Article
For those who are new to the term "social enterprise", it would be good to read the article as it touches on the fallacies of social enterprises. After 3 years in BZSE and interacting with people from the social sector, I have come to realize that there is no definite answer to the question of "what is a social enterprise". Everyone has their own definition and most might not agree with others.
To summarize the article, it says that it is "conceptually inappropriate to limit the scope of social enterprises" and that "social enterprises must be non-profit organizations" is a false notion.
To me, the word "enterprise" means that it is a business that distributes part of its profit back to its shareholders. That part is easy to understand but adding a "social" in front of it complicate things. "Social" would refer to the social issues that the enterprise is targeting. If you merge both together, it would be a business that targets social issues, while still earning a profit to distribute back to its shareholders. Coinciding with what the article had mentioned, I disagree that social enterprises must be non-profit organizations as I believe that social enterprises should be self-sustainable by the revenue they generate. This means that profit should be given back to the shareholders in order to attract investors like how private businesses work.
A non-profit organization however, can be a social enterprise by having a SE arm to reduce their dependency on public donations and government grants.
My definition of a social enterprise is a business with a social mission that aims to be self-sustainable. What's yours?
Friday, February 1, 2013
Thursday, January 31, 2013
How social enterprises can succeed as businesses
Article
This article emphasizes the need for a social enterprise to excel in the business aspect while maintaining their social mission. By not maintaining the business aspect or having a sustainable revenue, it is no different from a NPO.
I feel that it is extremely important for social enterprises to be competitive against private businesses, your social mission should only add as a bonus to the business you are doing. Patient Choice has fully demonstrated this important point as they understand the needs of consumers and use it to their advantage to compete against other companies in their field. When comparing services and product, the consumer will do a simple cost-benefit analysis. With the benefit of patronizing your social enterprise as supporting your social mission while getting the product/services they need, it does not mean that they will be returning customers, especially if the benefits of patronizing a private businesses are better services and a better price. As such, it is important for all social enterprises to ensure that after taking the social mission aside, the organization can be seen as a equal competition against other similar businesses in order for it to excel.
Another point in the article that is important is how to attract investors and investment is "the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value" dictionary.com. It is necessary to get investors because it is a sign that people recognize the profitability of your business and with the extra funding, it is then possible to expand your business. The article mentions a method which I think can be considered by current social enterprises and NPOs to further expand their organization as one issue commonly faced by all is their financials . This method allows SEs and NPOs to maintain their social mission and ensure that they have financial backing
This article emphasizes the need for a social enterprise to excel in the business aspect while maintaining their social mission. By not maintaining the business aspect or having a sustainable revenue, it is no different from a NPO.
"They know that they'll only get patients switching to them if they provide a high quality, trusted, independent service first – with the charitable message coming second. However, those two messages together make a simple yet compelling sell to any potential customer. Great quality, great service – plus you're helping fellow stoma care patients, too."
I feel that it is extremely important for social enterprises to be competitive against private businesses, your social mission should only add as a bonus to the business you are doing. Patient Choice has fully demonstrated this important point as they understand the needs of consumers and use it to their advantage to compete against other companies in their field. When comparing services and product, the consumer will do a simple cost-benefit analysis. With the benefit of patronizing your social enterprise as supporting your social mission while getting the product/services they need, it does not mean that they will be returning customers, especially if the benefits of patronizing a private businesses are better services and a better price. As such, it is important for all social enterprises to ensure that after taking the social mission aside, the organization can be seen as a equal competition against other similar businesses in order for it to excel.
Another point in the article that is important is how to attract investors and investment is "the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value" dictionary.com. It is necessary to get investors because it is a sign that people recognize the profitability of your business and with the extra funding, it is then possible to expand your business. The article mentions a method which I think can be considered by current social enterprises and NPOs to further expand their organization as one issue commonly faced by all is their financials . This method allows SEs and NPOs to maintain their social mission and ensure that they have financial backing
"create a non-profit that carries out the social mission, and is funded by the royalties or revenues from a for-profit company that can receive investment. It is important to get good legal advice on how to structure correctly early on."
16 WAYS TO BUILD A SOCIAL ENTERPRISE THAT MAKES MONEY
Article
The difference between a social enterprise and a non-profit organization is that SEs should be self-sustainable instead of accepting donations. In my definition of a social enterprise, I feel that it is not an issue to rely on funding in the earlier days of your set up but public donations is unacceptable.
This article talks about how to 16 ways to build a social enterprise that makes money by sharing experiences from 16 social entrepreneurs.
I would like to share my views on what some of the social entrepreneurs have shared.
