Social enterprise

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Social EnterpriseIn Different International Contexts

Transcript of Social enterprise

  • 1. Janelle Kerlin Asst. ProfessorNonprofit Studies Program Georgia State UniversityCIES/Barcelona ProgramMay 7, 2012

2. Social enterprise is the use of market-basedapproaches to address social issues in specific,often innovative, ways. Specific conceptualizations are shaped by theregional context. 3. Civil society organizations that receive earnedincome in exchange for products or services. Social cooperatives. Micro-finance lending institutions and enterprises. Recuperated employee-owned companies. 4. Is corporate social responsibility a form of social enterprise? Social enterprise only occurs where the main purposeof the organization is social benefit. OR Some forms of CSR may be viewed as social enterprisesuch as high levels of corporate philanthropy.What is a social entrepreneur? Anyone who operates a social enterprise.OR A highly innovative social activist who creates scalableand lasting change (whether or not it is market-based). 5. The Economic Dimensiona) A continuous activity, producing and selling goodsand/or servicesb) A high degree of autonomyc) A significant level of economic riskd) A minimum amount of paid work 6. The Social Dimensione) An explicit aim to benefit the communityf) An initiative launched by a group of citizensg) A decision-making power not based on capitalh) A participatory nature, which involves the parties affected by the activityi) A limited profit distribution 7. A response to unemployment, hard-to-employpopulations. Multi-stakeholder ownership-workers, managers,volunteers, costumers, donors, public authorities. Democratic management style. Limited distribution of profits. Receive government subsidies. 8. Law specifically for disadvantaged workers. 30% of the employed must be disadvantaged. Disadvantaged must be members of the cooperative. Tax relief for cooperatives and exemption fromsocial security payments for disadvantaged. Considered first for public work contracts. 9. Six cooperatives created through the efforts ofdeinstitutionalized mental health patients and staff. Cooperatives provide services in the areas of cleaning bookbinding photography and video graphics carpentry (furniture for schools and hospitals) restaurants, pubs, hotel hairstyling building renovation landscaping home health/caseworker services 10. Response to underdeveloped economies, highrates of unemployment, deep poverty. Small loans to develop agricultural or craft-relatedsmall businesses. Loans given to solidarity groups due to theabsence of collateral among individual borrowers. Goal is long-term sustainability of initiatives. 11. Most enterprises operate in the informal market dueto restrictive business laws. Both microfinance lending institutions andinternational NGOs provide financing. A motive for INGOs is to reduce the dependencesyndrome in local communities.In the majority of cases, loan repayment rates havereached 90 percent. 12. 2004 2005Local resources mobilised 20,000 USD 67,000 USDLoans disbursed 12,416 USD 15,125 USDRepayment rate85%89%Profitability 5% 15%OutreachCountry-wide Country-wide 13. Response to 2001 economic crisis that resulted in21% unemployment. Abandoned companies taken over by workers undera system of self-management. 170 recuperated companies employing 12,000workers. Supported by large local community networks. 14. Owners abandoned company having not paid workersin several months. Workers restarted the company only to have policethrow them out several months later. Over 10,000 people unsuccessfully tried to help workersretake the factory. After two years, a judge declared the companybankrupt and passed the assets to the cooperative. 15. Definitions: An activity intended to address social goalsthrough the operation of private organizations inthe marketplace.Dennis Young Organizations or ventures that achieve theirprimary social or environmental missions usingbusiness methods. Social Enterprise Alliance 16. A continuum from for-profits engaged insocial activities to hybrids that mediate profitgoals with social objectives to nonprofitsengaged in commercial activity.For-profitsHybridsNonprofits(with social activities) (with profit & social goals) (with commercial activities) 17. Business Social Enterprise: Corporate Philanthropy (?) Dual Purpose Business (hybrids) Business-Nonprofit PartnershipsNonprofit Social Enterprise: Social Purpose Organization Trade Intermediary Nonprofit/For-Profit Subsidiaries Nonprofit-Business Partnerships 18. The main purpose is to provide a revenuestream to support any socially beneficial activity(it is not focused primarily on unemployment). By some accounts, commercial revenue makesup more than 50% of total nonprofit revenue. Compared to W. Europe, the government hashad limited interest in strategically financingsocial enterprise. 19. Georgia Justice Project Provides ex-offenders with employment and jobtraining in a landscape company. Provides limited income for the nonprofit. Goodwill Industries Provides income to the nonprofit through thrift shopoperations. Thrift shop provides limited jobs for the hard-to-employ. 20. UnitedWesternZimbabwe/ArgentinaStatesEurope ZambiaOutcomeEconomic Social Economic Self- Social/Emphasis Sustainability BenefitSustainability EconomicBenefitCommon Nonprofit/ Association/ Microfinance/Coop/ MutualOrganizational CompanyCooperativeSmall Enterprise BenefitType (Company)Societal Market Social Market SocialSector EconomyEconomyEconomyEconomyStrategicFoundationsGovernment/ International Aid Civil SocietyDevelop EUBase 21. MARKETSouthernAfrica United StatesINTERNATIONALWestern STATEAID Europe ArgentinaCIVIL SOCIETY 22. 1) Discuss examples of social enterprises from your countries and list them on Worksheet #1.2) Complete the comparison table in Worksheet #1 for each country in your group.3) Using your responses on Worksheet #1, think about how much social enterprise in your country/countries relies on or involves the Market, the State, Civil Society, and International Aid. Place your country/countries on the diagram in Worksheet #2 in the place that best reflects their relative reliance.