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Social enterprise as a model for change: mapping a global cross-disciplinary framework

• Original Paper
• Open access
• Published: 28 November 2022
• Volume 5 , pages 425–446, ( 2022 )

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• Jamie P. Halsall   ORCID: orcid.org/0000-0003-4555-7470 1 ,
• Michael Snowden 1 ,
• Philip Clegg 2 ,
• Walter Mswaka 3 ,
• Maureen Alderson 4 ,
• Denis Hyams-Ssekasi 5 ,
• Roopinder Oberoi 6 &
• Ernest Christian Winful 7  

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Since the outbreak of COVID-19, social enterprise has experienced a renaissance. In public policy circles, entrepreneurship and innovation are perceived as economic development tools, and in many parts of the world, as catalysts for change that can have a real impact by increasing employment in communities as well as environmental challenges. At a local level, entrepreneurship and innovation enable communities to stay vibrant due to social enterprise organisations offering much-needed goods and services. Social enterprise has been acknowledged as a solution to social inequality and environmental issues in society as it develops new areas of empowerment in local communities. Central to the success of social enterprise is education, training, and the engagement of the higher education sector. Traditionally, entrepreneurship and innovation have fundamentally been entrenched within the business subject area, but have now emerged within other disciplines such as criminology, health and social care, geography, sociology, and politics. The aim of this paper is to map out a new, global, cross-disciplinary framework from a teaching and learning perspective. The authors of this paper call for global empowerment of entrepreneurship education in the higher education sector, using examples from different countries across the world, specifically Ghana, India, and the UK. This paper sets out the vital importance of entrepreneurship in teaching and learning, by showcasing what can be achieved. In this paper, the authors develop and propose a new pedagogical social enterprise model that incorporates and emphasises the ethos of ‘think globally, act locally’ in a sustainability context.

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Introduction

In light of pressing social and environmental difficulties, it is significant to recognise the political and economic dynamic forces that encourage sustainable development and to distinguish the agents that make positive and substantial changes in this direction. Currently, change makers and resilient social enterprises that can design and devise innovative solutions for multifaceted social and environmental problems are much needed (Weerawardena & Sullivan Mort, 2006 ). Social entrepreneurship is after all entrepreneurship with a different mission-development and sustainability. As Dees puts it, “Social entrepreneurs are one species in the genus entrepreneur” ( 1998 , p. 3). Dees further states: “Adopting a mission to create and sustain social value: this is the core of what distinguishes social entrepreneurs from business entrepreneurs even from socially responsible businesses” ( 1998 , p. 4). Martin and Osberg ( 2007 , p. 34), believe that the variation between entrepreneurship and social entrepreneurship lies “in the value proposition itself”.

Today, the emerging arena of social enterprise is rapidly drawing increased attention from all sectors. It involves incredible innovation, which typifies this novel research arena, and a noticeable lack of a common framework of study. The concept of social enterprise and the apparent link between social enterprise, social change, and economic progress is an appealing prospect for scholars and policymakers alike (Oberoi, 2019). Social enterprise is branded as a multidisciplinary struggle over the epistemology of the arena that has failed to set any normative limitations around the term (Nicholls, 2010 ). Even though its characterisation is not yet stabilised and its boundaries remain blurred, its motivations and the aim of accomplishing both economic efficiency and social purpose are distinctive features of social enterprises (Austin et al., 2006 ). The blurring of sector boundaries opens up the study of social enterprise from for-profit, non-profit, and public sector perspectives. Social entrepreneurial ingenuities deny rigid classifications within organisational clusters, arranging themselves in the realm of hybridity; they cannot be categorised as belonging to any one sector. Social entrepreneurs are similarly diverse, drawing from various sectors and sources in their attempts to address social and environmental problems, which further underlines their adaptability and value.

Social enterprises enable a virtuous circle of social capital growth and environmental protection. They use social networks of support to gain access to resources and the dividends they generate are social: stronger communities, more capable of looking after themselves with the robust bonds of conviction and collaboration. Generating social capital and social benefits is at the heart of social enterprise. By connecting entrepreneurship with social change and innovation, social enterprises help communities to build up social capital, which gives them a better chance of standing on their own two feet. Social enterprise is usually used to qualify all entrepreneurial initiatives that help a social and/or environmental mission, and that return a large part of their financial surplus into their mission. Social enterprise took root within the context of financial crisis and unemployment in the 1990s, which triggered ambiguity about the future of Welfare States and their capacities to cater for novel societal needs under the neoliberal order, as well sustaining the environment. The constraints under the new post-1990s order led to the development of new relationships of interface between public and private sectors, and innovative responses to societal challenges that are workable socially, economically, and environmentally. Within this context, all forms of creativity that deals with societal wants is branded social innovation. Social entrepreneurs are mediators of constructive alteration that aim to resolve stubborn social, environmental and economic issues through novel enterprising approaches. They promote innovations and novel solutions that blend social and environmental resolution, plough proceeds into their undertakings, and are answerable for their activities.

Social enterprises are flourishing and are gradually attracting due recognition for their vast latent power and capacity for shared value creation (Oberoi et al., 2019a ). Social enterprises are referred to as catalytic mediators that gradually nudge the economic system in a way that capitalist models equally concern themselves with constructive social and economic transformation, and financial markets reward these hybrid companies becoming more socially responsible. Social enterprise represents a powerful idea, an idea that is more pertinent now than ever before: social enterprises can be a medium to generate financial values while also contributing to building a fair, equitable and environmental-friendly society. As such, social entrepreneurs create pattern-breaking transformations in inequitable and unfair systems, whether through social enterprises or other social business models. They outline a swiftly growing, global actors’ assemblage that tackles social (and environmental) difficulties with entrepreneurial means. Social enterprises, which work for the connection of commercial and societal progress, are garnering attention as agents of positive change, particularly for those at the bottom of the pyramid (BoP), by pushing the restrictions in the conception and distribution of pioneering business resolutions to targeted requirements of low-income, helpless, and/or marginalised clusters (Snowden et al., 2021 ). With COVID-19’s epidemic disruptions and its aftermath and also effect of global warming on societies, many are inspired by more sustainable development models for the future and are openly interrogating the philosophy and structure of the global liberal order. Equally, policies and actions taken to cope with the COVID-19 pandemic have placed the global supply chains under stress and triggered a global slowdown as a result of falling economic activity; the potential for ‘economic security’ policies consistent with economic nationalism further added to the crisis (Oberoi et al., 2021 ). Social Enterprises are agents who perform functions and provide facilities that have formerly been seen as the sole authority of states. They are change agents, in the sense that their mission encompasses systemic solutions to structural problems rather than aid, which leave the respective institutions in place.

The study of social enterprises shows that they strategically aim to be agile and inventive, ready to act swiftly to take on the emergent concern. Because of these features, social enterprises contribute meaningfully to innovation, continuously evolving original products and facilities intended to meet societal needs. Many of these enterprises work to accomplish general modification by presenting fresh business models, shifting value chains, and triggering unexploited capacities (Oberoi et al., 2019a ). Social enterprise is frequently connected to social innovation, as social entrepreneurs are probing for innovative resolutions to meet novel requirements. Jessop et al. contemplate that social innovation “is not only a descriptor for a set of practices but an emerging phenomenon, a theoretical construct and an on-going field of research within a world of social transformation” ( 2013 , p. 2). Defourny ( 2001 , p. 11) suggests that social enterprises can be viewed “as the expression of an innovative entrepreneurship”. As far as the classifications, associations, and theoretical dealings of social enterprise in its primary phase, it is often considered ‘a cluster’ branded by its concepts, which are hazy, overlapping, disorganised, ill-defined, and without significant theoretical underpinning (Welsch & Maltarich, 2004 , p. 60).

Within the social science discipline, theoretical and empirical discourse on the theme of social entrepreneurship/social enterprise is mounting (see: Halsall et al., 2022a , b ; Oberoi et al., 2019a ). Entrepreneurship and education, which have promising prospects within lots of disciplines, are now taking a keen interest in the model of social enterprise. Equally significant is the influence that education has in evolving the skills that produce an entrepreneurial approach and in preparing future leaders for solving more complex, interlinked, and fast-changing problems. In the last decade and post COVID-19, social entrepreneurship is gradually making its way into the education system. In universities, the notion is beginning to gain some traction, and there are some dazzling examples in schools too. According to Katz and Antony ( 2010 ):

The expanding influence of social enterprise is reflected in the 2006 Nobel Peace Prize awarded to Muhammad Yunus, a leading promoter of microfinance and the concept of “social business;” the growth of centres for social entrepreneurship at leading business schools such as Harvard and Stanford; and media attention such as Business Week’s annual list of “America’s 25 Most Promising Social Entrepreneurs.” The Obama Administration also unveiled several initiatives to encourage the growth of social enterprise. He set up the Office of Social Innovation and Civic Participation with the goal to do business differently, by nurturing innovative community resolutions and partnership. This indicates the focus of world leaders on this model of conducting business. Even Bill Gates (a proponent of “creative capitalism”) and Pope Benedict XVI (who calls for “a profoundly new way of understanding business enterprise”) have promoted the notion of business organizations and executives making decisions that are not purely profit-driven.

In the last decade and post COVID-19, social entrepreneurship has been gradually making its way into the education system. In universities, the notion is beginning to gain some traction, and there are some dazzling examples in schools too. For example, Kirori Mal College at the University of Delhi founded the Centre for Innovation and Social Enterprise in 2020, focused exclusively on teaching and research in the domain of social enterprise. The centre was an outcome of the UKIERI project between the University of Delhi and the University of Huddersfield (2017–2021). Moreover, in a bid to strengthen innovation and bolster new start-ups, the Delhi University (DU) has set up a not-for-profit company and is working to establish another Sect. 8 firm in 2022. Defourny and Nyssens ( 2010 ) assert that social enterprise developed almost concurrently across the globe in the mid-2000s. In the US, Harvard Business School started the Social Enterprise Initiative in the 1990s, after which many colleges established support programmes for social entrepreneurs. Higher Education Institutions (HEIs) have increasingly engaged in recommending teaching for social entrepreneurship. Recently, many activities and pedagogical practices for social entrepreneurs’ training have been established (Joos & Leaman, 2014 ). For Oberoi et al., ( 2020b , p. 8):

Universities are the anchors, shapers and innovators of our communities that help to foster cultural, social and economic vitality. Learning about social enterprise gives students an opportunity to engage strongly with local businesses and communities to create all-encompassing social solutions that contribute to building stronger, more resilient, and socially engaged nations and to addressing some of the interconnected societal problems. Studying the social enterprise sector offers students thrilling professional opportunities. Combining practical and theoretical learnings help to prepare our students to be the leaders of tomorrow; mentorship is a crucial, yet often overlooked, component of social enterprise education. Opportunities for on-going support from experts in social enterprise are often limited.

But, the concept of social enterprise education is still relatively new, and education systems can be notoriously slow to change. The arrival of social enterprise on the academic scene is, however, apparent and clear. Social enterprise during COVID-19 has come with large ambitions and heroism. With unparalleled rapidity, social enterprise/entrepreneurship courses have started in top-tier business schools all over the world. Although the field of entrepreneurship scholarship is expanding, social entrepreneurship scholarship is emerging as a fresh and distinct field of its own. Entrepreneurial education alters prospects, market structures, and available resources, and new knowledge is emerging. The demand for these courses has been driven by the scholars themselves, who are enthusiastic to take courses on topics ranging from business planning and social start-ups, to entrepreneurial finance and technology management. Educators need to focus on making social entrepreneurship an attractive vocation. Universities can prepare future social entrepreneurs and provide motivational backing, forging new and lasting relationships between the public and private sectors.

The authors of this paper present an analytical discussion on why entrepreneurship and innovation are important to higher education from a teaching and learning perspective, and in an international context. This paper consists of four parts, and it begins with a brief overview of the research methodology applied in this paper. The second part of the paper provides a discussion on the connections between social enterprise and teaching and learning. The third part of the paper sets out the continued drive for solution-focused teaching and its relationship with entrepreneurship and innovation. From this, in part four of the paper the authors present a series of qualitative findings from students, academics, and social entrepreneurs and then creates and recommends a contemporary pedagogical social enterprise model that connects and underlines the ethos of ‘think globally, act locally’ in a sustainable environment. The final section concludes the paper and offers some future observations and recommendations within an enterprise higher education context.

An overview of the methodology

The authors of this paper have undertaken ‘Action Research.’ Action research has been defined as a methodological approach that “creates knowledge based on enquiries conducted within specific and often practical contexts” (Koshy, 2005 , p. 4). The authors chose action research because they want to make improvements in the current social enterprise pedagogy and, more importantly, the approach involves a three-step systematic process:

Action—achieved in two distinct ways. Firstly, the authors undertook a comprehensive literature review, and secondly, they held two focus group meetings. For the literature review strategy, the authors used their previous literature review practice method (see: Halsall et al., 2022a , b ). Then from this, the literature review search informed the design of the focus group questions. In total there were three focus group meetings. The participants explored the contribution social enterprise makes in local, regional, national, and global contexts, and examined the skillsets required for entrepreneurship and innovation. The participants were from different stakeholder groups (i.e. academics, students, the public and private sectors, and the third sector) all of whom work in or are interested social enterprise.

Evaluation—undertaken after the data were collected and transcribed. Focus group transcripts were analysed and specific themes were devised.

Critical reflection—the final part of the process whereby the authors constructively and critically reflected on the viewpoints that were shared in the focus group meetings. As will become apparent later in this paper, a Pedagogy Social Enterprise Model (PSEM) has been devised to incorporate the changing dimensions of entrepreneurship and innovation.

Mapping social enterprise in teaching and learning

Even though social enterprise is subject to different interpretations, there is consensus among researchers and academics that this type of business is an effective tool that can be used to ameliorate some of the most intractable socio-economic and environmental challenges that our world faces today through enterprise (Battilana & Lee, 2014 ; Nega & Schneider, 2014 ;). The social enterprise movement is also growing worldwide as an intervention to scale up innovation (Galego et al., 2018 ; Oberoi et al., 2022a , 2022b ) as well as a mechanism to ensure economic development that is also commensurate with social justice (Mswaka et al., 2016 ). The growth of social enterprise, particularly in Europe (Bikse et al., 2015 ) and the Global North, has been characterised by an upsurge in the number of thematic areas in which this type of enterprise is working, as well as developments in policy focused on supporting this sector. Further, social enterprise has also started to attract more academic interest, due to its potential for value creation and the fact that some of the components of this burgeoning arena (Sliva & Hoefer, 2022 ) remain relatively unknown (Battilana & Lee, 2014 ).

Accordingly, HEIs across the globe, particularly in the Global North, are beginning to increase their interest in social entrepreneurship as a discipline somewhat distinct from business in the entrepreneurship education programmes and curricula. Two key reasons appear to be the impetus behind this paradigm shift. Firstly, universities worldwide are increasingly being called upon to contribute more to society beyond the delivery of teaching and learning, by producing a new generation of entrepreneurs who place the well-being of societies at the core of what they do (Ashoka, 2022 ). The idea behind this is to explore innovative ways of responding to and confronting the challenges that our world faces today, such as climate change, land degradation, deforestation, rising poverty, and food insecurity (Hagerdoorn et al., 2022 ). Secondly, there is now a greater need for higher education entrepreneurship education to produce global graduates that are also going to be responsible leaders (Hockerts, 2017 ). Such graduates will contribute towards efforts to transform our planet for the better through active citizenship. This is all part of what is being referred to by practitioners as the great leadership reset, which is all about creative thinking (Case Western Reserve University, 2022 ; Oberoi et al., 2022a , 2022b ). Social entrepreneurship education curricula therefore have a critical role to play as an agent of world benefit. Despite this development, not much is known about the nature and positionality of social entrepreneurship education in teaching and learning globally. This section of our paper seeks to address this gap in knowledge by analysing social entrepreneurship pedagogy in the Global North, with examples drawn from the USA.

The rise of social enterprise in teaching and learning: perspectives form the global north

Current literature suggests that historically, entrepreneurship education has generally been provided in business schools (Smith & Woodworth, 2012 ) and that social entrepreneurship has largely been subsumed under the general term of entrepreneurship. Smith and Woodworth ( 2012 ), as well as Ratten and Thukral ( 2020 ) further posit that entrepreneurship activities and experiences are multidisciplinary. As such, it is now not surprising to see entrepreneurship education in disciplines such as sport management, engineering, music, and health, as well as social sciences, in higher education institutions. What has been most surprising however, has been the rising interest in social entrepreneurship as a distinct discipline of entrepreneurship in teaching and learning that requires bespoke curricula. Smith and Woodworth ( 2012 ), as well as Worsham ( 2012 ), attribute this dimension to the desire by HEIs to involve students in developing transversal skills and competencies while at the same time ensuing that curricula take into account elements of social innovation, i.e. the practical things that students need to do to address socio-economic and environmental challenges across the globe.

