Social Enterprise and the Business of Learning

Posted by analiese on Nov 21st, 2011

Can one really "do good and do well" (Jerr Bosche) or is it a myth? Do Not-for-profits really make NO profit, or is that a myth too?

Last week I attended a seminar on The Social Enterprise Journey: balancing social mission with making money organised by the Development Action Group. The presenter was Bice Awan, Chief Executive of Skylight. For those of you who like me, have never heard of Skylight before, they are a not for profit organisation focussed on supporting people who experience grief and loss. So how did Bice and her team turn their service into a revenue generating beast?

For a start, understanding what social enterprise (SE) is, helps. There are so many definitions once you take a look - like this "A social enterprise is an organisation that applies business strategies to achieving philanthropic goals" bless you Wikipedia. Or this, "running a business that improves the world". Rupert Scolfield. It is about achieving social mission while earning income. And it's also about operating with business and commercial practices - knowing that you don't have to compromise the good stuff! SE is universal, albeit not so sexy at the moment in Aotearoa.

There are certain characteristics of SE: most, if not all will have social goals; they will often generate income directly from selling a service or product; they require capital (and quite a bit too!); they may be a charity; they are generally managed like a business and they most certainly are extremely passionate about the work they do.

For a while now, I have been quite interested in the business of learning and balancing the art of making money to live beyond the typical funding contract. How many times have we said or heard "we need more funding" or "we don't charge for our services because..." and the all time favourite " living on the smell of an oily rag". But more importantly, what are we doing about it.

Is SE the answer? It's a good question, and one only you can answer. Anyone working in the ACE sector would agree that it is certainly a paradigm shift. What I will leave you with, are some principles shared by Bice, and I welcome any feedback that you may have.

Earned income is paramount.
Be a player or don't play at all.
Starting a business venture is not the only path to success.
Unrelated business is dangerous.
Be patient, don't run out of money.
Recognise the difference between innovators (dreamers), entrepreneurs (builders), and professional managers (they secure your future).
Not-for-profit culture gets in the way.

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