Apparently, I'm not the only one trying to figure it all out. At a recent forum on social enterprise, a very well-known Canadian was heard saying, "I know little about social enterprise, but I'm very involved in it." Okaaayyy...I'll give him points for enthusiasm, but I have to ask the question: Can you be involved in something you can't define? (I can sense fingers reaching for keyboards, but please, stay with me for a moment.)
As it turns out, when it comes to social enterprise, you most certainly can get involved even if you aren't quite clear on what to call your activities. In fact, the social enterprise movement might progress a lot faster if people weren't so hung up on trying to define it. But try they will:
- Social enterprises are social mission driven organizations which apply market-based strategies to achieve a social purpose. The movement includes both nonprofits that use business models to pursue their mission and for-profits whose primary purposes are social. (Wikipedia)
- Social enterprises are businesses driven by a social or environmental purpose. (Social Enterprise Coalition)
- A social enterprise is an organization or venture that achieves its primary social or environmental mission using business methods. (Social Enterprise Alliance)
- Social enterprises are revenue-generating businesses with a twist. Whether operated by a nonprofit organization or by a for-profit company, a social enterprise has two goals: to achieve social, cultural, community economic or environmental outcomes; and, to earn revenue. (BC Centre for Social Enterprise)
After reading this handful of selections from the web, you might start feeling a bit smug ("I don't know why she doesn't get it; it's all perfectly obvious!) But add terms like social entrepreneurship, social investor, and social finance into the mix and prepare to be confused!
While I do consider myself a bit of stickler when it comes to words, there is such a thing as getting lost in the details. With so much potential within the social enterprise movement, I hate to see well-intentioned people quibbling over semantics. In the end, they are all working toward the same basic goal - to make our communities and our society stronger.
Luckily, there are some brave souls willing to wade into the mire even if they don't quite have it all figured out. Examples are popping up all over the place: restaurants, cafes, printing shops, wineries, cleaning services, florists, you name it. People who have, for years, been running their business with a social purpose are now being told they are operating a social enterprise. Nice to know, but the point is that they were accomplishing their goals even when there wasn't an official term for what they were doing.
That's good news for the rest of us, including that well-known individual who recently proclaimed his lack of knowledge but high involvement in social enterprise: former Prime Minister, Paul Martin. (If you're curious about what else he has to say on the subject, read his speech, Unleashing the power of social enterprise.
By Nicole Zummach
Enjoyed reading the post. It's hard to really explain to someone what a social enterprise is if they haven't heard of one but it looks like you did a good job covering what it is. Couldn't have done a better job myself. We work with 9 different social enterprise groups so it's good to see someone with similar interests! Looking forward to future posts!
ReplyDeleteI am curious where you might be going with this. I am involved in the space (peer-to-peer lending) and in Canada.
ReplyDeleteHi Colin,
ReplyDeleteI'm not sure if this completely answers your question, but our goal is to create a dynamic and engaging magazine that will speak to, and inform social entrepreneurs and social enterprise operators in Canada, and beyond. You can find out more about our plans at:
http://seechangemagazine.blogspot.com/2009/12/announcing-canadas-first-magazine.html
Thanks for your interest!
Nicole
As I've just been researching how others define social enterprise, I was pleased to read your post. Glad too that that you allow room for both more specific definitions while still providing the anchor: people [through business]looking to make our communities and society stronger. RSF Social Finance makes loans to social enterprises, so I'm glad to read agreement on what they are, here.
ReplyDeleteBette Mc Donnell
www.rsfsocialfinance.org
Hello Nicole and Elisa,
ReplyDeleteCongratulations on this blog and best of luck with the magazine.
From our research we recognize that there is even contention, as in any emergent field, on the need for definitions - let alone agreement on the actual terms.
The essence, though, of all the definitions you quote (and I realize you have just chosen to highlight a few high profile ones) include an element of operating in the marketplace "a business" combined with a social/ environmental purpose, also referred to as a double or triple bottom line.
Given the legal structure in Canada, these fall into two camps - non-profits with a revenue generating component (not fundraising but fees for services, sale of products etc) and for-profits who have an embedded social/ environmental mission.
At SiG@MaRS our programs and services are directed to both groups: non-profit social enterprises and for-profit social purpose businesses - so we have chosen the term social venture to represent both sectors.
As you know we are also working with many others across this country to investigate alternative legal structures like the L3C in the US or the CICs in the UK but for now, the distinction between for-profit and non-profit is relevant.
I would refer your readers to our white paper on social venture finance and socialfinance.ca for more information on this topic.
We look forward to working with you to promote social ventures in this country and I can't wait to see the blog where you tackle defining all the other emergent terms in this sector :-)
http://www.marsdd.com/buzz/reports/socialventurefinance
Allyson Hewitt, Director, SiG@MaRS
ahewitt@marsdd.com