As I’ve been writing for a while, the global population no longer believes that things can’t change. In other words, for years, nonprofits suggested they can make a difference. Fortunately, many have done it to scale. But, people have gotten used to continued appeals and urgency. As a result, it suggests the problem continues to exist. And, of course, that’s when donor fatigue occurs. Because of technology, disruption, and other things, donors believe more than ever that significant impact can happen. As people look for creative ways to eliminate social issues, you see many seeking to understand the question, what is a social enterprise company?
We know that people want to make the world a better place. Because of it, you see businesses shifting from an exclusive focus on profit. Now, they also seek an earnest focus on corporate social responsibility. Meaning, being socially responsible makes good sense for businesses and bottom lines. Also, you have younger generations who seek to do things differently. Due to advances in technology and social media, they’re challenging the status quo.
What is a social enterprise company, and how is it different from a nonprofit?
Depending on where you live around the planet, you might find different definitions. However, a standard explanation is that a social enterprise seeks to: 1) make a profit; and, 2) also a measurable social impact. In contrast, a nonprofit doesn’t seek to earn a profit. Still, it can make money and simply invest it back into its programs. Also, nonprofits can’t distribute profits to shareholders.
Why commerce can help alleviate poverty
As most people understand, one of the toughest social challenges to overcome is poverty. For millennia, people have tried to ensure that people rise above it. As you know, poverty brings with it many challenges that make it exceedingly difficult to survive. For instance, poverty limits choices concerning food, shelter, and water. Also, it makes it hard in other respects. Having traveled to developing nations, I have seen immense poverty. As an example, I have seen people walk without shoes because they could not afford them. It was those experiences that motivated me to create a social enterprise with my team.
What became clear to me during my travel to countries such as Haiti is that the elimination of poverty requires more than charity. In conversations with micro-entrepreneurs, I’ve learned that what they want—and need—is an opportunity. You see, many countries and regions within developing nations limit charity. In other words, governments don’t want “free” things flooding and destroying their commerce markets. This idea is what the TOMS shoe company faced a few years back. One of the complaints against them was that by giving away free shoes, they were destroying local business opportunities. People need work opportunities to help themselves. And, I’ve learned that they prefer it over charity.
Considering a social enterprise for social good
I think people are inherently good. And I also believe that people want to see men, women, and children, including people they may never meet, to do well. So, if you’re thinking about creating a nonprofit to make an impact, I suggest you also look at creating a social enterprise. First, a social enterprise allows both profit and social impact. Having led a social enterprise for years, I can tell you from firsthand experience that it’s been awesome to help create commerce opportunities for over 4,000 small business owners around the world.
Take a look at some of the following resources if you’re interested in perhaps establishing a social enterprise.
We’re lucky to live at a time when making a difference, and also money can be in the same activity, such as a social enterprise.
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