mardi 22 janvier 2008

Social Entrepreneurs

"Social entrepreneurs are not content just to give a fish, or teach how to fish. They will not rest until they have revolutionized the fishing industry." Bill Drayton
Definition of a social enterprise: Any organization, in any sector, that uses earned income strategies to pursue a double bottom line or a triple bottom line, either alone (as a social sector business) or as part of a mixed revenue stream that includes charitable contributions and public sector subsidies. (Jerr Boschee, source socialtalent)

Social entrepreneurship is often a militant way of doing business as the purpose of developing business has not only revenue objectives but also social objectives. Social entrepreneurs claim to change the word, not to have found the most sustainable way of doing business.
However I think that this new model may be much more sustainable than the traditional ones are. Today's classical business model only aims at increasing the number of customers. It works as a circle: do business in order to develop business. Things cannot grow endlessly and the model is now highly criticized. Why do you want to develop the business if your business is spoiling environement? Why having more and more customer if your product make them obese? George Vallentis explains for Veolia the principle of contestability (link): Businesses are now observed in a global view. As far as impacts of the business are known, they are all included in the judgement of the business and consequently in the judgement of the product sold. As knowledge of all impacts is difficult to gather for all businesses and all products from a consumer point of view, the value of the product is still not measured according all impacts, but those impacts make the product and the company contestable or not.
On my point of view social entrepreneurs are currently developing a competitive advantage as they are improving their global value. By contrast, that makes traditional models contestable: they are not impacting positively their social environment. In a long term view, social entreprises will attract much more customers than traditional one do, what will make them competitive.
Of course all social entreprises don't have a sustainable business model, but now a new business model has been proposed, offering more added value to people, customers and environment, so why would we need to keep the former model?

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