What Is Social Enterprise?
For years, capitalism is carried out across the world.The result of it, on one hand, brings us convenient material life. On the other hand, it causes natural resource depletion, pollution and various social issues and concerns. Hence, people ponder on the possibility to chase financial effects and sustainability while keeping in harmony with public welfare and justice.
The idea of "Social Enterprise" is generated under the self-conscious and self-awareness of the public. It can be traced back to "microfinance" promoted by Grameen Bank in Bangladesh, 1972. By lending small loans to the improvised women in rural areas, the poverty in the rural village is greatly refined.
Though there are various definition and imagination over the social enterprise, the most common definition of social enterprise is " an organization that applies business model to solve social problems while pursuing its financial and social sustainability at the same time." (As shown on the above)
What distinguish social enterprises from traditional enterprises are the three principles followed by social enterprises. The social enterprises would manage their business with "environment friendliness", "solution to social problems" and "financial sustainability" as priorities, making the balance among "environment", "society" and "finance".
Besides, the principal of maximizing its shareholder value doesn’t apply on the social enterprise. Most of its revenue is invested on itself to solve social problems with better efficiency more considerably.
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Please attribute this article to “Workforce Development Agency, Ministry Of Labor”.