23 Apr Why the World Needs More Social Enterprises
Did you know that 55% of consumers surveyed by Nielsen are willing to pay extra for products sold by a company that is committed to being socially responsible?
What’s interesting about this statistic is that it is not limited to charitable organizations or not for profit entities. This includes social enterprises.
What differentiates a social enterprise from a charity?
Social enterprises take a market driven approach to solving environmental or social issues, according to the Social Enterprise Alliance. A charity typically relies heavily on volunteer work and fundraising. Social enterprises cut out the middle man and directly reinvest the money made.
In the United Kingdom, social enterprises employ roughly 800,000 people. However, in the United States that number is significantly lower at 14,000 people.
Why the World Needs More Social Enterprises?
- Employees are more inclined to work for a company that is socially responsible.
According to Nielsen, 67% of employees surveyed would prefer to work for a socially responsible company. In order to keep up with the times and job market, companies will need to maintain a certain level of social responsibility in order to keep themselves in the job market game. At this moment in time, younger people are beginning to care more about social issues. The United Kingdom saw a 52% increase between 2010-2015 of people who volunteer and maintain a level of social responsibility. This may be something that employers in the United States need to be mindful of when shaping their company’s strategies for the years to come.
- Professionals are more likely to invest in a socially responsible company.
78% of the 22,000 investment professionals surveyed by Deloitte have increased their investments in firms that focus on their corporate social responsibility. Perhaps it’s the transparency provided by social enterprises; investment professionals prefer “x% of this purchase will profit this unmet social need” over the ambiguity provided by some charitable organizations.
- Social Entrepreneurship is a growing market; get in from the ground up!
According to the Social Entrepreneur Alliance; 29% of social enterprises in the United States were created after 2011. As seen above, this upcoming generation is spending more time and putting more effort into volunteering. This is a generation that cares, are you growing with them?
What do you think? Are social enterprises this important? Leave a comment below.