Why Social Entrepreneurship? Is Singapore Ready for it?

The Singapore's Social Enterprise(SE) scene is rather happening recently. 

The Straits Times, Today and Channel News Asia and more are featuring more social enterprises in their articles.



Bettr Barista, Reverse Co-Operative and Empact are featured in "With More Social Enterprises, more doing good while doing business"article published by The Straits Times on 15 September 2014.

It can be said that social enterprises are making a greater presence in Singapore. Since January, the Social Enterprise Association saw an 20 percent increase. The SEs ranges from restaurants to consultancy firms. 

Mr Alfie Othman, the association's executive director estimates a 30 percent increase in the number of social enterprises in Singapore, around 350-400 SEs. 

So why are more Singaporeans embarking on the path of Social Entrepreneurship? 

In the article, there were a few reasons stated. The reasons could be the increased in awareness of Social Enterprise (SE) as a business model, a preference for entrepreneurs to create impact and profit, more funding available to Social Entrepreneurs, a changed definition of success,looking for more fulfillment, work ethics and conscientious DNA in a company. 

I agree with the opinions presented in the article.

Being featured frequently in the mass media can create more public awareness in social enterprises. More people are being exposed to the relatively new term "Social Enterprise" which helps to generate greater interest in this industry.

In Singapore, charities and voluntary welfare organizations are not self-sustainable in the long run.These organizations are mainly run by government grants,voluntary donations from donors and general public.

What happens to the beneficiaries when the donations and grants run out?

Social Enterprises are able to fill up this gap. A social enterprise is self sustainable business model by generating its own profits and benefit their chosen beneficiaries at the same time.

There are more opportunities and successful SEs can established themselves more easily as the SE industry is at its infancy stage.

Social Enterprises also portray a better image unlike the traditional forms of businesses where all profits are distributed back to the companies.  Goodwill can be acquired by providing the products/ services as customers know that it is for a good cause.

To have better branding, many established companies or Multi-National Corporations(MNCs) have set up Community Social Responsibility(CSR) unit to give back to the society. 

For example, SAP Asia has a comprehensive CSR program which aims to help the world run better by enhancing education and supporting entrepreneurship via SAP social innovation.

Many funding options and incubator programs are available for budding social entrepreneurs. These can provide essential knowledge, guidance from established SEs/ business founders and financial assistance for their start-ups, which are crucial for first- timers and aspiring youths.

The major local universities support and encourage social entrepreneurship with different events/ initiatives. University students can have a head-start in setting up their own SEs while pursuing their studies.

Ngee Ann Polytechnic and Republic Polytechnic offer social enterprise related diplomas for students who are interested to pursue their studies in this field after the Cambridge O/N levels.

Examples of funding options: 

1) Comcare Enterprise Fund

2) Youth Social Enterprise Entrepreneurship Programme(YSEP) for Start Ups

Examples of incubator programs conducted in Singapore:

1) PACT incubator, powered by DBS Bank

2) Global Social Innovation Forum by Social Innovation Park(SIP)

So, does Singapore have the potential to become a social enterprise hub? 

Based on the positive push by the private sector, government, the generally positive public reception of SEs and the establishment of successful SEs such as Eighteen Chefs, Adrenalin Events, Bettr Barista, Soon Huat Bak Kut Teh and Empact, I feel that the Singapore SE industry is looking promising. 

There are other areas where we can look at to enhance the industry.

We can see how we can safeguard the beneficiaries rights; to protect them when they face difficulties such as the shut down of an SE or workplace abuse.

In the article, there is also a call for regulations for the fast growing SE industry to prevent companies from using the term Social enterprise to disguise themselves as "do good"when they are not actually doing so. This might incur costs and stifle social entrepreneurs. 

I do support the calling of regulations to maintain the credibility of the SE industry and ensure that the SEs have impacted their beneficiaries. However, I do agree that it will be quite restrictive for social entrepreneurs if we impose regulations which all entrepreneurs need to follow to start up a SE when the industry has not mature.

Some questions also popped up in my mind.. 

1. Can the Social Enterprise "short-changed" their beneficiaries when they are facing financial difficulties to tide over? 
2. How should we measure the impact of a SE? Must all SEs use a set of standardized evaluation procedures?
3. Should SEs be covered under a specific set of  laws since it a unique business model?

We can only wait to observe the future developments of the local SE industry to see if there is a need for the SE industry to be regulated and if I have the answers for my questions!

Angel:)

References

Goy, P. (2014, September 15). With social enterprises, more doing good while doing business. Retrieved October 30, 2014, from The Straits Times Singapore: http://www.straitstimes.com/news/singapore/more-singapore-stories/story/social-enterprises-more-doing-good-while-doing-business-

SAP_CSR. (2014, March 13). Asia Pacific CSR at SAP. Retrieved October 31, 2014, from slideshare: http://www.slideshare.net/SAP_CSR/asia-pacific-csr-at-sap