Understanding the Power of Social Enterprises: Navigating Barriers and Embracing Social Procurement.
Geoff Gourley
LinkedIn Top Voice | Top 100 Global Social Entrepreneur | ESG & AI Expert | Social Innovator | Impact Investor | Green H2 Developer | Board Advisor | #PlantBased ??
In recent years, the concept of social enterprises has gained significant traction, serving as a driving force for positive change within our communities and the global business landscape. Social enterprises are unique entities that combine commercial activities with a core mission of creating social, environmental, or community impact.
Unlike traditional businesses solely focused on profit maximisation, these enterprises prioritise generating meaningful, sustainable change while ensuring financial stability. As our society moves towards a more conscious and inclusive economy, understanding the essence of social enterprises is crucial.
Barriers and Challenges:
Despite their noble objectives, social enterprises face a myriad of challenges that often impede their growth and sustainability. One of the prominent obstacles is limited access to capital and financial resources.
Traditional funding models often overlook the non-traditional business structure of social enterprises, leaving them struggling to secure necessary funds for their operations and expansion. Moreover, navigating complex regulatory frameworks and compliance standards presents an additional hurdle, hampering their agility and adaptability.
Furthermore, establishing a robust market presence and competing with established corporations poses a constant challenge. The need to balance social impact with competitive pricing and quality standards demands innovative business models, making it essential for social enterprises to continuously reassess their strategies to remain viable in a competitive market.
Benefits of Social Enterprises:
Despite the challenges, social enterprises offer a range of benefits that go beyond mere profitability. They serve as catalysts for societal change, addressing pressing social issues such as poverty, inequality, and environmental degradation.
By integrating social goals into their business models, they create employment opportunities, empower marginalised communities, and promote sustainable practices, fostering a more inclusive and equitable society. Moreover, their innovative approaches often lead to the development of unique products and services that cater to unmet societal needs, fuelling a culture of positive change and progress.
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Aligning Social Enterprises with Social Procurement:
The concept of social procurement, a strategy increasingly adopted by governments and corporations, aligns seamlessly with the values and mission of social enterprises. Social procurement focuses on utilising purchasing power to drive positive social outcomes, emphasising the procurement of goods and services from businesses that demonstrate a commitment to social impact.
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By integrating social enterprises into the procurement process, organisations not only fulfil their business needs but also contribute to the betterment of the society at large. This symbiotic relationship creates a sustainable ecosystem where social enterprises thrive, ultimately fostering a more equitable and prosperous community.
In conclusion, the rise of social enterprises signifies a paradigm shift in the way we perceive the role of business in society. While they encounter various obstacles, the impact and potential of social enterprises cannot be overstated.
By acknowledging their unique challenges, embracing their benefits, and integrating them into the concept of social procurement, we can foster an environment where businesses not only thrive but also actively contribute to the well-being of our communities and the planet. Embracing the ethos of social enterprises can pave the way for a more sustainable, inclusive, and prosperous future for all.
?Author
Geoff Gourley is a leading Global Social Innovator, Entrepreneur, Impact Investor and Director of ESG at Apricot Consulting, in 2017 acknowledged in the Top 100 Social Entrepreneurs & Innovators around the world. He has 30 years’ experience in design, property, construction, and all things Environmental, Social, Governance and Impact.
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Apricot ?Consulting
Since it’s conception two decades ago, the Apricot team have delivered outcomes and strategies that quantify and improve the health of leaders, teams, organisations, and communities. While our firm has changed significantly since its first project in 2002, our work has always endeavoured to meet the lofty goal of genuinely making the world a better place.
Our primary service lines sit within the area of Organisational Development, and ESG. We see these two divisions increasingly intertwined, and reflective of a shift towards a more ESG-minded economy.
Our strength is our ability to connect leaders around a shared vision of success, and importantly, walk with our clients to implement and deliver influential programs driven from the top down and holistically informed by their unique business ecosystem, both internal and external.
We deliver this through the synergy of our expert consultants and in-house and external tech, including our own home-grown algorithms, the unique Apricot Health Index ? digital assessment, the integration of complex artificial intelligence, as well as a suite of partnerships with world leading institutions and organisations to ensure our client's commercial peace-of-mind and the knowledge that their work will leave a legacy.
Great share Geoff Gourley (FAIM AICD)! It's great to see more focus on business impact and the growing opportunities in #SocialProcurement ??