For the Public Good

The indicators of a successful social enterprise often go beyond just making a profit. Social impact is increasingly becoming a key indicator of success as well. An article by Parminder Bahra in UK newspaper The Sunday Times, points to other pointers to setting up a successful social enterprise.

1. Be hard-headed. Social entrepreneurs (SEs)need all the qualities of commercial entrepreneurs. They take risks, grasp opportunities and are proactive rather than reactive. Most social enterprises are viable profit-making entities. If you haven’t got a head for business, then you’ll not cut it as an SE.

2. Everything in triplicate please. Social enterprises have a double or triple bottom line. This doesn’t mean that they are overweight, it means that they combine profits with social and environmental objectives, for example, ensuring that an organization is environmentally neutral.

3. Social entrepreneur or social enterprise? The two are sometimes confused. SEs are interested in outcomes, not processes. Their benchmarks will incorporate any of the three bottom lines, but their organization will be value-led and exist for social benefit. Social enterprises are more fixed in terms of process. They make profits, but then reinvest them into the business or into the community.

4. Know your market. Like commercial entrepreneurs, SEs spot a gap in the market and try to fill it. According to the Social Enterprise Coalition, gaps exist where the private and public sectors fail to provide a service or product.

5. Keep it local. Many social enterprises work at a local level, involving the community in which it provides a service. Nick Temple, the network development manager at the School for Social Entrepreneurs, says that because of the nature of social enterprises, people come from diverse backgrounds and SEs must be able to network with a variety of people and communities.

6. Make a change. SEs are change agents in society, creating and sustaining social value by using all the resources that are available to them. They have to be creative and innovative. SEs should be good at spotting and re-using resources that are underused or abandoned, such as buildings and open spaces. Most importantly, Temple says: “SEs must not be afraid to make mistakes but must be able to learn from them.”

7. Challenge propositions. Temple also says that SEs can be difficult to work with: “They are highly motivated people who can be persistent. They change the status quo. They push the boundaries and against traditional barriers.”

8. Don’t want to start your own organization? There are many ways in which you can get involved without starting your own organization. All social enterprises need trustees to make sure that they are fulfilling their objectives.

9. Use your commercial sector skills. Don’t be put off if you have no sector-specific skills. Social enterprises need people who have the skills gained in commercial organizations, such as marketing, finance and accounting.

10. Other opportunities. According to Temple, commercial organisations are increasingly looking at corporate social responsibility and triple bottom line accounting: “There is a tendency for convergence among all organizations to incorporate these ideas.”

Have you started your own social enterprise? Do you have any other pointers for would-be entrepreneurs? Leave us your comments below.

The original article can be found here.