Is Social Enterprise Right for You?

Before embracing Social Enterprise consider the following questions:

Are You Part of an Organisation?

  • Social Enterprise is an organisational definition rather than being a term directed at an individual.  However individual Social Entrepreneurs will found Social Enterprises

Does your board support the move to Social Enterprise?

  • If your Board does not understand or support the Social Enterprise concept then it will be difficult to become a successful Social Enterprise.

Is the organisation prepared to move from voluntary to business 'culture'?

  • If the organisation is not prepared to adopt businesslike practices then it is unlikely any move towards social enterprise will succeed.

Are you prepared to run a business?

  • The organisation must be prepared to run its activity like a business.

Is the organisation risk averse?

  • Adopting a business approach has associated risks. If the organisation is opposed to risk then the Social Enterprise model may not be suitable.

Is the organisation open to change in focus and / or working practices?

  • Adopting the business model required to support a social enterprise may require changes to working practices. If the organisation is not open to these changes then Social Enterprise is unlikely to succeed.

Is the organisation prepared to invest in training and staff development?

  • Staff will need to develop the skills necessary to support Social Enterprise. If the organisation is not willing to invest in developing staff skills, then becoming a Social Enterprise is not an option.

Do you have a product or service that someone is willing to pay for?

  • Being a Social Enterprise is only a viable option if the organisation has a product or service that is sustainable and that people are willing to pay for.

Do you know whether you can cover all your existing costs and generate surplus income from the sale of products or service?

  • A Social Enterprise is commonly defined as a voluntary organisation that derives at least 50% of its income from trading activity. It should at the very least cover its costs but ideally make a profit to re-invest into its social aims.

Do you have clear social aims and objectives?

  • If an organisation does not have clear and documented social aims and objectives then it cannot really be defined as a Social Enterprise.