Rethinking Business: The Strategic Shift Towards Social Entrepreneurship

In an era where social issues like inequality and environmental degradation are at the forefront of global discourse, the concept of "social" is evolving from a mere buzzword into a strategic imperative for businesses. Social entrepreneurship is emerging as a transformative force, inspiring organizations to pursue positive social impact as a core objective rather than a peripheral concern. This article delves into the essence of social entrepreneurship, its distinction from traditional Corporate Social Responsibility (CSR), and the unique role of the hospitality and tourism sectors in driving this paradigm shift.

What is Social Entrepreneurship in Practice?

Social entrepreneurship is the process of identifying and developing opportunities aimed at creating social value (Bacq & Kickul, 2022). Unlike conventional business models that prioritize profit maximization, social entrepreneurship integrates social missions into the very fabric of its operations. It employs entrepreneurial practices to address deeply rooted social issues, focusing on values such as inclusion, dignity, sustainability, and opportunity.

The key distinction between social entrepreneurship and CSR lies in the embedding of purpose within the business model itself. While CSR often involves philanthropic efforts or initiatives aimed at "giving back," social entrepreneurship is about building businesses that inherently serve social objectives from the outset. This approach challenges the traditional notion of business, urging us to reconsider the tools of commerce and their intended beneficiaries.

Social entrepreneurs measure success through metrics like social return on investment, community engagement, and impact assessments, all while ensuring economic viability. They are not merely businesspeople with a conscience; they are systemic thinkers who act as institutional entrepreneurs, questioning norms and reshaping social ecosystems.

What Makes a Social Entrepreneur?

A social entrepreneur is characterized by intentional innovation, seamlessly weaving profitability with purpose. Scholars like Zahra et al. (2009) categorize social entrepreneurs into three archetypes:

The Bricoleur: Resourceful individuals who work within constraints to create impactful solutions.
The Constructionist: Innovators who design new institutional models that address social challenges.
The Engineer: Visionaries aiming for scalable, systemic change that can transform entire sectors.

These archetypes reflect the strategic mindset and resilience required to drive both social and business transformation.

Hospitality and Tourism as Engines for Positive Impact

The hospitality and tourism sectors are uniquely positioned to lead the charge in social entrepreneurship. These industries are inherently relational, deeply rooted in people, place, and culture. They employ millions, impact local communities, and contribute significantly to global economies. However, they also face scrutiny for issues like labor exploitation, environmental degradation, and cultural commodification. This duality creates fertile ground for social entrepreneurs to innovate.

By rethinking value chains—from sourcing to staffing to guest experiences—hospitality ventures can become catalysts for positive social impact. Several organizations are already paving the way:

Albergo Etico: This initiative empowers workers with disabilities by integrating them into hotel operations.
Tablée des chefs: This organization bridges the gap between food surplus and food insecurity, transforming excess food into meals for those in need.
Reffetorio: This project converts surplus food into nutritious meals for marginalized communities.

These examples are not fringe projects; they serve as blueprints for a more inclusive and regenerative industry.

Characteristics of a Social Entrepreneur in Hospitality

What distinguishes social entrepreneurs in the hospitality sector? They:

Master customer experience, designing services that are inclusive and culturally sensitive.
Embed cultural intelligence and local empowerment into their business models.
Balance profitability with long-term impact metrics, considering economic, environmental, and human factors.

Despite their significant contributions, many impactful ventures remain underfunded or unnoticed by the broader public and policy ecosystems. To address this gap, we have created the Social Entrepreneurship in Hospitality & Tourism Directory, a curated library of businesses, founders, and case studies that are transforming the role of hospitality in society.

A Call for Engagement: Hospitality for Social Impact

It is time to revisit how business is taught, practiced, and measured. While discussions around corporate purpose have gained traction, much of the dialogue remains theoretical or disconnected from real-world applications. Across the hospitality and tourism sectors, social entrepreneurs are already demonstrating what it means to generate both economic value and positive social impact, often with limited visibility or support.

This article marks the launch of a new section on EHL Insights: “Hospitality for Social Impact.” This initiative is more than just a category; it is a commitment to showcase individuals and organizations using hospitality to create positive social change. It serves as a resource for educators, entrepreneurs, investors, students, and anyone interested in exploring what a purpose-driven hospitality industry might look like.

So, What Can You Do?

Explore our curated Directory of social enterprises in hospitality.
Share initiatives from your community to inspire others.
Join the conversation by contributing ideas, stories, or challenges you face. These exchanges can lead to shared solutions.

We believe that hospitality can shape society. With the right tools and intent, it already is.

Sources

Bacq, S., & Kickul, J. R. (2022). Social entrepreneurship. In Oxford Research Encyclopedia of Business and Management.
Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of Business Venturing, 24(5), 519-532.
World Economic Forum (2024, April 18). The State of Social Enterprise 2024. The Global Alliance for Social Entrepreneurship. Retrieved from WEF.
Ashoka (n.d.). Ashoka in few numbers. Retrieved from Ashoka.
Catalyst 2030 (n.d.). Catalysing Change 2022. Retrieved from Catalyst 2030.
Marquis, C. (2024). The Profiteers: How Business Privatizes Profits and Socializes Costs. PublicAffairs. Retrieved from Chris Marquis.

In conclusion, the shift towards social entrepreneurship is not just a trend; it is a necessary evolution in how businesses operate. By embracing this model, the hospitality and tourism sectors can lead the way in creating a more equitable and sustainable world.