Can Social Enterprises Really Solve Poverty?

Hello!

Today, i will be sharing about my thoughts on whether social enterprises are able to fully eradicate poverty!

I came across this article on the Forbes website. In short, the author's stand is that social enterprises are change-makers but will not make significant changes if we do not support their causes and help them to overcome their challenges faced.

I fully agree with the author is that social enterprises are change makers. Social Entrepreneurs go against all odds to meet double or even triple bottom lines to keep their businesses sustainable!  They are also able to improve the lives of their chosen beneficiaries at the same time. But, if we do not support their work and have the right resources/aid available to them, the social enterprises would not survive.

I am fully supportive of the setting up of social enterprises. In fact, I feel that social enterprises are slowly eliminating poverty faced by their beneficiaries by giving their work opportunities, providing subsidized services/ goods and plough back their profits to a certain Non Profit Organizations (NPOs) to sustain their operations.

However, I feel that social enterprises alone would not be a solution for eradicating poverty completely.

A example stated in the article was that an organization which aims to deliver their innovative, life-saving drugs to the rural poor in the developing countries. Despite their desire to get these drugs, they might not have the access to them due to logistics constraints.The country might  not have proper infrastructure like roads for logistic providers to deliver the medications to the villages. Even if they managed to deliver the medications to them, will there be medical staff available to administer the drugs and inform them of the dosages to take?

Also, I feel that most social enterprises do not make a huge, sustainable impact to eradicate poverty as they are not solving the root causes of poverty. The help given to the beneficiaries is limited as most social enterprises are unable to meet all of their needs and reach out to every single beneficiaries in need. There is a capacity that they can meet.

What happens if the social enterprises wind up?  Social Enterprises are constantly battling with their survival and meeting their social objectives. The beneficiaries who are reliant on them will be hit back to square one, seeking employment at other places and rely on charities or NPOs again.

Thirdly, I feel that the solutions came up by social enterprises do not address the needs of their beneficiaries to move them out of their poverty cycle. One example would be TOMS Shoes. Their social mission is buy one pair of shoes, another pair of shoes will be given away. Based on their website,  they only gives shoes to children (no adults). I agree that the shoes who allow the children to have better health (less injuries and chances of infection) and allow them  to walk more comfortably. But do we know if they really need the shoes? They local community have been used to walking barefooted or even find other ways to protect their feet and continue on with their lives?

Lastly, there is no "one size fits all" solutions. Each country is unique, They face different challenges and different reasons for why their people are facing poverty. Social Enterprises cannot resolve all of the problems faced.

What are your thoughts?

Angel:)


References: 
Forum, S. (2014). Can Social Enterprises Really Solve Poverty?. Forbes. Retrieved 11 January 2015, from http://www.forbes.com/sites/skollworldforum/2014/04/08/can-social-enterprises-really-solve-poverty/