What’s the Big Deal With Defining Social Enterprise?

What's the Big Deal With Defining Social Enterprise

It’s no secret. It can be confusing to define social enterprise quickly.

Are we talking about a 100-year-old non-profit like Goodwill? A new technology start-up that sells a soccer ball that generates energy for entire villages? The coffee shop down the street that sources fair-traded, pesticide-free coffee beans but donates the profits to local charities?

Answer: Yes, Yes, and yes – a social venture can include all of these.

Two pieces are necessary for the puzzle.

Recently, there has been much debate about the definition of social enterprise. It’s a valid question. If both for-profit and non-profit organizations can be considered social enterprises, does this mean that any venture with social benefit qualifies? (No. (No.) (Yes.

It is true that there are two pieces of the puzzle required for the label to fit.

Part 1: The core purpose of the business or organization is to fulfill a social and/or environmentally responsible mission. As important as the economic return, social impact is prioritized. In fact, solving social issues is the reason that an organization exists. This is the “WHY” behind the business.

Part 2: A service, product, or other product is sold to make a profit that will sustain the work and help the social mission. This is the “HOW” to a business.

The tricky word “social” and the dangers associated with social washing

Perhaps now you will be able to understand the importance of this big deal. A straightforward but flexible definition of social enterprise makes it easy to understand what it is and allows for an incredible variety of them.

See also  How Can A Financial Advisor Help A Business?

Some confusion can be caused by the use of the term “social”. Imagine a nonprofit that provides vocational training for the disabled but only accepts donations and grants. This non-profit serves a social purpose. It is not a social enterprise, however, because they do not sell any product or service at a cost that can sustain their efforts.

What about traditional companies like Target that donate 5 percent of their profits to educational or environmental initiatives? We support corporations acknowledging their social and ecological impact. Target is a big-box retailer that can make a profit. It wants to sell clothing, toys, and other fun stuff from dollar bins, not for social impact but to maximize shareholder return.

This brings us to “WHO.”

Selecting the suitable business model to support your social enterprise

Social enterprise can be defined to clarify who it benefits. These are the most common ways that social enterprise’s “Who” appears:

You are intentionally hiring people in relation to your social mission.
Conscious sourcing – Remember that corner coffee shop? It ensures that the beans are harvested by fair labor conditions and compensated farmers.
You can think of the actual product or service as that soccer ball. It is meant to be used by families who require reliable lighting to read, cook, and play.
Profit-sharing: The profits from the product or service are divided by communities, organizations, and people that you care about.
These aspects are important because they clarify the concept but allow for a wide range of organizational and operational options.

Towards a mission-driven economy

We care about social enterprise definitions because it is more than just changing one company. It’s about combining the best of business and social causes.

See also  The Perks of GSuite Options

Social enterprises are part of the transformation from a market that only values financial returns to one that provides economic and social benefits for all.

44 thoughts on “What’s the Big Deal With Defining Social Enterprise?”

  1. Howdy! Quick question that’s completely off topic. Do you know how to make your site mobile friendly?
    My weblog looks weird when viewing from my apple iphone. I’m trying
    to find a theme or plugin that might be able to correct this
    issue. If you have any suggestions, please share. Appreciate it!

  2. Thanks for a marvelous posting! I seriously enjoyed reading
    it, you can be a great author.I will make certain to bookmark your blog and
    may come back later on. I want to encourage you to continue your great work, have
    a nice afternoon!

  3. Attractive section of content. I just stumbled upon your web site
    and in accession capital to assert that I get actually loved account your weblog posts.

    Any way I will be subscribing on your augment and even I success you access consistently quickly.

  4. It is not my first time to pay a quick visit this web page, i am browsing this site dailly
    and obtain fastidious data from here every day.

  5. Spot on with this write-up, I really think this site needs much more attention. I’ll probably be returning to see more, thanks for the information!

  6. I blog quite often and I seriously thank you for your information. This great article has truly
    peaked my interest. I will take a note of your site and keep checking for new information about
    once per week. I subscribed to your Feed too.

  7. Having read this I thought it was extremely enlightening.
    I appreciate you spending some time and energy to put
    this informative article together. I once again find myself spending a lot of
    time both reading and commenting. But so what, it was still worth it!

  8. Generally I do not read post on blogs, however I wish to say that this write-up very forced me to take a
    look at and do it! Your writing style has been surprised me.
    Thanks, quite nice article.

  9. I just like the helpful info you supply in your articles.
    I’ll bookmark your weblog and take a look at once more right here regularly.
    I’m rather sure I will be informed many new stuff right here!

    Best of luck for the following!

