The language of the social sector is changing. Terms like social enterprise, corporate social responsibility, and social entrepreneurship are being used everywhere, from nonprofit board meetings to business school classrooms. There is a growing momentum in the sector to approach social problems through "entrepreneurism" — essentially a blend of innovation, business-like pragmatism, and relentless passion. The result is a new wave of entrepreneurial organizations that are rapidly scaling sustainable models of social change in creative ways.
 
In the business world, an entrepreneur is someone with the vision and leadership to identify a market need and respond with a new product or service, with the ultimate goal of making a profit from the venture. The same is true of social entrepreneurs, with the key differences being: (1) their work addresses a societal need (e.g., illiteracy); and (2) they primarily measure results in terms of social impact value (e.g., higher literacy rates) as opposed to profitability.

How can a nonprofit be business-minded and entrepreneurial, you ask? Isn't that an oxymoron? Not at all! A common myth has it that nonprofit organizations are run by do-gooders who disdain business practices. This couldn't be further from the truth. There are literally thousands of organizations today that are applying entrepreneurial methods to social causes.

Revolutionizing the Fishing Industry

When you start digging into what is (and isn't) social entrepreneurism, your head may start to spin. One of the most universal definitions of social entrepreneurism is offered by Ashoka, a global association of social entrepreneurs:

"Social entrepreneurs recognize when a part of society is stuck and provide new ways to get it unstuck. They find what is not working, change the system, spread the solution, and persuade entire societies to take new leaps. Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry."

To apply this definition beyond the level of the individual, entrepreneurial organizations working in the social space:

• Develop and deliver powerful models for social change;
• Grow at an ambitious pace;
• Leverage management best practices, borrowing from all sectors;
• Value knowledge highly and take a creative approach to hiring talent;
• Are often incorporated as nonprofits.

For some great examples of some of the nation's leading entrepreneurial nonprofits, take a look at the winners of Fast Company's Social Capitalist Awards or the websites of Ashoka, Echoing Green, New Profit Inc., and Draper Richards.

It's important to point out a distinction between social entrepreneurism and a couple of other trends, namely social enterprise and corporate social responsibility. A social enterprise is typically defined as a nonprofit that generates revenue from a business operation (as opposed to receiving funding from charitable donations) and directs those funds toward a social cause. A few examples are a homeless shelter running a thrift shop or an employment agency that places disabled people into jobs. Corporate social responsibility is defined as a private company making a commitment to behave ethically and improve the quality of life in a community while making a profit. Examples include in-kind product donation programs, "green" business initiatives, and corporate direct giving programs.

Is a Socially Entrepreneurial Organization for You?

There are unique challenges and benefits to working at a socially entrepreneurial organization. Fast-paced, dynamic cultures can result in difficulties around work/life balance and higher burn-out rates. In an entrepreneurial culture, business models and strategic plans can sometimes be implemented hastily and without the required resources or expertise.

For young professionals motivated to work in the social sector, however, such organizations can provide a stimulating and rewarding environment. Collaborative work cultures comprised of like-minded, mission-driven colleagues can inspire personal fulfillment and satisfy one's ambition to make a difference and positively impact society. Other benefits include decent compensation (i.e., typically higher than in more traditional nonprofit organizations and often competitive with compensation in the private sector) and wide-open career paths. Typically flatter hierarchies and small senior management teams often result in steeper career trajectories and earlier access to strategic leadership positions.

In short, opportunities at socially entrepreneurial organizations tend to be a good fit for young professionals eager to think big, roll up their sleeves, and work hard to create impact in creative ways. If you possess that combination of passion, business know-how, and vision, a career at a socially entrepreneurial organization may be just the ticket.