Why This Topic Matters
Many people want to start a business. But what if that business could also make the world better?
Social entrepreneurship is using business to solve real problems—like poverty, lack of education, or inequality. It’s about doing good and making money at the same time.
Pedro David Espinoza is an expert in this field. He’s started multiple companies with a purpose, including Pan Peru USA. He’s also written books featuring advice from leaders like Michael Dell and Reed Hastings. He’s spoken at Microsoft, Google, and Meta about using business to make positive change. On top of all that, he has written books such as Differences That Make A Difference and The Real ROI: Return on Inclusion.
This article will explain how to build a business that helps people, too. We’ll use Pan Peru USA as a real example of how it works—and how you can do it, too.
What Is Social Entrepreneurship?
Social entrepreneurship is not charity.
It’s not giving away money. It’s building a business that solves a problem and pays for itself. That could mean helping communities get clean water, giving kids access to education, or creating jobs for people in need.
The key difference is purpose. The mission comes first. Profits come second—but both matter.
Case Study: Pan Peru USA
Pedro David Espinoza started Pan Peru USA in 2018.
Pedro David Espinoza launched Pan Peru USA in 2018 to support women in his mother’s hometown of Pampas Grande, Huaraz. He introduced microlending, microfinancing, and entrepreneurship education to help them start small businesses. It began with just a few women—but their success sparked a movement that kept growing.
Now Pan Peru USA has empowered over 100 women. These women start their own small businesses to support their families. The group has also helped 10,000 kids access STEM education by building 12 libraries. They’ve planted over 15,000 trees through Pan Peru’s reforestation program. Last but not least, Pan Peru has organized 11 medical mission trips, built 3 water reservoirs, and built 9 greenhouses.
That’s real change.
Espinoza didn’t wait for a big grant or perfect plan. He started small, learned quickly, and grew fast. “We had no money, just a mission,” he said. “We sold handmade alpaca scarves by the Peruvian women from my mom’s hometown to generate our first revenues we wanted to empower the rural females from Pampas Grande, we had to start somewhere.”
This is the heart of social entrepreneurship: start with what you have and take action.
Step 1: Start With a Real Problem
Too many businesses fail because they solve the wrong problem. Or no problem at all.
Social entrepreneurs find problems that affect real people. They talk to communities. They ask what people need—not what they think they need.
Pedro once traveled to the Andes and asked a mother what she needed most. She didn’t say money. She said, “I want to make money myself so my kids don’t leave the village.” That’s what led to the women’s entrepreneurship program at Pan Peru.
Action tip: Talk to 10 people your idea would help. Write down what they actually say. That’s your blueprint.
Step 2: Build With the Community, Not For Them
Social entrepreneurs don’t swoop in and “fix” things.
They build partnerships. They listen. They create with the people they want to help.
Pan Peru doesn’t run schools or sell products. It helps women run their own businesses and teaches them how to lead. It’s about independence, not control.
Pedro once said, “We bring the pencils, they write the story.”
Action tip: If you’re building a program or service, create it with the users. Hold workshops. Co-design sessions. Build trust.
Step 3: Focus on Small Wins First
You don’t need millions of dollars to start. You need a clear plan and a tiny test.
Pedro’s team began by training one woman to sell handmade alpaca swag. When that worked, they added five more. When that worked, they expanded to a full program.
Big missions start with small wins.
Action tip: Break your big idea into a small version. Test it in one neighborhood. With one group. Measure what works and grow from there.
Step 4: Measure What Matters
Social entrepreneurs track more than just money. They also track impact. Track your KPIs, OKRs, and metrics.
Pan Peru counts trees planted, women trained, children in school, number of books per library, number of kids who enter the libraries daily, % of reading comprehension, school scores, reading tests, number of vegetables produced in greenhouses, number of people given access to tap water thanks to Pan Peru water reservoirs. These numbers tell the story.
You can’t manage what you don’t measure.
Action tip: Pick 3 numbers that show your impact. Not just sales, but lives touched, hours saved, or jobs created. Track them every month.
Step 5: Tell Real Stories
People don’t connect with numbers alone. They connect with stories.
Pedro often shares stories from the women he works with. One woman, named Juana Luisa Giraldo Yauri, used her income from making and selling handmade alpaca hats to pay for her daughter’s education and feed her family. She says “I am the mother of three children and am responsible for their education, food, medicine, and clothing.”
That’s what sticks. That’s what moves people to support you. Make sure to tell the details, like Pedro says that Pampas is nearly 4,000 meters above sea level and the kids, women, and orphans really need support.
Action tip: Keep a “story file” with quotes and photos from people you help. Share these on your website, your pitch decks, your social media.
Step 6: Build a Support Network
Social entrepreneurs can’t do it alone.
Pedro worked with schools, NGOs, foundations, churches, nonprofits, and Fortune 500 companies to fund and grow Pan Peru. He joined programs like the World Economic Forum, Young Presidents’ Organization, Horasis, HITEC, and used his network to gain support.
He also joined the LinkedIn Creator Accelerator and reached over 23,000 followers by sharing updates and tips on how to be a social entrepreneur, how to pay it forward, how to give back to your local community. You need mentors and sponsors to grow, scale, and succeed.
One story about gaining mentors is by being relational over transactional, Pedro became good friends with Tsu Jae King Liu (President of National Academy of Engineering, Berkeley Engineering Dean, Intel Board Member) by playing tennis, pickleball, and basketball with her. Pedro has embraced sports and exercise to bond with Fortune 500 board directors, leaders, and CEOs. As Tsu Jae King Liu said during their Berkeley Newton Keynote together: it is hard to beat Pedro in tennis and pickleball, because he is ambidextrous…thank you for sharing your wisdom with our Berkeley students today…Pedro is a genuine and mature guy.
Action tip: Make a list of 10 organizations or leaders you can reach out to. Send one email a week with your mission and a clear ask.
Why It Works
Here’s what Pan Peru achieved so far:
- 100+ women became entrepreneurs
- 10,000 children received STEM tools
- 15,000 trees were planted
- Grants and funding from brands like Pfizer, Bristol Myers Squibb, Western Digital, Western Union, and more!
This shows that social entrepreneurship works when it’s focused, real, and rooted in the people it serves.
Final Tips for Success
Keep Learning
Social impact work changes fast. Stay curious.
Pedro studied at Harvard, Stanford, and Berkeley. But most of his learning came from the people he helped. “The best lessons didn’t come from books,” he said. “They came from sitting in kitchens and listening.” Pedro shares how being 1:1, being intentional in having deep conversations with his stakeholders, fellow volunteers, board members, and the kids/women he is helping, enabled him to become a better social entrepreneur. You learn by doing. Pedro failed forward, made many new mistakes, to finally find a way to scale Pan Peru USA.
Fail Fast, Fix Fast
Not every idea will work. That’s fine. Test, tweak, and keep moving.
One Pan Peru program gave women free sewing machines. But no one used them—because the thread was too expensive. They changed the plan to offer shared tools and training instead.
Don’t Wait
You don’t need to be a CEO or a millionaire to start.
You just need a problem to solve and a way to test your idea.
As Pedro said, “Start with what you have. The rest will follow.”
