Social enterprise is an expanding trend in the worldwide market. Certain social and environmental needs will never be met solely via organizations that depend on donations or grants. Therefore, social enterprises provide a great option for raising funds to support making a difference in the world.
What Is A Social Enterprise?
A ‘pure’ social enterprise has a not-for-profit ownership. The aim is not to make a profit, but to generate revenues to fund the daily activities of the enterprise. Social enterprises are therefore innovative ways for organizations to generate funds. And in doing so, they address one of their main operational requirements.
Social enterprise also comprises government spearheaded groups designed for community development. And as income generating activities for marginalized groups. They can also include socially responsible businesses. This type of business aims to make a profit. But, the business model is designed to make a greater positive social impact on the community.
As you can see, social enterprises are framed on positively impacting the three ‘P’s’ – People, Planet, and Profit. Therefore, a social enterprise is often defined as an organization for which its primary mandate is to impact the community, social or environmental goals. They fund these activities through the revenues they generate. The revenues are either reinvested in the business or used for their programs or enrichment of the lives of those in the community.
Balancing the Books – Profit and Impact
The aim of all social enterprises is to make an impact in society. It doesn’t matter if it is a for-profit company, non-profit organization, or a community establishment. Social enterprise initiatives in for-profit companies provide them with an opportunity to contribute to society while still making a profit. For non-profit or not-for-profit institutions, it’s a way to finance their social objectives.
Many social enterprises focus on providing a valuable product or service. This helps to reduce the dependency on government grants and subsidies and the reliance on donations. The revenues from these products or services allow these enterprises to fund their missions. And gives them the flexibility to meet their respective mandates to contribute to society.
The Benefits of a Social Enterprise
Social enterprises find creative ways to fund their operations. In the process, they provide consumers with the opportunity to give back to society. Internationally, social responsibility is a big issue. And customers are looking for ways to not only obtain goods and services, but to also support worthy causes in doing so. They are happier purchasing when they know that they are support change and impact in society.
Supporting Social Entrepreneurship
The impact these organizations make is one of the reasons why, at Catalyst Development, we are pleased to serve them. Working with these organizations, it allows us to do what we love while contributing to these enterprises’ success in making the world a better place. We salute the creators of the various social enterprises across the globe and look forward to seeing and supporting the great work they do.
So, when next you find yourself thinking that you would like to make a change in the world but unsure of how to fund your plans, consider social entrepreneurship. Create a social enterprise. See how much difference you can make with a product or service that people want that funds your passion for service to the community.