A social entrepreneur believe that the market is an appropriate vehicle to achieve social objectives. As such, they are willing to accept some reduction in terms of social objectives attained to reap the benefits of a market-driven economy. 

They also believe that the market is a better tool than government bureaucracies or charities for achieving social goals. They recognize that society needs capitalism and profits. The profit motive drives innovation, reinvestment of profits into improved products and services, and competition, which ultimately benefit consumers. As such, they are not against making money while achieving social goals.

How do they differ from traditional nonprofit agencies?

Social entrepreneurs differ from traditional nonprofit agencies in three ways. 

First, their business model creates a financial return for investors, typically through a market-driven business model with a for-profit component. Second, the for-profit component is not limited to the sale of products or services; it may also include equity ownership in the company or fees for service that may be charged for various activities. Finally, social entrepreneurs see themselves as an integral part of a larger entrepreneurial ecosystem that includes nonprofit organizations and government agencies. 

They see their role as similar to a venture capitalist who has both some financial interest in the success of the project and an interest in using the private sector market-driven approach as opposed to more bureaucratic approaches to achieve public policy objectives such as reducing poverty or increasing health care coverage.

What are the Responsibilities of a Social Entrepreneur?

Social entrepreneurs are expected to do the following:

1. Be accountable to multiple stakeholders. 

This includes all the stakeholders who have a stake in the business, such as investors and customers, as well as a wider range of stakeholders such as the government, the community, and their employees.

Social entrepreneurs should be accountable for their actions and performance. They also need to show that they have control over their projects, over both the financial and social outcomes. Accountability can come from reporting transparently to multiple stakeholders but also from being able to demonstrate an impact on a social problem that is both measurable and verifiable. 

2.Be innovative. 

They should be creative in designing projects that cost-effectively achieve social goals. They may use market-driven approaches or other strategies for achieving their goals. Besides, they should also be innovative in finding alternative funding sources for their projects. They need to be willing to take financial risks and be comfortable with the uncertainty of working in emerging industries. 

Social entrepreneurs are expected to behave like entrepreneurs in any industry, accepting that there are risks involved in the process of doing business. However, they should also acknowledge that the risks may be different from those encountered by traditional businesspeople and that they are expected to be accountable for their actions and the outcomes of their projects.

3. Be businesslike in their approach. 

Social entrepreneurs should be good businesspeople with a demonstrated ability to achieve results with limited resources. They need to know how to measure performance and manage operations effectively. In addition, they should have a solid understanding of finance and accounting. They should also have a strong business plan which shows how they will achieve results in a way that is sustainable over time. 

Their business plans need to show how they will raise money, what kind of results they expect over time, and how they will measure these results. If a social entrepreneur has not achieved results in the past, it is less likely that he or she will be able to do so in the future. 

In addition, it may be difficult for them to raise money if they have not had success in the past. A social entrepreneur should demonstrate that he or she can achieve results that are consistent with expectations overtime before he or she raises money for his or her project from others.