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5 Ultimate Social Entrepreneurship Strategies for Business Startups

Computer science graduate with a passion for web development and digital marketing. She's a talented blogger.

Posted 2 years ago on March 3rd, 2021. Last modified on July 17th, 2021

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Millennials and Gen Y are the most socially responsible generations. Their zeal for social responsibility reflects in their penchant to start social enterprises for the good of society and the environment.

Today, the corporate world is changing, and business startups are doing commendable services for the benefit of people. So how does one go about starting a social enterprise?

If you are wondering what these strategies are, read below:

Take Initiatives for Corporate Social Responsibility

Some startups have a flexible management system. Therefore, they easily work on multiple CSR projects and then terminate the ones that do not suit them. On the other hand, startups with a lower budget select a single social cause and align their operations accordingly.

Additionally, some companies work in a socially responsible manner. Thus, there are several options for business startups. Let us highlight some common ones:

Ethical Management

  • Extra benefits for customers who are working as nurses, teachers, military workers, etc.
  • Giving a wage that is at least sufficient for a living
  • Respecting employees religious responsibilities and giving suitable leaves
  • Hiring diversified workforce
  • Respect for every gender in the workplace

Environmental Responsibility

  • Using environment-friendly office supplies (supplies that can be recycled)
  • Encouraging the use of hybrid and electric automobiles
  • Facilitating workers with public transport tickets


  • Funding political campaigns
  • Giving educational scholarships
  • Helping the nonprofits

The legal advisor must view the company’s CSR policy. Moreover, compliance with federal and state laws is imperative. For instance, in many countries, corporations are not legally allowed to fund political campaigns, whereas entrepreneurs and partners can.

Highlight the CSR Mission in Company’s Documents

Another strategy is the addition of a CSR mission statement in your LLC’s articles. The higher authorities must make sure that every worker is working as per these mandatory policies.

However, these articles can be easily modified in the future. This modification is useful in attracting new investors. When investors notice that the startup has a strong motive for CSR, they will love to contribute.

Thus, adding the mission of CSR in the operating documents show the seriousness of this issue. This means that the company will always work in compliance with the CSR mission.

Work as a Benefit Corporation

Generally, shareholders keep an eye on the company’s overall revenue. Their prime motive is their profit. However, directors of corporations have legal rights to indulge in the lawful purpose. Unfortunately, this is not appreciated by the shareholders as it hits their profits.

As a solution, you can run the business as a benefit corporation. These corporations can easily handle the conflicts between shareholders and management. Following are some of the common goals of a benefit corporation:

  • Assisting low-income people with facilities and benefits
  • Highlighting working opportunities for the community and individuals
  • Preserving the nature
  • Contributing to good human health
  • Supporting awareness campaigns regarding community issues
  • Increasing capital flow for the benefit of the community

Difference Between Traditional and Benefit Corporation

Even if your business startup is completely profit-based, working as a benefit corporation will create your goodwill. Since these corporations are accountable for their actions and impact on society, they create a long-term relationship with shareholders.

Unlike traditional corporations, where only a few stakeholders are part of the decision-making process, a benefit corporation is different. Here, all stakeholders are invited to share their points of view. This helps in building their confidence in the company.

As far as the incorporation is concerned, both types of corporations need to file the articles of incorporation. However, the benefit corporation must highlight a statement related to the environment and social cause.

Many religious-based companies work as benefit corporations. For instance, 30% of the income generated from the company’s Islamic finder app may be contributed to a social cause.

Get "B Corp" Certification

Using the term “B Corp” for every other benefit corporation is incorrect. This term can only be used for those companies that are legally certified as benefit corporations. For this, you need to get the certification from the nonprofit B Lab.

However, your company’s overall goals will be analyzed before the certification. The authorities will notice your social and environmental mission. What is your business objective? Which product/service are you dealing in?

How are you utilizing the profits, and what is its social impact. Furthermore, the impact on workers, the community, and society is always given priority.

This certification will also help in the marketing campaigns of the business. Consumers will be delighted to purchase from a company working for social causes. Similarly, investors will be willing to invest.

Build a Nonprofit Organization

You can start a nonprofit organization with any of these missions:

  • Sports
  • Children and animal rights
  • Religion
  • Education
  • Public safety
  • Charity

These missions may sound similar to the benefit corporation goals. However, there is a major difference. Since the ultimate aim of nonprofit organizations is to work for the mission, they cannot use the sales for profit or personal gain.

Therefore, all income is used for the achievement of the company’s mission. Additionally, many nonprofit firms are free from tax. However, in some countries, entrepreneurs and partnerships are obliged to pay the tax even if they are working as non –profits.

Therefore, if you want to step inside the nonprofits, clearly understand the laws and regulations of the country. This will help you in getting more donors and helping more people.

Wrapping It Up

In short, if you are planning for a business startup, social entrepreneurship strategies are a great way to make you stand out. You can use one or a few of the strategies like taking steps for the CSR and mentioning the CSR mission in the documents.

Similarly, working as a benefit corporation and getting certified as a “B Corp” are other useful tactics. You can also start a nonprofit organization. No matter which approach you opt for, always do comprehensive research beforehand.

About the Author: Myrah Abrar is a computer science graduate with a passion for web development and digital marketing. She writes blog articles for Muslim & Quran.