Understanding the Dynamic Concept of Social Enterprise

Social enterprise can be considered the result of non-profit organizations’ mission to attain sustainability in the current economic scenario. In a time of cut throat competition for available funds and a steady decline of support from government and traditional sources, the growing practice of social enterprise comes across as a promising concept. In the last few years, it has not only helped non-profit organizations become self sufficient but it has also enabled them to spread out vital services to their constituents. Jamie Oliver’s restaurant Fifteen, the Eden Project and The Big Issue in the UK are some of the remarkable instances of good work in social enterprise today. Social enterprises are mainly involved in trading goods and services for social purposes. Their aim for accomplishing social, financial, as well as environmental targets can be referred to as the ‘Triple Bottom Line’. There has been a significant change in the relation between the goals of individuals and business organizations. With a prominent increase in competition, many organizations are becoming more responsive. With the hierarchy passing over the control to individual teams for decision making and execution of work, it has become easy to set goals globally and execute them locally. Agility of companies is required to turn a traditional organization into a social enterprise. Social enterprises operate in different areas. For instance, social enterprises may take form as organizations involved in community recycling, development trusts, community shops, renewable energy initiatives owned by communities, housing associations and farmer co-operatives. Several financial products are required by social enterprises in order to bridge the gap between commercial finance and traditional grant support. Even though this dynamic concept combines social, environmental and economic objectives that can transform communities, its potential still needs to be exploited to a greater extent. In order to become a social enterprise, companies need to initiate good work, begin income generation mostly from trading and make use of a large part of their profit in social and environmental objectives. The concept of sustainable development needs to be integrated as a business model in organizations all over the world for better results.