Further, societies worldwide, as mentioned in preceding sections, are currently seeking innovative ways to address the myriad of challenges as well as increasing struggles and demands for racial justice. In addition, an increased consumer focus on sustainability, human rights, and social responsibility has pressured corporations across the world to do a better job of balancing profit with people and planet. What this means is that a concerted effort, involving the cooperation of business, citizens, and civil society (Cruz-Sandoval et al., 2022 ) and educational institutions is required to address the many socio-economic challenges that we face today. Furthermore, there is consensus that a more collaborative approach is a much more effective way to address issues and challenges embedded in the United Nations Sustainable Development Goals (SDGs). Higher Educational Institutions have responded to this call for global unity against socio-economic challenges, by putting more emphasis on recognising the power of social entrepreneurship education as an intervention that can help tackle them. In light of this, social entrepreneurship education is increasingly becoming a key feature in the teaching and learning interventions in most HEIs (Joos & Leaman, 2014 ) due to this greater awareness of the need to teach students about practical ways in which they can engage in active citizenship. Accordingly, key components of the emerging social entrepreneurship pedagogy must focus on skills development for the knowledge economy, awareness of global challenges, and the need for creative thinking (Garcia-Gonzalez & Ramirez-Montoya, 2021 ). This approach also incorporates the concept of social innovation, which Pol and Ville ( 2009 ), Galego et al. ( 2018 ), and Hagerdoorn et al. ( 2022 ) define as a process that involves a collective approach to addressing problems through sustainable solutions that can produce some form of social change. Thus, social innovation provides an overarching framework for pedagogy that seeks to enable and empower students to think of novel and creative solutions to challenges that societies in different geographical locations face, such as poverty, inequality, homelessness, health, and environmental issues (Hagerdoorn et al., 2022 ).

Development of social enterprise pedagogy

Further to the issues mentioned above, there is evidence that social enterprise pedagogy is now being delivered in cognisance of broader issues of social innovation (Galego et al., 2018 ) and sustainability, which is defined as an intervention that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland, 1987 ). Sustainable development promotes economic and social development in ways that avoid environmental degradation, over-exploitation, and pollution (Brundtland, 1987 ). There seems to be an understanding that while technology exists to end poverty and deprivation, it is the will and awareness that are missing—and universities are best placed to create a new generation of students who can achieve this. A case in point, in the USA, there is now a greater emphasis in the first instance for students to have an understanding of how corporations are putting the United Nations SDGs to work, so that they become effective agents of socio-economic change. In some HEIs, courses on social entrepreneurship are designed to respond to the interest in the role that these types of businesses can take in helping to achieve the global goals in a variety of ways, as values-driven businesses (Sliva & Hoefer, 2022 ). Secondly, students must demonstrate how big businesses are engaging in practices and activities that go beyond profit maximisation to achieve sustainability and responsibility, through collaboration with social enterprises. To illustrate this point, there are international initiatives to support entrepreneurship between HEIs and social enterprises in Europe, The USA, and Asia, such as the Global Social Venture Competition (Hoefer & Sliva, 2016 ). Through this, students can obtain a greater awareness of the role social enterprises can play in such an era, and contribute towards the creation and design of radically new institutions. Thirdly, while enterprising activities in general must produce surpluses, the social entrepreneurship approach helps students to link profitability with sustainability and creation of value better (Auerswald, 2009 ). For example, this may entail learning about new theories of business that helps societies convert waste into wealth (upcycling and recycling), or sustainable fuels that helps in creating sustainable and resilient communities. Most importantly, an interesting dimension emerging in social entrepreneurship pedagogy in the Global North is the creation of conducive environments that help students explore their personal values and gain an understanding of what it means to be transformational leaders in the communities in which they live, and beyond. This leads us to discuss experiential and active learning practices as a key component of the new way of teaching social entrepreneurship in HEIs.

Experiential, Active Learning and Social Enterprise Pedagogy

Experiential learning in its simplest form refers to learning from experience or ‘by doing’ (Lewis & Williams, 1994 ). On the other hand, active learning is a form of teaching that allows students to do something while at the same time thinking about what they are doing (Bonwell & Eison, 1991 ). There is no doubt that mastery of social entrepreneurship in higher education depends to a large extent on the fusion of theory and practice (Radovic et al., 2021 ) in exploring solutions to wicked social problems, and these two types of pedagogy are key to this. They are a component of constructivist pedagogical (CP) approaches (Bruner, 1961 ) and enquiry-based learning (EBL) by Kahn and O’Rourke ( 2005 ), which allow students to piece together what they are learning, as well as constructing their own learning. These approaches combined, involve the enhancement of student learning experiences through innovative, experiential, problem-based learning methods, where students scrutinise real-life projects (Wu & Martin, 2018 ) and devise ways of improving their impact and/or delivery of value. For example, in traditional non-entrepreneurship modules and courses such as supply chain management, students explore further how social entrepreneurship practices can help firms ensure ethical sourcing practices in their supply chains, through real-life projects and cases. Such projects provide them with opportunities to think about and suggest innovative ways to address issues in supply chains, particularly in tiers of suppliers. Students therefore learn by undertaking practical work (doing) and reflecting on the experience. In order to enhance their learning, they are also required to identify and utilise relevant concepts/theories covered in class too. For example, evaluate the integrity of supply chains and provide focused, sound, and feasible recommendations. The interesting aspect of this approach is that the multidisciplinary nature of social entrepreneurship enables tutors to devise pedagogical approaches that allow learners to explore non-economic implications of corporate actions, while sharpening their research and critical analysis skills at the same time. This also allows students to gain an awareness of what is happening around the world and, most importantly, to explore different methodologies to achieve positive societal impact. However, these approaches are typically retrospective in approach and are to be challenged in this new epoch that sees social enterprise as a key resolution strategy for social problems and challenges (Oberoi et al., 2021 ).

Challenges of embedding social enterprise in teaching and learning

While the above discussions focus on the increasing consideration of social enterprise in teaching and learning, experts in higher education concur that there are still a number of challenges to be tackled, not least the availability of qualified tutors (Galego et al., 2018 ) and the provision of a realist curriculum (Snowden et al., 2021 ). These are critical in creating opportunities for entrepreneurship as well as nurturing and supporting students (Hoefer & Sliva, 2016 ; Galego et al., 2018 ). However, current research appears to suggest that there seems to be no major difference between outcomes from studying entrepreneurship generally and social entrepreneurship, and this detracts from the proposals recommended by Snowden and Halsall ( 2017 ) and Oberoi et al. ( 2021 ) in the value and importance of developing a social realist curriculum. Indeed, they go on to assert that this is vital to ensure that the social enterprise curriculum is fit for the demands of contemporary society and learning. This has, to some extent, prevented higher education from obtaining a full picture of the issues associated with the practical inclusion of social enterprise in their teaching and learning strategies. That said, educators generally agree that higher education has a profound influence on social entrepreneurship policies and intentions (Meihui, 2022 ), and so remains the best platform to lead on the development of social entrepreneurship through research and teaching.

Teaching strategies utilised within social enterprise pedagogy

As posited earlier in this paper, higher education systems are notoriously slow to respond to the issues presented by societal change, and urgency is required to respond to the unprecedented global impact of the COVID-19 pandemic, and the legacy it leaves within the global community, not to mention the effect of global warming on economic lives. It is well documented that social enterprise is proposed as a valued resolution strategy to the challenges presented by the pandemic and environmental degradation (Oberoi et al., 2021 ; Snowden et al., 2021 ). However, in order to effect this change, educators must be prepared to provide an appropriate vehicle to support the development of the required knowledge, skills, and capabilities of social entrepreneurs. This section of the paper illustrated the interdependency of solution-focused learning, heutagogy and mentor-assisted learning within the dynamic context of the curriculum.

The curriculum

Traditionally, design and delivery of the university curriculum has been a dyadic process characterised by a hierarchical relationship in which the academic determines what is taught, and how it is taught. Consequently, delivery of the social enterprise curriculum may not always respond with the required knowledge, skills and capabilities to fulfil the role of social entrepreneur. To address this, the authors of this paper propose that educators should draw upon the principal of the notion of productive knowledge. Productive knowledge is a concept presented by Snowden and Halsall ( 2014 ) who argue that in order to respond to rapid socio-economic and economic changes, curricula must demonstrate productive knowledge where the knowledge, skills and capabilities generated are those required for society to flourish and are reflected in a curriculum that is fit for purpose.

Barnett refers to a global world that is in a state of constant change as “super complex”, dominated by global, local and regional societal change, and where competing frameworks, values and attitudes influence human understanding and needs ( 2011 , p.6). Therefore, what constitutes learning, capability and skills in a given epoch or context may not be appropriate at another time, or in another context, and, consequently, each context, individual, group, and community is unique; at different times, their needs, skills, capabilities and knowledge must respond to their changing needs. This presents a challenge to educators, who must aspire to develop a curriculum that reflects diversity, and responds to the specific needs and demands of individuals and/or communities within any given context. Clearly, there exists within societal learning an interdependent relationship between society, learning, and knowledge, and as such, accepting that knowledge, capability, and skill acquisition is a dynamic process. Snowden and Halsall ( 2014 ) provide a conceptual model that can be used to illustrate and guide this process (see Fig.  1 ).

Adapted from: Snowden and Halsall ( 2014 )

Interrelationship of curriculum components.

This tripartite conceptual model (see Fig.  1 ) illustrates the interdependent relationship between society/context, the nature of social enterprise, and higher education, and the intertwined nature of epistemology, ontology and practical features with the social entrepreneur at the centre of the learning experience.

The association and interdependence of society, knowledge and higher education is undeniable, as illustrated by Barnet ( 2011 ). However, Barnett’s assertion does not indicate what it is the learner, or in this case, what the social entrepreneur needs to fulfil the role. We identify the three core aspects as follows: (1) Epistemological—what it is that the social entrepreneur needs to know in order to execute the role, (2) Practical—that is the practical skills and capabilities to perform the role, and (3) Ontological—what they need to become, i.e. the role itself. Snowden and Halsall ( 2014 , 2016 ), suggest that the importance of the ontological basis of the curriculum cannot be overstated. They assert that the ontological basis of the social entrepreneur role, that is who they are, is related to the notion of ‘self’ and forms the pillars of knowing and performing in the world, which is context specific. Therefore, in order to promote a social enterprise curriculum that is fit for purpose in preparing an aspiring social entrepreneur for the modern world, the curriculum must meet the requirements of each of the interdependent features.

While this conceptual model provides a framework for curriculum development within social enterprise, it is only the adoption of heutagogical principles alongside mentoring and solution-focused teaching and learning that it provides an opportunity to translate the curriculum into practice.

Heutagogy is described by Snowden and Halsall ( 2016 ) and Snowden ( 2017 ), as a pedagogical process that places the learner at the heart of the learning process, focusing on capability, skill, and knowledge development of the learner; distinctly, this is negotiated in the context in which they aspire to work. This process harnesses a self-determined learning approach where the leaner determines how, what, and when they learn. It is recognised by Snowden and Halsall ( 2016 ) and Oberoi et al. ( 2021 ) that learning in the twenty-first century is dynamic, and requires learners to respond proactively to new ideas and challenges, suggesting that the social entrepreneur in the Covid-era needs to be dynamic, resilient, adaptable, flexible, and responsive to change. Consequently, HEIs must develop social enterprise curricula that reflect these requirements, enabling the social entrepreneur to learn the skills, capabilities and knowledge to fulfil their role in their chosen context at an accessible time and place.

Heutagogy promotes a holistic approach to learning, and enables the learner to develop the skills and knowledge to cultivate capabilities in the subject and practice; it also encourages them to question their personal values, self, perspectives, and assumptions. This approach makes it possible for learners to easily relate their knowledge to their community’s challenges. Snowden and Halsall ( 2016 ) assert that this approach to learning is prospective and proactive—and consequently, forward looking—in approach, and knowing what and how to learn is fundamental to the learning and skills acquisition process. It is this distinct approach to learning, they suggest, that enhances capabilities, self-efficacy, resilience, and competency to work and act within a dynamic, challenging environment (Opuni et al., 2022 ). Furthermore, and essential for the development of the social entrepreneur, is the recognition that intuition is a fundamental feature of the learning process, drawing upon reflection and double loop and action-based learning. Heutagogy is a holistic learning approach, and to be successful, emphasis is placed upon real-world teaching that recognises the worth of self, capability, and the needs of society that focuses upon learning rather than teaching. In order to facilitate a heutagogical approach to curriculum delivery, Snowden and Halsall ( 2016 ) assert that there are two methods that are required to expedite learning: solution-focused learning and mentor-assisted learning.

Solution-focused learning

Drawing upon Snowden et al. ( 2021 ), solution-focused learning is a teaching and learning approach that enables the leaner to become a committed, engaged social entrepreneur and to recognise that successful social enterprise delivery will require individual, societal, cultural, and institutional changes. It is a transformative learning experience that is concerned with designing solutions to challenges and issues, and by design is prospective, rather than more traditional approaches concerned with studying problems retrospectively. This approach, therefore, is especially suited to the social enterprise curriculum, as it challenges beliefs, values, and solutions, and is responsive to social injustice, oppression, inequalities, and societal change. The impact of this approach is significant, as it develops not only the cognitive domain of the learner but concurrently the affective domain of participants; it also promotes capability and competence in skill development aligned with the real-world needs of the student social entrepreneur.

Snowden and Halsall ( 2016 ) suggest that there are three sequential phases for successful solution-focused teaching and learning: (1) Assessment. The lecturer or facilitator of learning investigates and assesses the epistemological, ontological and capability skill sets of the group or individual learners. Fundamental to this process is the ability of the learner to understand the context of their study and their aspirations. This stage involves active dialogue with all collaborators and stakeholders, and furthermore requires a comprehensive assessment of need. (2) Planning and collaboration. The facilitator/teacher, in collaboration with the learner and where the relationship is viewed as an equal partnership, co-designs learning strategies that reflect the principles of how, what, where, and when as appropriate within a real-world setting. The partnership proactively constructs solutions to real-world issues, and develops capability enhancement strategies. (3) Adaptation and engagement. The learner and facilitator/teacher collaborate and engage with learning opportunities, apply newly learned knowledge, skills, and attributes within the desired entrepreneurial context (adapted from Snowden & Halsall, 2016 ). Teaching and learning strategies utilised successfully in this approach by the authors of this paper include: work-based learning, mentor-assisted learning, peer mentorship, case study analysis, hustings, role play and rehearsal, learning laboratories, resolution of complex solution-focused challenges, contextual and risk taking activities, data collection and utilisation exercises.

Undoubtedly mentoring in its various guises enhances learning and skill acquisition in all contexts, as suggested by Snowden and Hardy ( 2012 ), and is a process of learning facilitated by a more knowledgeable person who collaboratively facilitates personal and professional growth, and the development of a colleague or peer within a mutually beneficial relationship. The significance of the mentoring role for the development of the social entrepreneur is illustrated by Snowden et al. ( 2021 ) and reaffirmed by Oberoi et al. ( 2021 ). However, for the curriculum, Snowden and Halsall ( 2016 ) describe a mentor-assisted learning strategy that underpins and enables learning to be a scaffold within a realist, needs-led curriculum such as that afforded by a heutagogical approach. Snowden and Halsall ( 2016 ) assert that, without an embedded mentor-assisted learning strategy, the teaching and learning methods adopted fail to capitalise on the power of mentoring. The mentor, they suggest, acts as a fulcrum for the development of knowledge they provide, based on their experiences, an insight into practice and are able to provide an illustration and translation of reality within the context of learning, providing a landscape that ensures learning experience that is fit for purpose.

During the past 10 years, the authors of this article have managed several national and transnational projects related to the development and delivery of social enterprise education and training. Together, using a process of structured reflection and a training evaluation model (Kirkpatrick & Kirkpatrick, 2016 ), they have determined that there are three essential components of a social enterprise curriculum that is congruent with the demands of contemporary society. Firstly, the curriculum must be guided by an overall framework that recognises and responds to the relationship between the epistemological, ontological and practical (capability) features that are inseparable and determined by the interdependent relationship between society/context, higher education, and social enterprise. At the centre of this framework must be the social entrepreneur or learner at the heart of this process (see Fig.  1 ). However, in order to translate and reaffirm a realist curriculum that is fit for the demands of the Covid-era or society, the curriculum must adopt a heutagogical approach to teaching and learning that encourages the development of the self-determined learner who learns through a process of solution-focused teaching and learning within a mentor-assisted framework. Whilst this presents a challenge to educators, educators must embrace change, and not be afraid of learning and challenging practice when aspiring to the development of a curriculum that reflects diversity and responds to the specific needs and demands of individuals and/or communities within any given context. Failure to adopt these interdependent components will result, we suggest, in a curriculum that fails to match the aspirations of this generation.

