Social enterprises play an important role in society. Their distinguishing feature is that they trade to support their social objectives rather than for personal gain. In doing so, they provide much-needed goods and services, often where the private sector has chosen not to. This is often combined with providing on-the-job training in a supportive environment for disadvantaged people, including people who have a disability or are long-term unemployed.
working in social enterprise is not easy; it demands flexibility and multiple skills. Incentives and career paths are sometimes limited, or perceived as such. Social and financial aims may clash, as may volunteer and paid employee mentalities.
As businesses, they must be well managed if they are to survive. The specific nature of social enterprises means that they need specific new skills and qualifications in the following areas:
Working in a social enterprise is not solely a matter of gaining a material reward. In personnel or human resource management, social enterprises therefore depend to a far greater extent on the motivation of their workers. Positions of responsibility may be held in rotation over longer or shorter periods, and jobs may be shared. Working hours may be negotiated flexibly. To increase job quality, people may carry out a number of different roles in parallel or in succession. Strategic decisions will generally be reached through a process of consultation of all stakeholders. Feedback on achievements and results is to the general meeting of members, as well as to stakeholders more broadly.The success of social enterprises depends on keeping up good links with a number of different stakeholders. There is a need to manage their social capital, which is made up of levels of trust, reciprocity, norms of behaviour, a sense of belonging and networks.Social enterprises do not rely on conventional, anonymous marketing techniques. Instead they focus on social marketing based on proximity, personal contact and trust.Finance is often a combination of private finance, public funding and voluntary contributions of money or time. Managing this mix also requires specific skills.Finally, social enterprises have multiple bottom lines, that is to say multiple objectives - social and environmental as well as financial. They strive not only to ensure their continuity by making an operating surplus, but also to produce outputs which are not simple to translate into monetary terms (for instance in terms of the improved social welfare of their members, their customers and the local community). Evaluating whether to support social enterprises and monitoring their performance requires special reporting, monitoring and evaluation techniques that take account of the social as well as the economic objectives.
From in-depth studies of social innovators, seven important competencies that are essential for success are identified as follows:
1. Leadership. These people take initiative and action to solve problems (rather than complaining about what’s wrong).
2. Optimism. These people are confident that they can achieve a bold vision, even when many others doubt them. They have a strong sense of self-efficacy and a belief that they have control to change their circumstances.
3. Grit. This is a combination of perseverance, passion, and hard work—the relentless drive to achieve goals, complete commitment to achieving their task.
4. Resilience in the face of adversities, obstacles, challenges, and failures. When things fall apart, these people rise to the occasion. They thrive in the most ferocious storms. They see failures as valuable feedback.
5. Creativity and innovation. These people see new possibilities and think in unconventional ways. They see connections and patterns where few other people would imagine.
6. Empathy. These people are able to put themselves in the shoes of others, and imagine perspectives other than their own; this is one of the most valuable qualities for understanding the needs of others whom they serve.
7. Emotional and social intelligence. These people are excellent at connecting with others and building strong relationships.
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