Another important point is that we need to be flexible, quick to adapt to the ever changing surroundings and not be afraid to take a gamble. I think this relates back to the previous point where it is important to have a focus. The main focus should be how to let your SE survive and progress instead of holding on tightly to your business plan and by refusing to think outside of the box and letting your business plan go, you have already lost your focus.
This reminds me of what Mr Koh, founder of Diginity Kitchen, had shared, that a business plan is not much of a use when you are actually in the business itself.
Do it, make mistakes and learn from it. There's no use in clutching onto the textbook if it is not going to help your SE survive and make money.
The difference between a social enterprise and a non-profit organization is that SEs should be self-sustainable instead of accepting donations. In my definition of a social enterprise, I feel that it is not an issue to rely on funding in the earlier days of your set up but public donations is unacceptable.
This article talks about how to 16 ways to build a social enterprise that makes money by sharing experiences from 16 social entrepreneurs.
I would like to share my views on what some of the social entrepreneurs have shared.
4) Jude Ower, PlayMob – Think about the structure early on, it’s important to define who you are. It affects the way you make money, and who your customers are. If you don’t know who your customers are, you will have a hard job selling and consequently, generating revenue.I agree that it is important to have a structure and know who your real target audience is. I think most of us side track a lot and the main message we are trying to bring across often gets lost. This doesn't only apply to starting a social enterprise but it is an issue that I faced even in one of my project. My group is supposed to come up with a marketing collateral for the VWO that we are working with and we did not identify the main target audience. This makes us harder to design the marketing strategies as we did not have a focus.
6) Michael Wilkerson, Own Your Own Boda – Few companies thrive right away and it is essential to make adjustments quickly. Finding what really works often means looking foolish or blowing your nice, clean business plan to smithereens
Another important point is that we need to be flexible, quick to adapt to the ever changing surroundings and not be afraid to take a gamble. I think this relates back to the previous point where it is important to have a focus. The main focus should be how to let your SE survive and progress instead of holding on tightly to your business plan and by refusing to think outside of the box and letting your business plan go, you have already lost your focus.
This reminds me of what Mr Koh, founder of Diginity Kitchen, had shared, that a business plan is not much of a use when you are actually in the business itself.
Do it, make mistakes and learn from it. There's no use in clutching onto the textbook if it is not going to help your SE survive and make money.
HOW SOCIAL ENTERPRISES CONTRIBUTE TO THE MDGS WORLDWIDE
Article
The 8 Millennium Development Goals were established in 2000 and targeted to be achieved by the United Nations in 2015.
"According to the 2012 Progress Chart, MDGs have been attained or will be attained by 2015 in areas such as reducing extreme poverty and hunger by half in Eastern Asia, equaling girls’ enrollment in primary school in Africa and Asia, and combating the spread of HIV/AIDS in Southern Asia."
The article mentions social enterprises and businesses that have been contributing towards the MDGs which shows that in order for the MDGs to be attained, work has to be done on many levels. While the government plays a huge role in this, we should not be reliant on them as there is also so much that the government is able to do. This is where organizations and individuals come into place as they are able to target the areas which were overlooked by the government.
I would like to talk about one enterprise mentioned in the article that has contributed to MDG 3 - Promoting gender equality and empowering women.
"Established in 2007 in Uganda, Living Goods operates a micro-franchise model, similar to Avon, of independent women entrepreneurs. The Living Goods entrepreneurs earn modest incomes through door-to-door sales of health-related products at affordable prices."
This not only empowers women by allowing them to earn their own income, but also achieves health impact through effective education, behavior change strategies, distribution of vital health products, and through referrals for secondary care (living goods). By improving access to basic health care, Living Goods also aim to reduce child mortality.
This organization is targeting multiple MDGs in their business model and I think that this is critical in order for the MDGs to be achieved. All 8 MDGs are correlated to each other and it is important for organizations contributing towards MDGs to ensure that their model targets more than 1 MDG.
I believe that with more awareness raised towards social enterprises, the MDGS will be achieved but not by 2015 as the progress now is only meeting the benchmark. It is critical that we ensure that the eradication is done to a level that is higher than the goal that is set.
The 8 Millennium Development Goals were established in 2000 and targeted to be achieved by the United Nations in 2015.
- Eradicating extreme poverty and hunger,
- Achieving universal primary education,
- Promoting gender equality and empowering women,
- Reducing child mortality rates,
- Improving maternal health,
- Combating HIV/AIDS, malaria, and other diseases,
- Ensuring environmental sustainability, and
- Developing a global partnership for development
"According to the 2012 Progress Chart, MDGs have been attained or will be attained by 2015 in areas such as reducing extreme poverty and hunger by half in Eastern Asia, equaling girls’ enrollment in primary school in Africa and Asia, and combating the spread of HIV/AIDS in Southern Asia."
