Is Social Entrepreneurship Really New?

I'm no historian, nor am I an economist--so what possibly qualifies me to speak on matters like this? Well...let's go with my curiosity and willingness to be told I'm wrong. Which is more often than even YOU would like to admit.
_____

Social entrepreneurship is a field that draws obsessive study and intrigue--and I'm not someone that doesn't experience that as well. I think the idea of leveraging the most successful (for many) economic system in the history of the world--capitalism (in case you didn't know) to be used for social good is fantastic. Who doesn't like the idea of employing market forces in service to society? (Don't make me answer that honestly...)

But I have to ask--if applying "business practices" to nonprofits or, my new favorite obsession, L3C 'low-profit' organizations, make a new thing? One of the first professional foundations, the Carnegie Corporation of New York, was led by one of the richest (adjusted for our little 'friend,' inflation) people of all time, steel magnate Andrew Carnegie. A businessman. Doing good. With his money. In 1911.

Now, I'm the first to admit that this doesn't mean that social entrepreneurship isn't a 'different animal' still than Carnegie's Corporation, started because he was gettin' pretty old. But we know about this concept in another sense as well--good management in the nonprofit sector.


This article by Inc.Com is, in all honesty, one of the best I've ever read on what it means to be a social entrepreneur. I also clicked on EVERY LINK that they had, because it's all great information. I'm also a compulsive link-clicker. It's written about Scott Harrison, recovering dance club owner and founder of ridiculously successful charity:water, an organization that employs several best practices in their mission to clean up the water that causes diseases and other issues for so many people globally.

What's to criticize about that? Nothing. But calling their organization a 'social entreprise' leads people to believe that what they're doing is completely unique. But they are a registered 501(c)3 just like every other nonprofit out there. The article--which I really do actually like--points out that the company does several things that help with their success: Know Your Issue, Build the Brand, Think of it as a Business, etc.

These are, of course, important lessons for the nonprofit sector to learn. TOO MANY nonprofit leaders don't see themselves as businesses who need to meet a bottom line. This is a problem I've encountered in my job. But I think nonprofits already do many of the things mentioned in the article well--and sometimes better--than their business counterparts.

Branding: Think of a pink ribbon. What do you picture? Bunny rabbits? Or Breast Cancer/Susan G. Komen Foundation. That's on par with seeing a polar bear drink out of a glass bottle.

Transparency: Nonprofits, as they are owned by the public domain--thus allowing them to operate (relatively) tax-free--and having a board of directors, have to be WAY more transparent than private businesses. This is a distinct advantage to the nonprofit sector leading the way. charity:water does an EXCELLENT job of this, and should be commended, but most (with certain exceptions) nonprofits do a much better job in this field than private corporations/businesses.

Develop Smart Partnerships: Here's where SO MANY nonprofits fail, but so many also thrive. But it's pretty natural, and growing, with the philanthropy field moving towards 'professionalizing' like never before. Just check out the awesome things that the Center on Philanthropy is doing. The industry is getting its education.

Make an Emotional Connection: Watch an ASPCA ad and try to tell me that you feel good about yourself (unless you donate to them).

Utilize All Platforms: Social media usage is higher among nonprofits than businesses. Just spittin' facts.

So does this mean that I think that the nonprofit sector is better off without all of this 'mumbo-jumbo' about social entreprise? Not really (not the answer you expected?). I think the move to social entrepreneurship is powerful, necessary, and inevitable. It's impossible to thrive as a nonprofit in a world with a wealth gap like we have without generating your own stream of income. Donors, unfortunately (and fortunately), will become more and more critical, as they should. But nonprofits/social entreprises can make an impact by making the right moves to prioritize BOTH social good AND the bottom line.

I hope to live to a day when all entreprises will be social entreprises. May seem like a crazy dream, but weirder things have happened.

___
Please consider donating to any (or all!) of the organizations I mentioned in this post! If you do, please tell me so in the comments!