Social startups and startups
Almost everyone wants to launch their startup. Most of the time, any new business is called a “startup.” As we will see in this article, the truth is that ” new startup” is what it really means. What is a startup, exactly? What is a social startup? Let’s see!
Definition of “startup”
Although experts and literature have provided clear definitions of “startup” for several years, there is still little agreement on what it means among practitioners.
According to these premises, not all newly established ventures can be classified as startups. Startups are only those that can grow quickly, redefine, or create new markets through innovative solutions and business models.
Consider companies like Facebook, Airbnb, and Netflix. They expanded rapidly their customer base in the early days and achieved exponential growth within a short period. These startups were the perfect example of what startups are. Today, they are no longer classified as startups since they employ more than 100 people and have a value of more than $500M (A. Wilhelm 2014). They certainly started that way.
What is a Social Startup?
If you are an aspiring innovator, you may think that startups must be IT-driven and profit-driven. That’s not the case at all! Even in the social sector, early-stage businesses may “qualify” as startups. We call these “social startups”.
A social startup is an entrepreneurial venture that has just been established and is market-oriented. Its mission is to address cultural, environmental, or social problems. A social startup’s primary goal is to improve the world, not make money. It can only succeed by implementing repeatable and scalable solutions through viable and solid business models.
Before becoming a worldwide phenomenon, social companies like Specialisterne or TooGooToGo were also startups. Nothing is impossible as long as there’s a disruptive innovation that has the potential to transform the world.
The conclusion of the article is:
This article introduces you to the concept of “startup” and discusses what social startups are.
Due to the rarity and success of such ventures, startups are often referred to as “unicorns.” We know it takes a lot of work to create one, particularly in the social sector. We hope that the content on our platform will help you to take this bold step!