Whilst the purpose of this section is not to propose content for the social enterprise curriculum, as discussed later in this paper, content is largely driven by business and management principles. However, previous work in this area by Oberoi et al. ( 2021 ) and Snowden et al. ( 2021 ) places emphasis upon the importance of key qualities required for the role, and present this in the form of a social entrepreneur avatar. They propose eight key personal qualities and skills required to fulfil the role of the social entrepreneur in this new epoch. These include the ability to mentor, adapt and adopt solution-focused approaches to practice, holistic in orientation and heutagogical in approach, and possess the qualities of optimism, creativity, empathy, and resilience. Each of these reflect the curriculum framework; hence, the authors of this paper propose that these components should form part of the social enterprise curriculum.

Linking global to local: a framework

As alluded to previously in this paper, there has been a long association between the conceptual ideas of social enterprise in a local and global contexts. At an international level, social enterprise, in public policy terms, is seen as a concept that goes about solving social and economic problems. In recent years, the academic literature has noted the importance of social enterprise as a public policy tool (see Halsall et al., 2022a ; Munoz et al., 2015 ; Oberoi et al., 2020b , 2022a , 2022b ; Peredo & Chrisman, 2006 ; Syrett & North, 2008 ). As demonstrated by politicians across the world social enterprise is seen as a positive catalyst to make real impact at a community level. Moreover, Guzman ( 2022 , p. 23) notes that in the context of the USA:

Entrepreneurship is key to the country’s economic development. High-growth entrepreneurship is a driver of innovation and increasing employment, and local entrepreneurship keeps cities and neighbourhoods vibrant, allowing access to much-needed goods and services. It serves as a solution to economic inequality and empowerment, and can produce meaningful wealth for those who succeed.

In concurrence with Guzman, quoted above, has this research discovered that social enterprise creates opportunities and solutions in the community. In the focus group meetings that were undertaken in this research project, the participants were asked to define a social enterprise, the importance of stakeholders, what students learn, and the importance of work placement. Figure  2 presents some key quotes from the participants.

Key themed quotes from the focus group meetings

As can be seen in the above themed quotes, social enterprise within an education perspective creates opportunities, challenges, and solutions. The opportunities are what social enterprise can actually do in a community setting and for the stakeholders who are involved in this process. The challenges are derived from what the students learn in an education setting. The focus here is more about real-life employability situations where social objective that assists a primary purpose forms the bases than the theoretical elements. The opportunities can be developed from the teaching and learning curriculum in terms of skills and development. Hence, drawing on the above findings the authors of this paper have developed a Pedagogy Social Enterprise Model (see Fig.  3 ). There are six characteristics in this model that are seen to drive social enterprise as an innovative ideology, which are:

Institutions—structures of rules and norms that develop social change in society. In this context, an institution is a private business, governmental or education establishment. Here, institutions are, on the whole, seen to have an important effect on citizens in society (Halsall & Powell, 2016 ).

Stakeholders—members of a particular group whose support enables an institution to function and without whom would not be able to function. Examples here are: administrators, students, teachers, and entrepreneurs.

Teaching and learning—a process whereby the leaner gains skills and understanding. The idea here is that the student can apply what they have learned into practice.

Personal skills and capability—a framework for skills and knowledge growth from a social entrepreneur development perspective. This characteristic is embedded from the authors’ earlier research (see Snowden et al., 2021 ).

Curriculum—what the leaner will cover in their course over a period of time. The curriculum is centrally driven by knowledge, practices, and critical engagement (Weller, 2019 ).

Work placement—a period where the learner has the opportunity to experience expertise in the area of employment they want to enter. As Neugebauer and Evans-Brain note, internships and placements are focused on “getting a start, establishing a track record and then adjusting from that to the path that is right” for the leaner ( 2016 , p. 59).

The Pedagogy Social Enterprise Model (PSEM)

Social enterprise has continued to pave its way into the local arena as a change agent, a social wealth creator, and a means to tackle the social problems that are prevalent in the community. It is clear from the study undertaken that social enterprise has positive effects on both local and regional developments. The emphasis is placed on social and economic purposes, which implies a reinvestment in the community. The study also suggests that social enterprise improves people’s lives, creates community cohesion, and promotes local economic growth. Despite the importance of social enterprise in society, students are still studying theories as opposed to acquiring practical skills. Hence, there is an urgent need to encourage students to learn by doing, and to develop an understanding of how to collaborate and engage with each other in order to address social problems. Such engagement can only take place if the key stakeholders play an active role in the transformational process, if social enterprise is embedded in the curriculum, and if opportunities to acquire skills through work-based learning, and/or structured internship programmes are offered. All in all, there is still work to be done towards the recognition of social enterprise in the local community, as well as its establishment within the academic curriculum.

Social enterprise is undergoing a renaissance, and it is widely viewed as a resolution strategy to the challenges presented in contemporary society. These include social inequality and injustice, public health, and socio-environmental issues as they present in society, and distinctly, the manner in which the issues empowers communities and groups, both locally and nationally. Furthermore, social enterprise, as presented in this paper, enables communities to act as catalysts for change, promoting innovation and entrepreneurship that demonstrate a tangible impact within communities, promoting vibrancy and sustainability.

However, student learning continues to be dominated by a theory driven model, rather than acquiring the practical skills and knowledge required to fulfil their desired role. Consequently, if social entrepreneurs are to respond to societal challenge and form social enterprises that have a definitive social objective of assisting a primary purpose as a resolution strategy, there is a pressing need to encourage educators to provide students with opportunities that reflect their role and their context.

This paper emphasises the importance of education and training and proposes that in order to deliver a curriculum that is fit for purpose, a curriculum that responds to the demands of social enterprise and the development of the social entrepreneur, a reset—or at least a rethink—is required. A conceptual model (Fig.  1 ) has been presented that illustrates the interdependent relationship between society, the nature of social enterprise, and higher education, and the inseparable nature and influence of the epistemological, ontological and practical domains of the social entrepreneur.

Entrepreneurship education remains dominated by the business and management discipline; however, since the advent of COVID-19, it is emerging as a social science discipline that is embraced and developed within subjects such as public health, social care, geography, sociology, and politics. Undoubtedly, for a ‘new’ curriculum to develop, it must do so within a cross-disciplinary framework that is both global and heutagogical in nature as presented in Fig.  3 . It is clear that the emerging social enterprise curriculum is multifaceted and complex, therefore enabling the learning experience to be dynamic and context specific to ensure that the needs of the social entrepreneur, community, and society are met by the training provider in the form of the higher education institution.

In this paper, the authors propose a new pedagogical stance: a transformative learning experience that draws together a micro- and macro-conceptual framework. The micro-model (Fig.  1 ) illustrates the philosophical approach that needs to be adopted, whereas the macro-model (Fig.  3 ) demonstrates the cross-disciplinary nature of the curriculum framework within the ethos of ‘think globally, act locally’. The authors urge educators to place greater emphasis on developing curricula that are underpinned by the models, to provide a transformative curriculum that enables the graduate of today to be prepared for the challenges of tomorrow.

It is also concluded that the combination of the micro- and macro-approach to curriculum development promotes a pedagogical paradigm shift towards heutagogy. It is asserted that this will enhance the learning experience for social enterprise students, contributing to knowledge, capability, and skill development that are congruent with the contemporary social entrepreneur that society demands.

Finally, the authors of this paper recommend further research into the state social enterprises on the various continents, which will create the platform for global social enterprise policy as well as country-specific policies. To have the societal buy-in of productive knowledge, there is a need for continuous advocacy and sensitisation of the populace on the concept of social enterprise in a global educational context.

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Acknowledgements

This research was funded by the Quality Assurance Agency for Higher Education (QAA). The authors of this paper are most grateful to Holly Musson, Owen Kelly and George John who led the focus group discussions. Furthermore, we thank our participants who gave generously of their time and ideas; their help is very much appreciated. Special thanks go to David Bara (University of East London) and Lucy Findley MBE (Social Enterprise Mark) for their constructive comments on an earlier draft of this paper, and to our proofreader Dr Stefanie El Madawi. Finally, the authors of this work would like to thank the anonymous referees for their constructive comments, which have enhanced the paper.

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Halsall, J.P., Snowden, M., Clegg, P. et al. Social enterprise as a model for change: mapping a global cross-disciplinary framework. Entrep Educ 5 , 425–446 (2022). https://doi.org/10.1007/s41959-022-00084-w

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Social Enterprise: Empowering Change One Step At A Time

• Charity Miles
• October 12, 2023
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Table of Contents

Social enterprise stands out as a beacon of hope in a world filled with opportunities for positive change. Companies and individuals are increasingly drawn to making a meaningful impact on society while pursuing their goals. 

This article explores the world of social enterprise, answering crucial questions and shedding light on its importance, benefits, and potential downsides.

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What Is Social Enterprise?

Social enterprise is a unique business model that blends profit-making with a strong social mission. Unlike traditional businesses solely focused on generating profits, social enterprises prioritize making a positive impact on society. These ventures harness the power of commerce to address pressing social and environmental challenges, ranging from poverty alleviation to environmental sustainability.

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Why Is It Important?

Social enterprise plays a pivotal role in driving positive change by addressing pressing global issues. It offers a sustainable approach to solving problems, creating a win-win situation where businesses thrive, and communities benefit. The importance of social enterprise lies in its ability to foster economic development, empower marginalized communities, and promote environmental sustainability, all while inspiring a sense of purpose among stakeholders.

How Does It Work?

Social enterprises operate with a clear mission to make a difference. They generate revenue through their products or services and reinvest a significant portion of their profits back into their social goals. This innovative approach allows them to sustain their operations while creating tangible benefits for society. The core principle is to strike a balance between financial success and positive social impact.

What Are The Benefits Of Social Enterprise?

Social enterprises offer a myriad of benefits that extend beyond profit margins. Some of the key advantages include:

Positive Impact

Social enterprises are driven by the desire to create a positive impact, meaning they actively seek to improve society or the environment. They measure their success not only in financial terms but also by the meaningful change they bring to communities, individuals, or the planet.

Sustainability

Sustainability is at the core of social enterprises, emphasizing long-term viability and resilience. 1 These ventures aim to balance their financial goals with social or environmental missions, ensuring they can continue making a difference for years to come.

Social enterprises are often hotbeds of innovation, constantly seeking creative and effective solutions to complex societal challenges. They embrace new ideas, technologies, and approaches to maximize their impact and reach more people in need.

Attracting Talent

Many individuals are drawn to work for or with social enterprises because of their strong sense of purpose. These ventures attract talent who are not only seeking employment but also a meaningful way to contribute to a better world.

Are There Any Downsides To Social Enterprise?

While social enterprise is a powerful model for change, it's not without its challenges. Some potential downsides include:

• Financial Strain: Balancing social and financial goals can be tricky, leading to financial instability
• Mission Creep: Losing sight of the social mission in pursuit of profits is a risk.
• Complexity : Managing both business and social aspects can be demanding.
• Market Competition: Social enterprises may struggle in highly competitive markets. 2

Key Characteristics Of Social Enterprises

Social enterprises share several key characteristics that distinguish them from traditional businesses. 

• Social Mission First: It means that these organizations prioritize their commitment to creating positive social or environmental change above all else. Profit-making, while important, takes a secondary role in ensuring that their mission is at the forefront of their activities.
• Profit Reinvestment: It involves allocating a significant portion of the profits generated by the enterprise back into initiatives and projects that further their social or environmental goals. This strategy ensures that financial success directly contributes to creating a lasting impact.
• Innovative Solutions: They actively seek creative and forward-thinking solutions to address complex societal challenges. Innovation is a driving force behind their ability to create unique, effective, and sustainable methods for making a positive impact.
• Diverse Impact Areas: The diversity of impact areas underscores their versatility and ability to address a variety of pressing issues. These can include poverty alleviation, education, healthcare, environmental conservation, and gender equality. 
• Transparency And Accountability: They openly share information about their financial performance, social impact, and operations with stakeholders and the public. This transparency helps build trust and ensures that the enterprise remains accountable for its actions and commitments.

Interested in a purpose-driven collaboration? If our values align, let's merge our missions for lasting change. Fill out our partnership form , and let's dive into the realm of meaningful impact side by side.

What Are Types Of Social Enterprises?

These ventures come in various forms, each with its unique approach to making a positive impact. 

Nonprofit Social Enterprises

Nonprofit social enterprises blend the characteristics of traditional nonprofit organizations with a focus on generating revenue through commercial activities. They reinvest the profits earned into achieving their social or environmental missions, combining the best of both worlds to create a positive impact sustainably.

For-Profit Social Enterprises

For-profit social enterprises operate as businesses, aiming to generate profits while maintaining a strong commitment to social or environmental causes. They prioritize reinvesting a significant portion of their profits into advancing their mission, aligning financial success with social impact.

Cooperative Enterprises

Cooperative enterprises are unique in that they are owned and operated by their members, who often consist of employees or stakeholders. These businesses emphasize democratic decision-making and profit-sharing among members, fostering economic equity and collective ownership.

Trends In Social Enterprise

The field of social enterprise is continually evolving, adapting to changing societal needs and market dynamics. Here are some potential trends to watch for:

• Tech-Driven Solutions: Tech-driven solutions in social enterprise involve the innovative use of technology to address social and environmental challenges. These solutions leverage digital tools, data analytics, automation, and other technological advancements to create more efficient, scalable, and impactful initiatives. 3
• Collaborative Partnerships: Collaborative partnerships are essential in the world of social enterprise. They involve cooperation and alliances between social enterprises, corporations, government agencies, nonprofits, and other stakeholders to pool resources, expertise, and efforts in tackling complex social issues together. 
• Global Sustainability: Global sustainability in social enterprise pertains to the broader efforts to address environmental and social challenges on a global scale. It involves initiatives that promote eco-friendly practices, responsible consumption, and circular economy models to ensure the well-being of the planet and its inhabitants for generations to come.
• Inclusive Finance: Inclusive finance refers to efforts aimed at providing financial services and resources to underserved and marginalized populations. In the context of social enterprise, it often involves making financial tools and opportunities accessible to those who have limited access to traditional banking systems, empowering them to improve their lives and communities.

Choosing The Best Social Enterprise

Selecting the right social enterprise to support or get involved with is a personal decision. 

• Identify Your Passion: Start by identifying the causes or social issues that resonate most with you. Passion fuels commitment, making it essential to align your interests with the mission of the social enterprise you choose.
• Research Options: Take the time to research and explore the various social enterprises that address your chosen area of interest. Investigate their approaches, track records, and the specific impact they make in the community or on the environment.
• Assess Alignment: Ensure that the mission and values of the social enterprise align closely with your own. An alignment in values is crucial for a fulfilling and purpose-driven engagement, as it strengthens your commitment to the cause.
• Evaluate Impact: Before committing your time, resources, or support to a social enterprise, assess their track record in achieving their social or environmental goals. Look for tangible evidence of their impact, such as success stories, metrics, or reports.
• Engagement Opportunities: Whether you choose to volunteer your time, invest, become a customer, or collaborate in some way, exploring the various engagement opportunities allows you to make a meaningful contribution to the cause you care about.

Frequently Asked Questions

How do social enterprises measure their social impact.

Social enterprises employ a range of metrics, from the number of beneficiaries and reduced carbon emissions to qualitative assessments, to measure and communicate their social impact.

What are some examples of successful social enterprises in the tech industry?

Examples include B Corporations like Ben & Jerry's and technology platforms like Kiva, which facilitate microloans to entrepreneurs in underserved communities.

Are social enterprises tax-exempt like traditional nonprofits?

Tax treatment varies based on the legal structure and location of the social enterprise. Some may qualify for tax exemptions, while others may pay taxes on profits.

Can individuals invest in social enterprises?

Yes, impact investing allows individuals to invest in social enterprises seeking both financial returns and social impact. It's a growing field in the world of finance.

Do social enterprises compete with traditional businesses?

Social enterprises can coexist with traditional businesses. In some cases, they may collaborate or carve out niche markets with a focus on responsible consumption.

How can I support social  enterprises if I'm not an entrepreneur?

You can support social enterprises by purchasing their products or services, volunteering, donating, or investing in impact funds that support social enterprises.

Are there any challenges unique to social enterprises in the mobile app industry?

Yes, challenges include developing apps that align with the social mission, ensuring accessibility, and competing in a crowded app marketplace.

How can I assess the credibility of a social enterprise?

Look for certifications like B Corp, review their impact reports, and seek testimonials or case studies that demonstrate their commitment to their social mission.

Do social enterprises have to disclose their financial information publicly?

The level of financial disclosure depends on the legal structure and regulatory requirements of the social enterprise. Many choose to be transparent to build trust.

How do social enterprises handle marketing and branding to attract customers or users?

Effective storytelling, showcasing social impact, and highlighting ethical practices are common strategies employed by social enterprises in their marketing efforts.

