Enter the social enterprise

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.