The modern economy with the economic development policies that it follows, focuses on strengthening competitiveness, ignoring the importance and development of Social Capital, ensuring and Social cohesion resulting in Social Underdevelopment (Sakelaropoulos, 1999).
The organizations of the 3rd sector of the economy, produce the main Social work, compared to the conventional for-profit organizations. They get where the state fails. Yet they are excluded from the tools of modern capitalism for development and almost entirely dependent on the state.
In the winter of 2011, the European Commission launched the Social Business Initiative. The main purpose of the Commission is through this Initiative “to contribute to the creation of a favourable environment for the development of social enterprises in Europe and the Social Economy in general” (CIRIEC, 2012). Social enterprises are Europe’s development vehicle for tackling the key social problems of structural unemployment and poverty by targeting cities and the region. At the same time, it will be a solution to strengthen economic activity and local development, to address the issues of ecology, education, health, to alleviate inequalities and to support socially vulnerable groups.
Social Businesses & Social Entrepreneur
Social enterprises operate as conventional enterprises, with the difference that at the center of their mission is the Social purpose. They have a normal structure, planning, organization, administration, control. They mainly reinvest their profits; create jobs, social reintegration and integration. The mission of these organizations is to make a profit for the viability of their social purpose. The need to become more apparent in the organizations of the 3rd sector of the Economy (Non-profit), where the question arises:
“What will happen when the Donations and subsidies end? What will become of those who rely on the organization? “
In companies that are established from the beginning with the model of Social Enterprises, you notice that they do not face difficulties in using the non-profit character for the financing of social purposes (B. Smith et al, 2010). In contrast, existing third-sector organizations that operate and wish to gain financial independence and develop through their transition to the new hybrid model find that they find it difficult to adapt to the mission duality (Dees, 1998) resulting from integration. of a non-profit nature in the operating rule of the organization.
The social economy has created a new type of entrepreneur. The Social Entrepreneur. He changes the rules of the game, taking advantage of the gaps and tools of Capitalism, aims and
fights social problems, generating enough profit to maintain himself and, above all, his Social Purpose. It tackles unemployment, fights poverty, protects the environment, fills in the gaps of the welfare state, gets to where the state fails, ensuring its independence, while managing to make a profit. He creates networks, innovates, collaborates, is a team player, has socio-moral motivation, feels uncomfortable about the status quo and tries to change it. Some now call him the “Hero of Business”.
References:
- Dees, J. G., (1998). “Enterprising Non Profits”, Harvard Business Review, 76(1), 54-67, US
- European Commission,(2011). “Social Business Initiative – Creating a favourable climate for social enterprises, key stakeholders in the social economy and innovation”-SEC(2011) 1278
- Porter M. E., Kramer., (2011), “Creating Shared Value”, Harvard Business Review, 89, U.S.
- Smith, B. R., Knapp, J, Barr, T. F., Stevens, C. E., Cannatelli, B. L., (2010). „Social Enterprises and the Timing of Conception: Organizational Identity Tension, Management, and Marketing. Journal of Non Profit & Public Sector Marketing, 22:108-134
- Zafeiropoulou, F.A. & Koufopoulos, D. (2013) “The influence of relational embeddedness on the formation of Social Franchising; An explorative qualitative analyses of four Social Franchises active in the UK from a social network theory perspective” Journal of Marketing Channels, Special Issue, Vol.20, No.1/2, pp.73-89
- Zafeiropoulou, F.A. & Koufopoulos, D., (2012). “The influence of the relational marketing paradigm on the governance structure of the novel channel format named Social franchising; A explorative qualitative analyses of four social franchises from the UK” International Journal of Social Entrepreneurship and Innovation (Inderscience Publishers), Vol. 1, No.4, pp.404-418