The article mentions social enterprises and businesses that have been contributing towards the MDGs which shows that in order for the MDGs to be attained, work has to be done on many levels. While the government plays a huge role in this, we should not be reliant on them as there is also so much that the government is able to do. This is where organizations and individuals come into place as they are able to target the areas which were overlooked by the government.
I would like to talk about one enterprise mentioned in the article that has contributed to MDG 3 - Promoting gender equality and empowering women.
"Established in 2007 in Uganda, Living Goods operates a micro-franchise model, similar to Avon, of independent women entrepreneurs. The Living Goods entrepreneurs earn modest incomes through door-to-door sales of health-related products at affordable prices."
This not only empowers women by allowing them to earn their own income, but also achieves health impact through effective education, behavior change strategies, distribution of vital health products, and through referrals for secondary care (living goods). By improving access to basic health care, Living Goods also aim to reduce child mortality.
This organization is targeting multiple MDGs in their business model and I think that this is critical in order for the MDGs to be achieved. All 8 MDGs are correlated to each other and it is important for organizations contributing towards MDGs to ensure that their model targets more than 1 MDG.
I believe that with more awareness raised towards social enterprises, the MDGS will be achieved but not by 2015 as the progress now is only meeting the benchmark. It is critical that we ensure that the eradication is done to a level that is higher than the goal that is set.
5 SOCIAL ENTERPRISE INCUBATORS AND ACCELERATORS YOU SHOULD KNOW ABOUT
Article
This article talks about programs that provides people who are intending to or had just started their own enterprise with mentors, guidance and financial assistance. These accelerator programs are no stranger to us, especially since we have taken part in one last year where we pitched our project during the BZSE celebrations.
These programs are not only available to social enterprises, but also to innovative ideas and business models. One such program going on currently in school is the Elevate Business Pitch Challenge which is having their final showcase tomorrow.
I feel that the existence of these programs is extremely useful as it provides a stepping stone platform for us to test drive our ideas and see if it can adapt to the cruel society out there. With experienced mentors guiding us along the way, participating in these challenges can allows us to receive feedback from people who have "been there, done that". Such invaluable advice is something that you will not be able to obtain on your own. It is also a good way to encourage us to continue to try harder to realize our dreams, because of the support that is given to us.
This article talks about programs that provides people who are intending to or had just started their own enterprise with mentors, guidance and financial assistance. These accelerator programs are no stranger to us, especially since we have taken part in one last year where we pitched our project during the BZSE celebrations.
These programs are not only available to social enterprises, but also to innovative ideas and business models. One such program going on currently in school is the Elevate Business Pitch Challenge which is having their final showcase tomorrow.
I feel that the existence of these programs is extremely useful as it provides a stepping stone platform for us to test drive our ideas and see if it can adapt to the cruel society out there. With experienced mentors guiding us along the way, participating in these challenges can allows us to receive feedback from people who have "been there, done that". Such invaluable advice is something that you will not be able to obtain on your own. It is also a good way to encourage us to continue to try harder to realize our dreams, because of the support that is given to us.
Tuesday, January 22, 2013
Students coming up with innovations to solve societal problems
Article: here
This article shows that you need not be in a diploma that teaches you how to bring change to the community, in order to make a difference to the one you live in. BZSE students are equipped with business skills and taught to empathize with the marginalized groups so that we are able to make a difference either by starting our own social enterprise or even working in the CSR department in a corporate company.I feel that what BZSE has to offer the students is limited, but it is a definite start. Majority of the BZSE modules are business related and this is necessary as the focus is on social enterprises but for students who are not inclined towards the business sector and are still interested in the social part of it, BZSE might not be the right diploma for them.
Going back to the article, the modules in Automation & Mechatronic Systems is most likely to have nothing to do with social issues or even educating them about the social issues that are faced but the students were able to apply what they have learnt to help solve one that our local community is recently facing. Although this invention of theirs might not have directly helped any marginalized group in particular, I like to believe that it is a good start to begin with.
Many people are trying to give back to society through different ways such as volunteering and I think one way to foster that value into youths is to incorporate it into the current educational system. It is not enough to just make secondary students have mandatory Community Involvement Projects or tertiary students in elective modules because it is not enough for students to do it, but more importantly, it has to be that the students wanting to do it. These compulsory lessons does not always achieve its aim to inculcate values in students as they only complete it just to get it over with. However, we should design the syllabus in such a way that students are able to use the skills they have learnt to give back to the society. Learning about social needs and values should be done in a fun and engaging way which should not neglect their main course of study.
