Social Enterprise. Charity. Voluntary & Community Sector. Different? Similar?
Here is the problem. Definitions. Segmentation and Exclusion.
I like to think about these organisations on a spectrum called the Social Economy (a term wholly supported and promoted by the Yorkshire & Humber Regional Forum). In fact, I suggest the spectrum extends outward beyond traditional social enterprises to those like Justgiving who have a primary objective of increasing the impact of monetary resource in the social sector. Worth pondering, the article by Rod Schwartz (former Chair of Justgiving) in Alliance magazine. (thanks SSE blog)
In fact, we open our Leadership Course with the question: Is a social enterprise defined by its incorporation? Is a limited by guarantee firm that is poorly run, more of a social enteprise than a similar firm incorporated as a private company? Why?
The usual response is, "the ltd guarantee re-invests in the community". Let’s investigate: the limited by guarantee firm is poorly run and invests virtually nothing back into th community due to a lack of surplus. The private company delivers the same socially focused service (i.e. childcare to single mothers), but it donates 20% of its profits back into the community. Complicated, isn’t it.
The point: stop wasting time defining social enterprise and get on with the business of doing. Do good. Do more. Do often. Let the pundits argue what is and what isn’t and start creating the companies of tomorrow that deliver a social benefit. Leading by example will define the future.
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