Interested in a Career in Social Business? Read This

Featured article by Calvin Paige, Independent Technology Author

The goal of most business endeavors is simple: to make money above and beyond the initial investment. The vast majority of businesses adhere to this simple principle and attempt to achieve both clout and viability by ensuring that the business brings in more money than it spends. Conventional business wisdom would find it difficult to accept a business model that does not earn a profit, but various businesses like do exist. One such type is known as social business, which has a primary goal of affecting change in the world. If you’re interested in a career in business but also want to do social good in the process, then continue reading to find out more.

What Is Social Business?

Simply put, social business is the act of running a company or entity with the intent of achieving select social objectives through its existence. In many respect, a social business operates like a charity, seeking to utilize its existence as a way to perform good deeds in one way or another. Social businesses do not actually turn a profit: the goal is to repay investors what they put into the program and to continue providing a service at a price that results in the business breaking even or expanding its social work.

Many social businesses are smaller-scale affairs, uninterested in taking over the market. Rather, the goal of the social business is to earn what is necessary to survive and perpetuate its original aims. People with backgrounds and degrees in business – everything from MBA Information Technology to Accounting – can be found working and volunteering for these companies.

How Social Businesses Can Do Good

Now that you know what a social business is, what are some of the ways it can be used to do good? One common example is the micro-lending industry. A micro-lenders helps individuals – particularly those in finally difficult situations – obtain small loans for the purpose of opening new businesses or investing in some other way. Micro-lenders offer low interest rates, making it easier for people to pay them back. In the case of a social business involving micro-lending, the interest earned is used to cover any potential defaults and to expand the amount available that can be lent to others.

Not all social businesses must adhere to doing tangible good in their business model. While some will focus on business models that explicitly revolve around social good, other types of social businesses offer standard products and services, but invest profits solely in doing good work. This means that any business – from tax preparation services to for-profit schools offering online MBA programs – can be considered social businesses if their earnings are invested in charitable work.

Now that you have a better idea of what a social business is and what it can do, you may be ready to commit to working for one or starting your own. Social businesses are inherently focused on affecting positive change in the world, whether that be through their efforts directly or through indirect investment. There are downsides to social businesses, but there are disadvantages with every type of business model. It just goes to show that doing good is something that anybody with any career background can achieve.