The contest is part of the London council's Succeeding in Social Enterprise initiative, to be held during Enterprise Week (13-19 November).
Entrants will have to present their idea for a new product or service that would benefit the community.
Stephanie Malyon - press and PR officer for culture and community development and regeneration - said: ‘The contest aims to raise awareness of social entrepreneurship and help local people improve their skills.'
Journalists from regeneration trade press, business titles and local and regional media will be invited to report on the scheme. The winner will receive £500 towards the development of his or her idea.
Camden encompasses some of the most affluent and most deprived areas of London. Over 14,000 Camden residents (nine per cent) are on income support.