What is Social Enterprise?

A business operated by a non-profit…

that is: » directly involved in the production and/or selling of goods and

services

For the dual purpose of

generating income and

achieving social and/or environmental aims.

Social Entrepreneurship Shares the financial sustainability objective of a

business enterprise

Has more than one bottom line

Usually includes the provision of services to its constituency or the achievement of defined development objectives

Dacanay, Creating a Space in the Market, 2004

Social Enterprise Seeks a Blended Return on Investment

Financial Return on Investment

Social Return on Investment

Blended Value Return on Investment

Return on Investment

Charity

Earned Gifts

Business

Income Social

Blended

Government / Foundations Products and Services

Business Model Continuum

Source of Income

Charitable Model Non-profit

Corporate Social Responsibility

Social Enterprise

For-profit Model Business

6

Types of social enterprise

Types of SE according to activity

1. Social Firms

2. Co-operatives

3. Development trusts

4. Intermediate labour market companies

5. Community business

6. Credit unions

7. Charities trading branch/subsidiary

Social Enterprise Strategies Empowerment

Social inclusion

Intermediation

Resource mobilization

Dacanay, Creating a Space in the Market, 2004

Empowerment Strategies Enable marginalized sectors to own and control social

enterprises, so that they may reap maximum benefits Direct empowerment: The poor are owners at the onset

Devolutionary empowerment: A social entrepreneur gradually transfers ownership to the poor

Long gestation periods

Dacanay, Creating a Space in the Market, 2004

Direct Empowerment Board of Directors and Management are the Primary Stakeholders Themselves

Wholesalers Traders Input Suppliers

Government Agencies

Market

Devolutionary Strategy Social Entrepreneur/s provide assistance to primary stakeholders

Community Organizing; Technology Transfer; Management Capacity Building; Network Building; Skills Transfer

Primary Stakeholder’s Organization is strengthened

Social Entrepreneur/s “leave” or “exit” from the Primary

Stakeholder’s Organization

Social Inclusion Strategies Assist group of people who are marginalized by virtue

of their physical, psychological, or social circumstance to restore their dignity and create avenues for their participation as productive members of the society

Dacanay, Creating a Space in the Market, 2004

Bahay Pangarap Located in Novaliches, QC

Subsidiary of Tahanang Walang Hagdan

48 Disabled Workers to Overcome their Incapacity and Become Productive Members of Society

No Filipino child will suffer a diminished quality of life because of cancer

A volunteer network of young people who have committed and freely sharing their time, skills and resources to advance the fight against childhood cancers and to assist in the treatment and care of poor and disadvantaged kids stricken with cancer

Intermediation Strategy Provision of products or services that improve the

quality of life of the poor

Microfinance institutions

Market-based mass housing projects

Dacanay, Creating a Space in the Market, 2004

Muntinlupa Development Foundation

Buys lots negotiated with LGUs for mass housing; Builds houses according to the needs and the capacity to pay of the poor; Builds houses near place of work of the poor and with access to basic services

Resource Mobilization Generates income from the sale of products and

services to finance the operations of the core program of their respective development agencies

Dacanay, Creating a Space in the Market, 2004

Kanlungan Centre Foundation sells alternative medicine to fund part of its programs for counseling for women victims of violence