• Jayawardhana, K., Fernando, I., & Siyambalapitiya, J. (2022). Sustainability in Social Enterprise Research: A Systematic Literature Review. SAGE Open, 12(3), 215824402211232. https://doi.org/10.1177/21582440221123200
• Hossain, S. (2020, September 15). What are the challenges faced by Social Enterprises – HotCubator | Learn| Grow| Catalyse. Hotcubator. https://hotcubator.com.au/social-entrepreneurship/what-are-the-challenges-faced-by-social-enterprises/
• Akinyemi, J., Dilyard, J., Anderson, D., & Schroeder, K. (n.d.). INNOVATION AND TECHNOLOGY FOR SOCIAL ENTERPRISES. https://www.un.org/esa/socdev/egms/docs/2013/ict/innovation-technology-social-enterprises.pdf

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A business journal from the Wharton School of the University of Pennsylvania

Knowledge at Wharton Podcast

Balancing act: one entrepreneur’s journey with social enterprise, march 20, 2019 • 24 min listen.

Entrepreneur Mpho Sekwele discusses how her background and years in the retail sector have influenced the way she runs her startup ventures.

Entrepreneur Mpho Sekwele discusses her startup journey.

In the entrepreneurial space, Mpho Sekwele is a force to be reckoned with. The daughter of parents who created their own small businesses in South Africa, Sekwele built on that firsthand knowledge by working in retail for 10 years before launching her own ventures. Bantu Hikers is her nonprofit mentoring organization, and SintuOnline is her business that sells exclusive products to the African diaspora. Knowledge at Wharton recently talked with Sekwele about her journey.

An edited transcript of the conversation follows.

Knowledge at Wharton: What inspired you to pursue social entrepreneurship?

Mpho Sekwele: I think the entrepreneurship bit of it has always been in my blood. Both my parents pursued entrepreneurship journeys, starting their own businesses over 20 years ago. It was a natural progression that I would open myself in the entrepreneurial space, coming from a family of entrepreneurs. But I think the social bit was largely charted by my own life’s journey, which I’ll touch on a bit.

Knowledge at Wharton: Can you tell us about your two enterprises and what their goals are?

Sekwele: They are so different. The first one, Bantu Hikers , is a nonprofit organization I co-founded along with my partner. It’s a mentorship platform for first-generation students. We started it because in South Africa, only about 18% of students who graduate from high school can access universities or any other form of education post-high school. Of that 18%, a large majority of them drop out within the first year. The reason is not financially related. With the end of apartheid just not so long ago, there has been an influx of people that are new to university institutions. That’s a big community of first-generation students. The aim with Bantu Hikers was to help them with that transition from high school to reduce the dropout rate in the first year and increase youth employability.

We use hiking as a metaphor. We climb mountains with the students, with us being professionals. We use the metaphor of climbing mountains because it’s similar to going to a university. It’s a new space. It’s uncharted. It looks impossible until it’s done. We also facilitate workshops where we teach them psychosocial skills and so forth, just to help them cope when they do make that transition into university.

Knowledge at Wharton: Can you tell us about SintuOnline?

Sekwele: SintuOnline is a for-profit business I started at the beginning of [2018]. The reason for starting it largely had to do with my own retail experience, coming from a retail corporate background. But I took a sabbatical in 2017, when I relocated and lived in Slovenia in Central Europe. I got to travel quite a bit within Europe — the countries are so close to each other. But what stood out for me, having traveled in Italy, Austria, Croatia and so forth, was their great sense of pride in their culture and heritage. You would always find an Indian restaurant or Asian restaurant, but there was never a piece of Africa that could be found anywhere, which really, really was a big mind-boggler for me.

In addition to that, I was in a fellowship program in the U.S. at Dartmouth, where again you connect with various people who are longing for an authentic African experience or are curious to know more about African heritage and culture, but there wasn’t a platform that gives them access to those products. So, Sintu was then born. Sintu is a Zulu word which means “people” or “of culture.” We sell African heritage-inspired clothing and accessories at affordable prices, largely targeted to Africans in the diaspora, meaning Africans who are living in the U.S., U.K. or European markets.

Knowledge at Wharton: What do you think are the biggest misconceptions about launching a social enterprise?

Sekwele: I think the biggest misconceptions are that if you plan right, it’ll work out. Far from it. There is so much that comes along the way that you could never possibly plan for. It’s a challenging journey, both social enterprise not for profit and for profit. There will be things that will definitely test you. I’ve always advised people to surround themselves with like-minded people or people that build them up, because the journey is definitely not one that is easy or that you could plan 100%.

Knowledge at Wharton: Can you talk about one unexpected challenge that came up with either of these enterprises along the way, and what you did to tackle it?

“The vision is nothing without a strategic plan.”

Sekwele: With SintuOnline, there’s a lot more work that goes into the brand awareness or the customer acquisition. I think what has worked for me in terms of putting the brand out there has been going to the desired markets, doing exhibitions and understanding what the American people’s understanding of African heritage is, compared to our own understanding or versus the U.K. markets. I found that they all differ, but had I not tried to put myself in the customers’ shoes or to understand what that customer is, I would not be able to even get the brand awareness out there or do the customer acquisition.

Knowledge at Wharton: I’m guessing that there’s a little bit of an education piece when you have a customer coming to the site, looking at what you have to offer. How do you do that without making it feel like school?

Sekwele: When you land on our homepage, sintuonline.com, there’s a one-minute video that gives you a little insight about who we are, the type of products that are available on the platform. If you go into the products, there’s a little bit of a narrative that’s attached to each product that gives you the unique information about a product or the educational element about it. I’ll give you an example. One of the garments that we have would typically have a descriptor that says the fabric was inspired by … Ghana and West Africa. However, it’s made by emerging designers in South Africa, so at least you get a sense of where that product comes from or which piece of heritage inspires it.

Knowledge at Wharton: You spent 10 years working for established businesses in the retail sector. What are some key lessons you learned from that world that inform what you’re doing today?

Sekwele: I think the main thing is that the vision is nothing without a strategic plan. Have strategies in place. Secondly, have processes in place. Without processes, things can always fall apart. Those are things that I apply in my own business that are taken from that. Lastly, I think another lesson is that there will always be someone who is more skilled to tackle any problem that you might encounter. One must not be shy to ask for help or think that, because I’m an entrepreneur, I can do everything myself. There will always be someone available who is a subject-matter expert.

Knowledge at Wharton: Who have been some of your most important mentors as you’ve built these two enterprises?

“As one journeys along, you have to pivot in a direction that is viable for the business.”

Sekwele: They’ve both been largely different by virtue of the nature of work that both enterprises do. For Bantu Hikers, there’s a platform called Dreamgirls Academy where professional ladies mentor first-generation females from underserved communities. My co-founder and I were part of that mentorship program, where we used to mentor young girls as well. We learned so much from that initiative. Their model was an international model, so there was a lot we could learn in terms of facilitating workshops for our own students.

With regards to SintuOnline, I think a great source of support or mentorship for that has been what is called Silicon Cape, which is an ecosystem of technology networks and incubators. One business incubation program or accelerator that SintuOnline has been on has been supported by Barclays Rise, so that has been a great source of mentorship where we’ve been provided with accounting, an advisory board, business coaching skills and so forth.

Knowledge at Wharton: Are there aspects of either business that you planned at the beginning to be one way, but after talking to mentors and having these experiences, you ended up pivoting in a different direction?

Sekwele: Definitely. With SintuOnline, the business model initially was to buy all the products from these emerging designers and pay them everything upfront. But one becomes very inventory heavy. As we pivoted along the way, we were looking at ways of not keeping large inventories but acting more as a marketplace, as opposed to a retailer that warehouses inventory. That was not part of the plan initially, but as one journeys along, you have to pivot in a direction that is viable for the business.

Knowledge at Wharton: With Bantu Hikers, why was it important to combine mentoring and education opportunities with this health and wellness component of hiking?

Sekwele: I think the health and wellness part was so critical because without a healthy mind and body, the mentorship is irrelevant. Everything starts with the mind. Trying to think that you can achieve anything at all starts with the mind. Hiking is more wellness and mental. It was the only way that we felt that the mentorship could be delivered in a way that is not conventional, that is very casual, where the kids don’t feel forced into something and is very laid back. You are achieving the wellness aspect of it, the networking aspect of it and the mentorship at one go.

Knowledge at Wharton: What kinds of things do you see coming out of the hiking trips, specifically?

Sekwele: I see people who are more open to engaging with other people whom they wouldn’t previously have [engaged with]. When you hike, along the way someone else will always need someone else’s help, and we engage. I’ve seen friendships among the professionals. I’ve seen the kids being a lot more open to discussing some of the challenges in their communities and schools.

“The customer wants an experience with each product that they buy, and they want a unique experience.”

Another thing that has been worth noticing with the hikes, especially for the students we mentor, is that they are more open to engaging with people who are not similar in terms of race or so forth. They don’t feel intimidated because it’s a large group of us that is also occupying an uncharted space.

Knowledge at Wharton: What are the challenges in balancing a nonprofit like Bantu Hikers with SintuOnline? How do the two feed into each other and allow you to enhance both experiences?

Sekwele: I think the challenges are capacity. With Bantu Hikers, I am very grateful that I’ve got a team that helps out — my co-founder and another team member who’s on our management board. We split a lot of the roles among the three of us, so definitely capacity. With SintuOnline, the challenge is stretching yourself out and trying to get the support and the relevant skills to make certain things happen. But where the two merge is the common element, the common thread that the social effect is to uplift people who are either first generation as students or professionals. If you think of the SintuOnline model, the designers who produce our exclusive ranges are all first-generation professionals. They have never had opportunities to produce for big retailers or big corporates. SintuOnline’s social aspect is that it gives them a platform where they can distribute their own products on an international scale, whereas that previously would not have happened.

Knowledge at Wharton: How were you able to source the different designers that you work with for SintuOnline?

Knowledge at Wharton: Because of my retail experience, I have managed to be exposed to quite a wide network of buyers and designers. They go through a vetting process where they would have had their own brands for over two years, and we take them through quality assurance checks. If they have proven traction and a track record in their own distribution channels — be it they’re only selling off Instagram or Facebook or in their own little shops — what we then do is arrange for them to create exclusive ranges that wouldn’t otherwise be found. Those ranges will go through our own quality checks before we endorse the product on our website.

Knowledge at Wharton: Sometimes we tend to romanticize people when their first foray into business is to launch a startup. You worked at a bigger business and then launched a startup. What would your advice be to people who are trying to figure out what to do first?

Sekwele: I can certainly say, based on my experience, that going into big retail has taught me so much; I have an understanding of how big the industry scope is, how the different players play in the industry. It allows one to imagine in a much bigger way, and I don’t think I would have been able to do so had I gone the startup route first and then corporate.

Knowledge at Wharton: Looking at your experience in retail, how have you noticed the customer changing in that decade? Is what the customer wants out of retail, what they want out of a garment, different than what they wanted 10 years ago?

Sekwele: Definitely. I think the customer is a lot more specific these days. There’s a lot more competition. They’re not as loyal as they were about 10 years ago. I think the customer wants an experience with each product that they buy, and they want a unique experience. They want to feel special, so it certainly has shifted from what it was 10 years ago.

Knowledge at Wharton: There’s a lot of global interest in the African market. People often talk about it as one market, but it’s really hundreds of diverse markets. What is your response to that misconception?

Sekwele: There are so many countries in Africa and they are all so diverse, not only from a language point of view but religion as well. It’s split into Christianity and Islamic religions, but also the traditional indigenous religions. Don’t look at Africa as one big country.

“Don’t look at Africa as one big country.”

I’m going to give you examples…. Think about the different parts of Africa that are now mini-hubs for different things. Take Kenya, for example. It’s now known as the tech hub for Africa; there’s a lot of tech innovation that’s happening there. Then you look at a country like Rwanda, which has grown in great strides since the genocide. They’ve now repositioned themselves as the cleanest country in Africa — so from a green economy point of view, they’re the go-to country.

Then you look at South Africa, which is the gateway into Africa itself because of its infrastructure, compared to other African countries. We’ve got a lot of business and companies that are competitive and have the right expertise that can compete with first-world countries. It’s a very different strength that each African country has, so I wouldn’t necessarily look at it with a blanket approach.

Knowledge at Wharton: Who are your inspirations as a leader and why?

Sekwele: I think largely it’s my parents, having seen where they started with a very, very small base compared to my own starting base. But what they’ve been able to build over the years has been nothing short of amazing, with the limited skills and resources and education, compared to myself. But they keep pushing. They keep evolving. They keep innovating.

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What Is a Social Enterprise?

Understanding social enterprises.

• Social Entrepreneurship

Examples of a Social Enterprise

Special considerations.

• Social Enterprise FAQs
• Business Essentials

Social Enterprise: What It Is, How It Works, and Examples

Investopedia / Theresa Chiechi

A social enterprise or social business is defined as a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment, and the profits are principally used to fund social programs.

Key Takeaways

• A social enterprise is a business with social objectives.
• Maximizing profits is not the primary goal of a social enterprise as is with a traditional business.
• Unlike a charity, social enterprises pursue endeavors that generate revenues, which fund their social causes.
• Regarding employment, preference is given to job-seekers from at-risk communities.
• Funding for a social enterprise is often obtained by selling services and goods.

The concept of a social enterprise was developed in the U.K. in the late 1970s to counter the traditional commercial enterprise.  Social enterprises exist at the intersection of the private and volunteer sectors. They seek to balance activities that provide financial benefits with social goals, such as housing for low-income families or job training.

Funding is obtained primarily by selling goods and services to consumers, although some funding is obtained through grants. Because profit-maximization is not the primary goal, a social enterprise operates differently than a standard company.

While earning profits is not the primary motivation behind a social enterprise, revenue still plays an essential role in the venture's sustainability. Sustainable revenue differentiates a social enterprise from a traditional charity that relies on outside funding to fulfill its social mission. This goal does not mean social enterprises cannot be profitable. Instead, it's simply that their priority is to reinvest profits into their social mission rather than fund payouts to shareholders. 

The Organisation for Economic Co-operation and Development (OECD) identifies social enterprises as being highly participatory, with stakeholders actively involved and a minimum number of paid employees.

Social Enterprise vs. Social Entrepreneurship

A social enterprise is not to be confused with social entrepreneurship , which focuses on individuals who develop solutions to social and environmental problems using existing business techniques and strategies.  Social entrepreneurs seek innovative ways to drive change, whereas social enterprises form to fulfill a business purpose and solve societal needs through their commercial activities.

Many social enterprises successfully maximize improvements in social well-being . For example, Warby Parker is an American eyeglass retailer that donates a pair of glasses to someone in need for every pair sold. TOMS, a California-based retailer, similarly has pledged to donate a pair of shoes or sunglasses for every pair sold.  Also, Radicle trains businesses and gives them software tools to track and cut their greenhouse gas emissions.

Employees of social enterprises come from many backgrounds, but priority is given to those from at-risk sections of the communities. These may include long-term underemployed workers, who have historically worked in jobs where they were informally paid.

Social enterprise opportunities may seek to provide a living wage, which is above the minimum wage in most cities. Some social enterprises may pointedly seek out employees from at-risk groups as a requirement for hire.

What Are Examples of Social Enterprise?

Social enterprises are usually a blend of private and volunteer sectors. A credit union, a coffee shop that sells fair-trade beans and hires candidates from at-risk communities, or a neighborhood food co-op are all examples of social enterprises.

How Can I Start a Social Enterprise?

If you own a business, you could partner with a nonprofit, food pantry (if applicable), or other charity and donate your time, money, or products. If you are starting from the ground up, the first step may be to identify a problem and your solution to it, explain to potential funders your action plan, and make sure you have experts to back up and support your endeavor.

How Can I Get Hired to Work for a Social Enterprise?

If you want to get hired by a social enterprise, you should understand both the for-profit and the social benefits that it provides. Many employees of social enterprises are from diverse backgrounds and some may come from at-risk communities. Like any job, the qualifications will likely be based on experience and education, as well.

Social Enterprise UK. " FAQs ."

Organisation for Economic Co-operation and Development. " The Social Enterprise Sector: A Conceptual Framework ," Page 1.

Warby Parker. " Buy a Pair, Give a Pair. "

TOMS. " Our Story ."

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The complete guide to growing and scaling your social enterprise

We’ve learned a few things in helping support over 900 social enterprises around the world scale their operations with the help of our Experteers , Capacity Building Programs , research , and educational programming . Our work has touched early stage, award-winning enterprises long before they reached international acclaim, including groups like Inyenyeri , Sistema B , M-KOPA , Ubongo and BEMPU . At all stages in the social enterprise “ pioneer gap ”, we’ve been in the trenches with small, growing, and even large social enterprises. Along the way, we’ve scaled up our own award-winning social enterprise, too.

We’ve seen first hand what research continues to prove: Most social impact startups fall wildly short of their projections and end up going out business. The main reason? Social entrepreneurship is hard. Really hard. But there is another reason, too: founders, biased by their own egos and intuition , don’t take the time to truly embrace proven frameworks that will increase the odds of success.

