What is a Social Enterprise?

Business Teacher T

24 Mar 202405:36

Summary

TLDRSocial enterprises are businesses with a mission to create positive social change. Unlike traditional businesses focused on profit, they reinvest profits into projects that address social or environmental needs. Key characteristics include a clear social mission, revenue generation through sales, and active measurement of their impact. Examples include Toms, Fairphone, Greystone Bakery, and The Big Issue, which provide employment and opportunities to marginalized communities, promoting social inclusion and economic empowerment.

Takeaways

🌟 Social Enterprises aim to create a positive social impact while maintaining financial sustainability.
💼 They operate like traditional businesses but prioritize social or environmental missions over generating dividends for shareholders.
💹 Profits are reinvested or donated into projects that drive social change and community development.
🔍 Social Enterprises measure and evaluate their impact using metrics such as beneficiaries reached or carbon emissions reduced.
👟 Example: TOMS operates on a 'one-for-one' model, donating a pair of shoes for every pair sold to address poverty and access issues.
📱 Fairphone is a social enterprise focusing on ethical sourcing and environmental friendliness in smartphone production.
🍞 Greystone Bakery provides employment opportunities to individuals facing barriers, promoting social inclusion and economic empowerment.
📰 The Big Issue is a social enterprise magazine addressing homelessness by providing vendors with economic opportunities.
💬 Social Enterprises often advocate for policy changes and social reforms to tackle the root causes of social issues.
🌐 The Big Issue's profits are reinvested into programs and initiatives, emphasizing social mission over profit maximization.

Q & A

What is the primary goal of social enterprises?
-The primary goal of social enterprises is to make a profit like traditional businesses, but instead of generating dividends for investors, they reinvest or donate their profits into projects, ideas, or initiatives that create positive social change in communities.
How do social enterprises create employment and investment?
-Social enterprises create employment and investment by selling products and services on the open market, using the money generated to tackle social problems or provide training and employment in their chosen sector or local communities.
What distinguishes social enterprises from traditional for-profit companies?
-Social enterprises operate in a business-like manner with the primary goal of addressing social, environmental, or community needs. Unlike traditional for-profit companies, which prioritize generating profits for shareholders, social enterprises aim to create a positive impact alongside financial sustainability.
What are some key characteristics of social enterprises?
-Key characteristics of social enterprises include having a clear social or environmental mission at the core of their business activities, generating revenue through the sale of goods or services, and actively measuring and evaluating their social or environmental impact.
How does the social enterprise Toms address issues of poverty and access to essential items?
-Toms operates on a one-for-one model, where for every pair of shoes or glasses purchased, they donate a pair to a person in need, addressing issues of poverty and lack of access to essential items.
What is unique about Fairphone as a social enterprise?
-Fairphone is a social enterprise that produces ethically sourced and environmentally friendly smartphones, focusing on promoting fair labor practices, reducing environmental impact, and increasing transparency in the electronics supply chain.
How does Greystone Bakery's open hiring model contribute to social inclusion?
-Greystone Bakery provides job opportunities to individuals facing barriers to employment, such as those with criminal records or experiencing homelessness, promoting social inclusion and economic empowerment.
What is the Big Issue and how does it address homelessness and poverty?
-The Big Issue is a social enterprise and magazine in the UK that provides economic opportunities to people experiencing homelessness or social exclusion. It sells magazines on the streets, with vendors earning an income by purchasing at a discount and selling at a higher price.
How does the Big Issue support its vendors?
-The Big Issue provides support and assistance to its vendors, including training, access to services, and opportunities for personal development, aiming to empower them to improve their financial stability and transition away from homelessness or social exclusion.
What is the role of the Big Issue's magazine in raising awareness and advocating for change?
-The Big Issue's magazine raises awareness about issues related to homelessness, poverty, and social exclusion through its content, campaigns, and public events. It also advocates for policy changes and social reforms to address the root causes of these issues.
How does the Big Issue prioritize its social mission over profit maximization?
-As a social enterprise, the Big Issue reinvests all profits made back into the organization's programs and initiatives, rather than distributing them to shareholders, thus prioritizing its social mission over profit maximization.

Outlines

00:00

🌟 Social Enterprises: Driving Social Change

Social Enterprises are businesses designed to improve the world. Unlike traditional businesses focused on generating dividends for shareholders, Social Enterprises reinvest profits into projects that foster positive social change. They operate in a business-like manner, addressing social, environmental, or community needs. Key characteristics include a clear social mission, revenue generation through sales, and active measurement of social or environmental impact. Examples provided include Toms, which donates shoes and glasses for every purchase; Fairphone, focusing on ethical and environmentally friendly smartphones; Greystone Bakery, offering employment to those facing barriers; and The Big Issue, a magazine tackling homelessness and poverty by providing economic opportunities to vendors.

