Guest Post: What Is a Social Enterprise?
As someone who’s worked in the social sector for six years, currently as a community engagement manager at a social enterprise hub, the question I’ve heard throughout my career from founders, executives, professors and entrepreneurs: what is a social enterprise?
The idea of a social enterprise appears to be everywhere right now among its industry counterparts – mission-driven, purpose-based, impact-focused, socially-responsible, and sustainable - wordsmithing towards a case to meet the shifting needs of clients, consumers, employees, and communities where they’re at. So who defines social enterprise: the founders or the consumers?
I’ve pulled on many threads to track down an answer – attending conferences, webinars, equity trainings, and pursuing an M.S. in global tourism and sustainable economic development. In my current role I manage opportunities and continued support for social entrepreneurs who complete our business development programs, which means in-depth conversations with people about their values and vision. The organization I work for is focused on serving a portfolio of entrepreneurs ranging from those who are looking to test the feasibility of an idea that they have for a social enterprise to entities further along and ready to launch a fundraising campaign.
Following these conversations, one thing I understand is that the stories and lived experiences from founders and executive directors define social enterprise better than a theory or framework ever could.
And while there are concise theories, frameworks, and reports that claim to help entrepreneurs cut through the jargon, limit the buzzwords, myth-bust vanity metrics, and organize a wealth of data & information, I find the definition of social enterprise still moves from individual to individual. What’s being presented and what I’m interested in is the language that founders, entrepreneurs, and consultants use to position themselves in the market - and having the argument to back it up. Here are some samples that I think demonstrate this idea beautifully:
The founder of Navigate Health, a company she launched after caregiving for her mother who experienced a rare type of brain cancer, receiving a daunting amount of medical bills, and then becoming a patient advocate claim agency in the matter. She now offers services to patients and their families to navigate medical debt and tracks how much money she saves them.
The CEO of Chobani, who speaks passionately about immigrant and worker rights, gave a wonderful interview at SXSW in 2023 (available on Youtube), and shared his story from working as an immigrant-farmer to starting a company on his own with the desire to improve working conditions and the quality of food produced here in the states after craving the quality he experienced in his home country.
The executive director behind Hope Scholars Initiative, who turned his talent as a hip hop artist into a cultural institution that uses hip hop education, expressive arts, and narrative therapy to strengthen the socio-emotional development of youth in the community.
There’s a case for value in all three stories. One values a better patient experience, the other a better food product for consumers made in a way that doesn’t exploit workers and farmers, and the other holds value for cultural preservation and inclusive educational environments.
These founders brought a broader mission to their work. I’ve seen that these individuals know their story, they know how it plays a role in what others might be experiencing, and they have enough value invested to write a plan and create a new experience.
Mainly, it’s their own observations and what they pay attention to that contributes to their growth. There’s plenty to zoom in on, the microcosms of social enterprise that can be found in your hometown and extend farther out beyond a trend report or Forbes article. While the industry reports are incredibly valuable for understanding what’s being discussed when the funding and resources are already there, social enterprise happens at a local level before it scales to national and international markets and paying attention to the activity in your community offers perspective into an idea that at times feels disconnected from our everyday lives.
In looking at all of these ideas, here are some core tenets that I see as the first step in understanding and creating a social enterprise:
Social enterprise is a field, not a blueprint: It manages the needs of founders, their teams, and the community they aim to serve - interpersonal relationships, community engagement, and company culture all matter in the field of social enterprise. One where there is call and response to what others are experiencing and revisiting those conversations on a consistent basis.There is no one way to form, operate, and sustain a social enterprise. In fact, in this field there is expansion, testing, crowdsourcing, and creating new ways of operating. A social enterprise can be thought of as a business community with shared values. One where everyone has an understanding of values to return to.
Maintain and revisit your core values: it's a place for you and your team to return to. A theory of change, a mission statement, a community commitment. Additionally, integrate value-mapping as a valuable development activity for yourself and others, learning about what’s important to you and how that evolves overtime.
Be wary of what you connect: part of social enterprise is mapping out the core issue and what you’re addressing. I’ve had people claim that a program addressed ‘troubled youth’ with little research and development invested into what childhood development and what youth might be experiencing.
Consider the macro and micro perspectives: Trend reports, high-level industry analysis, and HBR articles that share the traits that make a great leader are valid and valuable; however there is a lot to pay attention to around you, with your own experiences and interpersonal relationships. One of my favorite quotes shares, “we want to change the world and yet we won’t start with the dishes,” and it's a reminder that the ‘good’ values the industry names for better work and returns show up in our own lives daily.
Practice self-leadership: Trusting yourself through a world of information and decisions is overwhelming. And the more you put yourself out there the more you have to discern. It becomes difficult to understand how to implement all that’s going on around you and what course of action to follow. Returning to what I know, what I value, and my intuition helps remind me that I create my experience daily for myself and others even with all the good, the bad, and the challenging that I experience.
Lesson learned: When it comes to understanding how to bring a broader mission to your work, start with what you already know - what you know about your relationship with work, with yourself, with brands, and with the way you manage your days - follow the thread of what you pay attention to and what you need for a meaningful life. Start the conversations, find the authors who are talking about their in-depth experiences, and understand how your values influence the choices you make for your business. Social enterprise is at the mercy of who is having the conversation.
