Saturday, February 21, 2009

What IS Social?

What, precisely, does the "social" mean in the phrase "social enterprise?" For most people it means that the enterpreneurial activity being pursued serves a "social" purpose. But, that begs the question. Which entrepreneurial actions are social? Which aren't? It seems to me that reasonable people can disagree about this. For example, is a clothing retailer serving a social purpose? The owners train sales people, but also might help people feel better about themselves. Is that serving a social purpose? What about the book publisher Alfred A. Knopf? They often publish great books that arguably improve our cultural climate. Maybe Whole Foods is closer to the mark: they train people, sell interesting foods, and support local producers, all while trying to make a profit.  

Social enterprise websites typically identify these enterprises as either non-profits that pursue some profit-generating activities or for-profit businesses that have, as an important part of their mission, helping people or communities in some way. The Social Enterprise Alliance defines the movement in this way. 

However you define social enterprise the core of the idea is about accomplishing something positive. Here's a nice example of what I think most people mean by social enterprise: in some of the townships around Cape Town, South Africa, people are creating organic gardens. Their produce feeds the people who work the gardens but some of the produce is sold in local markets, generating income. It's a good example of how being alert to changing consumer desires can--at times--lead to positive change even in a difficult environment.

1 comments:

Don Boudreaux said...

Nicely done, Darling. It would, by the way, be good if many more people were aware of Hayek's criticisms of the notion of "social justice."

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