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Social enterprise

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Social Enterprise In Different International Contexts

Social Enterprise In Different International Contexts

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  • 1. Janelle Kerlin Asst. ProfessorNonprofit Studies Program Georgia State UniversityCIES/Barcelona Program May 7, 2012
  • 2.  Social enterprise is the use of market-based approaches to address social issues in specific, often innovative, ways. Specific conceptualizations are shaped by the regional context.
  • 3.  Civil society organizations that receive earned income 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 purpose of the organization is social benefit. OR Some forms of CSR may be viewed as social enterprise such 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 scalable and lasting change (whether or not it is market-based).
  • 5. The Economic Dimensiona) A continuous activity, producing and selling goods and/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-employ populations. 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 from social security payments for disadvantaged. Considered first for public work contracts.
  • 9.  Six cooperatives created through the efforts of deinstitutionalized 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, high rates of unemployment, deep poverty. Small loans to develop agricultural or craft-related small businesses. Loans given to solidarity groups due to the absence of collateral among individual borrowers. Goal is long-term sustainability of initiatives.
  • 11.  Most enterprises operate in the informal market due to restrictive business laws. Both microfinance lending institutions and international NGOs provide financing. A motive for INGOs is to reduce the dependence syndrome in local communities. In the majority of cases, loan repayment rates have reached 90 percent.
  • 12. 2004 2005Local resources mobilised 20,000 USD 67,000 USDLoans disbursed 12,416 USD 15,125 USDRepayment rate 85% 89%Profitability 5% 15%Outreach Country-wide Country-wide
  • 13.  Response to 2001 economic crisis that resulted in 21% unemployment. Abandoned companies taken over by workers under a system of self-management. 170 recuperated companies employing 12,000 workers. Supported by large local community networks.
  • 14.  Owners abandoned company having not paid workers in several months. Workers restarted the company only to have police throw them out several months later. Over 10,000 people unsuccessfully tried to help workers retake the factory. After two years, a judge declared the company bankrupt and passed the assets to the cooperative.
  • 15. Definitions: “An activity intended to address social goals through the operation of private organizations in the marketplace.” Dennis Young “Organizations or ventures that achieve their primary social or environmental missions using business methods.” Social Enterprise Alliance
  • 16. “A continuum from for-profits engaged in social activities to hybrids that mediate profit goals with social objectives to nonprofits engaged in commercial activity.”For-profits Hybrids Nonprofits(with social activities) (with profit & social goals) (with commercial activities)
  • 17. ‘Business’ Social Enterprise: – Corporate Philanthropy (?) – Dual Purpose Business (hybrids) – Business-Nonprofit Partnerships‘Nonprofit’ Social Enterprise: – Social Purpose Organization – Trade Intermediary – Nonprofit/For-Profit Subsidiaries – Nonprofit-Business Partnerships
  • 18.  The main purpose is to provide a revenue stream to support any socially beneficial activity (it is not focused primarily on unemployment). By some accounts, commercial revenue makes up more than 50% of total nonprofit revenue. Compared to W. Europe, the government has had limited interest in strategically financing social enterprise.
  • 19.  Georgia Justice Project  Provides ex-offenders with employment and job training in a landscape company.  Provides limited income for the nonprofit. Goodwill Industries  Provides income to the nonprofit through thrift shop operations.  Thrift shop provides limited jobs for the hard-to- employ.
  • 20. United Western Zimbabwe/ Argentina States Europe ZambiaOutcome Economic Social Economic Self- Social/Emphasis Sustainability Benefit Sustainability Economic BenefitCommon Nonprofit/ Association/ Microfinance/ Coop/ MutualOrganizational Company Cooperative Small Enterprise BenefitType (Company)Societal Market Social Market SocialSector Economy Economy Economy EconomyStrategic Foundations Government/ International Aid Civil SocietyDevelop EUBase
  • 21. MARKET Southern Africa United StatesINTERNATIONAL Western STATEAID Europe Argentina CIVIL 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.

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