Well, we are! Let's go through a few more official definitions to establish a better understanding, though.
The Social Enterprise Alliance says, “A social enterprise is an organization that marries the social mission of a non-profit or government program with the market-driven approach of a business.”
Jim Riley, a business writer and co-founder of tutor2u, explains it a little more simply. He said, “Social enterprises complete alongside other businesses in the same marketplace, but use business principles to achieve social aims.”
For visual and auditory learners, this video gives a more thorough explanation with use of graphics.
Perhaps this quote from the above video sums up social enterprises best:
In the case of a for-profit business [the motivation of investment is to] generate a return on your investment. In the case of a social enterprise, the motivation for investment is to create social benefit.
According to The Rise of the Social Enterprise from Deloitte Human Capital Trends 2018, social enterprises are becoming more popular and are taking up a larger share of the business world.
In Josh Bersin's article, he cited these reasons to explain this idea more fully.
1. "65% of companies surveyed now rate “inclusive growth” as one of their top three goals, eclipsing strategies like “growing market share” or “being the category leader.”
2. “Citizenship and social impact” were rated critical or important by 77% of our respondents, and this topic was rated the “least ready” issue among the executives we surveyed."
3. "The need to create 21st century careers, improve the relevance of reward systems, focus on employee well-being, and address the issue longevity in the workforce all rated as top 10 issues in the human capital agenda."
Refutea is so happy to see the growth of social enterprises and is proud stand among businesses who are changing the world one day at a time!
Want to know more? Take a look through these resources related to social enterprises!
How to Create a Successful Social Enterprise
Marquis Cabrera, founder and chairman of Foster Skills, gave this speech at TEDxTeachersCollege. His social enterprise centers on foster children and encouraging and assisting them to help them reach their full potential.
19 Social Entrepreneurs to Watch in 2017
Although this list is a year old, it's a revealing piece about the varying backgrounds of entrepreneurs and the causes which they support through their business endeavors.
Social Enterprise Alliance Organization Directory
This is a great way to find social enterprises and shop intentionally! Sift through the list to find ways to purchase great items while funding causes about which you are passionate.
Welcome to RefuTea! I hope you explore the blog for stories about the refugees impacted by RefuTea, blog series on entrepreneurship and tasty tea recipes!