Entrepreneurs serve as societal problem solvers, generating cash by providing solutions to market inadequacies. Anxious people are inspired to start businesses for a variety of reasons, including economic, sociological, and political considerations. A variety of challenges encourage an individual to pursue a career in social entrepreneurship. An individual with shoemaking experience may choose to start a shoemaking business in areas where footwear is scarce. Stirzaker et al. (2021) argue that entrepreneurs profit from their businesses while also providing a solution to society’s concerns through increased safety measures.
Entrepreneur B expresses his serious concern about the current condition of affairs among the public. The established societal members had financial security and the resources to support any initiative performed by the society. They, like him, were unable to recognize the gravity of the situation and its implications for society; instead, they were focused on expanding their livelihoods. Individuals in society want to see it grow, thus entrepreneurial initiatives should focus on supporting individual improvement (Esteves et al., 2021). Society advances as a result of actions aimed at societal development; the availability of resources, as well as the building of hospitals and schools, are just a few of the benefits that society can expect from investment activity.
The entrepreneur intended to be a part of the movement that promotes societal development and individual well-being by providing employment possibilities. Employment leads to the reduction of unemployment rates in society. A decrease in unemployment rates is an efficient way to combat criminal activity and other illegal activities in society (Malhotra, 2023). Employment leads to an equal allocation of income among individuals, increasing purchasing power and promoting social welfare within the society. The recipients would have better access to housing and healthcare services, which will benefit their families.
Opportunity Identification
The entrepreneur grew up in a society plagued by almost every adversity; the majority of its members were farmers seeking funds to further their agricultural ventures and companies. The farmers have difficulty obtaining financial resources due to agriculture’s underrepresentation in the region. It encouraged him to return to the area and set up a Sacco to help the residents. McQuaid et al. (2021) state that society sought a means to increase its information-based investments. Furthermore, he discovered that the producers lacked awareness of market trends, limiting their capacity to effectively promote their products. Understanding the rule of demand and supply helps to keep product prices stable and achieve the expected results.
Opportunity Evaluation
Entrepreneur A observed that the farmers were deficient in knowledge regarding the most effective methods to diversify their agricultural operations. Due to disruptions in the product production schedule, the producers continued with their routine tasks. Entrepreneur B harboured an interest in the community healthcare services industry. The individual observed that members of society were undertaking extensive journeys to obtain medical services. Pregnant women encountered difficulties in the delivery process and obtaining immunization services.
In both instances, the entrepreneurs recognized that society was veering off course and recognized the urgent need to bridge the divide and provide the people with optimism. According to Islam et al. (2023), participation in these activities facilitates the introduction of new opportunities and investments into society. Investors’ inclination to align themselves with a particular society is contingent upon the provision of essential services.
Startup Challenges
Entrepreneur A encountered several obstacles during the early phases of idea development; the available capital for financing the venture was insufficient to achieve the desired level of funding. The succinct operation of the Sacco necessitates a substantial amount of liquid capital. As recommended by Anton et al. (2020), increased current assets ensure a business’s ability to satisfy immediate cash requirements as they arise. The entrepreneurs encountered the difficulty of creating products for members to utilize and purchase, to sustain the Sacco through revenue generation.
According to Shkeily et al. (2021), Saccos should depend on interest income derived from the sale of products to their members, as this contributes to the organization’s expansion. Labour division and separation of duties are essential to achieving a higher level of seamless efficiency within an organization. Given that the majority of the members are less knowledgeable about academic affairs, it was prudent to take their level of education into account.
Entrepreneur B possessed extensive medical expertise, specialising in advanced medical diagnostics and treatment. The individual encountered the predicament of determining the optimal site for the hospital due to the expansive nature of the region requiring medical attention. Additional considerations included the availability of potable water and electrical power. For the protection of their patients, hospitals must have access to potable water (Mohiuddin, 2023). Power supply facilitates the operation of sophisticated medical apparatus; power outages can halt the entirety of a surgical procedure or examination.
