Back in November, Startups editor Matt Thomas declared that social enterprise would change everything. Now it seems, the prime minister is in agreement. Addressing delegates in Liverpool at the Social Enterprise Coalition’s annual conference he said social entrepreneurs had ‘that rare mix of idealism and dogged determination that makes change happen’.
In Liverpool this week, as I mingled with the social entrepreneurs and the people who have benefitted from their ventures, it was easy to get swept up in self-righteous and altruistic intentions. So many good people, all together in one place, sharing their opinions on how to solve the world’s problems.
But the best social entrepreneurs aren’t here to assuage capitalist consumer guilt or give themselves a podium to preach sermons upon. Tim Campbell, founder of the Bright Ideas Trust, put it like this:
“Social enterprise is not about tree hugging. It’s about creating sustainable businesses that address social issues.”
Sustainability is a key theme you’ll come across often when talking to any social entrepreneur or politician engaged in the third sector. We’re not talking about charities fuelled by government grants and public donations. These ventures must have a clear profit-making objective at their core if they are to compete with traditional commercial companies. Gordon Brown claims it’s vital to our future success. He argues:
“If our economy is to flourish, if our communities are to become more closely knit, and if we are to take care of the natural environment and the resources on which our economic activity depends, we must find new and more equitable ways of doing business that are better suited to the times we live in now.”
But do ‘society-friendly’ methods of doing business come at price? Not according to chief executive of the Social Enterprise Coalition, Jonathan Bland. He is entirely convinced ambition and ethics can be simultaneously satisfied thorough involvement in social enterprises.
Bland maintained the market had the power to drive the economy, and therefore that power MUST be harnessed to affect social change.
It’s an idea the UK in particular does seem to be embracing. Phil Hope, minister for the third sector, has no equivalent in other counties. Around the world, he’s the only politician dedicated to social enterprise. And this week, a £10m fund was announced for a new risk capital fund for social enterprise.
It’s a relatively small amount but it’s a start. Brown told the social enterprise delegates he’s looking forward to an even bigger role for social enterprise for the years ahead. Perhaps that’ll be matched with £100m next year.