Despite what you might think, there are no such things as visionary entrepreneurs . In fact, the number one reason that startups fail is because founders think they have an idea that will work, when in reality there is no market for it. This is why startup guidance is full of quotes like “ fall in love with problems, not your solution ”, “ don’t become a technology in search of a problem ” and “ get out of the building ”.

So how do you stack the odds in your favor when growing a social enterprise? Our guide below shares the most impactful frameworks and tools that you need to grow and scale your social enterprise. It’s still going to be a long, hard journey , but we’ve found that it helps to know that you’re not alone (even when it feels like you're riding a lion ).

Why We Need You To Win

We can't solve problems by using the same kind of thinking we used when we created them. —Albert Einstein

Our planet can’t sustain the population under the current global, capitalistic system that operates today. Despite what many philanthropists think, we are not yet changing the world and are not likely to achieve the Sustainable Development Goals by 2030. In fact, we might even be hopelessly offtrack by the time 2020 rolls around.

But not all is lost.

Social enterprises not only solve social and/or environmental issues, but they also have a few other profound effects:

• Creating world-positive jobs for others, meaning people can find career opportunities that create a positive net impact
• Divesting financial capital away from net negative investments into world-positive ideas
• Forcing entire systems to change and become more socially responsible

So whether you are starting your own social enterprise, launching a new social enterprise within an existing organization, or simply using social enterprise thinking to mold your career into a more world-positive direction , this guide was written to help you be the change.

Definition of Social Enterprise

Social entrepreneurs identify resources where people only see problems... They begin with the assumption of competence and unleash resources in the communities they’re serving.” — David Bornstein, Author, How to Change the World: Social Entrepreneurs and the Power of New Ideas

For this guide, we’re going to define the term “social enterprise” in a way that might be new to you. Social enterprise is a verb (a way of doing things), not a noun (a specific thing). Social enterprises are not necessarily stand-alone businesses like any other “startup”. Social enterprise, rather, is a way of thinking that can live as a stand-alone initiative or be embedded within an existing organization. One of our more popular articles covers the 600+ year history of the social enterprise movement and explains some of the different legal entities that can use social enterprise thinking.

In the MovingWorlds Institute , we educate our Fellows to understand a social enterprise as:

“An entity that utilizes marked-based forces to solve social and environmental challenges through the creation of sustainable revenue streams – with the intention of positively influencing the larger systems and stakeholders around it. ”

But there are shades of gray to this. You’ll most often hear the term “social enterprise” to refer to a “ Benefit Corporation ”, but it can also refer to a new public-sector team responsible for improving education in a city, or even a part-time job within a company to green your supply chain . Social enterprise thinking can exist in governments , education , non-profits , for-profits , and more.

Follow these 9 proven steps to successfully scale your social enterprise.

#1: Understand your ecosystem

Systems help us to move forward, to go as far as we possibly can. They enable us to work faster, smarter, and more strategically. A good system eliminates waste, while it also anticipates and removes obstacles. — John Maxwell , author

The number of failed social enterprises that can trace their demise back to this step is maddening. All too often, insiders and outsiders alike think that they have developed an innovative product, business model, and/or service that is “too good to fail.” They start working on market adoption before understanding the ecosystem they are planning to sell within. When I press new social entrepreneurs I’m working with to show me a systems map (tips below), the most common excuse for not having one is something along the lines of “I’ve worked in this space for a decade” or “I am from this community, I know it inside and out.” When social entrepreneurs I mentor say this, I always push back on this assumption. If they still refuse to acknowledge their blind spots, I then end the meeting. An all-knowing attitude is the cardinal sin of social entrepreneurship — we all have blind spots.

I have seen healthcare startups fail because they didn’t understand regulatory environments, new civil-service units crash and burn because they forget to engage the nonprofit community, and educational-system overhaul efforts fail because teachers and PTAs were not involved – all things that would have been prevented with a systems-map and thorough discovery process.

The problems we are facing today are all systemic and require systems thinking. This is precisely why one of the most popular content series in the Stanford Social Innovation Review is the idea of “ Network Leadership ” and why “ System entrepreneurship ” is growing in popularity.

So what is the best way to understand your ecosystem? Simple: get a diverse group of stakeholders from across the system and map it. We love the guidance provided by FSG, a mission-driven consulting organization, in its Systems Thinking Toolkit , which starts with great examples of systems mapping. We also think it’s well worth a few extra meetings to audit a community’s assets using the Asset Based Community Development Model from Depaul University.

#2: Use Design-Thinking to find a product that can scale

Love the Problem, Not Your Solution —Ash Maurya, author of Running Lean: Iterate from Plan A to a Plan That Works

After not mapping your system, the next best way to ensure failure is to build something that nobody wants. In fact, research shows this is the number one reason startups and social impact projects fail. Ideas are usually terrible, and even if you are nimble enough to pivot your idea to a sustainable business model, the chance it can really create an impact and scale is still less than 10% . But most startups fail because they are based on the “ visionary ego ” of founders. Remember, users decide what products will be adopted, not entrepreneurs. Community members will decide to use healthcare interventions, and these can’t be forced upon them by big funders. Cities can try and create healthy walkways, but citizens will decide if they use them.

As Sam Walton shared, “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down”. If you want to succeed, you have to get to know your customers and beneficiaries, and make sure you are delivering them real value.

Time and time again, following design-thinking processes have proven to be a better way to create social enterprise solutions than brainstorming ideas on a white board. While many models exist to implement design-thinking (like lean startup), the method we see most likely to create sustainable growth and impact for social enterprises is a combination of human-centered design and business model generation. As we explain in our post, Human-Centered Design vs. Design-Thinking: How They’re Different and How to Use Them Together to Create Lasting Change , there are 5 stages of the design thinking process. Just because you generate revenue doesn’t mean your idea will make things better, and the opposite is also true: just because your intervention helps, doesn’t mean it will be adopted. You have to go through all of the following 5 stages of this process to ensure that your model can both gain market traction AND make an impact.

Here are some great examples of the 5 stages of the design thinking process in action to inspire your own work:

• How to build empathy: great guide from Interaction Design Foundation and this from the Nielsen Norman Group
• How to define a problem: Interaction Design provides good templates here and I really like this simple template from EightShapes.
• How to ideate solutions: Interaction Design has easy to follow guidance
• How to prototype: IDEO has a useful case study here with real examples and I also like looking at The Lean Startup Movement for inspiration in how to build MVPs
• How to test your prototype for impact and sustainability

But a word of caution here: The number of social changemakers I see shortcut this process is even more than those that shortcut systems mapping (remember that 90% fail rate?). Here are the most common reasons I see aspiring entrepreneurs short-cut this process:

• They think they already know it all and don’t have to test their ideas (they don’t know it all. 90% fail)
• They are scared about early market feedback (they are proud of their pilot and don’t want to break it)
• They are embarrassed about how rudimentary their first product is (don’t be, our first sales page was a shared google document and LinkedIn’s founder gives this advice: “If you are not embarrassed by the first version of your product, you've launched too late”)
• They feel uncomfortable working with constituents and stakeholders (they don’t have enough connections… meaning they didn’t complete systems mapping in step 1)
• They get initial pushback on their ideas and don’t want to cope with being challenged (they get their feelings/ego hurt and then think they know better, so they push on)
• They don’t know how to find potential users (or rather, they haven’t spent enough time out of the building trying to find potential users)
• They misidentify who their users are (i.e. they think it’s the executive director of a nonprofit, when it’s actually the healthcare workers on the frontline who will decide if a product is adopted)

When I talk to social entrepreneurs who are trying to grow their organizations, I use this three-part question as a simple litmus test to quickly understand the product and if there is an active market for it:

• Name the specific problem that your specific user has
• Tell me how the current user is expending resources (time, money, or other) to solve the problem
• Why do you think your solution will solve the problem 10x better than anything else on the market?

Part 1 of this questioning helps clarify the specific user and if they actually have a problem, and part 2 clarifies if there is an existing market for the solution within the user base. Part 3 helps me understand their hypothesis about real value creation. Most social entrepreneurs can’t answer the first two parts, and that’s why most fail.

#3: Validate your scale-up business model

We must learn what customers really want, not what they say they want or what we think they should want. We must discover whether we are on a path that will lead to growing a sustainable business. —Eric Ries, author of The Lean Startup

Creating a social enterprise solution that works in one community or for one customer segment is very different than creating a scalable social enterprise. Scaling means there is a repeatable sales and delivery model that gets more efficient with more customers.

What I mean by this is that you can go through the Design Thinking Process in the earlier step, but then never test your riskiest assumptions about scale. Testing is hard, but that's why we really like Business Model Generation as a tool so you can answer:

• Can your sales efforts scale?
• Can your service delivery scale?
• Can your impact model scale?

Once you’ve determined if you can scale, the next question you need to answer is: what is the best way to scale? As Dr. Melodena Stephens Balakrishnan shares in the article The How-To: Scaling Social Enterprise Ventures , “there are different ways to scale”. This article in Harvard Business Review, How to Take a Social Venture to Scale , shares additional lessons you’ll need to get right alongside your business model. Different than venture-capital backed startups, sometimes social enterprises will scale via partnerships , grants , affiliate programs , service models, or licensing driven by impact more so than by profits.

Answering this question, along with standard scale-up questions, is hard — but it’s important and needs to be validated early on. As additional resources, here are more case studies of scale .

FSG also has a nice video, The Power of Industry Facilitation: Bringing Market-Based Solutions to Scale .

Conscious Magazines suggests also looking at “Collective Impact”, “Behavioral Economics”, and “Home-Bias Tendencies” strategies to support your growth.

• F ind customers with a problem
• O ffer test your ideas with them
• C urrency test to validate your business model
• U tility test to be able to validate your ability to solve their problems
• S cale test to figure out how to grow

#4: Scaling your idea and raising impact investment capital

That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach. — Aldous Huxley

You might be wondering why funding did not enter this guide until step #4. Indeed, I see many entrepreneurs try to fund their ideas before Step #1. Nine times out of ten that will make the path to failure more certain, and more painful because of the external influences and pressures.

But scaling is important, and it should be pursued if your organization finds product-market fit. As this Stanford Social Innovation Review guides, " To Impact Millions, the Social Sector Needs to Scale Scaling Up ".

Second to following proven frameworks to build your dream (systems mapping, HCD, and BMG), the next best advice I can give is: don’t raise money until your scale-up strategy REQUIRES it. There are more investment vehicles than ever, including crowdfunding, angel investors, impact investors, venture capitalists, philanthropists, government funds, accelerators, entrepreneur support organizations, and more (note, we used a revenue-based equity buyback ). Yet even with numerous options, receiving financing is still very time consuming and hard. Most importantly, it pulls you away from your end users and away from the processes outlined in steps 1-3.

Raising money is hard and it pulls you away from your core competency. It’s much better to grow on revenue and to preserve equity for your team by focussing on customers rather than chasing investors that have a different vision for the future of your enterprise and its operations.

SocialGoodImpact has a “ Somewhat quick guide to social enterprise funding ” and I’m a fan of Luni Libes and his “ Next Steps Guides ”. This scaling up guide from ATKearny also shares some valuable insights and case studies. To discover funding, try this free tool with a global development focus.

In summary, don’t raise outside funding until you’ve answered these questions truthfully: Does my company actually need to raise money, or can we grow on revenue? Have I exhausted all possible ways to build this from the ground-up without raising capital, even exploring an alternative legal structure, like a cooperative ( arguably the original social enterprise )? Am I raising money of out of ego, or because it is what is best for my business, its employees, and our stakeholders? Have I really tried all possible options including partnerships with customers and community groups I’m working with?

Time and time again I see entrepreneurs rush to equity financing with traditional angel and venture capital funds only to waste all their time, or worse, end up with a business that has to pivot away from its social impact intentions because its investors prioritize financial returns.

As you pursue other ways to scale, check out these great resources:

• Spring Impact toolkit for replication
• Scaling Pathways Guide from Duke University’s Center for the Advancement of Social Entrepreneurship (CASE)
• Smart Impact Capital Guide from CASE
• Bridgespan's Creating Strategies for Scaling Impact
• DIY Scaling Plan

#5: Build the right team and develop their skills

As much as I hate process, good ideas with great execution is how you make magic. — Larry Page , Co-founder of Google

Social enterprises are harder to start than for-profit organizations. They are likely to pay a little less than giant corporations with unlimited resources, and because of mission alignment as an additional screen, your pool of talent is smaller than most. Finding and developing the right people is hard enough, and like all things social enterprise, creating a model that is also focussed on impact can actually make it more challenging to get to true scale and impact.

At the Social Capital Markets 2018 conference, I led a panel with an entrepreneur, system-builder, and investor to help answer the question of how you build the team behind the entrepreneur. We summarized our takeaways in these 3 steps:

• Building a culture of growth with shared values
• Finding, hiring, and compensating the best talent
• Building an inclusive environment that enables personal learning and growth

You can see the presentation here , and pay particular notice to slides 24, which links to very helpful resources, like the Village Capital Talent Playbook and the Open Capital Advisors Talent Diagnostic tool .

#6: Managing your team

Goals without routines are wishes; routines without goals are aimless. The most successful business leaders have a clear vision and the disciplines (routines) to make it a reality. —Verne Harnish, author of Scaling Up: How a Few Companies Make It...and Why the Rest Don't

Startup people always complain about processes because they are “bureaucratic” or “corporate”. Those startups then go out of business. Certainly, you can overdesign processes and operationalize your way out of business, too, but a focus on great systems is what will make your social enterprise great. Managing your team first starts with managing yourself, then building the right systems, and finally managing your people. Read The Effective Executive (great summary here ), High Output Management (great summary here ), and Measure What Matters (great summary here ) for guidance on how to do this. Then reread them every year to keep improving.

But I have found that there are more layers to managing than just managing your team members. The most effective leaders manage 3 distinct entities:

• Managing yourself : You have to understand yourself, your biases, and how you react under pressure and stress. If you can’t manage yourself, you can’t manage others. Need help? Take StrengthsFinder and work with a coach.
• Managing your systems : You need to build nimble systems that can grow and evolve with your business model. Most importantly, these systems need to align your team members behind a growth strategy, provide effective measurement on progress, empower your team to make autonomous decisions, and keep improving to provide better experiences for your customers (Read the above resources on High Output Management and Measuring What Matters with Objectives & Key Results).
• Managing your team : Managing people is hard, and entrepreneurs need to reinvent themselves from builders to managers to do this effectively. Get a mentor, let your team know you are working on improving your skills, and then actually keep getting better. (Brene Brown’s assessment and book are great resources, as is this book by Liz Wiseman: Multipliers, How the Best Leaders Make Everyone Smarter .

#7: Build partnerships to keep growing

Go to the people. Live with them. Learn from them. Love them. Start with what they know. Build with what they have. But with the best leaders, when the work is done, the task accomplished, the people will say 'We have done this ourselves.' —Lao Tzu

Social entrepreneurs can’t solve all the problems we are facing today. Increasingly, the forces we are battling against are deeply rooted systems. Your organization or idea may come and go. Your own career path might change. Your organization might go out of business or be acquired. Nobody is waiting on any one person or organization to solve our problems. Only through partnerships can we reach our own potential, and help others reach theirs. Well documented research from Professor Jane Wei-Skillern outlines a new type of leader that is focussed on partners, termed “The New Network Leader”. Network leaders are the “ Most powerful leader you’ve never heard of ”. As you build social enterprise partnerships, use these lessons from Network Leadership

• Focus on mission before organization
• Manage through trust, not control
• Promote others, not yourself
• Build constellations, not stars

#8: Report on impact (in real time)

If you can't measure it, you can't improve it. — Peter Drucker

This is another one of the hardest parts about managing a social enterprise, but your impact is an important differentiator from existing businesses. In addition to reporting on your finances to your Board, you also need to report on your impact to your stakeholders.

Measuring is time-consuming, costly, and I’ve seen many enterprises obsess over measuring the wrong things. Mary Kay Gugerty and Dean Karlan in their Stanford Social Innovation Review article, “ Ten reasons not to measure impact and what to do instead ”, share lessons about wasted time and money on impact measurement, either in being premature or fated to produce poor results because of missing conditions. They highlight that measurement is indeed important, and suggest several different things an organization can invest in instead, like using qualitative data, interactions with real users, and ongoing analysis of operations to keep making step changes until you are able to invest in a randomized control trial.

Here is what most social entrepreneurs miss: The point of measuring is not to measure. It's to improve. Even taking a small step to measuring one small indicator starts your on the journey to ongoing improvement.

PlusAcumen offers a great course and resources on measuring social impact, using the idea of Lean Data, ( Field Guide here ) an idea further developed by Ann Mei Chang in her book, Lean Impact (nice summary here )

#9: Push the industry

Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry. —Bill Drayton, Leading Social Entrepreneurs Changing the World

If you started a social enterprise and are one of the few that have been able to make it to profitability, I commend you, and now I will put a still bigger burden on your shoulders. The mark of a successful social enterprise is not just its own business success, it’s what happens to the industry around it.

