- Last Updated on 26 May 2013
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The concept of Social Enterprise or Social Entrepreneurship can be difficult to get your head around. Let’s start by telling you what Social Enterprise is not. It’s not about not making a profit. It’s not a charity. They are encouraged to make a profit so they can invest further back into their business. They are there to help tackle social problems, improve communities, people’s life chances, or the environment.
They are encouraged to apply commercial strategies to take advantage of improvements in human and environmental well-being, rather than maximising profits for external shareholders. Social enterprises can be structured as a for-profit or not-for-profit, and may take the form of a co-operative, a social business, a charity organisation or even a standard limited company operating to the ideals of Social Enterprise.
Social entrepreneurs are not in it to make a fortune. Yes, they have to make a living and more than likely, a comfortable one. But they are motivated by solving the problems they identify in the communities they operate in. And yes, their companies are expected to make a profit. But, instead of paying dividends to large shareholders, they reinvest it.
When they do that, their business profits, their customers profit, their communities profit, they profit. It’s the ultimate win-win-win. They see it as the future for social change.
Social enterprises trade on the open market even though they have a social or environmental ethos. A social enterprise reinvests more than 50% of its profits. They are not dependant on state aid.
What The Synergy Group can do for Social Enterprises:
- Due to the fact that they are profitable (or potentially profitable), The Synergy Group can help them achieve that goal in all the ways mentioned on this website.
- If the organisation has evolved from a not-for-profit situation, The Synergy Group can help guide them into the commercial world.
- We can assist the board in the manner described in our board section.
- It can guide them to ensure they don’t lose sight of their social or environmental ethos.
- It can assist in the ownership and control while getting the balance between profit, social or environmental, good management, good business ethos, etc.
Call The Synergy Group to get a free overview of your situation and we will advise you on a way forward. Then, if you wish, we will hold your hand to make sure it works.
T: +353 1 8215189
F: +353 1 8215191
M: +353 87 2326927