The paper "What Are the Benefits of Social Entrepreneurship" is an outstanding example of a business assignment. Social entrepreneurship is a form of business foundation that is majorly based on the improvement of the lives of the destitute in society through economic empowerment. In essence, it seeks to provide jobs for the impoverished in society, especially women and young men living in the middle or low class in today’ s world. Apart from providing job opportunities to the society, it also places particular emphasis on developing some of the social structures in the society particularly the health services, education, and religious institutions.
The ultimate goal achieved by social entrepreneurship is the improvement of the social lives of poor people. An in-depth analysis provided concerning Aarong, a model house giant established to help women in Bangladesh by providing numerous economic empowerment activities. Established as a branch of Bangladesh Rehabilitation Association committee BRAC in 1978 by the Abed family, Aarong has surpassed major bounds to be recognized across the world. Starting with a small number of design shops made up by the local women, it today boasts of having numerous branches worldwide.
Profits made from the sale of the designer fashion clothes proceed towards the BRAC while the other half continuously help in the empowerment of other women. However, the company has not had smooth sailing from its beginning and has managed to overcome many challenges. Current challenges involve entry of other competitors from countries such as India, who are producing such products at a cheaper manufacturing rate. Furthermore, the entry of e-commerce in the market by stakeholders with deeper financial pockets has proved to be a tall order to climb for Aarong Company.
Aarong established a one-stop shopping center, a facility easily affordable for deeper pockets. Fundamental concepts are discussed below, including the future prospects of the Aarong and key concepts involved in social entrepreneurship. Question 1: What are the benefits of social entrepreneurship? Social entrepreneurship is built on three economic pillars, including empowerment of the community, trade and reinvesting in business operations (Trivedi 2010). The benefits acquired from social entrepreneurship can be categorized as entrepreneur specific or society specific with the latter focusing more on the society while the former has more emphasis on an individual basis.
Organizations involved in social entrepreneurship find it easier to raise capital since they put more emphasis on assisting society. Huge incentives and support come to such an organization, and they have an ability to raise capital even at below-market rates. A perfect example is in the establishment of BRAC. It received enormous amounts of supports and funding from an international agency referred to as Oxfam limited in its initial stages of establishment. Promotion and marketing are much easier in social entrepreneurship compared to other modes of entrepreneurship.
High advertising and marketing exist because such companies tackle problems associated with social justice such as empowerment. As seen in the Aarong model, the organization readily identifies with the needs of the people, and as a result, there is a high acceptance in the market. Both independent and dependent fashion designers come to Aarong to be assisted with the marketing of their goods. Additionally, since Aarongis widely accepted in Bangladesh, it readily establishes itself in the market getting more promotional advertising as compared to other companies (Wade n. d).
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