Answer:
The key difference between social entrepreneurs and traditional entrepreneurs is in how each type of entrepreneur measures success.
Traditional entrepreneurs measure their success with financial metrics, such as revenue and profit. Along the same lines, a traditional investor is typically only concerned with financial return on investment (ROI).
On the other hand, social entrepreneurs measure their success with environmental and social metrics, as well as financial ones. These metrics depend on the nature of the social enterprise, but examples include:
CO2 emissions offset
Acres of farmland sustainably managed
Kilowatts of solar power installed
Low-income students educated
Jobs created for felons
Impact investors specialize in providing capital to social entrepreneurs. Their metrics typically align with those tracked by social entrepreneurs. Along with financial ROI, Impact investors seek environmental, social, and governance (ESG) returns.
Social entrepreneurs are a specialized segment of traditional entrepreneurs.
