A new breed of social enterprise is taking the world of Business.
23rd, January 2019 - Social enterprise
In the business ‘Profit’ speaks the most. But there is a new breed of business where social cause and profits are combined. They believe in increasing social wealth along with their business wealth. They have learned the fine art of striking a balance between profit-making and social good. We know them as social enterprises.
So what exactly is it that social enterprises do differently. Bill Drayton, one of the tribesmen of Ashoka says this:
“Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.”
Social enterprise is a company with an intention to increase the wellbeing of society and planet and its stakeholders. For them profitability is not an inherent reason to justify the means and but there are other vital motivations to business than pure money.
So one can say “Social enterprises are businesses whose primary purpose is the common good.” Throw the adversarial relationship between businesses and consumers out the window, and replace it with one of working towards the same goal.
Business norms say that profits are a zero-sum game, where if it doesn’t help your bottom line, you shouldn’t be doing your business. Social enterprises operate under different assumptions, thinking that business is not just positive-sum game; aiding society does not have to come at the cost of profit, and profits can achieved in the pursuit of doing good.
What constitutes social enterprise?
In the standard market scenario, social enterprise referred to NGOs, trust, societies, etc. which is registered under State Government regulations. But there are other forms of ventures which are established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income are applied for promoting only the objects of the company, and no dividends are paid to its members’.
Today concept ‘Social enterprise’ is going beyond the NGOs, Trusts, etc.. Even Private limited company, Partnership firm with a derived vision called as Social Enterprise. The legal entity has just become a status for a firm.
The business model of Social enterprise is always surrounded by ‘Social.’ The essential elements of the business model, i.e. What - How – Who- Why addressed by the Social factors for these enterprises. They never worried about the bottom line of the business, but they worry about the bottom-line of society.
The new way of looking at social enterprise:
The old definition of Social enterprise is not adequate and signalize the exact meaning of social enterprise. The process of problem identification and designing solution in the context of society has many dimensions. Earlier social enterprise meant to work in health, education, poverty, etc. in with the legal structures like NGOs and Trusts. But today we see many businesses in the context of the social enterprise. These new forms of the entity are formed with a vision to create a positive impact in the society with a sustainable business model.
For this new breed of enterprises Social wealth is the primary goal than making Profit. They bring social capital together and deliver the solution to social problems.
Some of the best Social enterprises which adopted this model:
Desicrew solution – Started as a Rural BPO to provide employment opportunities to the rural people. Desi Crew started their first center in Chennai with 40 employees, and now they have three centers across India. They have employed more than 4000 employees across three units, and also they diversified their domain to AI, ML, and other new technology platforms. Desicrew is for-profit enterprise set up to provide employment and educational opportunities for the rural area.
Ziveli - Ziveli is such a social enterprise, bringing the kauna craft-work of Manipur to the world. Ziveli, the brainchild of brother-sister duo Kehaan J. Saraiya (27) and Tanvi J. Saraiya (30) which employ about 150 Manipuri artisans who make lifestyle products by weaving kauna, a reed that grows in water.
Many entrepreneurs and Startups plunged into social enterprise only with a vision to improve the society. Let us all appreciate these new breed social entrepreneurs and promote social enterprise.
If you are social entrepreneur/founder, please comment here your views and educate our readers.
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