Developed by Authenticity Consulting, LLC
Social Enterprise
Assembled
by Andy Horsnell
Social enterprise is, fundamentally, about using a market-driven
business model to address key social and environmental issues.
It is an emerging field with diverse and shifting interpretations.
In this page, we'll try to sort through all this, introduce you
to the major players, and give you a launching pad for future
inquiry. Big disclaimer: Your guide, Andy Horsnell, has opinions
on this topic (informed by close to 20 years experience) and these
opinions will be reflected in the content of this page.
If you want to challenge or suggestion new opinions, please
feel free to:
email me.
Sections of This Topic Include:
What Social Enterprise Is (and Is Not)
Leading Examples of Social Enterprise
Why Social Enterprise Matters
Related (but Different) Fields and Topics
Resources for Doing Social Enterprise
Get Connected: Social Enterprise Networking and Learning
Opportunities
Also Notice the Library's
What Social Enterprise Is (and Is Not)
What Social Enterprise Is
Social enterprise is, fundamentally, about using a market-driven business model to address critical social and environmental issues. It is about making the world a better place. But don't just take my word for it:
- For a great PowerPoint presentation on this topic, click on "What is Social Enterprise?" by the Social Enterprise Alliance
- "Defining Social Enterprise" by the BC Centre for Social Enterprise
- "Social Enterprise Definition" by the Social Enterprise Lancashire Network
- See the opening line of the "Social Enterprise" page of Wikipedia
Many people believe that a fundamental element of social enterprise - indeed, the "social" in social enterprise - is collective ownership.
- See the third bullet of "Social Enterprise Definition" by the Social Enterprise Lancashire Network
- Some go so far as to stipulate a nonprofit legal structure for a social enterprise:
- For example, see "What is Social Enterprise?" by the Enterprising Nonprofits Program
Until we come up with a broader term than "social enterprise", I'll advocate for a broad interpretation that does not limit it to collectively-owned businesses. If the overarching purpose of the business is to to address a social and/or environmental issue, it's a social enterprise - regardless of its ownership structure. This is a pragmatic position; the world's problems are far too great to be creating arbitrary silos that limit participation and sharing.
What Social Enterprise Is Not
Social enterprise is not about balancing the "double bottom lines" of profit and social impact, as though they are equally important. The real bottom line for a social enterprise, the goal by which its success should ultimately be evaluated, is its social (or environmental) impact, and being profitable (or at least financially sustainable) is the entirely necessary means to that end. Of course, there can be no social mission without money, but the first goal is mission.
Social enterprise is not the exclusive domain of nonprofits - See "What Social Enterprise Is" above. While many nonprofits have been - and continue to be - leaders in the social enterprise movement, social enterprise need not be limited to nonprofits. Moreover, simply being owned by a nonprofit is not sufficient to make a business a social enterprise. The enterprise must have as its overarching purpose the amelioration of social and/or environmental issues.
Social enterprise is not just another fundraising strategy for nonprofits - While it's possible for a social enterprise that is owned by a nonprofit to generate funds to support the operation of that nonprofit, the generation of those funds is secondary to the direct impact it has on social or environmental issues. If generating funds is your biggest priority, check out the fundraising topic in this Library.
Social enterprise is not about "saving" the nonprofit sector - While social enterprise has great potential for enhancing the vitality and sustainability of the nonprofit sector, that potential impact is secondary to its real purpose - helping (directly, through the operation of the business) to make the world a better place.
Some Additional Perspectives on Social Enterprise
Toward a Better Understanding of Social Entrepreneurship: Some
Important Distinctions
Social Enterprise - Wikipedia
The Meaning of Social Entrepreneurship
Social Enterprise Topology
Structure is Irrelevant
Social Enterprise: A Portrait of the Field
Leading Examples of Social Enterprise
NOTE: If you have additional examples, please
email me.
A Few Great Individual Examples
Social enterprise comes in all shapes and sizes and can be found all over the world. Here are a few examples:
Social Enterprise Directories
- Canadian Social Enterprise Marketplace compiled by the Enterprising Nonprofits Program
- ClearlySo's Social Businesses and Enterprises Directory
- Directory of Social Enterprises compiled by Community Wealth Ventures and the Social Enterprise Alliance
Why Social Enterprise Matters
Social enterprise matters because it is focused on making positive change at a time when we desperately need it. Social enterprise is one important tool, among many, that is actively and directly making our world a better place.
Social enterprise is more responsive. Social enterprise doesn't rely on the shifting priorities of government and major foundations; it gets on with making the change that is needed within a community and (sometimes) grows to affect whole cities, countries, and regions.
Social enterprise is scalable. Like all businesses, social enterprise has, with investment and sales revenue, the ability to grow to meet needs and priorities of the communities it serves, as opposed to traditional nonprofit programs, which are often limited to the funds available from government and philanthropic funders.
Social enterprise actively engages stakeholders. Social enterprise gives the people it helps a direct voice in the operation of the business - as owners, employees and paying customers.
