Individuals who start their own businesses are motivated by many different things. Some people want the freedom of being their own boss or want to pursue their true passion. However, in the past several years, a new type of self-starter has emerged: the social entrepreneur.
A social entrepreneur is a business leader who sees opportunity in solving some of society’s biggest challenges. Whether it's protecting the environment, uplifting underserved communities, or launching philanthropic endeavors, these changemakers are proving that success isn’t just measured in revenue, but in real-world impact.
Keep reading to learn more and discover five companies that are doing business for the greater good.
[Read more: 4 Invaluable Online Classes For Aspiring Social Entrepreneurs]
What is social entrepreneurship?
Unlike traditional entrepreneurs focused solely on financial gain, social entrepreneurs blend business with purpose. Their mission? To tackle pressing issues like poverty, education gaps, health care disparities, and environmental challenges—all while running a successful business. These innovators see problems as opportunities, using creative solutions to drive real, lasting impact.
From ethical fashion brands that empower artisans to tech startups bringing clean water to remote villages, social entrepreneurs are proving that business can be both profitable and purposeful. They don’t just dream of change—they build it.
Nonprofit organizations vs. social enterprises
Nonprofits and social enterprises both aim to create positive change, but they operate quite differently as business entities. Nonprofits rely on donations, grants, and fundraising to support their mission, often reinvesting all revenue into programs rather than generating profit. They focus on service, advocacy, or philanthropy without a commercial business model.
Social enterprises, on the other hand, blend profit with purpose. They run businesses that solve social or environmental problems while generating revenue. Unlike nonprofits, they are not necessarily dependent on donations, and they can generate a profit from the goods or services they sell.
The two models also differ in how they are taxed. For example, true nonprofits do not pay income taxes, where most social enterprises, like more traditional businesses, do.
[Read more: Nonprofit vs. Not-for-Profit vs. For-Profit: What's the Difference?]
Examples of social entrepreneurship
These five companies are proving that success and social impact can go hand in hand.
FIGS
Founded in 2013 by Heather Hasson and Trina Spear, FIGS is an online retailer that sells medical apparel and accessories to medical professionals, such as doctors, nurses, and physician assistants. FIGS primarily sells scrubs, which are also donated to health care professionals worldwide.
In 2023, FIGS expanded its Threads for Threads initiative, opening the FIGS Operating Theatre in Kenya, and donating over 282,000 units and $598,000 globally. They also sent a veterinary team to Baja, Mexico, aided healthcare workers in Israel and Gaza, and made significant donations to the Maui Health Foundation and SparkReach Leadership Institute.
While it wasn’t the first company to explore social issues, TOMS is arguably the brand that popularized social entrepreneurship over the past two decades.
Love Your Melon
Love Your Melon is a unique social entrepreneurship example because it initially launched as a 501(c)(3) nonprofit organization in 2012 but transitioned to a for-profit company in 2016. Love Your Melon was founded by Zach Quinn and Brian Keller to bring awareness to childhood cancers and improve the quality of life for children battling cancer.
Love Your Melon started with a simple mission to give a hat to every child battling cancer in America—all 45,000 of them. When that mission was accomplished, they set their sights on funding pediatric cancer research. Initially setting out to donate $1 million, they’ve given $9,836,840 and 254,388 beanies to date.
Lush
Lush is a cosmetics retailer founded in 1995 that sells soaps, shampoos, creams, shower gels, lotions, and other cosmetics from vegetarian and vegan recipes. The company supports animal rights causes in various ways, such as purchasing products from other companies that do not conduct, fund, or commission products that have been tested on animals. All of Lush’s products are tested on human volunteers before they are released to the public.
By 2030, the company aims to eliminate the use of all fossil fuels from its direct operations—including retail stores, offices, manufacturing sites, and company-owned vehicles—paving the way for a cleaner, greener future.
TOMS
While it wasn’t the first company to explore social issues, TOMS is arguably the brand that popularized social entrepreneurship over the past two decades. Founded by Blake Mycoskie in 2006 after a trip to Argentina, TOMS began a one-for-one social entrepreneurship model, in which a pair of shoes would be given to children in need for every pair of shoes they sold.
In 2024, TOMS reached a milestone—donating over 150 million shoes to those in need, reinforcing their mission to leave the world better than they found it. But their impact goes beyond providing footwear. In the past five years, TOMS has embraced a new model, dedicating one-third of their profits to mental health services, contributing over $4.4 million to support those in need.
Warby Parker
Inspired by TOMS’ success, Warby Parker launched its “Buy a Pair, Give a Pair” program, donating over 15 million pairs of glasses to those in need as of 2024. Taking their impact further, they introduced “Pupils Project” in 2015, partnering with local government agencies to provide free vision screenings, eye exams, and glasses to schoolchildren in New York City and Baltimore.
Warby Parker has expanded its reach to over 75 countries and counting. Through partnerships with VisionSpring and LV Prasad Eye Institute, they’re making affordable eyewear accessible to those who need it most, ensuring clearer vision for communities around the world.
How to start a social enterprise
Starting a social enterprise means building a business that prioritizes impact as much as profit. Whether you’re tackling environmental issues or supporting underserved communities, here are the key steps to get started:
- Identify a social problem: Determine the issue your business will address—whether it’s poverty, education, sustainability, or another cause—ensuring it’s something you’re passionate about solving.
- Develop a business model with impact: Unlike traditional businesses, social enterprises integrate profit with purpose. Decide whether you’ll operate as a nonprofit, for-profit, or hybrid model while ensuring your revenue stream supports long-term change.
- Create a sustainable business plan: Outline your mission, financial strategy, and operational structure. Ensure your plan includes how your business will maintain its social impact while remaining financially viable.
- Secure funding and resources: Social enterprises often rely on impact investors, grants, crowdfunding, or earned revenue. Research funding opportunities that align with your mission.
- Measure and communicate impact: Transparency is key. Track and share your social and environmental impact to build credibility and attract loyal customers, investors, and partners.
[Read more: A Complete Guide to Starting a B Corp]
Sean Peek contributed to this article.
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