Social Enterprises
Describe social enterprise
Social enterprises are organisations that trade to deliver a social mission or community benefit. It is an umbrella term for a variety of organisations that use commercial methods and business models, to generate community benefits and social and/or environmental change
What is a ‘co-op’ and how do they operate?
Co-operatives are businesses that create value to share among their members and their communities.
In a co-op, ownership and control is shared equally amongst members who use their co-op.
Members of a co-op are people, other businesses, employees or other community stakeholders who work together to achieve a common purpose or outcome.
Describe ‘blended organisations’ and the continuum
Blended organisations achieve measurable social impact alongside financial return.
- Potentially self sustaining >75% of market revenues.
- Social business so profits are reinvested into the company.
- Mission driven for profit enterprise ("B-corp)
Why are social enterprises becoming more popular?
- Contribute to government goals
- Scale solution through private investment
- Create economic participation and opportunities for more diverse people
- Encourage the development of skills
- Create services that meet emerging needs
- Reinvest profits
- More likely to operate in disadvantaged communities
What are the seven principles of co-ops?
- Voluntary and open membership
- Democratic member control
- Member economic participation
- Autonomy and independence
- Education, training and information
- Co-operation among co-operatives
- Concern for community
What are the differences between ‘for-profit’ and ‘non-profit’ organisations?
‘Non-profits’ are established and run purely to deliver a public purpose or for the benefit of their members.
‘For-profit’ organisations are generally privately owned by ‘shareholders’, and exist for the primary purpose of creating wealth for those shareholders.
How do social enterprises create inclusion?
Personal description of how social enterprises create inclusion
Examples:
- Volunteers
- Providing opportunities to disadvantaged groups
What are some examples of co-ops you can think of?
Any 3 examples of a Co-Op:
eg: The Fifth State
What are the similarities and differences between US-style ‘Socialised enterprise’ and EU-style ‘Social purpose enterprise’?
EU-Style Social Enterprise
'Socialised Enterprise'
- Collective action
- Labour movement or government responses to social issues
- Incremental building of social capital and assets
- Solidarity and mutuality
- Accommodation of stakeholders
- Democracy (bottom-up governance)
- Social economy
US-Style Entrepreneurship
'Social Purpose Enterprise'
- Individual action
- Entrepreneurial (market) responses to social issues
- Fast effective achievement of social outcomes
- Champions and change agents
- Adherence to a 'vision'
- Philanthropy (top-down governance)
- Any sector