When was the last time you heard the words "Social enterprise"? Unless you have cut yourself off from mankind for the last few years, it is likely that you will have heard people mentioning social enterprise either in the media or simply by word of mouth. But what exactly is it and what's the big deal?
The simple truth is that social enterprise is actually as old as the hills. In very simple terms, social enterprise businesses have a social mission at the core of their aims ahead of any potential profit. They can be "not-for-profit" or they can be a "for-profit" organisation. In recent years there has been an explosion in the growth of social enterprise and it is difficult to see any reversal of that trend. Put simply, if there was no need for them, they would not exist.
To demonstrate my point, I will focus on three social enterprise projects from around the world because this business concept is indeed global. In an attempt to try and give a flavour of the diverse ways in which such projects operate, I have chosen three from across the globe.
I begin with an innovative American company started by students at Stanford University. Adam Kircher had been working in the immediate aftermath of the tsunami in Indonesia when he recognised the logistical challenges of redistributing supplies to the those in the greatest need. In particular, he became interested in the availablity of medicines. On his return to the United States, he was confronted by a bleak reality. Every year in the US, £5 billion worth of medicines go to waste and yet 50 million Americans can't afford to take the medicines they are prescribed. This is thought to result in 125,000 annual deaths costing the US £289 billion annually. The waste of this mountain of medication also has negative impacts on water and air pollution. SIRUM was established to tackle this obvious inequity. Safe clinics were set up nationally across 40 US states. It's early days, but this not-for-profit oirganisation has so far helped 20,000 citizens and redistributed an estimated £3 million of medicines (over 1 million pills!). There are a great many countries around the globe who do not enjoy the benefits of the NHS as we do in the UK which infers that this smart idea could have a significant knock on effect globally. Reducing waste is one of the fundamental obligations of this and every subsequent generation.
My next company is based in the Netherlands. WakaWaka produces solar lighting and profits from the sales are used to provide a solar light to a family living without access to electricity. To fully appreciate the implications of such a simple thing, just turn off every electrical appliance in your home for a week and see what you think. By using crowd-sourcing, they raised an initial capital fund of $48,000, WakaWaka have so far sent thousands of these life changing devices to areas affected by earthquakes and health emergencies such as Sierra Leone, Haiti, Nepal, the Philippines and Syria. This is an example of a "buy-one, give-one" model. It is a simple idea with a profound impact on so many people less fortunate than ourselves.
But while the first two examples have achieved their impact nationally and internationally, my third example is a little closer to home and makes a real impact in the locality where I live. Two sisters in Denbigh, Nerys and Mair, set up Vintage Mary Dei following their own experiences caring for their mother and father who had suffered from vascular dementia and disability respectively for many years. This enterprise has special meaning for me because I had been the sole carer for my first wife before her death from breast cancer. It is when we find ourselves in these unfamiliar positions that we begin to appreciate the scale of such challenges. Like Nerys and Mair, I found little support around me at a time when I scarcely needed it more. Without support, caring full time can be an isolating and lonely business. Vintage May Dei runs a clothes shop stocked on the goodwill of voluntary donations with the proceeds going to fund their activity in assisting the needs of carers in the local area. In the UK, carers nationally save our much maligned health service billions with little or no recognition or support. The work of Vintage Mary Dei is inspiring and reminds us of the power of social enterprise even on a comparatively local level. At a time when Wales has just seen the introduction of the Social Services and Well Being Act (2014), it is great to see a social enterprise where I live showing how it should be done - even before the Act was introduced!
So are social enterprises such as the ones here a passing fad or are they here to stay? There is no question that they are here to stay - and a good thing to. They are a fine example of what can be achieved with a clear vision to improve the lives of others. They are as close to true altruism as there is in our society today. In many ways, they are the modern day evolution of Victorian institutions such as the co-operative society in the UK and the philanthropic movement of the US in the twentieth century.In the UK, 38% of all social enterprises work in the most deprived 20% of communities. In other words, the more deprived the community, the more likely you will find a social enterprise in the UK. It is fair to say that social enterprises have increasingly replaced the role of public sector in the UK as the economic balance has been tilted in a more austere direction. Even if that balance is redressed with a radical change of government in 2020, I don't doubt the vital contribution of social enterprise and see no signs of it slowing down. Social enterprise is a more altruistic way of doing things with people rather shareholders being the principle focus. This is why the days ahead for social enterprise are rosy - even if the road to achievement can often be a rocky one.
