The Roots of Social Entrepreneurship — and How People of Color Paved the Way
Here’s a question: When you think about the most famous social enterprises, names like Ben & Jerry’s or Patagonia probably spring to mind, right?
These are iconic American brands that have successfully blended profit with purpose. They’re fantastic stories of success and good intentions.
But they’re also stories that are, well, predominantly white.
Now, what if I told you that long before these companies were even a sketch on a business plan, people of color were living out the very essence of social entrepreneurship, weaving it into the fabric of their communities as naturally as one might sew a seed into the earth?
Ancient foundations
Let’s rewind to the 12th century. Yes, you heard that right, the 12th century.
Imagine the northeast part of what we now call North America, where the Iroquois Confederacy was something of a marvel.
Governed by what they called the Great Law of Peace, these five Native American nations weren’t just neighbors. They made decisions by consensus, emphasizing harmony over conflict, and managed their resources with a communal spirit that’s hard not to admire.
From slavery to the White House
Next, let’s shine a light on Elizabeth Keckley.
Imagine a woman born into the harsh world of slavery, who not only buys her freedom but also rises to become one of the most sought-after seamstresses in Washington, D.C. Her skill with a needle and thread opened doors to the corridors of power, as she dressed the capital’s elite, including the First Lady, Mary Todd Lincoln.
But her story doesn’t stop at fashion.
Keckley used her position to speak out against the injustices of slavery and to support her fellow freedmen. She set up an organization that provided aid to those who had escaped bondage, just as she had.
Her memoir offers a window into the lives of Black Americans during the Civil War, providing a narrative rich with detail and emotion — all penned by a woman who lived through those tumultuous times.
A pillar on Black Wall Street
And then there’s Charles Clinton Spaulding, a name you might not know but should.
In the heart of Durham’s Black Wall Street during the 1930s, Spaulding ran the North Carolina Mutual Life Insurance Company, the largest Black-owned business at the time. But Spaulding wasn’t just about making money; he was about making a difference. He wrote about the Four Cardinal Points of Entrepreneurship, one of which was “social service in business.”
His vision was clear: Business should benefit the community.
Pioneering beauty and female empowerment
Of course, we can’t forget to mention Madam C.J. Walker, America’s first self-made female millionaire and a daughter of sharecroppers who saw a problem and created a solution that would catapult her into history books.
Walker started with nothing but an idea — a line of hair-care products designed for Black women. But her ambition stretched beyond personal wealth.
Walker envisioned her business as a way to uplift entire communities.
She structured her company to empower her employees, specifically Black women, who had few opportunities outside of domestic work.
By providing fair wages and significant retail margins, she offered an alternative to the exploitation of the day, and she paved a way toward financial independence for thousands of women.
So, why aren’t these names as recognized as the giants of today’s social enterprise scene?
It’s a good question, and it brings us to a more pressing issue: Today, entrepreneurs of color face a landscape riddled with barriers. It’s a well-known fact, for example, that Black and Latino founders continue to receive only 1% (or less) of all venture capital. Women haven’t done much better, with female-led businesses only getting about 2% of the funding for the past few years. These systemic disparities underscore the ongoing struggles for equal opportunities in the business world — challenges that are significantly less pronounced for their white male counterparts.
Hope is not lost, though.
How today’s social innovators are leading the charge
Today, there are a number of social enterprises led by entrepreneurs of color that are coming up with innovative solutions to our society’s most pressing challenges.
One standout example is Shea Radiance, a company founded by Funlayo Alabi.
This business sources shea butter directly from women’s cooperatives in West Africa, ensuring they have fair wages and sales contribute to their community’s welfare.
The company’s commitment to ethical sourcing and empowerment has not only garnered a loyal customer base but also earned it a B Corp certification for its social and environmental performance.
Then there’s Pigeonly, founded by Frederick Hutson, which provides low-cost communication services to help connect inmates with the outside world. This innovative business model reduces recidivism and strengthens community ties.
Pigeonly has made significant waves in the tech and social impact world, landing features in major publications like Forbes and Entrepreneur magazine for its products and social impact.
Another inspiring example is BlocPower, led by Donnel Baird.
This company focuses on greening urban buildings in financially underserved communities, and providing energy-efficient solutions that reduce people’s living costs and cut emissions.
BlocPower has not only secured millions in funding but also boasts a list of clients and partners that include city governments and large corporations, underscoring its success and the scalability of its socially conscious business model.
Re-Nuble, under the leadership of Tinia Pina, is a remarkable company based in New York City. This business specializes in turning food waste into organic fertilizer, which promotes sustainable agriculture in urban areas.
Re-Nuble has been recognized by the United Nations for its contributions to sustainable development goals and has secured multiple rounds of funding to expand its impactful work.
These businesses not only contribute to their communities but also demonstrate that people of color have built some robust business models that defy the odds.
Empowering the next generation
To aspiring entrepreneurs of color, here’s the message: The path to integrating purpose with profit is embedded in our history.
By embracing our heritage of community-oriented business practices, new ventures can flourish and create a future where business success is defined by both profit and social impact.
Resources, mentorship programs, and community networks stand ready to support this new wave of organizations.
