the Metrifique following report: Understanding Social Enterprise Theory And Practice
If interest in it: Understanding Social Enterprise Theory And Practice:
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 subsequent (whether they should engage or resist the notion of social enterprise).
3. Those in the public sector being asked to develop, base or commission work from social enterprises.
4. Those who self-define as moiety of the social enterprise sector, wondering how to understand themselves and explicate the rate of their approach to others.
In recent years, a dewy spell - 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 expression 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 flourishing 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 legal tender and make a living. Thirdly, there is a sector with organisations established by folks 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 presiding definitions. For example, co-operative enterprises (owned by employees, producers or consumers) cross the boundary between the private and voluntary sectors (Oakeshott, 1990). They recurrently secure 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 feeler executive authority.
The Emergence of the Third Sector
The continued surge and increasing of co-operative forms of enterprise, and 'mutual help' as a commercial principle led to the emergence of a different spell in the early 1990s - Third Sector. This name covers more than voluntary bodies and charities to introduce mutual organisations (e.g. building societies), social firms and producer, marketing and consumer co-operatives (recognize 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). rife Third Sector organisations, therefore, share a common limit of reducing social exclusion. They may achieve this in a melange of ways: by providing services exceeding cheaply to disadvantaged groups; by using collective bargaining power to negotiate access to scarce or expensive resources; by organising themselves in a idea that enfranchises and empowers special members (and gives them a collective political statement); by adopting traditional approaches that redistribute surplus fortune to disadvantaged groups down charitable practices and organisations.
The identification and aggrandizement 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 wrapped up state institutions and increased use of agencies and contractors (Chandler, 2008). The concept of contemporary Public Management underpins a commercialisation agenda (attempts by government to forge greater use of markets and private sector thinking in public service delivery to 'save' roll). Accompanying this is the contentious belief that field practices and managerial solutions will grow better the 'performance' of both the public and voluntary sectors (Paton, 2006; Chandler, 2008). accustomed that many in the Third Sector regard private and public sector management principles as the source of social exclusion, it is no surprise that there is resistance to the idea that the alike 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) secure started to blur traditional distinctions between contrasting sectors of the economy (Bull, 2006, 2007). Secondly, the emergence of radical business alternatives with a forceful social orientation, democratic organisation, and indubitable attitude to profitable trading has led to a cutting edge 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 tardy 1990s, as a director of Computercraft Ltd, Rory played a small role in discussions to station a new business cornerstone agency. Around the table were flotation 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 moniker) that captured the goals for a uncontaminated footing agency. They decided on the head Social Enterprise London. Poptel (a phone co-operative) and Computercraft (an IT co-operative) provided political column and organisational know-how. The TECs and ICOM provided the same, plus assets and funding streams that enabled Social Enterprise London to ground itself (SEL, 2008).
Whether this is the first organisation to systematically use and promote the period 'social enterprise' throughout the UK is unclear, but the role of Social Enterprise London in helping to bring the thought (and language) to public consciousness is not in mistrust. It helped to stabilize the first undergraduate Social Enterprise degree courses at the University of East London (UEL, 2008) as fresh as the first Social Enterprise register 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 individual the brains why many untrodden relationships are being forged, but besides the reason for confusion and competition over its gist 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 secure 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 charge initiatives that create partnerships and joint projects involving stakeholders from added 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 indivisible 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' yield (i.e. using too many private business techniques).
As a contrivance complete these conceptual difficulties, it is contributive 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 labor (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 label 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 concernment 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 step-up responsiveness and democratic accountability both internally and externally. At the same time, there is a renewed emphasis on trading strength in order to body resources and impact positively on the lives of parties affected by the enterprise. In this guise, social enterprise moves beyond another system of charity in which wealthy philanthropists or concerned individuals service their wealth, time, commitment and business experience to solve social problems (Nicholls, 2006). It becomes an ideology for proactively nurturing wealth creation in a melange of forms by groups of riffraff committed to social inclusion, and who root democratic principles in their management practices, service delivery and product designs (Ridley-Duff, 2008; SEC, 2008).
Social enterprise is a involved 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 column 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 likely 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 sketch extensively on international examples and circumstances studies to illustrate theory, their later undertaking 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 politic editorial board in march 2008. The authors itch to thank learned Publications for agreeing to the reproduction of material in an article. understanding Social Enterprise: Theory and Practice will be published by learned 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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