Defining Social Enterprises

From my previous post, we know that Singapore is ready and supports the establishment of social enterprises (SEs). 

However, do people clearly understand what a social enterprise is?

My definition of a social enterprise is a form of business with its core mission as using the profits generated to benefit the needy and disadvantaged or/and pursue environmental sustainability. 

So how are social enterprises defined in Singapore?

In Singapore, the Social Enterprise Association (SEA) defines social enterprises are, first and foremost, businesses or any non-profit, for-profit or hybrid corporate form that utilises market-based strategies to advance a social cause.

A Social Enterprise aims to create surpluses.   

Social enterprises are not driven by a need to maximise profit for their shareholders or owners.

Social enterprises can be said to pursue double or even triple bottom lines. This implies that beyond financial outcomes, they also seek to accomplish their intended social and/or environmental cause(s).

There is no restrictive usage of the term “social enterprise’’ which may be harmful as businesses can claim themselves as social enterprises for unethical means.

The social cause is not specified in the definition.

The Different Models of Social Enterprises

In Singapore, there are four main models of social enterprises.

** The social needs addressed by social enterprises and the business models used can be very diverse (such as environmental, social issues and healthcare etc).

With reference to the article: “Just what exactly is a social enterprise, more clarity is needed, NUS researchers say”, I agree with Ms Carrie Tan we need to safeguard the reputation of social enterprises which are living up to their mission, delivering their impact.

GrabTaxi claimed to be a social enterprise as it provides extra income to the taxi drivers who have accepted the certain number of jobs.

However, it does not fit into Singapore’s definition of social enterprises. 

GrabTaxi has two social missions, to make taxi-booking more convenient for commuters and increase the taxi-drivers income by aiding them to accept more jobs.

To me, GrabTaxi are not addressing social causes. Social causes identified by Ministry of Social and Family (MSF) in Singapore are the needy disadvantaged communities such as:

• Ex-offenders/Ex-drug addicts
• Youths-at-risk
• Persons with physical disabilities
• Persons with intellectual disabilities
• Persons with sensory disabilities
• Persons recovering from psychiatric illnesses
• Individuals from low income households

Should we specify the social causes which social enterprises are addressing in Singapore?

I definitely feel that specification is needed when the industry is matured so that people can identify social enterprises as purposeful businesses.

It can also deter other companies to claim themselves as social enterprises.

With a supportive environment and being clearly defined, the social enterprises in Singapore can focus on delivering their impact and be recognized for their efforts.

Cheers,

Angel :)

References

Auyong, H. (2014). Why GrabTaxi is giving Singapore’s largest taxi operator a run for its money. Tech in Asia. Retrieved 13 November 2014, from https://www.techinasia.com/grabtaxi-eat-comforts-lunch/

Cheong, K. (2014). Just what exactly is a social enterprise? More clarity needed, NUS researchers say - Singapore More Singapore Stories News & Top Stories - The Straits Times. Straitstimes.com. Retrieved 12 November 2014, from http://www.straitstimes.com/news/singapore/more-singapore-stories/story/just-what-exactly-social-enterprise-more-clarity-needed-

MSF Corp Web,. (2014). Social Causes. Retrieved 13 November 2014, from http://app.msf.gov.sg/SocialEnterprise/Get-Informed/Social-Causes

Seassociation.sg,. (2014). Social Enterprise Association. Retrieved 14 November 2014, from http://www.seassociation.sg/faq.php?menu_id=14&mid=5&smid=29

Wong, S. (2014). Cabbie shares his thoughts on Grab Taxi and the driving life... - Five Stars And a Moon. Five Stars And a Moon. Retrieved 13 November 2014, from http://www.fivestarsandamoon.com/cabbie-shares-his-thoughts-on-grab-taxi-and-the-driving-life/