So how do you push the industry forward?

• First, if you are successful in courting customers, you will force the industry to adapt.
• Secondly, you can publish research and findings to build best practices.
• Third, you will create partnerships that share better ways of doing things.
• Fourth, and perhaps most importantly, if you operate your organization effectively, you will build the skills of your team members who can make entire careers built on creating more world-positive social enterprises.

The frameworks above are not just for you. They are for your team members, your community, and the world. When you use these processes and share your failures and successes, you enable others to improve, too. As my mentor shared with me: “success is something that happens after you leave”. And investing in developing your team to carry on the social enterprise movement without your guidance is one of the most impactful steps you can take, regardless of whether your own venture succeeds (or doesn’t).

#10: Return to Step 1

While there may be various tips, pointers, ingredients, and strategies to success, there is no one formula that always guarantees it other than to keep learning from failure itself. — Criss Jami

When I was writing this guide, I turned to Sachi Senoy who is the co-founder and Chief Impact Officer at Upaya Social Ventures for help. Upaya is a truly innovative nonprofit that has managed to figure out a scalable way to get growth capital to social enterprise serving the ultra-poor. When we finished this guide, she recommended the following, “ the advice in this guide is not only for social entrepreneurs who are starting out, but even for those of us who have been at it for a while. It’s always healthy to re-visit one’s strategy, do a health check and experiment – and pivot if you need – to stay on the cutting edge. ”

Rather, ten times, die in the surf, heralding the way to a new world, than stand idly on the shore. —Florence Nightingale, inspiring social worker and the first social entrepreneur

Scaling a growing social enterprise is hard work. Follow the 10 steps in this guide to increase your ability to create lasting change:

• Understand your ecosystem
• Use Design-Thinking to find a product that can scale
• Validate your scale-up business model
• Financing your scale-up initiative
• Build the right team and develop their skills
• Managing your team
• Build partnerships to keep growing
• Report on impact (in real time)
• Push the industry
• Return to Step 1

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Four Tips to Kickstart Your Social Enterprise Journey

There has never been a better time to start that social enterprise you have been thinking about. If the global pandemic has taught us anything, it’s that there is no time like the present to follow your dreams and do what you have always wanted.

By starting a social enterprise, you have the potential to make a big difference in the world around you. Your impact might be at a local, national or even international level. Unlike any other business, a social enterprise is a mission-based enterprise. For example, a portion of your profits might be put towards a cause that you and others support, which in turn gives your customers a perfectly good reason to purchase from you.

As a university, Australian Catholic University`s (ACU) core mission is to stimulate impact that serves the common good. As the saying goes, you are what you eat, so join us and eat away at your words and take the leap into your social enterprise journey.  

Start Learning

Let`s start with the top and, without being biased, the most important resource of all, ACU’s Social Enterprise Series . ACU could not have partnered with a better facilitator than StartSomeGood, which was built on the foundations of giving future changemakers the tools and support they need to make a difference. Social Enterprise Series’s ten-week in-depth learning program will provide you with the practical guidance and tools to kick start and keep your social enterprise thriving. There is also $10,000 up for grabs to put towards your social impact project.

Find the Money

39% of business owners use their personal cash to start, and the rest, well, they have to beg, borrow and (hopefully not) steal to get their first injection of funding. The good news is that there is an ever increasing number of funding opportunities available for those looking to start or grow a social enterprise. So back yourself and find the funding you need to kickstart and supercharge your social enterprise. That’s why resources like Social Change Central are so helpful – it’s our go-to for finding funding opportunities.

Make Connections

The candle of hiding at home and not making those human connections has almost completely burnt out, so it’s time to get back on the horse. Networking in person and connecting with others face-to-face.

Australia’s social enterprise sector is exploding with events, meet-ups, and networking talks. Getting out there and connecting with like-minded folks is an essential activity for a social entrepreneur, building a great network and being part of the community. There is so much on offer! Our pick of the bunch is  The Social Enterprise World Forum  in Brisbane later this year.

Stay Informed

Make sure you follow the right people on social media and subscribe to informative resources . The world is swarming with people who claim to know and have fool-proof methods for you and your social enterprise, so make sure you do your research. Some great hashtags to online forums to follow are #socialimpact #socimp #socialenterprise #socent #purpose #impact #socinn #switch2good.

Find out more about the Social Enterprise Series and sign up for free for upcoming sessions here . Participants will be encouraged to put their newly learned skills to work by crafting a video pitch for the chance to win the Social Enterprise Award – $10,000 to kickstart your project. The Social Enterprise Series cost is 100% subsidised, and is open to university students, staff, and the broader community, with topics delivered via livestream to a national audience.

Guest post by tayana grundy, acu co-lab, previous post, related posts, unifying language for social enterprise development.

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Jay Boolkin

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I'm passionate about positive social change and the power of social entrepreneurship to tackle some of the world’s biggest problems. I believe that for-purpose business models can become part of the mainstream and I am enthusiastic about advocating for business models that are genuinely built around a social or environmental mission.

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The Journey To Becoming A Social Enterprise

For many companies, the challenge of becoming a social enterprise would be a distant dream and something of a long-term strategy – no matter how passionate they may be about it. It comes as a surprise to many when I say I am CEO of the oldest security company in the world, and that we have social enterprise status. In fact, we believe we are the only security company currently approved as a social enterprise in the UK.

The questions I am often asked are how difficult was the process? What does it mean for the business? Was it worth it? 

The surging significance of ESG

The growing emphasis on environment, social and governance (ESG) has seen a mindset shift for all of us in business. Having spent years focussing on the policies that are right for our businesses, and our position in the supply chain, it is now that ESG is beginning to open doors to more and new opportunities for our businesses. Moreover, we are also beginning to see successful companies losing opportunities to competitive firms because they are unable to prove their standpoint on issues that matter to a purchasing organisation. 

As a company, we had always been aware of the importance of ESG, but our biggest learning was not what ESG stood for, or what policies would prove our credentials. In fact, it was cultural. For ESG to offer success for businesses, every stakeholder must fully engage with what you are trying to achieve. A one-team approach, a culture of improvement, commitment and engagement that runs through the beating heart of the organisation.

ESG is not a set of policies, it is a commitment, a pledge, and a foundation for a better and brighter future.

Corps’ founding mission of supporting ex-servicemen returning from the war in Crimea was the starting block but also became the foundation for our business as it is today and was the light that led us on the journey to social enterprise status.

Our history and journey of discovery

Corps of Commissionaires, known more commonly as Corps Security, was founded in 1859 by Captain Sir Edward Walter with a primary mission, to provide gainful employment to ex-service personnel returning from the Crimean War. A mission as relevant today as it was then when we consider recent conflicts and the current situation in Ukraine. Veterans, returning from active service, will often suffer physical and psychological impacts that many of us would find difficult to understand. Corps was founded to offer employment, in a sector of business not unfamiliar to their training, to offer those that served our country a lifeline, a focus, and a sense of purpose. The company follows this same philosophy over 160 years later.

However, I cannot take personal responsibility for identifying our qualification as a social enterprise. It was a long-standing and trusted client – who has a strong engagement with ESG across the supply chain – who proposed that our company philosophy, goals, and achievements across the business would qualify us for social enterprise status. It was at this juncture that our journey began.

How we achieved social enterprise status

Like any other CEO, from any organisation, I must admit that I hadn’t really considered whether we qualified, or truly understood the requirements to become a social enterprise. When your entire organisation lives and breathes the values and visions of your business , it can take someone outside of it to open your mind to the possibilities. 

Following the intervention from our client, the team and I began to explore the possibilities and educate ourselves on the requirements for social enterprise status. Social enterprises are businesses that:

• Have a clear social or environmental mission that is set out in its governing documents
• Are independent businesses and earn more than half of their income through trading (or are working towards that)
• Are controlled or owned in the interests of the social mission
• Reinvest or give away at least half of their profits or surpluses for their social purpose
• Are transparent about how they operate and the impact that they have

Admittedly, we were in an incredible position compared to many businesses with over 3,000 employees. A typical social enterprise, as you would possibly envisage, tends to be a small coffee shop, food production company or charity.  For Corps, our founder had a vision all those years ago that many would say suits the social change we have seen in this country in recent years. This includes, but not exclusively:

• A dedicated social mission: Our absolute focus is to support veterans and this remains the driving mission of our business today.
• Trust status: Our business operates as a trust. We do not have shareholders and thus no dividend payments.
• Profit re-investment: As a business, we reinvest any profits into business development with the remaining funds benefiting charity projects including our commitment to combat stress .  

Benefits to the business

With the ongoing development of ESG strategies within business, we are all aware that suppliers are being scrutinised more than ever. Having social enterprise status has afforded our clients enhanced ESG credentials, we have a proven commitment to Diverse Supplier Spend, and we are a charitable organisation with our ingrained social mission making Corps a more attractive investment in bid and tender situations.

Social enterprise status provides business opportunities in our sector. We are unique in our offering, and for many other security companies, the time, and requirements of achieving social enterprise status would take much longer to achieve, leaving us with an opportunity to enter and secure more bids than our competitors in the market. 

Employee engagement

The benefits of social enterprise status offer more than just business advantages. Our retention of employees, many with decades of service to us, is influenced heavily by the social mission on which we were founded. The team lives and breathes our vision and values, which are much more visible and clearer than in many businesses.

By reinvesting our profits, we are in a constant state of development of the business, but moreover, we can invest more in our team. We are proud to have most of our workforce, and growing, on the Living Wage – with the full support of our clients.  

Should your business consider social enterprise status?

As aforementioned, for Corps, the process was much faster than a typical business would experience. However, we firmly believe that the benefits of achieving the status would outweigh any effort afforded to achieve it.

It is worth educating yourself on the process and requirements of a social enterprise. Consider your business structure and shareholders’ reaction. To provide a snapshot of how your business will need to adapt, these are a few of the required caveats:

• The business must provide gainful employment to an underrepresented group in society
• The business must reinvest its profits, and give away any remainder to charity
• The business will need to pass a “Special Resolution” with 75% of shareholders in agreement
• The business will need to have a definitive and robust ESG strategy

Moreover, the business will need its own social mission. Whilst Corps focuses on veterans, other minority sectors of society, such as those with physical or mental disabilities, need additional representation across the business sector. A social mission is more than a statement on paper, it must be something that you believe in, your employees will engage with and have a positive influence on your relationship with customers or clients.

We broke the mould

Corps is proof that any business, of any size or income, can become a socially ethical business. Your business may never be in a position to achieve the status, but the guidance and support provided by Social Enterprise UK can, at a minimum, help you to mould your business into one of which you can be proud. Sometimes, the smallest of steps will make the largest difference to those in society.

About the author: Mike Bullock is the CEO of Corps Security .

Hi, I'm Richard, the Editor for our Online Content. Feel free to email me at [email protected] if you have any questions or interesting content to send over!

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Social Enterprise 101: Types, Examples, Learning Opportunities

There are millions of nonprofits addressing issues like poverty, hunger, gender inequality, racial discrimination and much more, but they aren’t the only organizations concerned with social and environmental objectives. Since the 1970s, a unique type of organization – the social enterprise – has been blending aspects of nonprofits and for-profits into businesses that prioritize social good over profits. In this article, we’ll explore what social enterprises look like, the different types, five examples and where you can learn more.

Social enterprises are organizations prioritizing social and environmental goals. Taking the form of for-profits or nonprofits, they include entrepreneurial nonprofits, cooperatives, worker-owned businesses, B corporations, fair trade organizations and credit unions. 

What is a social enterprise?

Social enterprises are businesses with social and environmental goals . While they’re not charities, they tend to be committed to similar concerns regarding poverty, hunger, environmental protection, gender equality and so on. Social enterprises generate profit, but a lot of it goes back into the business to help it achieve its goals. Social enterprises also often hire people from disenfranchised communities while prioritizing programs like profit-sharing, member ownership, training and development, inclusive hiring practices and more.

What are the types of social enterprises?

Social enterprises are united by common features, but there are different types. Here are six:

Entrepreneurial nonprofit

Nonprofits are a type of organization exempt from taxes. Because “nonprofit” is a tax status, organizations working on a variety of social issues can be nonprofits. Churches, private foundations, political organizations or charitable organizations are four general types, while Feeding America, Greenpeace and Human Rights Campaign are three specific examples. To qualify as a nonprofit, organizations must receive government approval. Countries vary in their requirements, but in general, nonprofits do not generate profit. What’s an entrepreneurial nonprofit? Nicole Motter says these organizations use a revenue-generating program or an entrepreneurial business model. Unlike a traditional nonprofit, which depends on donations and grants for funding, the programs and activities of an entrepreneurial nonprofit keep the organization sustainable.

Cooperatives

According to the Corporate Finance Institute, cooperatives are member-owned organizations. Their goal is to “satisfy their members’ social, economic, and cultural needs.” Even if a member owns fewer shares than others, everyone has equal voting rights. While cooperatives are for-profit, they have some key differences from traditional businesses, like open membership, democratic member control, independence and concern for the community. Specific structures vary by region because of legalities, but in general, all cooperatives are designed to serve the members.

Worker-owned businesses

Like cooperatives, worker-owned organizations have goals different from traditional for-profits, but they have a narrower membership. To qualify as a worker-owned cooperative , workers must own 100% of a company’s shares. They’re directly involved in business operations, have an equal vote and benefit financially based on factors like how long they’ve worked there and how many hours they work. Unlike traditional for-profits where those who work for the company may not even be able to afford stocks, employee-owned organizations are more democratic and equal.

B corporations

Cooperatives and worker-owned businesses are not the only for-profit social enterprise. If a company wants to demonstrate its commitment to social and environmental issues, it can choose to become a “B corporation.” Founded in 2006, the nonprofit B Lab has been offering certifications and support to for-profits that want to become B Corporations. According to the B Corp website, companies earn a certification by meeting three requirements . The first is showing “high social and environmental performance.” During assessment, they must score a B Impact Assessment score of 80 or higher and pass the risk review. Secondly, the company must make a legal commitment to change its corporate governance structure, so it’s accountable to all stakeholders and not only shareholders. They must receive a benefit corporation status if available. Lastly, a B corp must commit to transparency. Information about its performance must be publicly available on the B Lab’s website.

Fair trade organizations

“Fair trade” is a social movement committed to achieving better standards for wages, product origins, supply chains, environmental impacts and much more. There are a handful of fair trade certifications, such as Fairtrade , which calls itself “the most recognized and trusted sustainability label in the world,” and Fair Trade Certified , which sets standards for things like safe working conditions, sustainable livelihoods and environmental protection. Entities classified as fair trade tend to be for-profit, but they’ve demonstrated values that empower workers and consumers, which makes them different from traditional for-profits. Nonprofits can also participate in fair trade practices by setting higher standards for products they sell, promoting fair trade principles, collaborating with fair trade organizations and establishing their own fair trade values.

Credit unions

Credit unions are similar to banks, but they’re member-owned. They also operate as nonprofits. According to CNBC, credit unions provide the same services as banks, like checking and savings accounts, loans and credit cards, but members have more control . They get to elect a board. Credit unions also reinvest profits into their own products, while traditional banks give profits to their shareholders. To use the credit union’s services, members have to meet eligibility requirements, which vary depending on the union. Factors could include where you work, where you live, or whether you’re part of another group, like a school or labor union.

What are five examples of social enterprises?

There are millions of social enterprises around the world. Here are five with a variety of structures and goals:

Girl Scouts of the USA

Girl Scouts of the USA is a youth organization based in the United States. Its goal is to empower girls through skill development, community engagement, leadership, friendship and mentorship. Placement of transgender youth is handled on a case-by-case basis . Girl Scouts is a nonprofit organization. Its cookie program, which usually extends from January through April, provides revenue, which is put back into the organization.

Patagonia is a for-profit business, but because of its social and environmental values, many consider it a type of social enterprise. It prioritizes environmentalism, justice and integrity. It also engages in corporate activism, runs environmental campaigns and is fairly transparent about its products.

Bob’s Red Mill

The food company Bob’s Red Mill, which was founded in 1978, is an employee-owned business. In 2010, founder Bob Moore created an Employee Stock Ownership Plan. With this plan , the company contributes its stock, which is held in trust for the employees. When the vested employees leave or retire, they get cash. In 2020, Bob’s Red Mill became 100% employee-owned.

Township Patterns

Since 1997, Township has been committed to building sustainable economic opportunities for women in South African township communities. The organization’s fashion brand provides work to independent, township-based sewing cooperatives. Using fair trade practices, the business designs, markets and sells a variety of handmade, ethically-sourced bags and accessories. According to its website, Township was the first South African fashion brand welcomed into the World Fair Trade Organization.

Haven Coffee

With its main shop in London, UK, Haven Coffee is a social enterprise with a commitment to refugees. Founder/director Usman Khalid founded Haven in 2019. The shop sells specialty coffee to support local refugee communities, provides barista training and helps refugee artists organize events. Their coffees, one of which is sourced from Honduras, the other from Indonesia, is Fairtrade certified.

