What is social entrepreneurship?
Social entrepreneurship is a business model employed by companies to help address some of the world’s most pressing social and environmental problems.
Where the traditional model has primarily focused on generating profit, social entrepreneurs focus on bringing about positive social and environmental change, while also developing a profit.
While social entrepreneurship refers to ventures explicitly designed to address social issues—such as poverty, education, or health—social purpose companies may operate in any sector but embed social and environmental goals into their core strategy. B Corp certification is open to both, provided they meet rigorous standards of accountability, transparency and impact.
“Social entrepreneurship is really about developing business opportunities that have a positive impact. It’s using your business as a force for good, looking at the company’s role in this world and the ways the business can influence positive change,” says Michelle Reid, Program Manager, Sustainability and Social Impact, BDC.
Social entrepreneurs may target social issues, for example:
- reducing barriers to employment for disenfranchised groups/individuals
- the elimination of homelessness in the community
- the minimization of the company’s or industry’s impact on the environment
- improved health outcomes for members of the community
These entrepreneurs weave this social and environmental focus into the core of their business, and as a result, track the social value and environmental impact generated, alongside the profit created by the company.
Social entrepreneurship is really about developing business opportunities that have a positive impact.
Michelle Reid
Program Manager, Sustainability and Social Impact, BDC
How to get started with social entrepreneurship
For entrepreneurs interested in exploring the potential of social entrepreneurship, Reid recommends completing the B Corp Impact Assessment. Completing the assessment will provide you with a baseline which can help you quantify your impact in relation to your goals.
“The B Impact Assessment focuses on seven critical impact topics—including stakeholder governance, climate action, human rights, fair work, environmental stewardship, justice and equity and impact management. For organizations curious about how to initiate meaningful change, it’s a powerful place to start.”
Beyond aligning the work you do in your business with your values, social entrepreneurship can also be a competitive advantage. This type of business model can often help you stay ahead of the curve in terms of government regulations and in attracting and retaining employees and customers.
“One of the biggest benefits that we’re seeing is employees wanting to work for an organization that has a purpose behind it,” says Reid.
“People are really flocking to those companies and really want to work for, support, and stay with these companies. It’s something that is a huge benefit and a competitive advantage.”
B Corp and social entrepreneurship
Many social entrepreneurs strive to become B Corp certified companies.
B Corps are businesses that use a social entrepreneurship model. Companies that earn the B Corp certification (the “B” stands for beneficial) have demonstrated that they meet exacting standards of accountability, transparency, and social, workplace, and environmental responsibility.
B Lab, a non-profit corporation, grants the certification. BDC became the first B Corp certified Canadian financial institution in 2014. It has since been recertified five times, most recently in September 2025.
Beyond its own certification, BDC actively supports the B Corp movement by promoting the B Impact Assessment tool and participating in events across the B Corp network that advance social and environmental performance.
The growth of social entrepreneurship
Tracking the number of companies using a social entrepreneurship model can be challenging because the model is often integrated into companies’ existing business models.
Tracking the growth of B Corp certified companies, however, is much easier. As of November 2025, over 10,200 certified B Corps are operating in 102 countries and across 163 industries. In Canada, the movement continues to grow, with over 500 certified B Corps representing a wide range of sectors, from manufacturing to professional services.
“It’s exciting because it’s not such a novel idea anymore. Companies are becoming aware that this is where business is going. It’s something many more organizations are now looking at,” explains Reid.
What’s truly inspiring is the growing number of business owners and leaders who are saying, ‘This is what I stand for, this is the path I choose.
Michelle Reid
Program Manager, Sustainability and Social Impact, BDC
Reid believes the social entrepreneurship model will play an increasingly significant role in businesses of the future.
“What’s truly inspiring is the growing number of business owners and leaders who are saying, ‘This is what I stand for, this is the path I choose.’ Not long ago, working in social impact and sustainability could feel isolating. But in the past few years, there’s been a remarkable surge in support—and that’s incredibly energizing,” she says.
The role of social entrepreneurship in sustainable development
The overall goal of social entrepreneurship is to facilitate sustainable development.
Whether the company’s focus is on improving access to employment for disenfranchised individuals or reducing their carbon footprint, the focus on improved social outcomes targets sustainable development for communities.
“A lot of companies are already doing this and are actually working toward certain sustainable development goals without even realizing it,” says Reid
“There are companies that are making decisions to reduce their environmental impact and others working along the lines of poverty reduction because they feel it’s the right thing to do.”
What’s the difference between social entrepreneurs and other entrepreneurs?
Social entrepreneurs differ from conventional entrepreneurs in the goals they hope to achieve. While traditional entrepreneurs typically focus on creating commercial value or profits, social entrepreneurs work to create social value, benefiting society or the community.
However, with the rise of environmental, social and governance (ESG) criteria in finance and management, businesses of all kinds are increasingly being asked to consider their impact on society and the environment. As such, the difference between social entrepreneurs and other entrepreneurs has been diminishing.
What’s the difference between social entrepreneurs and non-profits?
Social entrepreneurs and non-profits can share similar goals, but they differ in their organizational structure and funding. Social entrepreneurs are business owners who can make profits, share dividends and attract investors. Non-profits, as the name implies, cannot profit from their activities and, as such, are often funded through donations, grants, or government funding.
You can also find out more about the purpose economy at the Canadian Purpose Economy Project.
Take the next step
Discover how becoming a B Corp drives positive impact.