The Concept Of Social Enterprise

3413 WordsSep 10, 201414 Pages
Analyse the concept of "Social Enterprise" and its relationship to Not For Profit organisations in terms of its philosophical underpinnings, its nature, purpose and motivation. By: Erika Shimada (42681641) The concept of “Social Enterprise”: the philosophical underpinnings, nature, purpose, motivation At its core, the term ‘social enterprise’ is simply a business, which seeks to create social impact through the trading of goods and services. It uses business platforms to achieve social and/or environmental objectives while simultaneously seeking a financial return (Prakash & Tan, 2014). Other authors (Hervix et al., 2010; Mair and Marti, 2006; Dees, 2001; Alter, 2004; Lundstöm et al., 2014) define the term as an entrepreneurial process…show more content…
In the US, it involves two broad school of thought “earned income” that associates social enterprise as a means which by non-profit organisations generate an income (Defourny and Nyssens, 2009), generally the focus is on increasing self-reliance through diversification of the funding base (Social Enterprise Alliance, 2004). The other is “social innovation” which focuses on social entrepreneurs and is more a question of outcomes and social impact than income (Defourny and Nyssens, 2009). Simons (2000) describes the social enterprise scene in the US as generally referring to non-profit organisations applying business principles. Social enterprise in Australia tends to focus on the values of entrepreneurship over specific trading functions or the legal form of the enterprise (Barraket, 2006). This is reflected in the definition on the Social Enterprise section of the Australia Handbook (Talbot, Tregilgas, Harrison, 2002) “Social enterprise is a means by which people come together and use market–based ventures to achieve agreed social ends. It is characterised by creativity, entrepreneurship, and a focus on community rather than individual profit. It is a creative endeavour that results in social, financial, service, educational, employment, or other community benefits.” The truth of the matter is that the discourse about social enterprise is full of disagreement and ambiguity with no consensus on definition or classification. Some approaches focus on the type and legal
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