Where can you find more learning opportunities about social enterprise?

If you want to learn more about social enterprises, there are a variety of classes and books that can help. Here’s where to start:

Becoming a Social Entrepreneur: Getting Started (University of Michigan)

Commitment: 17 hours (3 weeks with 5 hours per week)

Instructor: Michael Gordon

In this beginner class, you’ll learn what a social entrepreneur is and hear from 11 social entrepreneurs based around the world. They’ll offer important lessons and mistakes they’ve made when working on issues like clean water, improving education, providing affordable food and much more. Through the course’s five modules, you’ll learn whether your idea is a good one, if starting a social enterprise is the right choice and so on.

Social Entrepreneurship (University of Pennsylvania)

Commitment: 6 hours

Instructors: James D. Tompson and Ian MacMillan

This course will help you develop a strategy and framework for a social enterprise. Taught by instructors with years of experience and expertise, you’ll learn how to identify a social problem, understand context, create a solution and plan for success. By the course’s end, you’ll understand what it takes to create and launch a social enterprise. The 4-module course is part of the Business Strategies for a Better World specialization.

Social Entrepreneurship Specialization (Copenhagen Business School)

Commitment: 1 month (10 hours per week)

Instructor: Kai Hockerts

Broken into three courses, this specialization teaches you everything you need to know about creating impact through social entrepreneurship. You’ll examine examples, explore the process of solving a social or environmental problem, form a team, and study an issue to identify its root problem. By the end of the specialization, you’ll have developed an idea, worked on a business model and finished a business plan.

The Solution Revolution: How Businesses, Government and Social Enterprises Are Teaming Up To Solve the World’s Toughest Problems (2013)

By: William D. Eggers and Paul MacMillan

This book describes the new economy built on a collaboration between business, government, philanthropy, social enterprise and others.

Innovation and Scaling For Impact: How Effective Social Enterprises Do It (2019)

By: Johanna Mair and Christian Seelos

This book examines what derails organizations trying to work for the common good. Using four case studies, the authors help readers avoid mistakes, innovate and scale more effectively.

The Greater Good: Social Entrepreneurship for Everyday People Who Want to Change the World (2021)

By: Madeleine Shaw

Madeleine Shaw, a menstrual health innovator with decades of experience, offers readers unique ways to start and lead social enterprises. She discusses her own journey, as well as the stories of other successful social entrepreneurs, to show that you don’t have to be a business expert to make a difference.

• Rebound Therapy

Social Enterprise – the future of Occupational Therapy (Callum’s MSc journey)

Highlight: May 2021: “Social Enterprise – The future of Occupational Therapy” 

(Part of ‘Callum’s MSc journey: Advancing Practice in Occupational Therapy’ series)

Introduction to my ‘MSc journey’ series of blogs…

In my role as Occupational Therapy Lead at  bOunceT , I have been studying some modules from the innovative  Post-Registration Masters in Occupational Therapy  at Queen Margaret University in Edinburgh. I started this course in September 2019, as well as working at bOunceT full time with a small team alongside me . 

Why would I chose to do this ‘extra’ work on top of starting and running a business???

Well, because the modules available to study looked brilliant and the flexibility of the programme drew me in! The course tutors were very encouraging of me participating on the MSc, even working full-time, as I could effectively ‘choose’ what to study and write about within many of the modules and final research project. Therefore, in theory I could write about my work at bOunceT and ‘link’ this to occupational therapy and occupational science principles – somewhat ‘proving’ what we do ‘really is’ within the remit of occupational therapy. This comes from (mixed) experiences/opinions/comments from colleagues, local healthcare professionals and other stakeholders of my business about my experience of starting my career outside of the NHS ‘so young’ and ‘inexperienced’. I explain more about this within my blog:

• Too ‘young’ & ‘dumb’? Doing OT differently straight out of Uni .

Other blogs available in my MSc journey series so far include:

• Translating theory into practice – critically engaging with “occupation”
• Why do we leave parents out of therapy?

What do I want to tell you about within this blog? 

Thanks to the incredible learning from this MSc course, and/ or perhaps thanks to my continued experience leading an innovative non-profit business within the state of the world right now (due to COVID-19), I believe now more than ever what we do at bOunceT embraces ‘core occupational therapy’ values and principles. I completed an essay over the Christmas break in lockdown which focused on exploring research methods, but the first half of this essay was about setting the scene for why a particular area of practice needed to be examined. Naturally, I felt the area of social enterprise should be looked into further so I started to ‘google’ and search on literature databases for what research already exists within occupational therapy about this topic.

Shockingly, across the healthcare world and in particular within the profession of occupational therapy, there is very little knowledge about what a social enterprise is, and what the benefits of this business model are.

I thought…surely this was not the case?! Surely this must be wrong, since there is such a big push at Scottish Government and international level for #SocialEnterprise and #BusinessForGood to become the ‘next best thing’ across many sectors, including health and social care!

Therefore, the potential for a social enterprise model to be considered an effective way of delivering occupational therapy was the motivation behind the development of my MSc research…and this blog!

Social Enterprise – ‘Business World’

The consensus internationally is that there is not one single definition of the term ‘social enterprise’. However, it is often described like a private organisation whose profits must be re-invested back into the business to achieve their social and environmental mission, or purpose.   

Although commonly mistaken for one, social enterprises are not charities. However, social enterprises do often deliver elements of charitable support (free or discounted services) as well as offering paid for services. For example, even at bOunceT we offer some fully-funded support (made possible via generous grant funders) whilst balancing this with charging various stakeholders for payment (e.g. parents/carers, social work departments, local council healthcare teams, other organisations and charities).

According to Social Enterprise Scotland & Scottish Government , Scotland is a leading country within the global social enterprise movement. This certainly looks like the case as there is an abundance of research and ‘talk’ online about this type of business model and the benefits of it in practice (at different levels – e.g. at a public health level and its benefits to people and society – compared to the model being used to help companies with their corporate social responsibility – CSR).

According to Social Enterprise UK , the largest proportion of the social enterprise sector is ‘Health and Social Care’. Interestingly, 61% of social enterprises across the UK are delivering services to the public sector… so it is well known across that these services need the support of social enterprises and charities to meet the ever changing needs of society (e.g. Public Health Priorities ). Well, isn’t that interesting?! So, the same pot of money which funds our NHS/Councils can actually fund other organisations to support people in need. Therefore there is obviously a need for partnership working across all sectors.

One of the challenges we have faced when offering our service is that it is felt that ours should be a free service, like the NHS. It has been a huge challenge to overcome OT’s and others ‘personal or professional opinions’ as I was a young, newly qualified OT ‘trying to do something good’. I talk more about this within my blog referenced above, but we did have some families tell us that one of their OT’s from another (local) service told them not to come to bOunceT. I have never really explored this further, but my assumption is that it’s all down to understanding ‘what do they do, why, and how’.

I can’t help but think this all stems from the general belief that ‘healthcare should be free’……so of course why would you pay for something I am branding under the heading of ‘occupational therapy’. I naturally support this view 100% – but you could argue that nothing is ever ‘free’. Someone, somewhere has to pay for it … more than likely from income tax and/or donations and grants.

Without going into it too much, I discovered that within nursing and other health professions, the thought of developing a social enterprise model ‘within’ NHS structures has already been discussed for a few decades! There are fantastic examples of public sector services and/or individuals who lead NHS services who have set up a social enterprise (to help with service capacities and/or give more choice to staff and service users). I know this is a bit confusing now, and it does confuse me as I’m not an expert in this field, but more or less it seems pretty ‘well known’ across the business world and healthcare world that a social enterprise model serves a good purpose!

Social Enterprise – ‘OT World’

In very simple terms, the concept of a ‘social enterprise’ is not typically known across healthcare, especially by occupational therapists. It is true that there are some – although here I stress the emphasis on some – local and international occupational therapists who have embraced a social enterprise model within their practice ( me being one of them ).

Despite this minimal amount of social enterprise activity within OT, the benefits about how therapists can innovatively deliver their services – combined with the associated benefits for the people they are working with are crystal clear. Stickley and Hall (2017) appear to be the first – and currently the only – researchers to study the value of adopting a social enterprise model in occupational therapy practice. I thought this was one of the BEST reads since qualifying in 2017 and I would HIGHLY recommend it to anyone and everyone in the OT world thinking about ‘new ways of working’.

Interestingly, the Royal College of Occupational Therapists (RCOT) have continuously and actively encouraged OT’s to become pioneers in developing new roles for themselves. This is probably due to the ever changing political and economic factors influencing the healthcare landscape. Although, saying that, the idea that occupational therapy is continually evolving due to developments in research and success in practice typically has been – and currently is – embraced by most.

More recently, I was promoted by the RCOT to advertise and ‘shout out’ about innovative and role-emerging practice as a route to achieving growth and career development opportunities (via #ChooseOT campaign – https://chooseot.co.uk/hear-from-our-people/callum-mackinnon/) . This has been one of the most significant ‘non official endorsements’ to date! I have always liaised with RCOT regarding my work to make sure it ‘fits’ within my registration as an OT. Being able to take part in this campaign was a great personal achievement for me as it kind of ‘confirms’ that I have been right to continue with bOunceT even when the going was getting tough during my first year of setting up!

OT’s have long advocated for maximising ‘occupation-focused practice’ aka working with our ‘OT glasses’ on which make us focus on what WE do best, not just what we do ‘generally’ and/or compared to Physio’s for example. The pressure has been put on us as professionals a little bit too as healthcare colleagues like Physio’s are using ‘our’ words now (e.g. function and meaningful activity). Across research and practice, this seems to make OT’s seriously reflect on ‘what do we have that other professionals do not’.

Well, it would appear that expanding our practice by embracing ‘new ways of working in OT’ out with the public sector and the ‘traditional’ medical model of practice is one of the ways forward!

My success within the Social Enterprise & OT world

Some of the points below are examples of awards I have won, or things I have been able to achieve, due to being an Occupational Therapist leading a social enterprise!

• Social Enterprise Runner Up ( Converge Challenge 2017)
• Social Enterprise Champion Under 26 – Social Enterprise Scotland Awards (Scottish Parliament in 2018)
• Entrepreneur for Good (Scotland Finalist) – Great British Entrepreneur Awards 2019
• My latest blog re: bOunceT’s success and my journey over the last 4 years captures a lot – click this link to read more!
• Read more here about our Social Impact here!
• I was lucky enough to be asked to present my experience at “Careers for Health Professionals outside of NHS”. This event was hosted by Queen Margaret University (QMU).

What’s next for Social Enterprise in Occupational Therapy?

As the world evolves, the need for social enterprises to creatively meet needs across society will only grow stronger as we look to build a more inclusive, fairer and more sustainable world. I believe that a social enterprise model will be at the heart of this (in business and across services in different sectors).

The success I have had within bOunceT to date proves that there are more career paths outside the NHS than many of us traditionally think. It should be used as a ‘showcase’ to students, new graduates, and experienced practitioners as one of many careers paths to take…….although I do have to thank academic staff from Universities across Scotland and England as my journey has been embraced by lecturers and other staff who are pretty forward thinking!

Personally, I would love for bOunceT to reach beneficiaries across all parts of the UK, and potentially one day the world… I know I’m not the only one with these ambitions (as I work away in the background looking at social relocation models to grow!). I believe as we continue to grow, we could continue to diversify what we offer, and how. For example, as we launch our own ‘top trump style’ therapeutic play cards, we could adopt a ‘buy one, give one’ donation model, to expand our social impact bigger than it has ever been before!

Therefore, based on the (growing) research and interest in this field from occupational therapists, in addition to my own personal experience, I believe simply that social enterprise is the future of Occupational Therapy.

THANK YOU AGAIN for reaching the end of another long blog. I hope it has been useful to read (whether you are a student, professional, business person, or even a newbie to bOunceT)! Keep an eye out for other ‘News’ posted on our website . Callum 🙂

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Becca Stevens: The journey of social enterprise

Being a leader sometimes means feeling unsure of the path, says the leader of Thistle Farms and the Magdalene community, two Christian institutions that are helping women recover from prostitution.

When I was young, I learned to pray, “Jesus, Lord, my friend and guide, please be always at my side.” It was comforting to imagine Jesus holding my hand and guiding me on my way so I would never get lost.

As I grew up, the road felt more precarious. I didn’t seem to be able to find a clear guide; there was not a simple fork in the road where I got to choose a sweet, snow-covered lane.

In fact, like many people led to start new ministries, I felt compelled to forge a new path. It began in 1997, when I (and others) took the first steps to found the not-for-profit Magdalene community in Nashville, Tenn., to serve women who have survived lives of addiction, prostitution and trafficking.

We opened up a single home and invited five women to come and live in community at no cost for two years. We didn’t take any public funding and avowed that we wanted to be a witness to the truth that love is the most powerful source of change in the world.

One important part of the early journey was to be clear about the mission. Our model was simple, influenced by the sixth-century Benedictine Rule, grounded in hospitality, reverence and love. As a community, we created 24 spiritual principles for living together and published them in a collaboratively written book, “Find Your Way Home.”

But though the mission felt clear, the path of leading this community felt uniquely narrow and unsure at times.

There have been times I barely navigated the confusion that settled in on me like a thick mountain fog. One of the first residents, Julia, relapsed about 18 months after we opened the program. She fought against the pain and abuse she had suffered, but less than two months after her relapse, she was tortured and murdered by a john in the cab of a semi truck.

It was heartbreaking, and made me question my ability to lead this community. And it wasn’t just Julia’s story that was painful. All the women served by Magdalene had traveled down roads more perilous and broken than I could imagine. On average, the women were first raped between the ages of 7 and 11. They had seen the undersides of bridges, the short side of justice and the backhand of anger long before they saw the inside of prison walls.

The dedication and determination needed to travel this path meant that I had much to learn. I needed to learn to ask for financial and professional help. I needed to work on healing my own woundedness from being sexually abused as a child. I needed to commit more of my life to this calling.

About five years into the work, it was clear that it was time to create another new path. We were growing more concerned about the economic well-being of the women in Magdalene. So we began a social enterprise . Thistle Farms -- named for the tough weed with a beautiful purple flower that the women use to make paper -- produces all-natural bath and body care products to promote healing and offer steady employment.

Starting a business meant that I was on a steep learning curve again. Running a bath-and-body-care company wasn’t what I prepared for in divinity school, and I had to learn about branding, marketing, sustainability and management.

When we first began, for example, I didn’t know that having employee manuals and strict manufacturing procedures would reduce stress in the workplace. I didn’t know how to talk about love and still be seen as relevant in the marketplace.

I now have a clearer lens through which to read the Gospels -- I can read stories like the Good Samaritan and see myself as the guy in the ditch who has been rescued by many good people. The work has also helped me see that the imperative moral issue facing the church is the suffering of others. I can see the stranger as God and feel the transformational power of love.

Learning how to lead a social enterprise and a residential community has been the greatest gift I could have asked for as a pastor, and I didn’t even know I needed to ask for it. I didn’t know that without this work, I would have been lost in my vocation.

The work is not just transforming me and the women I am serving. It is also transforming the wider community. Both the products and the women who sell them are educating others on the myths of prostitution; they are teaching that women do recover, that longer prison sentences and more prisons are not the answer, and that there is a crucial need for more residential communities.

No one does this kind of work alone. To forge new paths in ministry is truly a community endeavor. Throughout the past 15 years, volunteers and staff with needed expertise have repeatedly come along -- often just in time. Right when we needed to expand our line of products, a chemist walked through the door. Just when we sought to gain access to a national chain, I ran into a friend who knew the president of the board!

Residents and graduates of Magdalene help lead the company, as well as learning skills in manufacturing, packaging, marketing, sales and administration. Thistle Farms now has products in 220 retail outlets and serves as a best-practice model in the United States, reminding ministries they can hold tightly to their core values and still be successful as businesses.

We now are hoping to share our expertise to help even more women. This year we have welcomed more than 700 people from around the world into our immersion day programs to show other communities how to replicate our model. We have formal partnerships with four other women’s social enterprises. In the past year, the women stood before audiences at more than 300 events, articulating our mission and courageously sharing their personal stories.

If you visit the 11,000-square-foot manufacturing facility and studio, you will see a communal vision that is still forming. We are only partway down the path, and we pray every day together for the grace to keep walking in community.

I have never found that simple fork in the road that I imagined as a child -- thank God. It has been all the twists and turns that have helped me find the place that feels just right to me. The view from here is breathtaking and fills me with gratitude.

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Christian leaders from a variety of roles are welcome to apply. The grants provide “balcony time” to reflect on accomplishments, broaden perspectives and discern next steps. The application deadline is May 28, 2024.

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Youth Social Entrepreneurship - Some learnings for success

June 21, 2021.

