Analysis: for social enterprises, having a positive social, societal or environmental impact is often more important than making a profit
A social enterprise is like any other business; they have a product or service to sell and need to be financially sustainable to survive. But unlike traditional commercial ventures, social enterprises prioritise creating a social, societal or environmental impact. Profits in a social enterprise are largely reinvested to further its social impact. A social enterprise has the social goals of a charity, but combines these with the business model of a commercial venture.
Social enterprises can be found trading in a range of different spaces. For example, they may provide employment opportunities for those from marginalised communities, provide a service at an affordable rate or focus on the achievement of specific environmental goals. They support areas of society where there is a social or environmental need, but are not an attractive offering for profit-focused businesses to operate in. To ensure they remain financially viable, social enterprises must be continually innovative and creative in how they operate to achieve social impact, often availing of a combination of volunteers, pro-bono support, donations or impact investment.
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From RTÉ Radio 1's Ray D'Arcy Show, interview with Brian O'Toole and Gilly Taylor about their Wildacres environmental social enterprise
The social enterprise movement is a growing one. According to recent research from Social Enterprise UK, there are an estimated 11 million social enterprises globally. Ireland is currently conducting its own social enterprise census and it is estimated that approximately 1,400 social enterprises are operating throughout the country.
Social enterprises can highlight underrepresented communities. Her Sport, for instance, created a media platform to draw attention to the underrepresentation of women in sports media coverage. Despite 41% of participants in sports being women, only 6% of sports media coverage in Ireland was focused on women. This lack of female role models contributes to the fact that, by the age of 14, girls drop out of sport at twice the rate of boys, which has a long-term impact on their physical and mental health.
The popular Dutch social enterprise chocolatier Tonys Chocoloney set out to ensure the farmers supplying their cacao were paid a living wage. Now an international household name, their business model has influenced others to implement better supply chain practices.
From Tony's Chocolonely, the story of an unusual chocolate bar
In Ireland, Traveller unemployment rates are as high as 88% and Travellers continue to experience a high level of racism and stigma. Social enterprises like Bounceback Recycling and Shuttleknit work hard to support the Traveller community with employment opportunities that break down barriers to employment and support the transition to mainstream employment.
The environmental and human cost of fast fashion has been well documented so it is imperative that our relationship with fast fashion ends. Thriftify has created an online platform that makes secondhand shopping much more convenient and accessible to all. 98% of Irish charity shops now use the platform ensuring shopping for secondhand clothing has never been so easy.
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From RTÉ Radio 1's The Business, Thriftify founder Rónán Ó Dálaigh on bringing charity shops online in Ireland and the UK
Finding employment with a criminal record is highly challenging and PACE creates jobs for people who have experienced prison or probation and find it difficult to secure employment. Preparing people to progress into mainstream employment and help change the attitude of potential employers towards former prisoners who want and are trying to turn their life around. PACE runs two social enterprises: the Mugshot coffee hut based in the Four Courts and an enterprise that manufactures handcrafted garden furniture.
Digital print and design business Triest Press provides employment opportunities to people with intellectual disabilities. According to a recent study by IBEC, a person with a disability is twice as likely to be unemployed in Ireland. Triest Press has trained over 50 people with disabilities over the past five years.
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From RTÉ Radio 1's Drivetime, Della Kilroy talks to homeless people training to become tour guides as part of the My Streets Ireland social enterprise
Thankfully, more people are open to aligning their economic choices with their values and are seeking out ways that allow them to do that. Social enterprises provide that opportunity. We, as the public, can get behind and support social enterprises to increase their impact on society by being more socially conscious when considering where we spend resources.
Choosing to buy at social enterprises either in a personal or business capacity makes a difference. As we all strive to create a more sustainable, inclusive and equitable society, social enterprises are forging ahead and setting out the blueprint for exactly how we can achieve this.
The views expressed here are those of the author and do not represent or reflect the views of RTÉ
