The term of Social Enterprise is being popular now. But what is Social Enterprise? Is an industrial and commercial enterprise with a respectable mission a Social Enterprise? (For example, HP’s mission is to improve the life quality with fruits of science and technology or Merck’s mission to improve public health and alleviate suffering) And how about an enterprise which concerns public needs and donates quite a proportion of its profits for commonweal and philanthropy in such areas as Environmental Protection, Medi-care, Education, Poverty Alleviation and Disaster Relief, etc.? And how about an NPO making investment in for-profit enterprise and donats all its returns for non-profit purpose?
BCG has cooperated with SERVICEMASTER ever before to set up the service industry corp., that is the first situation mentioned above. Bright China Foundation(BCF) and Peter.F. Drucker Academy (DA or known as Bright China Management Institue, BCMI previously), both founded by BCG belong to the second situation mentioned above. The third one BCG is trying presently is to support the philanthropy with profits from the stock and bond markets. Therefore BCG has been recognized as Social Enterprise by those who knew us and supported the undertaking of BCG. So do we do to ourselves.
Not until one day I read the autobiography Banker to the Poor wrote by Dr. Muhammad Yunus，the Bengal economist and 2006 Nobel Peace Prize Winner, did I realize that there’s still another kind of Social Enterprise in this world. Please allow me try to describe its characteristics as below:
1. It shares the same purpose as NPOs , aiming to solve social problems with the intention of “doing good deeds”.
2. Such social enterprise is for-profit, which means that it must make profits by supplying products and providing
services for the society. Just like any other enterprise, its products and services must be purchased to insure its
survival and development.
3. It provides products and services for the vulnerable group, even to the lowest class in the society according to their
actual situations and demands,.While ordinary enterprises don’t intend to do that due to low profits. On the other
hand, not only could the products and services satisfy the needs of the vulnerable group but also be affordable.
4. The products and services it supplied may be the key to change the destiny of the vulnerable group.
5. The last point is that it must sell the products or services with profit to help the target clients get out of difficult
situations, whish is more effective than mere donation and almsgiving.
We can conclude that such Social Enterprise is a new type of organization combining the essence of NPO with operation mode of profitable organization. Dr. Muhammad Yunus definitely deserves the Noble Prize by devoted himself with more than 30 years and achieving this innovation. Now Micro-finance mode of Grameen Bank has been spread to nearly 20 countries, even to such developed regions as USA and Europe. Futhermore, not only did this new mode of undertaking inspired the finance sector but also other industries. Since bank could play the part of eliminating poverty, walks of all life could seek business opportunities by solving all kinds of social public problems.
It is exactly the mode of new investment and new course that BCG is pursuing. For its unarguable justice and moral standard, such social enterprise impels and summons the employees and partners together and gain compassion, respect and support from the general public, which makes it easier for them to succeed. However due to it is pioneering postion, it will undoubtedly undergo long-term hardship. Thus we need to concentrate, attach great importance to trifles and details, and keep trying and adjusting to. If BCG is not enough capable to initiate, we may seek and distinguish similar social enterprises existing, to fund them or to cooperate with their founders. This, I believe is a short-cut for BCG to realize its the dream of social enterprise.
We should consider, among all our businesses what should be abandoned and what should be changed. As NPOs, is there any possibility that BCF and DA (BCMI) could develop some kind of profitable mode to acheive their missions more effectively
I do hope that this essay could arouse curiosity, passion and great ambition of all colleagues for carving out. Let us begin our journey of setting up our social enterprise. And I would like to recommend the book Banker to the Poor to you as the best case and book for learning.
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