The Important Role of the Social Entrepreneur

The campaign and election of Barack Obama has led to an increased emphasis on Social Entrepreneurship. Social entrepreneurs are able to recognize and fix problems through the use innovative thinking and ingenuity. When looking at the history of the United States, one finds countless examples of individuals who have served as social entrepreneurs (J.P. Morgan, Charles Schwab, Warren Buffett just to name a few). Social entrepreneurship is not confined to America’s borders though. Quite the contrary; social entrepreneurship seems to be flourishing in developing countries, most notably in the areas surrounding India, Bangledesh, and southern Asia. For the most part, these countries have limited forms of government. Muhammad Yunus, a banker from Bangladesh, is perhaps the most notable modern-day social entrepreneur. Yunus founded the Grameen Bank , which aims to develop communities by making small, collateral free loans to individuals who are unable secure other sources of credit. For his work, Yunus received a Nobel Peace Prize in 2006. The success of the Grameen bank has inspired similar efforts in a hundred countries throughout the developing world and even in industrialized nations, such as the United States.

While President Obama echoed the need for social entrepreneurship while he was on the campaign trail, it seems that his insistence  in increasing the size and power of the state is completely contrary to the core beliefs championed by social entrepreneurs. Federal regulation, punitive taxation, and the suppression of civil liberties not only undermine the concept of “solving social problems,” but are also highly contrary to the limited form of government that was established in the U.S.  It appears as if the United States government is no longer able to grasp the concept of social justice without bludgeoning the public with increased oversight and massive federal spending.

The problem with the system in the United States is that it creates a moral hazard of free riders, who consume without contributing, and forced riders, who contribute against their will and often do not get to consume. A limited form of government, that abides by a policy of laissez faire economics and respects the rights and liberties of its citizens, allows for social entrepreneurs to solve communal problems in a manner that respects everyone’s rights. Americans need to realize that our government is not the solution to our problems but often the cause. I suggest that the United States government step aside and put an end to all unjust social welfare programs. This will make way for social entrepreneurs, such as Muhammad Yunus, who are more than able to bring about much needed social change.