Important
04.02.2021

Social business: what do social entrepreneurs do?

A new term is popping up in the socially oriented business world: social business. But what is it?

What is an NGO, what is an NPO, what is a non-profit organization? We have already tried to shed some light on this in our article on the definition of NGOs - and it's not easy. Distinctions are not always clear and distinct, and there are hardly any precise, scientifically based definitions.

For several years now, however, there has been another term in the tangle of non-profit and social organizations: The so-called social business. What is it all about?

What is a social business?

A social business could be translated into German as "Sozialunternehmen" or "social enterprise". It refers to a company that aims to solve social or ecological problems. The main objective of social business is therefore social, with economic interests being subordinate. Nevertheless, a social business is basically a profit-making company. It is therefore largely self-financing.

Is a social business an NGO?

There is no separate legal form for social businesses in Austria, so this question is not so easy to answer. Social enterprises could be seen as a hybrid between a non-profit organization and a for-profit company. In 2015, the first major study on social businesses in Austria was initiated by WU Vienna and AWS (Austria Wirtschaftsservice). The results of the study on social businesses are well worth reading and can be found on futurezone.

What well-known social enterprises are there in Austria?

There are now many examples of successful social businesses. According to secondary data, there were between 1,200 and 2,000 of these organizations in Austria in 2015, and the number could double to tenfold by 2025.1 So there is great potential here - and many exciting opportunities for the job seekers among you!

The umbrella brand magdas from Caritas (or Caritas Services GmbH) successfully implements social business projects, such as the well-known magdas HOTEL in the 2nd district. Sindbad 's mentoring system(NGO portrait of Sindbad) and Three Coins, the development center for financial literacy(NGO portrait of Three Coins), are also successful social enterprises.

Who will support me in setting up a social enterprise?

The study on social enterprises (2015) has shown that it is not possible to get started without start-up support. Fortunately, the range of funding and support available to people starting a business to solve social problems has greatly improved in recent years. Social entrepreneurs can find advice and support from the following agencies and institutions:

Social Startup Magazine

This platform aims to make social businesses better known throughout the German-speaking world. You can get to know numerous successful social enterprises here, sorted according to areas of activity. Information on funding applications and opportunities can also be found here.

AUSTRIA

Social Entrepreneurship Network Austria - SENA

The association Social Entrepreneurship Network Austria - SENA is an interest group for all those who own a social business. It offers personal advice, workshops and networking opportunities with investors. There are also monthly community events where you can get in touch with other social entrepreneurs.

Social City Wien - platform for social innovation

Networking platform for innovative projects. Anyone looking for a co-working space, advice or a suitable professional network may find what they are looking for here.

Social Impact Award

The SIA is a competition for student social entrepreneurs and is celebrating its tenth birthday in 2019! Budding social entrepreneurs are supported in the development and implementation of their innovative ideas.

Impact Hub Vienna

THE hotspot for social entrepreneurs. There are networking events, pitches and events where you can get to know co-founders. The socially engaged community meets here!

aws Social Business Call

The Ministry of Social Affairs supports innovative social enterprises with a grant of up to €100,000. Information on submission and the funding guidelines can be found on the website of the aws (austria wirtschaftsservice).

GERMANY

Social Entrepreneurship Network Germany

An important contact point for all social entrepreneurs in Germany who want to network in the sector.

Munich Startup

Important platform for all start-ups from Munich and the surrounding area! Events, contacts, stories from the Munich start-up scene can be found here, including information for social entrepreneurs.


Links

Exciting reading tip "Social Business: Start-ups with heart need start-up help" (futurezone, 2015)

Current, thoroughly critical examination of social enterprises: "Die System-Tüftler" (zeit.de, 2019)

Social business from the perspective of the Ministry of Social Affairs.


Sources

1: Study on social businesses from 2015

This article is constantly updated