The hospital’s access to financial resources may be facilitated by donor contributions from the diverse nations supporting health initiatives across the globe. While the majority of trained health practitioners are interested in working in urban centres, they are unwilling to migrate to the countryside. The hospital encountered difficulty in obtaining the necessary competent personnel using hospital administration. The presence of resources within a society facilitates the promotion, spearheading, and implementation of individuals’ ideas into full-time employment opportunities.
Proposed Solutions
Proprietor A determined that mandating weekly deposits from members was the most effective method for augmenting the capital base of the Sacco. The deposits will contribute to Sacco’s financial stability, enabling it to further its objectives, while also increasing the percentage of shares held by its members. Regarding the lending of funds to members, the determining factor will be the proportion of the member’s share (Doyle, 2020). In addition, he decided to form partnerships with other reputable financial institutions; these institutions would be responsible for providing the farmers with the necessary instruments and supplements.
The Sacco shall make the payment on the farmers’ behalf, with the remaining balance due in instalments to the cultivators. Entrepreneur B discerned that the most advantageous location for the hospital would be near an electricity supply and a centrally located area. Standard servant quarters were constructed by the proprietor to attract and retain highly qualified professionals. Farmers who receive financial support from external donor organizations are inclined to offer their assistance by delivering medical supplies. The implementation of a water treatment facility on-site enables the medical facility to efficiently obtain potable water.
The distribution of potable water by the management would ensure that the local populace always had access to potable water. The hospital’s sewage treatment facility shall be financed by donor contributions from a variety of companies whose inception is supervised. The facility will aid in the regulation of hazardous material disposal into the environment. According to Allui and Pinto (2022), it is advisable for organizations to actively participate in corporate social responsibility to enhance their reputation and foster harmonious coexistence.
References
Allui, A., & Pinto, L. (2022). Non-financial benefits of corporate social responsibility to Saudi companies. Sustainability, 14(6), 3446.
Anton, S. G., & Afloarei Nucu, A. E. (2020). The impact of working capital management on firm profitability: Empirical evidence from the Polish listed firms. Journal of risk and financial management, 14(1), 9.
https://www.futurize.studio/blog/social-entrepreneurship-examples-and-how-to-set-up-a-social-enterprise
Doyle, G. (2020). Social Enterprise and Sustainability: Key factors that lead to the successful establishment of sustainable development initiatives in Ireland.
Esteves, A. M., Genus, A., Henfrey, T., Penha‐Lopes, G., & East, M. (2021). Sustainable entrepreneurship and the Sustainable Development Goals: Community‐led initiatives, the social solidarity economy and commons ecologies. Business Strategy and the Environment, 30(3), 1423-1435.
Islam, S. M., & Rahman, A. (2023). Impact Investment Deal Flow and Sustainable Development Goals: “Mind the gap?”. Accounting & Finance.
Malhotra, N. (2023). Role of Government to Ensure Economic and Social Welfare. In Microfinance and Development in Emerging Economies: An Alternative Financial Model for Advancing the SDGs (pp. 161-188). Emerald Publishing Limited.
McQuaid, S., Kooijman, E. D., Rhodes, M. L., & Cannon, S. M. (2021). Innovating with nature: factors influencing the success of nature-based enterprises. Sustainability, 13(22), 12488.
Mohiuddin, M., Reza, M. N. H., Hosseini, E., Ed-Dafali, S., & Choudhry, T. (2023). Entrepreneurship: New Insights. BoD–Books on Demand.
Stirzaker, R., Galloway, L., Muhonen, J., & Christopoulos, D. (2021). The drivers of social entrepreneurship: agency, context, compassion and opportunism. International Journal of Entrepreneurial Behavior & Research, 27(6), 1381-1402.
Shkeily, H., & Abdullah, N. (2021). The critical determinants of SACCOs growth in Tanzania Zanzibar.
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