“Social enterprise is a means by which people come together and use market–based ventures to achieve agreed social ends. It is characterized by creativity, entrepreneurship, and a focus on community rather than individual profit. It is a creative endeavour that results in social, financial, service, educational, employment, or other community benefits.” (Talbot, Tregilgas, Harrison, 2002, p.2)
Although social enterprises can be structured as a for-profit or non-profit, its main purpose is to maximize improvements in human and environmental well-being.
In consideration of its complex feature, it is not easy to run a social enterprises.
From my point of view, the key to success for a social enterprise is to figure out what the primary purpose is. If the primary purpose is to make profits, it is crucial to firstly identify a genuine market need where the social enterprise will have an advantage over other for-profit competitors. If the primary purpose is to fulfil a social need, it is of importance to chose the most suitable commercial approach to meet that need.
One of the toughest challenges in running a social enterprise is to successfully meet the double bottom line: having to fulfil social needs and be a sustainable commercial business. However, there is a tendency for those existing social enterprises to meet financial goals which overwhelm the social purpose.
To summarize, determining which type of social enterprise it will be is of vital importance. Only the clear primary purpose itself is far from enough. Social enterprises should also undertake a comprehensive planning process, including market research and growth planning, leading to the development of a business plan.
References:
What is Social Entrepreneurship? < http://skollworldforum.org/about/what-is-social-entrepreneurship/>
Queensland social enterprise showcase – Social Ventures Australia. (2011, August 15). <http://socialventures.com.au/news/queensland-social-enterprise-showcase/>