DREIESKIVA​|Roald Kvam

In an era of growing global challenges—climate change, inequality, aging populations, mental health crises, and more—entrepreneurship is evolving. Today’s most forward-thinking founders aren’t only building for profit. They’re building for purpose.

Enter the rise of social entrepreneurship and purpose-driven startups: ventures that embed positive impact into their business model and seek to solve real-world problems at scale. These companies don’t see purpose and profit as opposites—they treat them as mutually reinforcing.

This article explores the core principles of social entrepreneurship, why purpose-driven startups are gaining momentum, and how to combine mission with margin to build businesses that matter.

What is Social Entrepreneurship?

Social entrepreneurship refers to the practice of building ventures that prioritize solving social or environmental challenges while maintaining sustainable revenue models. These aren’t charities—but they’re not traditional for-profit companies either.

Social entrepreneurs use the tools of business—innovation, agility, market insight—to address systemic problems and deliver impact where it’s most needed.

Key characteristics of social enterprises include:

• A clearly defined social or environmental mission at the core of the business
• A sustainable revenue model (vs. relying solely on donations or grants)
• A commitment to measuring both financial and impact outcomes
• A desire to scale solutions—not just raise awareness

Examples of social enterprises:

• Too Good To Go – A platform that helps retailers and restaurants sell surplus food at reduced prices, tackling food waste while generating revenue.
• Warby Parker – For every pair of glasses sold, one is distributed to someone in need through a giving partner.
• Motitech with Motiview (https://motiview.no/en) * – A healthtech solution for seniors and people with dementia, combining physical activity and reminiscence therapy through virtual cycling experiences.

* I should also mention that I work as Chief Business Development Officer for Motitech.

Why purpose-driven startups matter more than ever

1. Consumer expectations have shifted

Today’s customers—especially Gen Z and Millennials—expect companies to stand for something. They want brands that reflect their values, take action on issues they care about, and deliver more than just products.

According to a Cone/Porter Novelli study, 77% of consumers feel a stronger emotional connection to purpose-driven companies.

2. Talent is drawn to mission

In a competitive job market, purpose is a differentiator. Skilled professionals increasingly seek work that aligns with their values. Startups with a clear mission can attract, retain, and energize top talent.

3. Investors are paying attention

Impact investing and ESG (Environmental, Social, and Governance) funds are growing rapidly. Many VCs and angel investors are actively seeking ventures that can deliver both financial returns and measurable impact.

Organizations like Acumen, Blue Haven, and the Rise Fund specialize in supporting purpose-driven founders.

4. Societal problems are too big to ignore

From climate change to inequality to aging populations, the world needs scalable solutions—and business can play a central role. Social entrepreneurs step into this space with urgency and creativity.

Combining mission with margin: How to build a purpose-driven startup

1. Start with a clear problem

Every strong startup begins by solving a real problem. For social enterprises, that problem typically lives in the realm of human or planetary wellbeing.

Ask yourself:

• What injustice, gap, or pain point am I trying to address?
• Who is affected—and how?
• What existing solutions fall short?

Ground your business in empathy and direct insight. Talk to the people affected. Let their voices shape your approach.

2. Design for impact—and scale

Mission is important, but it’s not enough. Your solution must be viable, scalable, and able to sustain itself.

Key considerations:

• Can your product or service reach enough people to make a dent in the problem?
• Can it generate sufficient revenue to reinvest and grow?
• Does your impact grow with scale—or plateau?

Think “business model meets systems thinking.”

3. Align your business model with your mission

Your mission shouldn’t be an add-on. It should be baked into how you operate, earn, and grow.

Models to explore:

• One-for-One: Every purchase funds a donation (e.g., Warby Parker)
• Cross-subsidy: Higher-paying customers support lower-income users
• Marketplace: Connecting supply (e.g., underutilized assets) with demand (e.g., those in need)
• Subscription or SaaS: Recurring revenue enables sustained impact
• Hybrid: For-profit arm funds a nonprofit wing

Avoid the trap of “doing good on the side.” Impact should be central, not peripheral.

4. Measure what matters

Purpose-driven startups must hold themselves accountable—not just to growth, but to outcomes.

Tools to consider:

• Theory of Change: Map how your activities lead to short- and long-term impact
• Impact KPIs: Quantify progress (e.g., meals delivered, emissions reduced, lives improved)
• ESG or B Impact Assessments: Frameworks for evaluating broader sustainability metrics

Transparency builds trust—with customers, investors, and your team.

5. Build a mission-aligned culture

Culture is how your mission comes to life inside your company.

Ways to reinforce purpose:

• Hire for values, not just skills
• Recognize and reward impact-aligned behaviors
• Keep storytelling alive—share real user stories regularly
• Practice what you preach (e.g., sustainable operations, inclusive hiring)

When your internal culture matches your external message, credibility soars.

6. Tell a compelling story

A purpose-driven brand isn’t just what you sell—it’s what you stand for.

Craft a narrative that communicates:

• The problem you’re solving
• The change you want to create
• Why you care—and why others should too

Authenticity is key. Don’t overstate your impact—but don’t undersell it either.

Challenges to anticipate

• Balancing impact and profit can be tough, especially in the early stages.
• Some customers may be skeptical of “impact-washing.” Back claims with evidence.
• Securing mission-aligned investors can take time. Be selective.

Despite these challenges, the payoff—socially, emotionally, and financially—can be immense.

— — —

Social entrepreneurship isn’t a trend—it’s a movement. Purpose-driven startups are redefining what it means to build successful businesses by proving that you can do well by doing good.

To combine mission with margin:

• Solve a real problem rooted in social or environmental need
• Design for scale and sustainability
• Bake impact into your business model and culture
• Be transparent, accountable, and authentic

Because the future of entrepreneurship isn’t just about disruption. It’s about contribution.

Purpose isn’t the opposite of profit—it’s what gives profit meaning.

And in a world hungry for solutions, that’s the kind of business that truly matters.