Almost ten years ago, I spent the summer months playing Tourist in Toronto. It was a way to explore my new hometown and see it from the eyes of a visitor. One activity was a food tour of the Riverside and Leslieville neighborhoods. We visited St. John’s Bakery on Broadview, and I learned about a new concept (to me): social enterprise.
What are Social Enterprises??
Unlike traditional businesses, social enterprises are profit-generating organizations that apply commercial strategies to address social and environmental challenges. They prioritize social impact alongside financial sustainability and reinvest profits into their mission to amplify positive change.?
For instance, a social enterprise might employ underprivileged individuals, create products from recycled materials, or provide essential services in underserved communities.
- Social enterprises support 200 million jobs worldwide and generate $2 trillion
in annual revenue, according to a new report co-authored by the Schwab Foundation, the Bertelsmann Foundation and the World Economic Forum. According to The State of Social Enterprise, half of these businesses are run by women, compared to a mere 20% of conventional businesses
, meaning they play a crucial role in bridging the gender gap.
- Putting people and the planet first, social enterprises drive tangible solutions for pressing issues like climate change and poverty. Social enterprises have great potential to create more inclusive and resilient societies by addressing inequalities, building and maintaining jobs for marginalized communities, and adopting green business models.
- Companies are no longer assessed solely on their financial performance but also on their ability to progress on issues important to customers, such as diversity, inclusion, and the environment. This shift in evaluation criteria has led to a greater emphasis on sustainable business practices.
- Social enterprises have a unique advantage due to their close ties to local communities. They can provide large companies with vital on-the-ground insights and market data that can be challenging to access through global supply chains.?
- Start by?educating the young generation?on why to start a social enterprise and how to create a business, manage projects, and handle finances. Encourage your kids to start small social businesses in the summer, such as eco-friendly crafts made of recycled materials or a neighborhood clean-up service, to give them hands-on experience running a small social business at an early age.
- Leaders must highlight that social innovation isn't limited to nonprofit work but involves creating sustainable businesses that tackle social issues while generating revenue. By highlighting successful examples and demonstrating their impact and profitability, they can inspire more people to pursue social entrepreneurship as a viable career path.
- If you start with a conventional business idea, you can steer it into a social enterprise path. Think about how you can incorporate social impact into this. Could you employ underprivileged individuals? Would you consider emphasizing community building in your launch? This approach transforms traditional business concepts into socially responsible ventures, integrating meaningful impact into your core operations.
- Building compelling business cases is essential to garnering interest and support for social enterprises. By refining their value propositions, emphasizing their social impact, and demonstrating financial sustainability, we enable these enterprises to attract partnerships, investments, and customers.?
Social enterprises combine business smarts with a heart for social good, tackling big issues while making a profit.?Supporting these ventures helps build stronger, more inclusive communities and inspires the next wave of social entrepreneurs.?
Here at The Ideas Collective, we pride ourselves on our purpose: we exist to elevate socially conscious brands so they can do their part to transform our world.
Together, we can positively impact people and the planet, and it starts by working with social purpose brands that share our vision. So, if you’re a social entrepreneur looking for strategic support, we can help.
