2.1 What is a social enterprise?
In this unit, we will explore the role of the social entrepreneur, the importance of enhancing the social entrepreneurial sector at a global level, as well as, what diversifies social entrepreneurship from common entrepreneurial initiatives.
The world is facing major societal challenges that require critical action and innovative solutions to be addressed: poverty, unemployment, illiteracy, and climate change are widely recognized as some of the most important ones. Social entrepreneurs around the world are setting up businesses that promise to tackle these societal challenges. There are numerous definitions of what exactly social entrepreneurship is and how we can use it to empower young people. According to Seelos & Mair (2005):
“Social entrepreneurship is defined as the economic activity of creating new models for the provision of products and services to serve the basic human needs of the poorest social strata that remain unsatisfied by current economic or social institutions”
A social entreprise can be formed in several types such as community-based organisations, non- governmental organisations, social firms and cooperatives among others.
Regardless of the organisation type, the figure below illustrates the 5 key defining characteristics of social enterprises (Pearce, 2003).
Mission Photo: Photo by Larm Rmah on Unsplash
Let’s stick a bit more to the mission of the SE that is the starting point, so as to define and better describe a product or service offered to society.
Each social enterprise positions itself in the socio-economic landscape through its mission statement. Mission statements can be related to:
- Social and economic integration of the disadvantaged and people facing social exclusion (e.g. work and social integration);
- Social services (e.g. care for the elderly and the disadvantaged; education and child care; training offers; health care services.);
- Community services (counselling, mentoring, youth outreach, micro finance, providing temporary housing for homeless
- Public services e.g. maintenance of public spaces, transport services, refuse collection, rehabilitation of ex-offenders etc.;
- Environment- based initiatives (e.g. waste management, recycling, use of renewable energy)
- Cultural, tourism, sport and recreational activities;
- Solidarity actions for developing countries (e.g. promoting fair trade, improving sanitation).
Examples of SE mission statements:
- The Women’s Organisation – to support women to achieve their full potential; to encourage, enable and facilitate their active involvement in business, employment, learning and community life
- Ecogenia – Promoting sustainability through civic engagement, training and employment opportunities for young people in Greece.
- Forward Incubator – empowering migrant newcomers to launch, fund, and grow their own businesses.
- Specialisterne – to enable jobs for people with autism and similar challenges worldwide
A thriving social enterprise sector reflects a strong civil society with regards to common good, improving the conditions in which members of the community live, interact and collaborate with peers to multiply the effects of social interventions and strengthen the sense of solidarity.
To bring change, defining the problem and find ways to create positive impact, as seen in Unit 1, is the first step! A social enterprise can be the vehicle through which one can create innovative solutions to social problems.