What is a Social Enterprise
A Social Enterprise is an enterprise whose objective is to achieve a social, societal or environmental impact, rather than maximising profit for its owners of shareholders. It pursues its objectives by trading on an ongoing basis through the provision of goods and/or services, and by reinvesting surpluses into achieving social objectives. It is governed in a fully accountable and transparent manner and is independent of the public sector. If dissolved, it should transfer its assets to another organisation with a similar mission.
Social enterprises apply business principles and practices to achieve social good. They reinvest their financial returns into the community to further their social purpose, to create employment or other economic and social benefits for marginalised communities. Social enterprise refers to a business that is created to address or solve a critical social problem in a financially sustainable (and potentially profitable) way. The term social entrepreneur is currently used to mean very different things. Some use the term social entrepreneur to refer to a social innovator (i.e., an individual that is addressing a critical social problem in a particularly effective or innovative way).
Efforts to solve these problems often follow a short-term approach:
- They lack the adequate “joined up thinking” and resources for high impact and sustainability.
- They fail to embrace local capacities to support communities at risk of social and economic exclusion over the long term.
Social enterprises are businesses created to further a social purpose in a financially sustainable way. We want to embed a social enterprise culture across Dublin South City and work with Social Enterprises/Social Entrepreneurs in achieving their goals and social impact. Dublin South City Partnership are committed to increasing awareness of the potential of social enterprises in our communities and encouraging local community leaders, organisations, individuals and residents to explore setting up a social enterprise and supporting local social enterprises that are already established.
- Provide income generation opportunities that meet the basic needs of people who live in poverty.
- Are sustainable. Earned income from sales is reinvested in their mission. They do not depend on philanthropy and can sustain themselves over the long term.
- Are scalable. Their models can be expanded or replicated to other communities to generate more impact.
Social enterprises are known by many names: social businesses, social-purpose businesses, mission-driven businesses, social ventures, etc. Whatever the name, social enterprises operate with a double bottom-line of generating financial return while simultaneously advancing a social mission. The triple bottom line (or otherwise noted as TBL or 3BL) is an accounting framework with three parts: social, environmental (or ecological) and financial. Some organisations have adopted the TBL framework to evaluate their performance in a broader perspective to create greater business value.
Social enterprises can be both non-profit and for-profit in form. Some social enterprises are created, operated or owned by non-profit, charitable organizations as a means of generating income or to otherwise further their social mission. Other social enterprises are incorporated as a for-profit entity but the business strategy is designed to achieve a social objective.
The persistent problems of unemployment, poverty, social exclusion, poor social services, and environmental degradation – even in fast-growing emerging market economies – call for new, innovative solutions. Neither pure market-based nor pure public sector approaches have effectively confronted these problems.
Social enterprises offer a hybrid response to complex social problems. Social enterprises address the social and economic barriers that face marginalized or disadvantage communities, and attempt to tackle them using a market-based approach. They are often best positioned to respond to critical social problems, as most often they originate as community-based initiatives, close to the problems and with a stake in the outcome. They frequently introduce new products and services to the market, and build market demand by raising awareness around the issues that these are addressing.
Social Enterprise Innovation Model
Social enterprises are an essential element of the Quintuple Helix Innovation Model and are fundamental to the local economy in Dublin South City. Dublin South City Partnership support fledgling, growing and established social enterprises with Governance, Marketing, Sales, Capacity building, Business planning, PR, Communications and Digital Innovation.
There are a wide range of social enterprises in Ireland and many organisations in Dublin South City already operate under this model across a number of diverse sectors.
How Does Dublin South City Partnership Support Local Social Enterprises:
We provide business and practical skills support, while also developing owner confidence and personal skills. We do this through:
- Training (workshops + short training programmes)
- Networking opportunities
- Referrals to additional services
Our social enterprise staff have over 20+ years experience working globally in the non-profit sector and, specifically, supporting social enterprises and charities with a commercial trading/social return on investment aspect to their work. Contact us with any questions, and for more information about how we can help you.