Social entrepreneurship and social enterprise are terms that have been evolving in meaning for the last few decades. Although business and enterprise are as old as commerce, bringing a social mission to the forefront of a profit making entity is still a very new idea and one that is yet to gain global normalization.

Closer to home, in Singapore, a recent study by RaiSE reveals that from 2010 to 2016 there has been a 52 percent increase in public awareness regarding social enterprise i.e. people are getting more familiar with the concept and the idea of it. For the purpose of alignment on this topic, let’s agree on the following characteristics of a social enterprise as laid out by Social Enterprise UK :

• It is a business with a clear social or environmental mission that is set out in its governing documents.
• Majority of the enterprise’s income (over 50 percent) is derived from sale of goods or services.
• As a business, at least half of the profits or surpluses are reinvested towards the social purpose.
• There is an inherent transparency about how all operations and the social impact is created.

Another recent study done by the British Council in collaboration with RaiSE in Singapore shows that of the 146 social enterprises studied, 40 percent were youth-led. Given that Asia and the Pacific (APAC) is home to 55 percent of the world’s youth population with over 660 million youth, it is not surprising that the rate of social entrepreneurship among youth is incredibly high in the region. Despite the huge uptake, young social entrepreneurs are generally hindered by 1. A lack of business experience and connections to build and scale their enterprise, 2. A scarcity of role models, mentors, and champions in their close networks to draw from, and 3. Difficulties with finding funding to create impact at scale, which is mostly attributed to lack of expertise and network.

To address some of these and other challenges and to empower youth to create impact at scale, Youth Co:Lab was co-created in 2017 by the United Nations Development Programme (UNDP) and the Citi Foundation. The core mission is to establish a common agenda for countries in the APAC region to empower and invest in youth, so that they can accelerate the implementation of the Sustainable Development Goals (SDGs) through leadership, social innovation and entrepreneurship. Since inception, Youth Co:Lab has been implemented in 28 countries across APAC with the Singapore programme being kicked off in 2019.

For the last year, alongside the support programmes, the Youth Co:Lab Singapore team has been speaking to and sharing conversations with youth social entrepreneurs as well as ecosystem enablers through the Youth Social Entrepreneurship (YSE) series blogs. The idea is to create a repository of first-hand knowledge on what it takes to build a successful social enterprise. Some of the key learnings and advice for youth on their entrepreneurial journey, from across the ten interviews are captured here.

#1 Begin with the core problem - There is no substitute to understanding the problem you are trying to solve and how it impacts your audience / beneficiaries. Our founders and enablers alike agree that one needs to spend as much time as it takes to get this understanding right. One can do this by reading and observing what is already out there and constantly researching and taking feedback from your own pilot / beta customers. Once the pain point has been identified and there is a very real problem that you are solving, the solution - however big or small - will have a greater chance of being a successful one.

“There needs to be humility while entering the problem space not only to understand the problem in itself but also the people it affects” - Ms. Seow Hui Hong , Former Programme Director, BlueChili.

#2 Start small but think BIG (and forward) - As any entrepreneur will share, it is almost impossible to get it right the first time. You have to test and trial and create many iterations of the solutions before you come to the right product-market fit. For many entrepreneurs, this means first creating a prototype, having a smaller user base, trialing and then rolling out.

But to achieve scaled impact, one has to have a vision for the future and think big on the impact. For example, one of the founders of Ambisense , a social start up that is creating a sound detection app for the deaf community knew from the start that their app could also be useful for the growing elderly population as many of them suffer from hearing loss. Knowing your growth plan helps persist in the long term.

#3 Know your market - APAC as a region has over 55 percent of the world’s youth population which translates to over 660 million young men and women of age 18-24 years. A recent study published by the British Council on social enterprises estimates the presence of anywhere between 500,000 to 1 million social enterprises in the APAC region. By 2040 APAC is expected to account for 40 percent of the world’s total consumption and 50 percent of the global GDP[1].

APAC is a robust opportunity market, however, there is also huge diversity of local culture as one moves from one country to another within the vast APAC region. It is hence important for young founders to first understand their own markets thoroughly before thinking of any expansion. Pick your home market, build scale and credibility and then expand.

#4 Get comfortable with discomfort - Across all of our conversations in the YSE series, this was one common piece of advice. Getting out of your comfort zone, meeting people outside your circle, exploring issues that seem uncomfortable to confront, going against societal expectations and norms, and continuing to plough through something even if it takes a long time are all very discomforting aspects of building a sustained social enterprise. But it is this zeal of staying with the discomfort that is usually rewarded with growth and success.

“Be gutsy, forward and charismatic, because learning how to push for what you want is a good way to be memorable and persuasive.” - Dr. Dalal AlGhawas , Program Director, Big Idea Ventures.

#5 Network - Connections are key - Almost anyone who has built something of scale or is on that journey can share how none of it is possible without help from others. The accelerators we spoke to during this series - Big Idea Ventures, BlueChili, Accelerating Asia and even for us at Youth Co:Lab – all identified our networks as one of the biggest assets we provide to our startups.

Especially for the young social entrepreneurs, who usually lack access to networks, having access to this ecosystem of supporters is invaluable. The network helps provide mentors, coaches, business partners, funding, prospective customers, allies, and role models too. Having the right connections becomes key to long term success.

As we continue to converse and document these conversations from stakeholders and entrepreneurs on the ground, we hope to share more learnings and perspectives that can help aspiring and new young social entrepreneurs to move along their impact journey.

                    ------------------------------------------------------------------------------------------------

Co-created in 2017 by the United Nations Development Programme (UNDP) and the Citi Foundation, Youth Co:Lab aims to establish a common agenda for countries in the Asia-Pacific region to empower and invest in youth so that they can accelerate the implementation of the Sustainable Development Goals (SDGs) through leadership, social innovation and entrepreneurship. To learn more about the Youth Co: Lab, visit: https://www.youthcolab.org/

[1] https://www.mckinsey.com/featured-insights/asia-pacific/asias-future-is-now

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Russia's Nuclear Deterrent Command Center Imperiled by Winter Freeze—Report

A Russian nuclear deterrent command center in Moscow has been imperiled by power outages that have impacted more than one-quarter of the region's cities amid freezing temperatures, a Russian Telegram channel has reported.

The VChK-OGPU outlet, which purports to have inside information from Russian security forces, reported that the 820th Main Center for Missile Attack Warnings—part of the Russian Space Forces, a branch of the country's Aerospace Forces—near Solnechnogorsk in Moscow is without power.

It serves as the space forces early warning network against potential ballistic missile attacks.

The development comes as Russians are reported to be suffering from power outages in their homes in the Moscow region caused by technical issues at plants amid subzero temperatures.

On January 4, a heating main burst at the Klimovsk Specialized Ammunition Plant in the town of Podolsk, which is about 30 miles south of central Moscow. Since then, tens of thousands of Russians are reported to have no heating in their homes.

Affected areas include the cities of Khimki, Balashikha, Lobnya, Lyubertsy, Podolsk, Chekhov and Naro-Fominsk, a map published by a Russian Telegram channel and shared on other social media sites shows.

Other Russian media outlets reported that in Moscow, residents of Balashikha, Elektrostal, Solnechnogorsk, Dmitrov, Domodedovo, Troitsk, Taldom, Orekhovo-Zuyevo, Krasnogorsk, Pushkino, Ramenskoye, Voskresensk, Losino-Petrovsky and Selyatino are also without power.

The Telegram channel said that at the 820th Main Center for Missile Attack Warnings, "the crew...is on duty around the clock."

"It is here that the decision on a retaliatory nuclear strike is executed," the channel said.

Newsweek could not independently verify the report and has reached out to the Russian Defense Ministry by email for comment.

Power outages have also been reported in Russia's second-largest city, St. Petersburg, in the country's western Voronezh region, in the southwest city of Volgograd, and in Rostov, which borders Ukraine, a country that Russia has been at war with since February 24, 2022.

On Sunday, two shopping malls in St. Petersburg were forced to close because of problems with light and heating, reported local news outlet 78.ru. Hundreds of other homes in the city have had no electricity, water or heating for days amid temperatures of -25 C (-13 F).

Russian authorities have also been forced to compensate passengers of a train that ran from Samara to St. Petersburg (a 20-hour journey) without heating during -30 C (-22 F) temperatures. Videos circulating on social media showed carriage windows frozen over. A passenger also said the toilet didn't work during the trip because of frozen pipes.

Do you have a tip on a world news story that Newsweek should be covering? Do you have a question about the Russia-Ukraine war? Let us know via [email protected].

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40 facts about elektrostal.

Written by Lanette Mayes

Modified & Updated: 02 Mar 2024

Reviewed by Jessica Corbett

Elektrostal is a vibrant city located in the Moscow Oblast region of Russia. With a rich history, stunning architecture, and a thriving community, Elektrostal is a city that has much to offer. Whether you are a history buff, nature enthusiast, or simply curious about different cultures, Elektrostal is sure to captivate you.

This article will provide you with 40 fascinating facts about Elektrostal, giving you a better understanding of why this city is worth exploring. From its origins as an industrial hub to its modern-day charm, we will delve into the various aspects that make Elektrostal a unique and must-visit destination.

So, join us as we uncover the hidden treasures of Elektrostal and discover what makes this city a true gem in the heart of Russia.

Key Takeaways:

• Elektrostal, known as the “Motor City of Russia,” is a vibrant and growing city with a rich industrial history, offering diverse cultural experiences and a strong commitment to environmental sustainability.
• With its convenient location near Moscow, Elektrostal provides a picturesque landscape, vibrant nightlife, and a range of recreational activities, making it an ideal destination for residents and visitors alike.

Known as the “Motor City of Russia.”

Elektrostal, a city located in the Moscow Oblast region of Russia, earned the nickname “Motor City” due to its significant involvement in the automotive industry.

Home to the Elektrostal Metallurgical Plant.

Elektrostal is renowned for its metallurgical plant, which has been producing high-quality steel and alloys since its establishment in 1916.

Boasts a rich industrial heritage.

Elektrostal has a long history of industrial development, contributing to the growth and progress of the region.

Founded in 1916.

The city of Elektrostal was founded in 1916 as a result of the construction of the Elektrostal Metallurgical Plant.

Located approximately 50 kilometers east of Moscow.

Elektrostal is situated in close proximity to the Russian capital, making it easily accessible for both residents and visitors.

Known for its vibrant cultural scene.

Elektrostal is home to several cultural institutions, including museums, theaters, and art galleries that showcase the city’s rich artistic heritage.

A popular destination for nature lovers.

Surrounded by picturesque landscapes and forests, Elektrostal offers ample opportunities for outdoor activities such as hiking, camping, and birdwatching.

Hosts the annual Elektrostal City Day celebrations.

Every year, Elektrostal organizes festive events and activities to celebrate its founding, bringing together residents and visitors in a spirit of unity and joy.

Has a population of approximately 160,000 people.

Elektrostal is home to a diverse and vibrant community of around 160,000 residents, contributing to its dynamic atmosphere.

Boasts excellent education facilities.

The city is known for its well-established educational institutions, providing quality education to students of all ages.

A center for scientific research and innovation.

Elektrostal serves as an important hub for scientific research, particularly in the fields of metallurgy, materials science, and engineering.

Surrounded by picturesque lakes.

The city is blessed with numerous beautiful lakes, offering scenic views and recreational opportunities for locals and visitors alike.

Well-connected transportation system.

Elektrostal benefits from an efficient transportation network, including highways, railways, and public transportation options, ensuring convenient travel within and beyond the city.

Famous for its traditional Russian cuisine.

Food enthusiasts can indulge in authentic Russian dishes at numerous restaurants and cafes scattered throughout Elektrostal.

Home to notable architectural landmarks.

Elektrostal boasts impressive architecture, including the Church of the Transfiguration of the Lord and the Elektrostal Palace of Culture.

Offers a wide range of recreational facilities.

Residents and visitors can enjoy various recreational activities, such as sports complexes, swimming pools, and fitness centers, enhancing the overall quality of life.

Provides a high standard of healthcare.

Elektrostal is equipped with modern medical facilities, ensuring residents have access to quality healthcare services.

Home to the Elektrostal History Museum.

The Elektrostal History Museum showcases the city’s fascinating past through exhibitions and displays.

A hub for sports enthusiasts.

Elektrostal is passionate about sports, with numerous stadiums, arenas, and sports clubs offering opportunities for athletes and spectators.

Celebrates diverse cultural festivals.

Throughout the year, Elektrostal hosts a variety of cultural festivals, celebrating different ethnicities, traditions, and art forms.

Electric power played a significant role in its early development.

Elektrostal owes its name and initial growth to the establishment of electric power stations and the utilization of electricity in the industrial sector.

Boasts a thriving economy.

The city’s strong industrial base, coupled with its strategic location near Moscow, has contributed to Elektrostal’s prosperous economic status.

Houses the Elektrostal Drama Theater.

The Elektrostal Drama Theater is a cultural centerpiece, attracting theater enthusiasts from far and wide.

Popular destination for winter sports.

Elektrostal’s proximity to ski resorts and winter sport facilities makes it a favorite destination for skiing, snowboarding, and other winter activities.

Promotes environmental sustainability.

Elektrostal prioritizes environmental protection and sustainability, implementing initiatives to reduce pollution and preserve natural resources.

Home to renowned educational institutions.

Elektrostal is known for its prestigious schools and universities, offering a wide range of academic programs to students.

Committed to cultural preservation.

The city values its cultural heritage and takes active steps to preserve and promote traditional customs, crafts, and arts.

Hosts an annual International Film Festival.

The Elektrostal International Film Festival attracts filmmakers and cinema enthusiasts from around the world, showcasing a diverse range of films.

Encourages entrepreneurship and innovation.

Elektrostal supports aspiring entrepreneurs and fosters a culture of innovation, providing opportunities for startups and business development.

Offers a range of housing options.

Elektrostal provides diverse housing options, including apartments, houses, and residential complexes, catering to different lifestyles and budgets.

Home to notable sports teams.

Elektrostal is proud of its sports legacy, with several successful sports teams competing at regional and national levels.

Boasts a vibrant nightlife scene.

Residents and visitors can enjoy a lively nightlife in Elektrostal, with numerous bars, clubs, and entertainment venues.

Promotes cultural exchange and international relations.

Elektrostal actively engages in international partnerships, cultural exchanges, and diplomatic collaborations to foster global connections.

Surrounded by beautiful nature reserves.

Nearby nature reserves, such as the Barybino Forest and Luchinskoye Lake, offer opportunities for nature enthusiasts to explore and appreciate the region’s biodiversity.

Commemorates historical events.

The city pays tribute to significant historical events through memorials, monuments, and exhibitions, ensuring the preservation of collective memory.

Promotes sports and youth development.

Elektrostal invests in sports infrastructure and programs to encourage youth participation, health, and physical fitness.

Hosts annual cultural and artistic festivals.

Throughout the year, Elektrostal celebrates its cultural diversity through festivals dedicated to music, dance, art, and theater.

Provides a picturesque landscape for photography enthusiasts.

The city’s scenic beauty, architectural landmarks, and natural surroundings make it a paradise for photographers.

Connects to Moscow via a direct train line.

The convenient train connection between Elektrostal and Moscow makes commuting between the two cities effortless.

A city with a bright future.

Elektrostal continues to grow and develop, aiming to become a model city in terms of infrastructure, sustainability, and quality of life for its residents.

In conclusion, Elektrostal is a fascinating city with a rich history and a vibrant present. From its origins as a center of steel production to its modern-day status as a hub for education and industry, Elektrostal has plenty to offer both residents and visitors. With its beautiful parks, cultural attractions, and proximity to Moscow, there is no shortage of things to see and do in this dynamic city. Whether you’re interested in exploring its historical landmarks, enjoying outdoor activities, or immersing yourself in the local culture, Elektrostal has something for everyone. So, next time you find yourself in the Moscow region, don’t miss the opportunity to discover the hidden gems of Elektrostal.

Q: What is the population of Elektrostal?

A: As of the latest data, the population of Elektrostal is approximately XXXX.

Q: How far is Elektrostal from Moscow?

A: Elektrostal is located approximately XX kilometers away from Moscow.

Q: Are there any famous landmarks in Elektrostal?

A: Yes, Elektrostal is home to several notable landmarks, including XXXX and XXXX.

Q: What industries are prominent in Elektrostal?

A: Elektrostal is known for its steel production industry and is also a center for engineering and manufacturing.

Q: Are there any universities or educational institutions in Elektrostal?

A: Yes, Elektrostal is home to XXXX University and several other educational institutions.

Q: What are some popular outdoor activities in Elektrostal?

A: Elektrostal offers several outdoor activities, such as hiking, cycling, and picnicking in its beautiful parks.

Q: Is Elektrostal well-connected in terms of transportation?

A: Yes, Elektrostal has good transportation links, including trains and buses, making it easily accessible from nearby cities.

Q: Are there any annual events or festivals in Elektrostal?

A: Yes, Elektrostal hosts various events and festivals throughout the year, including XXXX and XXXX.

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