One of the very first things I wrote about when I started blogging was that I was going to start working with Social Enterprises. Funny thing is, I’ve never really defined what I view as a Social Enterprise. So, to those who have asked (and to those who haven’t), have a read of this.
One side note, I also sometimes refer to Social Enterprises as purpose-led businesses. To me, it means the same thing.
So, what is a Social Enterprise?
Social Enterprises (SE) are organisations that bridge that the gap between traditional businesses and charitable organisations. Traditional businesses operate for profit and charities operate for purpose. SE’s hit the sweet spot in the middle of the spectrum by using their profits to deliver purpose or, in some instances, derive profit from delivering purpose.
The thing that I find amazing about social enterprise is that these organisations have the ability to sustain themselves without needing grant money or outside funding. The only thing that can really slow them down is whether or not their business can continue to grow.
The best part is that a Social Enterprise run well and based on a good idea can be easy to grow (okay, maybe not easy, but easier than other businesses!) Because of the Good that these businesses do, they have this in-built marketing tool – consumers can feel good about buying a Social Enterprise’s goods and/or services. Consumers can know they are part of solving a problem rather than causing it.
Where do I find out more?
A couple of years ago, the Department of Internal Affairs commissioned The Impact Initiative. This organisation was formed through DIA’s Social Enterprise Sector Development Programme. Yeah, it’s a bit of a mouthful! While there is no formal definition of Social Enterprise in New Zealand, The Impact Initiative have coined the following:
- Have a clearly identifiable social, environmental or cultural mission, and
- Generate the majority of their income through trade, and
- Reinvest the majority of their profits or expenditure in their social, cultural or environmental outcomes (their ‘impact’), and
- Track and report on the impact they achieve.
Anyway, that’s enough of definitions!
Cool – give me some examples!
Here are some Social Enterprises and purpose-led businesses which you either might have heard of or that I think you might like to know about!
- StayNative: Stay Native is New Zealand’s socially and culturally-minded answer to Airbnb.
- Thankyou Payroll: Thankyou Payroll are, funnily enough, a payroll company but with an awesome purpose-led difference
- Dignity: Dignity are a women’s wellbeing initiative looking to end period poverty
- The Good Registry: The Good Registry are reinventing gift giving. Basically, it ‘s gift giving that’s better for society and the environment
I’d highly recommend checking these companies out – because I know you won’t regret it.
And that’s just four of an estimated 3,500 social enterprises in NZ. Get on board the movement because when you buy from and work with social enterprise, you can feel good about where you dollars are going.
Otherwise…
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