Social Enterprise - Philippines
Social enterprise is slowly gaining ground in the Philippines. It is a new business model that hopes to address poverty. Social enterprise is a type of organization with multiple bottom-line objectives with the marginalized poor as its primary stakeholders. It is different from a for-profit enterprise dictated by a single bottom-line and its primary stakeholders are the owners and investors of the enterprise. Social enterprise operates in a dichotomy with two opposing and different objectives. Day to day decisions in running a social enterprise is influenced either by social good or profit. Both are worthwhile objectives for a social enterprise but both should always be considered.
To attain sustainability, a social enterprise should be able to astutely balance the two important bottom-line objectives. If an imbalance occurs, unfavorable consequences will surface. There might be a risk of drifting from its mission, that of failing to serve the needs of its primary stakeholder, if the social enterprise will focus too much on revenues. On the other hand the social enterprise, because of its social mission, would have a tendency to over accede to the needs of its primary stakeholder - the marginal poor. This will prove to be detrimental to the financial health of the social enterprise in the long run.
The conflicting objectives will always pull the social enterprise in two directions which might render it dysfunctional unless a balance is achieved.
The balancing act of a social enterprise can be attained with close monitoring of its business, financial and social development indexes which will help steer the enterprise towards sustainability and achievement of its social mission. On the other hand if ignored, would result in the social enterprise's malaise. These indexes would serve to guide the life force behind every social enterprise.
The life force of a social enterprise is the social entrepreneur which may either be an individual or a team. Social entrepreneurs may come from different sectors of the society such as the non-government workers that have evolved as social entrepreneurs. Private entrepreneurs that have evolved into social entrepreneurs. Heads of cooperatives, heads of people's organization, heads of farmer groups or marginalized poor organization leaders are potential social entrepreneurs.
The social entrepreneur will only succeed if armed with a repertoire of skills that sets them apart from entrepreneurs engaged in profit-making. Unfortunately, some of this would be social entrepreneurs, do not have access to advance studies on entrepreneurship which is their handicap as they steer their respective social enterprises into the vagaries of forces in play in its macro and micro-environment. Institutions of learning, will play a valuable role in providing the necessary inputs to strengthen the capacity of social entrepreneur.
Social enterprise is still in its infancy in the Philippines, which is why, the public, business, academe and government support are needed for this particular segment of the economy. Only a few voices coming from various sectors of society support social enterprises. The consuming public play an important role in support of social enterprises. Their social responsibility can be translated to actual purchase of products or services of social enterprise with a little patience towards the products from social enterprises until it has improved. The business community can also play a role in allowing the growth of social enterprises by opening its doors to do business with social enterprises and at the same time patiently allowing them to build their capabilities. There is also a need for government support for social enterprises by enacting legislative bills to support its development. This will provide a positive stimulus for the multiplication and growth of social enterprises locally.
Investment and financing will also help influence the creation of social enterprises. Investments and financing are limited to and provided by financing organizations with social development missions.
Venture capitalist, seasoned investors as well as commercial financing institution should explore investing in social enterprises. Commercial banks can provide the much needed loan facilities to social enterprise but with less stringent requirements.
Social enterprises face an uphill struggle here in the Philippines but its worth supporting.
Reference: http://www.isea-group.net/vision-mission.shtml
To attain sustainability, a social enterprise should be able to astutely balance the two important bottom-line objectives. If an imbalance occurs, unfavorable consequences will surface. There might be a risk of drifting from its mission, that of failing to serve the needs of its primary stakeholder, if the social enterprise will focus too much on revenues. On the other hand the social enterprise, because of its social mission, would have a tendency to over accede to the needs of its primary stakeholder - the marginal poor. This will prove to be detrimental to the financial health of the social enterprise in the long run.
The conflicting objectives will always pull the social enterprise in two directions which might render it dysfunctional unless a balance is achieved.
The balancing act of a social enterprise can be attained with close monitoring of its business, financial and social development indexes which will help steer the enterprise towards sustainability and achievement of its social mission. On the other hand if ignored, would result in the social enterprise's malaise. These indexes would serve to guide the life force behind every social enterprise.
The life force of a social enterprise is the social entrepreneur which may either be an individual or a team. Social entrepreneurs may come from different sectors of the society such as the non-government workers that have evolved as social entrepreneurs. Private entrepreneurs that have evolved into social entrepreneurs. Heads of cooperatives, heads of people's organization, heads of farmer groups or marginalized poor organization leaders are potential social entrepreneurs.
The social entrepreneur will only succeed if armed with a repertoire of skills that sets them apart from entrepreneurs engaged in profit-making. Unfortunately, some of this would be social entrepreneurs, do not have access to advance studies on entrepreneurship which is their handicap as they steer their respective social enterprises into the vagaries of forces in play in its macro and micro-environment. Institutions of learning, will play a valuable role in providing the necessary inputs to strengthen the capacity of social entrepreneur.
Social enterprise is still in its infancy in the Philippines, which is why, the public, business, academe and government support are needed for this particular segment of the economy. Only a few voices coming from various sectors of society support social enterprises. The consuming public play an important role in support of social enterprises. Their social responsibility can be translated to actual purchase of products or services of social enterprise with a little patience towards the products from social enterprises until it has improved. The business community can also play a role in allowing the growth of social enterprises by opening its doors to do business with social enterprises and at the same time patiently allowing them to build their capabilities. There is also a need for government support for social enterprises by enacting legislative bills to support its development. This will provide a positive stimulus for the multiplication and growth of social enterprises locally.
Investment and financing will also help influence the creation of social enterprises. Investments and financing are limited to and provided by financing organizations with social development missions.
Venture capitalist, seasoned investors as well as commercial financing institution should explore investing in social enterprises. Commercial banks can provide the much needed loan facilities to social enterprise but with less stringent requirements.
Social enterprises face an uphill struggle here in the Philippines but its worth supporting.
Reference: http://www.isea-group.net/vision-mission.shtml
Comments
Post a Comment