It is not a secret. If you decide to define a social enterprise, the situation may quickly get confused.
First of all, are you talking about mega's nonprofit that existed for 100 years like Goodwill? Or you can produce energy for qualified rural villages Starting up a new technology to sell football balls that change life? Is the coffee shop in the corner pretty traded, raising only pesticide coffee beans and donating profits to local charity groups?
The answer is: yes, yes, yes - social enterprises can all be the ones mentioned above.
Two parts necessary for puzzle
Recently there have been many prospects about the definition of social enterprises. And it is. For example, if we can call both non-profit organizations and commercial businesses social enterprises, can any venture with social value qualify? (No) And does not it underestimate what social change means, make that word meaningless? (Yes.)
The truth is that there are two parts of the puzzle that you need to make the label fit.
Piece # 1: There is a social and / or environmental mission at the core of the organization and business. Social impact takes precedence over economic returns. Indeed, solving social problems is the reason for the existence of that organization. It is "WHY" of business.
Piece # 2: Services or products are sold with the profit to maintain work and further fulfill the social mission. That is the "way" of business.
The tricky word "society" and the dangers of social washing
Perhaps now you can see what the big question is. Having a firm and flexible definition will clarify what social enterprise is and broaden the space for tremendous diversity.
To use the term "social" as part of the confusion. Let's imagine a nonprofit organization that provides vocational training for the disabled. That nonprofit is definitely useful for social mission. However, it is not a social enterprise. Because there are no services or products sold at a price to maintain efforts.
Also, in a traditional business like a goal, do you donate 5% of the profit to environmental and educational efforts? Again, companies are aware of social and environmental impact. But the goal is to be an influential big box retailer. It wants to sell clothes, toys, and fun things from Dolphin, in order to maximize shareholders' interests, not social influences.
That will lead us to 'WHO'.
Selection of business model suitable for social enterprise
"Social enterprise" who clearly defines social enterprise partnership and clarifies those who actually make profits is usually displayed in one of the following ways:
- Employment Practices - Hiring people intentionally in relation to the social mission you are doing.
- Conscious procurement - Do you remember the coffee shop in the local corner? It catches who by confirming that the beans were harvested by farmers with fair working conditions and rewards.
- Real products and services - Think back to that soccer ball. It meant to bring benefits to families who are ready, read reliable light, cook and play.
- Profit sharing - The benefits of that product or service are shared with organizations, communities, interested people.
Towards a mission driven economy
The truth is paying attention to eliminating social enterprises. Because we believe in more than changing one organization. For the marriage of the best things for social and environmental reasons, this is doing the best in business.
Supporting social enterprises is part of changing from a market centered on financial value to a market that brings social, environmental and economic benefits to everyone.
In other words, social enterprises are not just business as usual. (That's a big deal!)
