The term “social enterprise” is becoming an ever popular buzz word in the world of social responsibility gurus and aspiring world changers.
Many individuals group social enterprises in the same cluster as non-profit organizations. While it is true that many social enterprises operate under a non-profit status, many more are actually generating revenue. Social enterprises are becoming an increasingly popular business model and provide more financial flexibility for doing good than a traditional non-profit model.
So what separates a for-profit social enterprise from any other money making company?
One huge difference…and this may be a shocker…social entrepreneurs aren’t necessarily in it for the money. They design a business model to make profits but aren’t obligated to serve the interest of share holders or investors looking for a large ROI. Most social enterprise groups reinvest those profits into their business or into the community around them. For example, Helping Hand Rewards partners like Greyston Bakery, Bright Endeavors and The Enterprising Kitchen use the profits generated from their products to teach life skills training, job skills training, and help find more permanent employment situations for individuals in their programs.
In a nutshell, social enterprises are fulfilling a need. According to an article in the Telegraph:
“Wherever there is a social or environmental need, social enterprises will be working on solutions- whether that’s saving the local village post office or shop, tackling global warming, combating homelessness or providing better health and social care services.”
For-profit social enterprises believe that being a competitive and profitable business is the best methodology for attaining socially responsible goals. What do you think?