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Differing Corporate Social Responsibility, the social enterprise model breaks new ground in the area of business with social impact.

As with the birth of a new business paradigm, has not been unanimously defined the concept of Social Enterprise. Although the term is often confused with “corporate social responsibility (CSR). Many of the great agents of change, which gave birth to this idea, define a similar manner.

What are social enterprises?
As defined by Muhammad Yunus, a pioneer in the field, social enterprises are businesses “doing good for people”, “no loss, but no dividends” to “reach specific social goals” and “engaged completely solve social and environmental problems. ”

A social enterprise is “an organization with a social mission, while generating economic profit in their operation. Instead of distributing the profits generated among members of the company, reinvest in social programs of the organization” says Director Entrepreneurs Ashoka, Paula Cardenau.

Other similar definition is provided by the managers of Artemisia, who say that a social enterprise provided significant income combined with a great social impact.

According Innobasque (Basque Innovation Agency) would be that a social enterprise company whose main objective is to answer people’s social needs and create social value, rather than maximizing profit. In addition, they say, must meet the following requirements:
1. entrepreneurial motivation,
2. activity and social impact
3. business model
4. benefit-sharing
5. social capital and organizational model, and
6. perception of the community.

Social enterprises: the fourth sector
The public, private and social, covering the three sites in the composition of organizations. Social enterprises do not fit comfortably into any of these categories. From there, he started talking about the birth of a fourth sector.

Social enterprises are placed on the border between the public and the private sector, social outreach, opening new paths in the allocation and management of economic resources.

Companies “normal” and Social Enterprises
Companies as we know them today, operating under the premise of maximizing profit, that is, seek to generate profits to distribute among its owners or shareholders. The higher the gain, the more successful the company.

Social enterprises seek to generate benefits whose final destination is the society in general. The initial investors only get their money invested in the start and then left to become self-sufficient society. No dividends are distributed under any circumstances. If business profits are abundant, are reinvested in the business, or cut the price of the product to reach more number of people.

The success of social enterprises depends on the number of people who notice a change in their welfare.

NGOs and social enterprises
The main difference between social enterprises and nongovernmental organizations (nonprofit) is the ability of economic sustainability. The aim of social enterprises to generate income that are sustained over time to reach them through the social aims they pursue.

NGOs often have donations or fundraising campaigns to generate income. If the patrons change their mind, and cease to provide funding, NGOs stop working.

Examples of social enterprises
These are just some examples of social enterprises (of the best known internationally), but in the world today are developing a vast amount of business under this heading.
* Grameen Bank: the well-known microcredit bank has pioneered the concept of social enterprise. Provides loans to poor people around the world.
* Grameen Danone Foods: is an enterprise that manufactures yogurt in Bangladesh with specific nutrients for children with nutrition problems. The company is under the supervision of specialists from Danone and Grameen Bank guarantee.
* Ashoka: is an international association of social entrepreneurs. Provide training, monitoring and all kinds of social business collaboration around the world.
* Vestergaard Frandsen: is dedicated to creating products that combat hunger, and the major preventable diseases caused by poverty.

These companies are among the most successful in this new business paradigm. It is possible that in the short term are taken as examples to follow, and extend the generation of this type of business so that society can change.

Perhaps we are witnessing a process is revolutionary, or perhaps as another attempt to combat poverty and marginalization. Let’s wait a while to analyze the results. If everything continues on a path similar to that performed without a doubt the achievements will soon be surprised.

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