Enter the social enterprise
Involvement with social enterprises is one way in which companies and directors can be a force for good in the emerging world of the new capitalism, says TEO MEE HONG
AT the recent SID Directors' Conference - in line with the conference theme, "Towards A New Capitalism" - many directors were introduced, for the first time, to social enterprises. More than 95 per cent of the attendees indicated that they had a better appreciation of what was dubbed "harbingers of the new economy". Indeed, many asked how they could learn more about, and engage more with, this unusual hybrid of capitalism and social consciousness.
In its broadest form, a social enterprise is a business with a distinct social mission. The business part, itself, is relatively clear: like any other commercial company, a social enterprise makes money by providing goods and services. The social mission, however, can be achieved through three broad ways.
First, a social enterprise can create external social impact. Often this means targeting the poor and marginalised, by providing essential goods and services at a price point that is affordable and reasonable rather than one that is marked up by multiples of cost. Milaap, for example, is a technology start-up which leverages the Internet to empower well-off individuals to give micro-loans to the working poor, people who might, otherwise, not be able to access credit.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Suntec Reit Q1 DPU down 13% to S$0.01511 in absence of capital distribution
Sheng Siong Q1 net profit up 9.3% on higher revenue
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
Changi Airport’s Q1 passenger movements surpass pre-pandemic levels
S&P Global first-quarter profit beats estimates on strong product demand
Malaysia mulls over plans for casino in Forest City as part of Johor-S’pore Special Economic Zone: sources