sierraclub.org