[[traditional entrepreneurship|Traditional entrepreneurship]] and [[social entrepreneurship]] are both drivers of innovation and economic development, but they have distinct goals and approaches. Here are the key differences between the two: 1. **Primary Objective:** - **Traditional Entrepreneurship:** The main goal is to generate profit and build wealth for the owners or shareholders. Success is typically measured by financial performance, such as revenue growth, profitability, and return on investment. - **Social Entrepreneurship:** The primary aim is to address social, environmental, or cultural issues. While financial sustainability is important, success is primarily measured by the impact on society or the environment. 2. **Value Proposition:** - **Traditional Entrepreneurship:** Focuses on creating value for customers through products or services that meet consumer demands or solve specific problems. - **Social Entrepreneurship:** Offers solutions that create social value by addressing unmet needs in society, often prioritizing mission over market demand. 3. **Impact Measurement:** - **Traditional Entrepreneurship:** Impact is usually measured in terms of financial metrics like profit margins, market share, and shareholder value. - **Social Entrepreneurship:** Impact is assessed based on social metrics such as lives improved, environmental benefits achieved, or community development milestones reached. 4. **Funding Sources:** - **Traditional Entrepreneurship:** Typically funded through private investments, venture capital, loans, or public offerings focused on financial returns. - **Social Entrepreneurship:** May rely on a mix of funding sources including grants, donations, impact investors who seek both social and financial returns, and sometimes traditional investment if aligned with social goals. 5. **Stakeholder Engagement:** - **Traditional Entrepreneurship:** Primarily accountable to shareholders and investors with a focus on maximizing their returns. - **Social Entrepreneurship:** Engages a broader range of stakeholders including beneficiaries of the social mission, donors, community members, and often prioritizes stakeholder interests over pure profit. 6. **Business Models:** - **Traditional Entrepreneurship:** Business models are typically designed to maximize profitability through competitive strategies in the marketplace. - **Social Entrepreneurship:** Business models often incorporate innovative approaches to ensure that operations are sustainable while achieving their mission-driven goals. 7. **Organizational Structure:** - **Traditional Entrepreneurship:** Usually structured as for-profit entities like corporations or limited liability companies. - **Social Entrepreneurship:** Can take various forms including non-profits, for-profits with a strong mission focus (such as B Corporations), cooperatives, or hybrid models that blend elements of both sectors. These differences highlight how traditional entrepreneurs prioritize economic gain while social entrepreneurs prioritize societal impact alongside economic considerations. Both types play essential roles in fostering innovation and addressing diverse needs within society. Back to [[Key Concepts on EITT]]