Make sure that: Understanding Social Enterprise Theory And Practice


Find information here: Understanding Social Enterprise Theory And Practice:

Introduction


This introductory article attempts to answer questions for:
1. Those in the private sector wondering if social enterprises are a threat or an opportunity for them (and how they might alter their own practice to remain competitive).
2. Those in the voluntary sector trying to work out their medium/long-term imminent (whether they should engage or resist the notion of social enterprise).
3. Those in the public sector being asked to develop, means or commission work from social enterprises.
4. Those who self-define as measure of the social enterprise sector, wondering how to understand themselves and relate the charge of their approach to others.
In recent years, a unknown phrase - social enterprise - has been promoted throughout the world (Borzaga and Defourny, 2001). The problems surrounding its meaning can be explored by reviewing the contexts in which the name is now achieving recognition. A national economy can been conceptualised as having three sectors (Billis, 1993; Pearce, 2003). Firstly, there is an economy that supports the state, a public / state sector comprising state institutions as able-bodied as publicly owned and funded organisations. Secondly, there is a private economy that co-exists and competes with the state: it is comprised of businesses that enable people to earn specie and make a living. Thirdly, there is a sector with organisations established by citizens on a voluntary basis to pursue social, charitable and community goals.
The problem with a three-sector analysis of the economy is that it tends to marginalise organisations that transgress the boundaries of these commanding definitions. For example, co-operative enterprises (owned by employees, producers or consumers) cross the boundary between the private and voluntary sectors (Oakeshott, 1990). They much compass a social or community goal, but are usually set up to negotiate and distribute social and financial benefits equitably rather than prioritise the social and financial goals of the founders (Ridley-Duff, 2002). In addition, they frequently adopt the democratic practices of the state sector by having elections for senior positions and assemblies of people who can directly inquiring executive authority.
The Emergence of the Third Sector
The continued evolvement and spread of co-operative forms of enterprise, and 'mutual help' as a commercial principle led to the emergence of a neoteric period in the early 1990s - Third Sector. This interval covers more than voluntary bodies and charities to hold mutual organisations (e.g. building societies), social firms and producer, marketing and consumer co-operatives (behold OFT, 2008). One social value that pervades the entire Third Sector is a concern that modern private and public sector management principles have contributed to the social exclusion of disadvantaged groups and vulnerable individuals. For some in the sector, the goal is to address (and find alternatives to) powerful political and financial interests that disempower citizens (Morrison, 1991; EAO, 2008). numerous Third Sector organisations, therefore, share a common zero of reducing social exclusion. They may halt this in a medley of ways: by providing services and cheaply to disadvantaged groups; by using collective bargaining power to negotiate access to scarce or expensive resources; by organising themselves in a custom that enfranchises and empowers idiosyncratic members (and gives them a collective political utterance); by adopting traditional approaches that redistribute surplus assets to disadvantaged groups wound up charitable practices and organisations.
The identification and gain of the Third Sector has been accelerated by changes in the public sector. Since the early 1980s, there has been a shift away from welfare finished state institutions and increased use of agencies and contractors (Chandler, 2008). The concept of untried Public Management underpins a commercialisation agenda (attempts by government to constitute greater use of markets and private sector thinking in public service delivery to 'save' legal tender). Accompanying this is the contentious belief that pursuit practices and managerial solutions will promote the 'performance' of both the public and voluntary sectors (Paton, 2006; Chandler, 2008). inured that many in the Third Sector regard private and public sector management principles as the purpose of social exclusion, it is no surprise that there is resistance to the idea that the twin techniques can solve contemporary social problems.
Nevertheless, it is this thinking that drives change in the UK national Health Service (NHS). As in other parts of the world, the NHS exemplifies the trend towards a "contracting culture" in which grants and state funding are replaced by commercial contracts for service delivery. So, in recent years, the boundaries between the private and public sector (in term of bazaar thinking and managerial practices) occupy started to blur traditional distinctions between unlike sectors of the economy (Bull, 2006, 2007). Secondly, the emergence of radical business alternatives with a unyielding social orientation, democratic organisation, and outright attitude to profitable trading has led to a unique language that describes relationships and organisation forms that bridge the boundaries between sectors (Seanor, Bull and Ridley-Duff, 2007).
The Emergence of Social Enterprise
In the dilatory 1990s, as a director of Computercraft Ltd, Rory played a small role in discussions to inaugurate a new business guide agency. Around the table were stake and trading organisations from the co-operative sector (ICOM, Poptel and Computercraft) and representatives from public sector training and enterprise councils (TECs). All the parties were looking for an idea (and epithet) that captured the goals for a current brace agency. They decided on the patronymic Social Enterprise London. Poptel (a phone co-operative) and Computercraft (an IT co-operative) provided political reinforcement and organisational know-how. The TECs and ICOM provided the same, plus assets and funding streams that enabled Social Enterprise London to endow itself (SEL, 2008).
Whether this is the first organisation to systematically use and promote the name 'social enterprise' throughout the UK is unclear, but the role of Social Enterprise London in helping to bring the perception (and language) to public consciousness is not in distrust. It helped to stick the first undergraduate Social Enterprise degree courses at the University of East London (UEL, 2008) as sound as the first Social Enterprise record that is now owned and published by Emerald Publishing (JMU, 2008). Its first Chief Executive (Jonathan Bland) went on to head the sector's leading political organisation, the Social Enterprise Coalition.
