Social enterprise ecosystem (2)
The idea is now widely accepted across the boundaries of discipline that working together is the best way to work better. This has been demonstrated in several ways and management thought has evolved many ideas around teamwork. Social enterprises are organizations that are formed with the aim of making profit that will be applied to solve specific problems of society. Owing to the multidimensional nature of the problems of modern societies, social enterprises are obliged to work in teams and with like-minded people contributing in different ways to the objectives of the organization. They have also been proven to deliver better performances when they work collaboratively with other like-minded entities or individuals. Indeed, the issue is not whether teamwork is critical to the success of a social enterprise or not; it is how to find, evaluate and select such partners
The challenge of finding such entities with a giving heart, which defines a social enterprise, and the same zeal to strive for the specific objective of the enterprise, is a complex issue. The nature of the objectives of social enterprises ensures that they are not the most attractive investment options for those seeking to do business in a world dominated by the profit motive. Investment does not easily flow to them and finding willing parties is quite a tough job. Therefore, not only are partnerships very important for the success of a social enterprise, they are actually very hard to vet and select.
That partners are very hard to find and select is not a unique problem of social enterprises. It’s generally a difficult task, even in other areas or endeavours. Even life partners have taken some people a lifetime to find and accept. So it is for social enterprises. Why is that the case? Forming a partnership of any kind is not only time-consuming, it is delicate, and the effect of faulty choices lingers for a very long time, and may be life-threatening. The vetting process is tedious. Selecting a partner without considering present and future possible events may result in going to bed with a strange fellow. It could also make synergy very hard to achieve and members of the enterprise may be inadvertently working at cross purposes. So partnerships are as important as the process of selecting them.
According to the World Bank, a social enterprise, however defined, must have in place, the following four characteristics: a clear social mission, which could be environmental. This social objective must be given the same priority as its financial objectives. This presupposes the existence of a core objective built around social value creation and enhancement. Partners must agree to this. The second one is that the organization must have a determinable organizational and structural form – the form of organization it perceives itself to be. It must also have a financing model. How does it hope to finance its operations in the long term or on a sustainable basis?
Finally, it must have a clear target of beneficiary or the group it purposes to positively impact.
By the ecosystem we refer to the networks, interconnectivities, interrelationships and environmental factors that impact an entity or group, either positively or negatively, as they strive to survive, grow and achieve their objectives. In particular, environmental factors that impact the performance of these entities count significantly in the consideration of an ecosystem. These factors either constrain or facilitate the effective functioning of an entity. The state of liquidity in the economy, for instance, can go a long way to affect the cost and availability of credit going to business units. Other environmental factors may include the effectiveness or otherwise of the legal system. The absence of a legal framework could affect, not only the ability of entities to form, register properly and operate legitimately but their long term success..
Not only are partnerships very important for the success of a social enterprise, they are actually very hard to vet and select