The simple truth is that social enterprise is actually as old as the hills. In very simple terms, social enterprise businesses have a social mission at the core of their aims ahead of any potential profit. They can be "not-for-profit" or they can be a "for-profit" organisation. In recent years there has been an explosion in the growth of social enterprise and it is difficult to see any reversal of that trend. Put simply, if there was no need for them, they would not exist.
To demonstrate my point, I will focus on three social enterprise projects from around the world because this business concept is indeed global. In an attempt to try and give a flavour of the diverse ways in which such projects operate, I have chosen three from across the globe.
I begin with an innovative American company started by students at Stanford University. Adam Kircher had been working in the immediate aftermath of the tsunami in Indonesia when he recognised the logistical challenges of redistributing supplies to the those in the greatest need. In particular, he became interested in the availablity of medicines. On his return to the United States, he was confronted by a bleak reality. Every year in the US, £5 billion worth of medicines go to waste and yet 50 million Americans can't afford to take the medicines they are prescribed. This is thought to result in 125,000 annual deaths costing the US £289 billion annually. The waste of this mountain of medication also has negative impacts on water and air pollution. SIRUM was established to tackle this obvious inequity. Safe clinics were set up nationally across 40 US states. It's early days, but this not-for-profit oirganisation has so far helped 20,000 citizens and redistributed an estimated £3 million of medicines (over 1 million pills!). There are a great many countries around the globe who do not enjoy the benefits of the NHS as we do in the UK which infers that this smart idea could have a significant knock on effect globally. Reducing waste is one of the fundamental obligations of this and every subsequent generation.
My next company is based in the Netherlands. WakaWaka produces solar lighting and profits from the sales are used to provide a solar light to a family living without access to electricity. To fully appreciate the implications of such a simple thing, just turn off every electrical appliance in your home for a week and see what you think. By using crowd-sourcing, they raised an initial capital fund of $48,000, WakaWaka have so far sent thousands of these life changing devices to areas affected by earthquakes and health emergencies such as Sierra Leone, Haiti, Nepal, the Philippines and Syria. This is an example of a "buy-one, give-one" model. It is a simple idea with a profound impact on so many people less fortunate than ourselves.
But while the first two examples have achieved their impact nationally and internationally, my third example is a little closer to home and makes a real impact in the locality where I live. Two sisters in Denbigh, Nerys and Mair, set up Vintage Mary Dei following their own experiences caring for their mother and father who had suffered from vascular dementia and disability respectively for many years. This enterprise has special meaning for me because I had been the sole carer for my first wife before her death from breast cancer. It is when we find ourselves in these unfamiliar positions that we begin to appreciate the scale of such challenges. Like Nerys and Mair, I found little support around me at a time when I scarcely needed it more. Without support, caring full time can be an isolating and lonely business. Vintage May Dei runs a clothes shop stocked on the goodwill of voluntary donations with the proceeds going to fund their activity in assisting the needs of carers in the local area. In the UK, carers nationally save our much maligned health service billions with little or no recognition or support. The work of Vintage Mary Dei is inspiring and reminds us of the power of social enterprise even on a comparatively local level. At a time when Wales has just seen the introduction of the Social Services and Well Being Act (2014), it is great to see a social enterprise where I live showing how it should be done - even before the Act was introduced!
So are social enterprises such as the ones here a passing fad or are they here to stay? There is no question that they are here to stay - and a good thing to. They are a fine example of what can be achieved with a clear vision to improve the lives of others. They are as close to true altruism as there is in our society today. In many ways, they are the modern day evolution of Victorian institutions such as the co-operative society in the UK and the philanthropic movement of the US in the twentieth century.In the UK, 38% of all social enterprises work in the most deprived 20% of communities. In other words, the more deprived the community, the more likely you will find a social enterprise in the UK. It is fair to say that social enterprises have increasingly replaced the role of public sector in the UK as the economic balance has been tilted in a more austere direction. Even if that balance is redressed with a radical change of government in 2020, I don't doubt the vital contribution of social enterprise and see no signs of it slowing down. Social enterprise is a more altruistic way of doing things with people rather shareholders being the principle focus. This is why the days ahead for social enterprise are rosy - even if the road to achievement can often be a rocky one.
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