Social Innovation is a necessary strategy to bring value to entrepreneurship.
Social innovation can be understood as new ideas (products, services and models) that simultaneously satisfy social needs, create value and establish new cooperative relationships. In the context of the work of third sector organisations, social innovation is an important tool that makes it possible to increase the scope and depth of impact of the projects and programmes implemented. However, the contributions from the Social Innovation are going further from the scope of the NGOs. These are a growing number of companies that are changing the fundamentals of areas as diverse as home, housing, food and education through this focus.
And through social innovation, it can add value to ventures by bringing us closer to the reach of social ventures. One must not confuse these terms, for although they are related, they have different meanings. So, it is possible to carry out Social Innovation in other fields, for example through public politics. However, it is the initiative of people in different parts of the world where we can increasingly observe social innovation turning into a differentiated element of more and more proposals.
But how do you apply social innovation to a generation of value propositions? How do you translate this focus into a business proposal? The answer is not so simple, because the scope of social innovation is as broad as the creative vision from which it is analysed. Jovesólides relies on the Escuela Creactiva platform as a place for information exchange, training and tools, but above all as a place where the relevance of social innovation can be made visible. From this perspective and experience, we bring a continuation of four keys to design a social enterprise project that will help any person with motivation to start and excel.
- An accurate diagnosis
Thhe first key is to identify social problematics of our surroundings. Oftentimes the doors for opportunity open very close to us. This is the case of Kuvu,a startup born in Bilbao that connects young people looking for a residence with elderly people who can offer accommodation, thus helping to alleviate the problem of unwanted loneliness in the elderly. Eduardo Fierro, the founder of the company, came up with the idea when he agreed to move in with an elderly person when he moved to another city to save on accommodation costs. There are thousands of stories like this, but in this case there is something very interesting: a similar development had already been carried out by the university, without much leeway. However, Fierro and his team have managed to make the idea much more attractive by introducing remuneration for seniors and targeting the service at a younger audience. The lesson to be learned is not only that the best ideas come from our immediate surroundings, but that sometimes it is enough to improve existing proposals.
- Key choice: the business model
Another interesting success story is the insertion company Ellas lo bordan. The company runs sewing courses for women at risk of exclusion and distributes its products through its extensive network of collaborators and website. This enterprise achieves a social impact by providing women in precarious situations with technical training geared towards learning a trade and strengthening their cross-cutting skills to promote their social and professional integration. In this case, the social innovation approach has to do not only with the idea behind the project, but also with the choice of organisational model: an employment agency. This model allows for greater social projection and provides access to important tax benefits that favour the sustainability of the business. From this success story we can learn that anyone planning a social-innovative approach to their entrepreneurship needs to familiarise themselves with the Social Economy Regulation, as the choice of organisational form can determine the viability of the project. It is fundamental to make the most of all the available opportunities.
- Social purpose as a business focus
Finally, the case of Auara, a company that sells bottled water with a strong social commitment, is worth mentioning. This initiative has achieved great impact and recognition because of its commitment: 100% of the dividends go to projects for safe access to water in impoverished countries. In this case, we see how the social innovation approach is not applied to the business model, which is quite traditional, but to the social purpose of the organisation. This has enabled Auara to differentiate itself and enter a market dominated by large companies against whom it is not easy to compete on cost. This is a clear example of how a proposal focused on social added value can enable a niche to be filled in a traditional market.
- Alliances and support to consolidate entrepreneurship
Finally, there is one last lesson to be learned from the social innovation approach: the fact that it provides access to a wide range of funding opportunities. There are many specific public and private instruments that reward social innovation as a tool for change. In the context of the latter, it is common for large companies in the financial sector to have foundations, prizes and competitions that can facilitate the launch of an innovative business with social value and should not be forgotten when drawing up a business plan. Building strategic alliances with these groups can make all the difference in launching the business, one of the most difficult milestones for any entrepreneur.
