The document discusses the evolving role of social enterprises as a critical means for economic and social development, emphasizing the need for collaborative partnerships among government, corporations, and non-profits. It critiques traditional views of these entities and proposes a revised perspective that promotes self-sufficiency and market-based approaches to address social needs. The growing importance of social enterprises in addressing societal challenges amidst declining charitable contributions and shrinking government budgets is highlighted as well.

1. Social Enterprise: A Critical Engine of Simultaneous Economic and Social Development By Lisa Nitze CEO, Social Enterprise Alliance I-7 Conference October 15, 2010

2. A New Vision The world’s problems are outstripping our current initiatives to address them – not necessarily our current capacity to address them Our old models for how to address social problems need to be updated Resources residing in silos need to be combined through collaborative partnerships for maximum positive social impact

3. The Role of Government Traditional View Take care of those who can’t take care of themselves Educate the people Protect the environment Build and maintain transportation and communications infrastructures Build and maintain public health infrastructures Create and implement laws and punishments to provide safety, social stability, equity and fairness in society

4. The Role of Government Revised View Provide those who can’t take care of themselves with the tools to help themselves Partner with others in the market to educate, protect the environment, create and maintain infrastructures, protect public health Provide incentives for people to self-govern for safety, social stability and equity Use leverage to convene partnerships among sources of resources for public good Use leverage to convene stakeholders around issues so they can define a middle ground Incentivize corporations to invest in societies’ well-being Provide seed-funding, be the convener and catalyst

5. Corporations Traditional View Emphasis on short-term profit for shareholders See societal needs as the job of government See environmental issues as the job of government See non-profits as an adjunct of government and make annual contributions to them as asked See Universities as disconnected from economy See citizen and advocacy groups as on another team See government as ineffective

6. Corporations Revised View See other stakeholders in society as partners in long-term health and sustainability of: Communities where operate Employees Customers Suppliers Distributors

7. Universities Traditional View Educate the best on higher level thinking Stick to education Revised View Educate to market needs Partner with corporations, government and non-profits to create societal and commercial value while educating Commercialize learning where possible

8. Citizen Advocacy Groups Traditional View Corporations are deliberately ignoring needs of society and environment Corporations are on another team - damaging society in pursuit of their interests Revised View Corporations have resources to contribute to the community Corporations can be partners in solving social problems

9. Nonprofits Old View: The Traditional Nonprofit Model of meeting need through dependency on donations Model of pursuing good without responsibility for figuring out how to pay for it Lack of connection to market drivers allows original model to become out of touch Federal organizations do not meet local needs with local solutions

10. Social Enterprises Revised View: The Social Enterprise A market-based, business-like approach to solving a social problem Its mission is to meet a societal need in a way that is self-sustaining Simultaneous pursuit of social and economic development that is not zero-sum Partnering with government, business, universities and all other sources of resources creatively to achieve goals

11. What is a Social Enterprise? A “Social Enterprise” is a nonprofit or private sector entity that: Uses earned revenue strategies, either exclusively as a business or as a significant part of a nonprofit’s revenue stream, and Directly addresses social needs either through its goods and/or services or by employing people who are disabled or disadvantaged

12. Social Enterprises Make up a Rapidly Growing and Vital Sector of the U.S. Economy The economic downturn has caused nonprofits to seek new solutions for sustainability as charitable contributions decline Social need has increased as corporations and government cut jobs and budgets Public awareness of social entrepreneurship has risen and purchasers are increasingly seeking to support positive social change with their dollars Nonprofits adding revenue-generating streams to their business models can increase scale and impact Government social program budgets are shrinking creating market opportunities for growth of the social enterprise sector Having market-based elements to their business models keeps nonprofits tracking with the evolution of market need

13. A Few Examples of Social Enterprises Common Ground Women’s Bean Project Homelessness Women in Transition Real estate development Product Assembly/Retail Sale Juma Ventures Cornerstone/National Day 1 Underprivileged Youth Domestic Violence Employment and Training Database Product Project Health EngAGE Urban Health Clinics Elderly Care Hospital Contracts Program Design Consulting Harbor City Services DC Kitchen Mental health Addiction/Incarceration Corporate Shredding, Moving, Catering Services Filing, Storage Case Studies of Select Social Enterprises in the Health Care Field

14. Economic and Social Infrastructures Can’t Keep Pace with the Growth of Social Enterprise New legal and tax structures are needed Access to growth capital is constrained by outdated frameworks Clear definitions of the sector are necessary to measure impact Branding and awareness building is required to drive greater growth

15. Why Should Corporations Be Investing in the Success of Social Enterprises? It represents a highly leveraged investment They strengthen the communities where your employees live Employee retention, attraction and development Business-like approaches to social problems use society’s resources more efficiently

16. Why are Social Enterprises Good Partners for Business? Sources of market-research Sources of innovation Sources of inspiration Investments in the future

17. Social and economic development are no longer mutually exclusive “ Nonprofit” and “For Profit” are rapidly becoming outdated distinctions Triple bottom line analysis is being done by all actors in pursuit of sustainable progress Those enterprises that will be the most successful as the shifts continue are those that have attracted and invested in the largest percentage of change leaders – innovators who excel at leadership, teamwork and empathy The Sands are Shifting and Stakeholder Roles are Changing in the Economy and in Society

18. Social Enterprise Alliance 5358 42 nd Place NW Washington, DC 20015 www.se-alliance.org [email_address] P: (202) 758-0194 F: (202) 449-9611 Questions?