Social entrepreneurship is on the rise
An increasing number of business owners worldwide are making efforts to help charities and causes that they care about.
The innovation-driven nature of entrepreneurship might account for a business owner’s move towards social causes, and many are using this freedom to give back to their communities.
Shoe company TOMS Shoes is one example of a socially-focused brand. This company gives away one pair of shoes for every sale, significantly impacting upon the lack of footwear in other countries.
As well as helping those in need, corporate social responsibility (CSR) has also been proven to increase customer loyalty. A 2013 study by Cone Communications found that 91% of global consumers are likely to switch to brands associated with a good cause, given comparable price and quality.
Another study conducted by Nielsen found that 50% of global consumers will pay more for products and services if part of that payment will be put towards charitable causes.
Karine Nyborg talks more about the effects that CSR can have on businesses. She notes that responsible firms often attract more cooperative and motivated employees, which has a positive effect on overall firm productivity.
It is also important to shape economic policy to encourage entrepreneurship, and allow entrepreneurs to operate flexibly. Alexander S. Kritikos discusses how economies can benefit from giving business owners room to develop innovative ideas.
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