(Note: This is an English Translation of my article on Social Entrepreneurship which I posted here last January 29, 2014. I have done this for the benefit of you non-Filipino speakers around the globe who might chance upon this blog!)
Here is my first article
about social entrepreneurship. Although we often hear the term "social
entrepreneurship," many of us still find its meaning quite vague or
confusing. Even I myself who wants to be a social entrepreneur am still
confused over its meaning as well. Sometimes I ask myself if I could already consider
myself
as a social entrepreneur since I purposefully make my products in my online
business to be inspirational for young people. So I thought it best to study
first the concept of social entrepreneurship
and here I am sharing to you what I
have learned so far.
Social Entrepreneurship: Definition
Social entrepreneurship
is a way of establishing and operating an organization by using business
approaches and principles but with the main objective of creating a positive change or providing
solutions to the problems of a community, often with regard to its on the
social, cultural, and environmental aspects. This concept can be used by
philanthropists, social advocates, co-operatives, charities, and any other
organization or individual with activities that aim to uplift a community. However, there is often
confusion over its definition especially
with regard to the question on whether a social enterprise should be for profit
or non-profit. Still, most people who are active in this work might agree
with this description: If the main measure of a regular entrepreneur to find out if his business is successful is
how much he earned or how great his
profit is, the social entrepreneur (the founder or manager of the social
enterprise) is concerned over how many or how much his enterprise was able to
help. (Social Enterprise Canada
 |
| Cherrie Atilano is the president of social enterprise Agricool, "a movement which dreams to build the lifestyle of healthy food consumption while creating agricultural opportunities in the |
Social Enterprise
Social entrepreneurship
can be used in a non-profit organization because it involves the use of business
principles and strategies to solve
social problems. Now “social enterprise” in itself is the very organization
that is established using the strategies
of social entrepreneurship to address social or global issues but this time, profitability
is an important mechanism to achieve
these goals. The social enterprise, thus, through its income generating business
or trade activities should be able to provide good social impact in his
community.
Differences between Non-profit
Organization and Social Enterprise
A non-profit
organization (NPO) aims to provide service to a community that has specific
needs or to support an advocacy or groups who are working on projects that will create favorable impact on
society. The funds of an NPO often comes from donations given by private
organizations, individuals, and the government. In contrast to social
enterprises, an NPO does not need to develop activities to earn or generate
funds, but sometimes they may also conduct fundraising projects and similar
methods to raise additional funds for their operation or to create public
awareness about their cause. Nevertheless, the main goal of a non-profit
organization will always be to espouse
its advocacy. Members of NPOs may receive salary but many non-profit
organizers or supporters are volunteers. However, although social enterprises are often likened to NPOs, social enterprises must have the capacity to earn. It should be
self-sustaining in order to carry out its purposes. A social enterprise can
also be established by an NPO, however its
operation must be separate from the NPO itself because a large part of
its operations is related to activities concerning the financial aspects of the
business. The NPO-run social enterprise cannot simply involve itself in charity
works or advocacy campaigns unless the aim of such activities will serve as
marketing activities resulting in more revenue for the social enterprise. Any
private individual can also establish a social enterprise. He can be a sole
proprietor who has a clear advocacy or has placed a socially relevant facet in
his business. He may also encourage his
neighbors or the members of his community to put up a social enterprise or,
form a cooperative, a known type of social enterprise. Therefore, it can be
deduced that a social enterprise is a mix of
profit and non-profit since the enterprise is established for profit,
but the earnings are allocated not to increase the wealth of the organizers but
to give support to the people in a community, service to those in need, or
positive change in people or even the whole world.
Social Enterprise
A social enterprise may
also receive donations just like NPOs. However, it is important for it to be
able to stand on its own feet or be "self-sustaining" because its
operation requires continuous funds in order to serve its selected community or
advocacy. It is usual for social enterprises to employ workers from the
community they serve. One of the main objectives of most social enterprises is to
provide good and regular pay to their employees (who are members of the community that they serve) thus social enterprises cannot
rely on donations alone. It is the priority of social enterprises to reinvest
its earnings to the organization. The social entrepreneur earns only in accordance
with his/her role in the organization,
similar to how the workers’ wages are
computed. Sometimes though, a social entrepreneur works for the enterprise pro
bono because her only aim in working for a social enterprise is to help others
and support a cause (and that the social entrepreneur may in fact have
another job or sources of income).
Social enterprises also welcome volunteers and participation from
non-profit organizations and the government to ensure that they can properly
serve the community they selected. But clearly social enterprises cannot rely
on donations or grants. A social
enterprise should be a revenue-generating business.
Answer to My Personal Question
I believe that I am not yet a social entrepreneur although my goal in building an online
business seems to include solving a particular social need. I have come to this
conclusion because I have not yet found a concrete community that will benefit
from my business. But this does not mean that my business is not good, only
that today my business is still in an area of entrepreneurship that is different
from social enterprise. Nonetheless, I would like to believe that my business is
anchored on doing good and has a corporate social responsibility (CSR). (Later
I will discuss what CSR is.) On the other hand, I have realized and thus would
also like to emphasize that, in my opinion, not everyone should aspire to
establish a social enterprise to become a good entrepreneur. It is already a
great help to society when businesses provide employment for its people while
engaging in trade with sound principles, noble intention, and fair practices.
