Social Entrepreneurship in USA

The US is Lagging the World in Social Entrepreneurship?

There is an often unrecognized truth in the world of social entrepreneurship and innovation, which is that with a few exceptions, the US is lagging many other countries in these areas. Some of the most important social innovations of the last 20 years like the modern microfinance industry have been pioneered overseas, in countries like Bangladesh. The business model that has allowed cell phones to become ubiquitous in poor communities was born in Bangladesh as well.

Innovative ways of using cell phones to help poor communities have also emerged from Kenya, Haiti and Chile. In comparison, the negligible impact of US programs like One Laptop Per Child seem small. Voxiva, A US-based social entrepreneurial firm, offers a complex and proprietary system to gather information from a field which can cost more than $1 million to operate, while a Kenyan firm offers a similar open-source platform that is simple and virtually free.

US Leaders in Social Entrepreneurship

However, there is some hope that the situation of social entrepreneurship in the US is improving. It is estimated that there are now over 30,000 active social entrepreneurs in the country which represent a total of $40 billion in revenue. This growing industry is capturing the attention of venture capitalists like those at the Acumen Fund, which is a nonprofit that invests in companies that try to alleviate poverty.

President Obama has even suggested the creation of a new federal agency to help socially conscious startups gain more access to venture capital. Richard Ludlow is one young social entrepreneur who turned down a lucrative job offer from McKinsey and deferred Harvard Business School in order to start angel investor-backed Academic Earth. This is a site with videos of university lectures and other educational content. His goal in creating the site is to expand access to high quality education for free online and eventually make the for-profit operation sustainable through ad sales and affiliate marketing.

Social Entrepreneurship Organization Helps US Hispanics

Many Hispanic entrepreneurs have started successful businesses in the US with little initial training or education, but many others have struggled to grow their businesses due to a lack of financial resources and training. A social entrepreneurship organization in Durham, North Carolina is trying to help business owners to generate more income for their families and communities. Accion Emprendedora USA aims to help micro-businesses grow in the US Hispanic community.

An organization of the same name was launched in Chile several years ago, and the founder of that group is now partnering with a US business school graduate to expand in the US. The organization provides business classes for entrepreneurs that are taught by business students from a handful of universities, including Duke University. Most of the people that the organization is seeking to help are low-income, and for them getting a job to improve their economic situation is complicated.

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