# The Minimum Requirements for Social Business

In my previous post, I touched on social issues from the perspective of "externalities."

Building on that, this time I'd like to discuss the question: "How can business solve social issues?"

The key concept is "internalization of externalities."

I apologize for introducing another technical term, but essentially, it means incorporating into your business model the practice of reducing activities that have negative impacts on society, and increasing activities that generate positive impacts for society.

For example, manufacturing vehicles that produce zero emissions, or providing educational support services in regions with limited learning opportunities.

The key point is this approach: deliberately addressing "externalities" (indirect social impacts) within the company's core business itself.

However, in reality, many companies are already practicing this to varying degrees.

The difference isn't simply doing things that seem good for society—it's whether the business owner explicitly states, "This business solves social issues."

I believe that social business requires not only "solving social issues," but also a difference in "the entrepreneur's awareness."

To summarize:
✔ There is a mechanism to internalize externalities
✔ The entrepreneur makes this explicit

These two elements are, in my view, the "minimum requirements" for social business.

What do you think about this?