Social and eco-entrepreneurship use entrepreneurial principles in order to create outcomes for people and the planet in general. Business entrepreneurs and social and eco-entrepreneurs differ greatly. An entrepreneur is an individual who creates value out of individual willingness to take on a risk and pursue an opportunity (Schaper, 2010). The difference between the two categories of entrepreneurs comes from the motivation factor. A business entrepreneur evaluates the performance of the business by the financial profits he or she accrues from it. On the contrary, social and eco-entrepreneurs focus on the use of a viable business idea to create social or environmental returns, apart from the accumulation of financial profits (Petit & Gates, 2010). Thus, it would be correct to state that social and eco-entrepreneurs are the means through which capitalist economies will transit to a sustainable way of doing business. Capitalism is an economic system where production systems are under the ownership of private individuals rather than the state. In the event that such an economy allows for business-oriented entrepreneurs, there is a high risk of depletion of natural resources.
The majority participants in the production process will have profits and wealth accumulation as their motivating factor. Thus, they will not consider the harm that the production process causes the economy, the people living around the production facilities, and the environment in general. However, in the case of social and eco-entrepreneurs, economy will achieve the desired objective of any capitalist state, which is the accumulation of wealth, as well as other non-economic benefits such as a healthy population, flourishing natural resources like lakes and forests (Pollen strategy, 2012). Thus, the statement that social and eco-entrepreneurs are not the right people to drive a capitalist economy to a sustainable way of doing business is false.
Social and eco-entrepreneurship models have a number of benefits they can bring to the society apart from the accumulation and creation of wealth. For instance, such an entrepreneur may integrate the outcomes for the people and the entire planet into the value chain of the organization. He or she may also integrate the externalities to the people and the planet into the value and pricing of the goods and services the organization produces. The overall impact of the social and eco-entrepreneurship system is that, in performing the above actions, the entrepreneurs create extra value for all the organization’s stakeholders, which include the owners, the customers, the society, and the environment (Hawken, Lovins B. & Lovins H., 2010).
Social and eco-entrepreneurs offer balance between the profits of the company and the well-being of the planet and the people. Past analysis indicates that most of the effective businesses and companies have had the social and-environmental objectives being at the core of the company, and not at the periphery (Pollen strategy, 2012).
A capitalist economy can accrue several benefits in the event that it fosters social and eco-entrepreneurs. First, there is a likelihood of having a relatively equitable society in terms of resource distribution. The fact that businesses will have the well-being of the society and the environment at hand implies that people will bear a cost that is fair to them. There is also room for investments in social capital, which may not happen in the event of business-oriented entrepreneurs. A capitalist state with social and eco-entrepreneurship models will also help in minimizing environmental harm through relative decoupling (Schaper, 2010).
In conclusion, a capitalist economy with social and-eco entrepreneurs acting within it will have more benefits than the one with the profit-oriented entrepreneurs. Social and eco-entrepreneurs can, therefore, transmit a capitalist economy to a sustainable way of running business.