Additional Perspectives on Why Social Enterprise Matters
Background on Social Entrepreneurship
Social Entrepreneurship: The Double Bottom Line
The
Nonprofit's Motive
Toward a Better Understanding
of Social Entrepreneurship: Some Important Distinctions
The
Citizen Sector: Becoming as Entrepreneurial and Competitive as Business
A Level Long Enough to Change the World
Flashes
of Genius
Benefits of Social Enterprise: Earned-Income Generation
A Definition
of Earned Income (scroll down the page)
Nonprofits
Can Generate an Earned Income
The Case for Supporting the Earned-Income Activities of Nonprofits
A Diversified Approach to Self-Financing: A Case Study of Hogar
de Cristo
Social Entrepreneurship and Earned-Income Strategies: The Next
Wave
Related (but Different) Fields and Topics
Social Innovation
In "Rediscovering Social Innovation" (Fall 2008 issue of the Stanford Social Innovation Review), social innovation is defined as "a novel solution to a social problem that is more effective, efficient, sustainable, or just than existing solutions and for which the value created accrues primarily to society as a whole rather than private individuals." So defined, social innovation is a bigger concept than social enterprise, which is not limited to enterprise-based approaches to addressing critical issues. Put another way, social enterprise can be a vehicle for social innovation.
Venture Philanthropy
Social Enterprise Meets Venture Capital
Does
Venture Philanthropy Work?
Venture Philanthropy -- the Changing Landscape
High-Engagement Philanthropy: A Bridge to a More Effective Social
Sector
Social Entrepreneurship
Ashoka defines social entrepreneurship as "individuals with innovative solutions to society’s most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change. Rather than leaving societal needs to the government or business sectors, social entrepreneurs find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to take new leaps." So defined, social entrepreneurship is concerned with the entrepreneurs who undertake large-scale social innovation - which may or may not involve a social enterprise. See "What is a Social Entrepreneur" for a list of people who meet Ashoka's definition.
The Grameen Bank is a great example of a social enterprise which, led by social entrepreneur Muhammad Yunus, popularized the social innovation of microcredit.
Corporate Social Responsibility
CSR is, for many, about maximizing shareholder value in a way that minimizes negative social or environmental impacts. To the extent that this is the case, profit is the first goal and minimizing harm (not making things better) is the secondary goal. CSR is way better than business as usual, but it's not social enterprise. See the Business Ethics topic for more information.
Resources
for Doing Social Enterprise
Social enterprises face unique challenges, on top of all the other challenges that any business must contend with. In this section, we focus on presenting resources that address the unique challenges. In later versions of this page, we may add the general resources - keep an eye out for that.
NOTE: If you have additional ideas about resources, please
email me.
Becoming a Social Entrepreneur
Moving Toward the Market: Nonprofit Enterprise in a Changing World
What is a Social Entrepreneur?
25 Entrepreneurial Death Trap
Starting an Enterprise
The Canadian
Social Enterprise Guide
Toolkit
for Developing a Social Purpose Business Plan
Social
Enterprise Business Plan Template and Presentation
Buy An Existing Business?
Market Research -- Inbound Marketing
Planning Your Research
Market Research
Human Resources Planning
Job Specification
Staffing
(Planning)
Leadership
and Human Resource Management
Financial Analysis and Management
Finances
(For-Profit)
Finances
(Nonprofit)
Feasibility Analysis
Feasibility
Testing -- Do Just Enough
Feasibility Testing -- A Lost Art
Feasibility
Testing -- Top 10 tips
Financing
Socialfinance.ca
Social
Capital Markets
Financing
Social Venture Partners International
Evaluation
Demonstrating
Value Program
Measuring Results
Guiding Principles
Get Connected: Social
Enterprise Organizations, Networks and Publications
NOTE: If you have additional organizations,
networks or publications, please
email me.
Organizations and Networks
Ashoka - Innovators for the
Public
Center for the Advancement
of Social Entrepreneurship
Enterprising
Nonprofits Program
Initiative
on Social Enterprise at Harvard Business School
Nonprofit Enterprise and Self-sustainability
Team
npEnterprise Forum
Roberts Enterprise
Development Fund
School for Social Entrepreneurs
Skoll
Centre for Social Entrepreneurship
Social Capital
Partners
Social Enterprise Alliance
Social
Enterprise Coalition (UK)
Social Enterprise Council
of Canada
Social Ventures
Australia
Social Venture
Network
Social Venture Partners International
Publications
Beyond Profit Magazine
SEE Change Magazine
Social
Enterprise Magazine
Stanford Social Innovation Review
Book Review: Succeeding at Social Enterprise
Websites
- Social Enterprise Alliance. North American membership association offers many resources, some available to all, others members only. (Well worth $75, IMHO.)
- REDF. San Francisco based funder that's probably started and supported more successful SE's than anyone else. Web site chock full of practical advice.
- Community Wealth Ventures. Washington DC consulting firm founded by Bill Shore; resources include SE database, franchising report, L3C report, and more.
- npEnterprise Forum. Free, global, 7000+ subscriber listserv focused exclusively on social enterprise. Post a question and you'll likely get five answers in days.
- IdeaEncore. Many tools and techniques, some free, some for a small fee.
- Rolfe Larson Associates*. Denver consulting firm with a Free Resources section with practical work sheets and templates on starting an SE.
- Free Management Library. Section on Social Enterprise and Business Planning packed with resources and links about the field. Weekly blogs also.
- Wikipedia. Nowadays every research project has to include Wikipedia, although in this case, it is a bit sparse on practicality.
- RootCause in Boston has an excellent free guide to SE business planning.
- Aperio in Toronto offers some good articles and case studies.
Continue to Learn in the Library's Social Enterprise Blog
The blog is hosted by an expert in social enterprise who writes two posts per
week, including from guest writers. Learn from those posts -- even consider
writing an article yourself!
Social Enterprise
Blog
Vast, Additional Resources in the Category of Social Entrepreneurship!
Related Library Topics