05:01

🎥 The Big Issue: A Social Enterprise in Action

The Big Issue is highlighted as a significant social enterprise in the UK, addressing homelessness and poverty. It operates a magazine sold by vendors, typically individuals who are homeless or at risk, allowing them to earn an income. The organization supports vendors with training, services, and personal development opportunities, aiming to empower them towards financial stability and social inclusion. Profits are reinvested into programs rather than distributed as dividends, and The Big Issue also raises awareness and advocates for policy changes to combat the root causes of social issues.

Mindmap

Keywords

💡Social Enterprises

Social enterprises are organizations that operate with the primary goal of addressing social, environmental, or community needs. Unlike traditional for-profit companies, they aim to create a positive impact alongside financial sustainability. In the video, examples such as Toms, Fairphone, Greystone Bakery, and The Big Issue are highlighted as social enterprises that use their profits to fund projects or initiatives that drive social change.

💡Profit Reinvestment

Profit reinvestment refers to the practice of a social enterprise taking its profits and reinvesting them into projects, ideas, or initiatives that create positive social change. This is a key characteristic that differentiates social enterprises from traditional businesses, which often distribute profits as dividends to investors. The video emphasizes how social enterprises use reinvested profits to tackle social problems and provide training and employment.

💡Social Change

Social change is the process of transforming social structures, institutions, and cultural values to address social problems and improve community well-being. The video discusses how social enterprises contribute to social change by creating employment, investing in local communities, and focusing on issues like poverty, environmental impact, and social inclusion.

💡One-for-One Model

The one-for-one model is a business approach where a company donates one product or service for every one sold to a customer. Toms, mentioned in the video, operates on this model, donating a pair of shoes or glasses for every pair purchased. This model exemplifies how social enterprises can create social impact through their business operations.

💡Ethical Sourcing

Ethical sourcing is the practice of procuring goods or services in a way that ensures fair labor practices, environmental sustainability, and transparency throughout the supply chain. Fairphone, as highlighted in the video, is a social enterprise that emphasizes ethical sourcing in the production of its smartphones, aiming to reduce environmental impact and promote fair labor practices.

💡Open Hiring Model

An open hiring model is a recruitment strategy that provides job opportunities to individuals who face barriers to employment, such as those with criminal records or experience in homelessness. Greystone Bakery, featured in the video, uses this model to promote social inclusion and economic empowerment while producing high-quality baked goods.

💡Social Inclusion

Social inclusion refers to the process of ensuring that all individuals have equal access to resources, opportunities, and participation in society. The video illustrates how social enterprises like Greystone Bakery and The Big Issue work towards social inclusion by providing employment and economic opportunities to marginalized groups.

💡Economic Empowerment

Economic empowerment is the process of enhancing individuals' or communities' ability to make independent choices, control resources, and participate in economic life. The video discusses how social enterprises contribute to economic empowerment by creating jobs, providing training, and supporting personal development, as seen with The Big Issue's vendor program.

💡Social Mission

A social mission is a clear, defined objective that guides a social enterprise's activities, focusing on addressing social or environmental issues. The video explains that social enterprises have a social mission at their core, which influences their decision-making and business operations, setting them apart from traditional businesses that prioritize profit maximization.

💡Impact Measurement

Impact measurement is the process of assessing the effectiveness of a social enterprise's initiatives by quantifying their social or environmental impact. The video mentions that social enterprises actively measure and evaluate their impact using metrics such as the number of beneficiaries reached, reduction in carbon emissions, or improvement in community well-being.

💡Social Exclusion

Social exclusion refers to the lack of participation in societal activities and the inability to access basic rights and services. The Big Issue, as discussed in the video, addresses social exclusion by providing economic opportunities to people experiencing homelessness or social exclusion, thereby helping them to reintegrate into society.

Highlights

Social enterprises aim to make a profit but their primary goal is to create positive social change, not to generate dividends for investors.

Profits made by social enterprises are reinvested or donated to projects, ideas, or initiatives that promote social or environmental causes.

Social enterprises create employment and investment in local communities by selling products and services on the open market.

They tackle social problems or provide training and employment through the money they generate.

Social enterprises prioritize addressing social, environmental, or community needs over maximizing profits for shareholders.

Revenue generated by social enterprises is reinvested to further their social mission or sustain operations.

Social enterprises measure and evaluate their social or environmental impact using metrics such as the number of beneficiaries reached or reductions in carbon emissions.

Toms is a social enterprise that donates a pair of shoes or glasses for every pair purchased, addressing poverty and access to essential items.

Fairphone is a social enterprise that produces ethically sourced, environmentally friendly smartphones and promotes fair labor practices.

Greyston Bakery’s open hiring model provides job opportunities to individuals facing employment barriers, such as those with criminal records or homelessness experience.

The Big Issue is a magazine publisher and social enterprise that provides economic opportunities to people facing homelessness or social exclusion.

Vendors of The Big Issue purchase magazines at a discounted rate and sell them for profit, helping them earn a legitimate income.

The Big Issue reinvests its profits into programs that support vendors, including training and access to services.

The Big Issue raises awareness about issues such as homelessness and poverty through its magazine content, campaigns, and public events.

Social enterprises prioritize social missions over profit maximization, reinvesting revenue into their programs rather than distributing it to shareholders.