Students who are taking Film and Media Studies can learn how to use media arts to raise awareness about social issues, while those in Health Sciences can have health related case studies in their assignments and come out with ideas on how to improve of healthcare services in developing countries. I am not sure what the curriculum is for the different course of studies and maybe some already have such modules.
All in all, my point is that you can give back to society no matter what you are studying and youths will be more proactive if it can be related to what they are pursuing in their studies instead of being a compulsory class as it is not only what they are interested in but also gives them a further sense of achievement.
This article shows that you need not be in a diploma that teaches you how to bring change to the community, in order to make a difference to the one you live in. BZSE students are equipped with business skills and taught to empathize with the marginalized groups so that we are able to make a difference either by starting our own social enterprise or even working in the CSR department in a corporate company.I feel that what BZSE has to offer the students is limited, but it is a definite start. Majority of the BZSE modules are business related and this is necessary as the focus is on social enterprises but for students who are not inclined towards the business sector and are still interested in the social part of it, BZSE might not be the right diploma for them.
Going back to the article, the modules in Automation & Mechatronic Systems is most likely to have nothing to do with social issues or even educating them about the social issues that are faced but the students were able to apply what they have learnt to help solve one that our local community is recently facing. Although this invention of theirs might not have directly helped any marginalized group in particular, I like to believe that it is a good start to begin with.
Many people are trying to give back to society through different ways such as volunteering and I think one way to foster that value into youths is to incorporate it into the current educational system. It is not enough to just make secondary students have mandatory Community Involvement Projects or tertiary students in elective modules because it is not enough for students to do it, but more importantly, it has to be that the students wanting to do it. These compulsory lessons does not always achieve its aim to inculcate values in students as they only complete it just to get it over with. However, we should design the syllabus in such a way that students are able to use the skills they have learnt to give back to the society. Learning about social needs and values should be done in a fun and engaging way which should not neglect their main course of study.
Students who are taking Film and Media Studies can learn how to use media arts to raise awareness about social issues, while those in Health Sciences can have health related case studies in their assignments and come out with ideas on how to improve of healthcare services in developing countries. I am not sure what the curriculum is for the different course of studies and maybe some already have such modules.
All in all, my point is that you can give back to society no matter what you are studying and youths will be more proactive if it can be related to what they are pursuing in their studies instead of being a compulsory class as it is not only what they are interested in but also gives them a further sense of achievement.
Sunday, October 28, 2012
DBS China Makes Four Grants To Social Enterprises
Just ten days after they announced a grant to four social enterprises in Singapore, DBS’s China division announced on Wednesday the launch of a program to support social enterprise development in China. Similar to its initiative in Singapore, DBS China will provide four social enterprises in Beijing, Shanghai, Shenzhen, and Chengdu grants to offer training for over 2,300 underprivileged individuals over the next two years. The aim is to help them acquire skills for employment. These programs are: 1. Fuping Jiazheng – baby nursing training for migrant women 2. Puki Design – graphic design training for the hearing impaired 3. World of Art Brut Culture – artistic talent discovery classes 4. Dialogue in the Dark – skills training for the visually impaired In a statement by DBS China, the company describes their corporate social responsibility activities centering on supporting social enterprises through a “teach a man to fish” mentality, which they believe will solve social problems and promote public welfare sustainably. The amount of the grants have not been disclosed.Link to article
This is an article from socialenterprisebuzz and this happened after DBS had granted $1 million to social enterprises in Singapore.
Social enterprise is an uprising sector not only in Singapore but in other parts of the world as well, and I feel that other than needing like-minded capable people to assist in their social cause, SEs need financial assistance as well in order to sustain for the first few years.
By providing the four grants, I believe this is a start to the SE sector in China where there are numerous social issues for us to tackle on. I heard stories about China that their toilets are unhygienic without doors, and other disgusting stuff but that was back in Primary 5 when my classmates went for their immersion program. Thinking back, it may be just a lie by them but it still shocked me as a kid at their sanitary issues. I hope that more SEs who are targeting child mortality, healthcare and poverty issues will be given assistance as well.
I agree with the "teach a man to fish" mentality that DBS China is adopting, but in the case of them providing the grants to the SEs, it is more of a providing the man with the boat and fishing tools than teaching them to fish which is equally important. A man can know how to fish, but without the opportunity to upgrade his skills and equipment, he will not be able to expand into bigger seas for bigger fishes. This is the same to the SEs that are set up anywhere else, not only those in China. With external funding, they are able to expand the number of people benefiting from their work and their organization.
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