Social Enterprise
Ca n Lift This W
Country
hat difference does social enterprise make? Gerard Doyle argues that the impact social enterprise can play in the economic regeneration urban disadvantaged communities is immense. He says it can address unemployment, gain assets for community use and stimulate economic activity. This is the first in a two-part series: With unemployment hitting levels not seen since the 1980s and the ‘Celtic Tiger’ having bypassed a large number of communities, community activists are looking for solutions. They should consider going down the social enterprise route.
What is a social enterprise?
A social enterprise is a business which is formed to provide employment, services or create income for community benefit. They are present in most urban disadvantaged communities in Ireland, and examples include community childcare projects, community launderettes and community cafes.
By Ger Doyle
Social enterprises share the following features:
Provision of services or products - they are concerned with the provision of goods (e.g. food or furniture) or services (e.g. childcare, security and training) and are unlike traditional community and voluntary organisations which are either engaged in advocacy or charity. Autonomy - they are formed by groups of citizens who then govern them. State agencies or private companies do not have any direct or indirect control over how they are run. Community initiative- they are formed in response to an unmet community need. Groups of individuals form them as opposed to one person. Democratic decision–making – This means their decisions are based on one member one vote. Participatory character- the users of social enterprises services are represented and participate at all levels of decision-making structures.
Ger Doyle’s background Ger has 16 years experience in community development and
social enterprise development. He has worked for a partnership company, a community development network and Waterford LEDC, Ireland’s first not-for-profit company involving the community and corporate sector. Today, Ger works with TSA and has assisted a number of community organisations in developing social enterprise strategies. He recently graduated with an Masters Degree in Local Economic Development and his dissertation on the impact social enterprise can play in the regeneration of urban disadvantaged communities can be downloaded from: www.tsa.ie
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Limited distribution of profit – Some social enterprises do not distribute any of the profits to their members. Others, most notably cooperatives, distribute a limited level of profits. This ensures that the primary aim of responding to community needs is prioritised.
What do social enterprises do?
Social enterprises are engaged in most sectors of the economy except those from which they would exclude themselves for ethical reasons e.g. gambling. Throughout the European Union, supporting unemployed individuals and other groups that find hard to gain employment is the most common objective of social enterprises. However social enterprises have been successful undertaking other activities:
Providing services to the community Social enterprises can provide services that meet a local need that the State or the private sector is delivering. Their primary concern is not to make money but instead to deliver a range of services.
Market-driven business
Some social enterprises are formed primarily to produce a service or product that generates income for community benefit. Important features of this type of social enterprises include: • Their primary objective is to make surplus income to start other social enterprises to fund anti-poverty initiatives. • They can generate well-paid sustainable