  10. Please let me know if you’re looking for a article writer for your weblog.

    You have some really great articles and I feel I would be a good asset.
    If you ever want to take some of the load off, I’d really like to write some articles for your blog in exchange for a link back to mine.
    Please blast me an email if interested. Kudos!

  11. Hello there! Quick question that’s entirely off topic.
    Do you know how to make your site mobile friendly? My site looks weird when viewing from my
    apple iphone. I’m trying to find a theme or plugin that might be
    able to fix this problem. If you have any suggestions, please share.

  12. Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something.
    I think that you could do with some pics to drive the message home a bit, but instead of that, this is fantastic blog.

    An excellent read. I’ll definitely be back.

  13. Do you have a spam problem on this blog; I also am a blogger,
    and I was wanting to know your situation; we have developed some nice methods and we are looking to swap techniques with other folks, be sure to
    shoot me an email if interested.

  14. Pretty nice post. I just stumbled upon your weblog and wished to mention that I have truly enjoyed browsing
    your weblog posts. After all I’ll be subscribing
    on your rss feed and I’m hoping you write once more very soon!

  15. Superb blog! Do you have any hints for aspiring writers?

    I’m hoping to start my own blog soon but I’m a
    little lost on everything. Would you suggest starting with a free platform like WordPress or go for a paid option? There are so many
    choices out there that I’m totally overwhelmed .. Any tips?

    Thanks a lot!

  16. Hello colleagues, how is everything, and what you would
    like to say about this piece of writing, in my view its really amazing designed for me.

  17. With havin so much content do you ever run into any problems
    of plagorism or copyright infringement? My website has a lot of completely unique content I’ve either authored myself or outsourced but it seems
    a lot of it is popping it up all over the internet without
    my agreement. Do you know any techniques to help
    reduce content from being ripped off? I’d really appreciate it.

  18. Today, while I was at work, my sister stole my iPad and tested to see if it
    can survive a 25 foot drop, just so she can be a
    youtube sensation. My iPad is now destroyed and she has 83 views.
    I know this is entirely off topic but I had to share it with someone!

  19. My partner and I absolutely love your blog and find a lot of your post’s to
    be precisely what I’m looking for. can you offer guest writers to write content for
    you? I wouldn’t mind composing a post or elaborating on a number of the subjects you write
    with regards to here. Again, awesome website!

  20. I’m excited to find this website. I want to to thank you for ones time for this particularly fantastic read!!
    I definitely really liked every part of it and i also have you book-marked to check out new things in your web site.

  21. Have you ever thought about creating an e-book or guest authoring on other sites?
    I have a blog based upon on the same subjects you
    discuss and would really like to have you share some stories/information.
    I know my subscribers would value your work. If you are even remotely interested, feel free to shoot me an email.

  22. Heya i’m for the first time here. I found this board and I to find It really
    useful & it helped me out much. I hope to present one thing back and help others such as you helped me.

  23. I loved as much as you’ll receive carried out right here.
    The sketch is tasteful, your authored subject matter stylish.
    nonetheless, you command get bought an shakiness over that you wish be delivering the
    following. unwell unquestionably come further formerly again as exactly the same
    nearly a lot often inside case you shield this hike.

  24. Hi, i believe that i saw you visited my website thus i came to return the favor?.I’m
    trying to to find things to enhance my site!I suppose its good enough to use
    some of your ideas!!

  25. I’m not that much of a online reader to be
    honest but your sites really nice, keep it up!
    I’ll go ahead and bookmark your site to come back later on. All the best

  26. I’m no longer sure the place you’re getting your information, but good topic.

    I needs to spend a while finding out more or working out
    more. Thank you for excellent information I was looking for this information for my mission.

  27. I don’t know if it’s just me or if everyone else experiencing issues
    with your blog. It appears like some of the text within your posts are running off the screen. Can someone else please comment and let me know
    if this is happening to them too? This might be a problem with my internet
    browser because I’ve had this happen previously.

  28. Good day! This post could not be written any better! Reading through this post reminds me of my previous room mate!
    He always kept chatting about this. I will forward this post to him.
    Fairly certain he will have a good read. Thanks for sharing!

  29. I simply could not depart your web site before suggesting that I actually loved the usual info
    a person provide on your visitors? Is gonna be back often in order to check up on new posts

  30. I’ve been exploring for a bit for any high-quality articles or weblog posts
    on this kind of house . Exploring in Yahoo I eventually stumbled upon this website.
    Reading this info So i am satisfied to express that I have an incredibly good
    uncanny feeling I came upon exactly what I needed. I so much
    without a doubt will make certain to do not overlook this
    web site and give it a look on a continuing basis.

Leave a Comment