Most social enterprises start because an
individual or an organization sees a problem in society—a social deficit—and they
want to find a sustainable way to improve that deficit.
Just as inventions historically have helped
to address perceived personal needs—from the radio to the steam iron—so too are
innovations required to address social deficits, and if those innovations can
be commercialized, then they are fodder for a strong social enterprise.
In the last few years, I’ve met an increasing number of people—both seasoned and young—who want to pursue social enterprise as a meaningful career path. However, many haven’t necessarily taken into account the marketplace of social deficits. In the last decade or more, there are some clear, growing areas of need in our society for which a social enterprise might be the right tool.
Below is my quick list of the challenges facing our society; this list describes a fertile field for social enterprise development to start.
Ageing
populations will create needs for new financial
tools, intergenerational wealth transfer, housing, urban design, mobility and
new methods of countering isolation in a world of technology, fading social
structures (like the church) and greater longevity.
A diversified
global citizenry requires new approaches to schooling, language and
cultural training, housing and ways to address conflict.
New health
care needs for chronic illnesses and afflictions, including diabetes,
arthritis, depression, obesity. Even some of those diseases which were
considered acute (and typically life threatening) such as cancer and heart
disease are increasingly being considered chronic, as survivors may require
ongoing supports to live well.
Our energy
needs are extraordinary. With a technologically advancing society, all our
lives are affected by available electricity and locomotion. Our shelter, our
food, our lifestyle, and even our money are all perilously threatened if we
loose power, or if energy costs spurred by limited supply and increasing demand
become unaffordable.
Water
and other environmental challenges are also looming
concerns of the next generation. Clean water is an ecosystem requirement and a
threatened resource as the population grows, and as our continued polluting
contaminates the limited freshwater reserves on the planet.
Increases in gambling, poor diets and
inactivity, violence (gang, domestic, and other abuse), and the (mis)use of
both illegal and prescription drugs are requiring us to reconsider the way the
society must address social behavioral
problems.
Crime appears to be on the increase, although statistics prove otherwise.
Of course, we need not be complacent, as preventing crime is worth our
vigilence at the local, national, international, and even the metaphysical
space of the internet. Identity theft, concerns of privacy and even fears of
falling victim to fraud pervade our news, and thus our response to the world
around us.
The nature of work is changing and this creates many social challenges. Increased wealth is not translating in to increased welfare. Communal workplaces, telecommuting, and decreases in manufacturing and skilled labour are affecting our communities and exacerbating wealth gaps.
It also appears that the next generation is losing purpose, faith
and hope in the structures of past generations (marriage, work, universities,
religious institutions, government, etc).
Poverty
and income inequality is also a global challenge.
Our interdependent world means that poverty across the world will directly
affect us all. Wars, famine, refugees, human rights abuses, and criminal
activity are all reinforced by poverty, if not initiated by the curse of income
inequality and injustice.
This list of social deficits should not
drive us to despair. Statistically, global improvements to health, transportation,
work, and international relations have enjoyed incredible gains over the last
decades (“Factfullness” by Hans Rosling, will help reaffirm your faith in
humanity).
Nevertheless, the traditional solutions to social
deficits that have got us this far have often been direct interventions through
the development of a new product or new service (or law!) by governments, non-profits,
or private sector actors motivated by profits. However, the current multifaceted,
systemic challenges are in need of more systemic solutions by engaging
different sectors, different actors, new ideas, revised expectations, and new
organizational structures.
Social enterprise is a tool—when done well—that
can house systemic solutions that embody democratic (or collective) ownership,
the focus of business thinking, the scale of the public sector and the
compassion of the non profit and charitable world. By taking the best of all
thinking, social enterprise is a vehicle to tackle both the new and intractable
social deficits in our society.
The art of getting people to do what they don’t want to do.
Social entrepreneurs operate businesses that create social benefits. Surely, selling services and products in the pursuit of justice, environmental sustainability, and support for the marginalized should be easy. After all, doesn’t every consumer want to make the world a better place?
Well, no, actually.
Most consumers buy to satisfy some personal need. They may be hungry and buy food. They may desire to smell nice and buy body products or perfumes. They may want to be entertained and buy a video streaming subscription. They may want the cheapest price and buy from huge online retailers. Not many make purchases based upon maximizing social welfare.
There are some consumers, of course, who shop based upon a set of community values, but as much as we’d like to think otherwise, these conscious consumers remain in the minority. We must also remember—particularly now during economic challenges for many—that some consumers may not be able to afford to purchase according to their altruistic values.
The art of encouraging citizens to undertake something that creates social value is called social marketing. Whether it is to reduce speeding, or to encourage voting, or to purchase ethically sourced food, social marketers use commercial marketing techniques and concepts—advertising, traditional and social media, direct mail, email broadcasts, word of mouth, customer journey, relationship marketing, etc—to bring about and support social change.
A recently read article provides some useful guidance to anyone trying to convince someone to do something that they don’t instinctively want to do. Summarizing somewhat, the recommendations were as follows:
These recommendations work well if you are convincing a child to get immunized (the example used in the article), to encourage someone to get sober, or to complete a university course.
But how do we use these recommendations to encourage consumers to make the right purchasing decisions? Below is a rephrasing of the recommendations to support social marketing efforts for the social entrepreneur:
One last note that we frequently share with our social enterprise clients: Do not assume that your social mission alone will sell your products or services. The vast majority of purchasing decisions are affected by price and market perceptions of quality (which also includes convenience and availability). If you aren’t competing on price and quality, social marketing strategies and activities will have only a marginal effect on consumer choices.