Social enterprise is not a new phenomenon – the cooperative movement started in the 1840s – but it has the potential to grow massively over the coming years given the public and financial interest it is generating.
The promise of solving social and environmental problems using business models that do not require ongoing subsidies is attracting policy-makers, donors and social investors. Peter Holbrook, chief executive of the Social Enterprise Coalition, has committed to a threefold increase in the economic contribution of social enterprises by 2020.
The time of innovative but low-profile experimentation in the sector is drawing to a close. Proof of concept has been demonstrated, now it is time to deliver the financial and social results at scale.
Tom Rippin
So what could prevent social enterprise fulfilling its potential? While good ideas abound and funding is increasingly available, success will depend on people who can translate the money into tangible results.
Any investor, philanthropic or not, knows that the right management team is critical to any venture's success; but for many social investors finding the right people for the job is currently a real limitation.
Leaders who can walk a tightrope
Managing a social enterprise is challenging; it requires a constant, often uncomfortable balancing act between the organisation's social and financial objectives. Nurturing more leaders who can walk this tightrope, who have lived this paradigm for most of their career, is an urgent but often overlooked challenge for the sector.
On Purpose is designed to tackle this challenge head-on. It recruits young high-flyers and places them in leading, purpose-driven organisations (Comic Relief, Coin Street Community Builders, HCT Group, O2's CSR department and the Young Foundation, in this first year).
This paid work is complemented by a structured training programme delivered by professionals from prestigious organisations across the private and social (enterprise) sectors. The programme has been hugely popular. Thousands of 'Generation Y-ers' are hungry for social enterprise: they believe in the power of business but also in the obligation to use it for social benefit. 'Business as usual' is no longer good enough.
Young enthusiasts can be found in all corners of the sector, often volunteering or working for little money. But while many social enterprises can boast a waiting list for their internships, they find it much harder to recruit skilled and passionate middle and senior managers.
The Chartered Institute for Personnel and Development has surveyed the reasons why people leave their organisation. "Lack of development or career opportunities" is the third most common factor, beaten only by "securing a promotion in another organisation and "changing careers" altogether. "Level of pay" only makes it to sixth place.
If social enterprises are to fulfil their potential, current leaders need to foster the new generation of their successors and do so quickly. Salary levels will play their part in this, but they will take time to adjust. Providing top-quality development and career opportunities promises the greatest short term impact.
Tom Rippin is the founder of On Purpose
From Flip Chart Fairy Tales
From Bubb's Blog
