According to Entrepreneur.com, The Social Enterprise business model is gaining popularity. With 91 percent of global consumers stating they are likely to switch brands to one associated with a good cause, why wouldn’t you want to create a business that can positively impact the world and your bottom line.
According to GoodSpender.com.au Research conducted by Social Traders and the Queensland University of Technology in 2010 (Finding Australia’s Social Enterprise Sector – FASES) estimated that there are over 20,000 social enterprises operating in Australia. According to the Giving Australia study, 29% of not-for-profit organisations operate a commercial venture or social enterprise. This is staggering to most people who immediately think government or philanthropy when they think of the NFP sector.
The benefits and impact of Social Enterprise is large:
- According to this research report, Social Enterprise is working and is delivering the social benefit that it was designed to deliver.
- The potential benefits of increased social enterprise activity include greater NFP impact and reduced strain on government funded services.
- There is a great scope of opportunity that could be created by growing social enterprise in Australia.
A market that generates as much as $375 million each year, it has been documented businesses that use profits to fuel social good and strive to positively impact the community, do much better than some other businesses.
There are many social enterprise models one can adopt. One that is popular is the ‘One for One’ model made popular by TOMS shoes where they have made it easy for their customers to be philanthropic – buy a product and get the immediate gratification of giving back to a social cause.
Perhaps this business model often works better than others because it is straightforward, has a track record of success and can be easy to adopt through a well-executed strategic partnership.
There is an increasing ‘Boompreneur’ demographic of people who are well into their 40’s or 50’s starting new business ventures whose motivations are based on other values. These people are reconnecting with their purpose and the dreams they may have put on hold for years where their priorities may have changed and want to leave a lasting meaningful legacy.
This is why this model is growing in popularity because it goes beyond individual interests and connects company values with the cause they are supporting and the wider community through connection, collaboration, a joint goal of serving a bigger purpose that is far beyond any individual one.
As opposed to more traditional business models, most social enterprises integrate their philanthropic goals into their business strategy and are transparent and authentic about their progress. This transparency and honesty is what consumers crave. And at Moeloco this is what we communicate with our audience, the challenges, set backs, as well as the wins because we want our audience to feel involved and a part of our journey.
As mentioned above there are a number of benefits Social Enterprise models offer, no wonder this model is growing in popularity. It gives consumers the opportunity to be philanthropic in small ways by giving back to community whilst generating profits that fuel the social cause they are supporting
Social Enterprise has so much potential and the market is only growing.