As a result of their (and others) agency, "social enterprise" has started to spread throughout our culture. The appeal of the term across the political spectrum is not apart the mentality why many unused relationships are being forged, but again the reason for confusion and competition over its nuance and nature. By 2008, the term "social enterprise" had been appropriated by (and applied to) four distinct groups:
A - Charities and voluntary groups that are embracing a 'contracting culture' by tendering for contracts.
B - Charities and voluntary groups that inculcate trading operations to generate income for their social missions.
C - Co-operatives / social firms that tackle social exclusion by adopting 'bottom-up' and pluralist approaches to governance and human resource management.D - Businesses that invest or share their surpluses in a 'public interest' or 'fair trade' enterprise.
Three of these contexts (A, B and C) are typically linked to developments in the Third Sector (community businesses, social firms, voluntary groups, charities, co-operatives, credit unions and mutual societies). The last of these (D) is increasingly linked to two other developments. Firstly, there is new Public Management that seeks to reverse the post-WW2 policy regarding the state's role in the delivery of education, health and social services. Secondly, there are private sector led corporate social can initiatives that create partnerships and joint projects involving stakeholders from also than one sector (BITC, 2008).
Confusion and Competition
As a result, the term 'social enterprise' has become highly contested. Advocates for each of these groups may, or may not, recognise the other parties as legitimate social enterprises. This is experienced most sharply when organisations trading for a social purpose, or own social entrepreneurs, are rejected by social enterprise support agencies on the grounds that they do not organise their activities in a sufficiently transparent way (i.e. do not adopt the charity model), or are trading too much with commercial organisations for 'private' share (i.e. using too many private business techniques).
As a mode terminated these conceptual difficulties, it is supportive to examine how theories of social enterprise are grouped into two competing perspectives (Seanor, Bull and Ridley-Duff, 2007). Firstly, there are those that conceive social enterprises as trading organisations sitting in the middle of a continuum between the pursuit of a social mission (charitable) and trading in a market (private). The issue here (for those supporting their development) is whether they are sufficiently social and charitable in their organisation and trading purposes.
Another perspective, however, breaks out of this linear mode of thinking and views social enterprise as a cross-sector trading organisation or animation (Morgan, 2008) capable of rebuilding and developing social capital where this has been depleted by contemporary political and economic thinking (Laville and Nyssens, 2001). As such it emerges in the boundaries between the public, private and voluntary sectors to directions the shortcomings of each (Nyssens, 2006; Ridley-Duff, 2008). Holding these organisations up to the norms and 'best practice' of charitable, private or public enterprise at best obscures, at worst devalues, their potential. It not only creates a mindset incapable of recognising their innovative approach, but also has the potential to stifle it. For this reason, the criteria used to determine what is and is not "social enterprise" will remain a key policy debate for as long as different pursuit groups compete for the resources allocated to the sector.
Social enterprise is often expressed as an epitome type: a multi-stakeholder co-operative or charitable business with a clear social mission, inclusive system of governance and 'social' ownership. The goal is often, but not always, to erode distinctions between 'governors' and 'governed' ('directors' and 'employees' / 'trustees' and 'staff') in order to breakthrough responsiveness and democratic accountability both internally and externally. At the same time, there is a renewed emphasis on trading strength in order to figure resources and impact positively on the lives of parties affected by the enterprise. In this guise, social enterprise moves beyond another skeleton of charity in which wealthy philanthropists or concerned individuals exercise their wealth, time, commitment and business experience to solve social problems (Nicholls, 2006). It becomes an ideology for proactively nurturing wealth creation in a multifariousness of forms by groups of humankind committed to social inclusion, and who imbed democratic principles in their management practices, service delivery and product designs (Ridley-Duff, 2008; SEC, 2008).
Social enterprise is a mixed discourse, embracing the language, concepts and practices created by:
- Enterprises that bridge the boundaries between the private and voluntary sectors (e.g. trading charities and mutual societies).
- Enterprises that bridge the boundaries between the private and government sectors (e.g. housing associations and partnerships in the Health Sector).
- Enterprises that bridge the boundaries between government and voluntary sectors (e.g. enterprise / employment collar services provided under contract).
- Enterprises that internalise a social orientation, democratic governance and entrepreneurial trading (e.g. co-operatives / employee-owned / co-owned businesses).
In inevitable work, Rory Ridley-Duff, Mike Bull and Pam Seanor will explore how this heterogeneity has come about, and how practitioners can apply emerging knowledge to the practice of social enterprise. Focussed on the UK, but delineation extensively on international examples and plight studies to illustrate theory, their budgeted effort will compare and contrast perspectives on social enterprise emerging amongst practitioners, consultants, academics and policy makers.
AcknowledgementThis article was developed from material in a book proposal approved by the learned editorial board in march 2008. The authors hope to thank shrewd Publications for agreeing to the reproduction of material in an article. understanding Social Enterprise: Theory and Practice will be published by judicious Publications in early 2010 (pre-orders from late 2009) to shore the development of professional, undergraduate and postgraduate curriculum in the university and business support sector.

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