N100 Business Management and Entrepreneurship

Introduction About N100 Business Management And Entrepreneurship

Social enterprise can be said to be the kind of organization that is engaged in various activities by using the influence of business to bring about change wholly in the environmental and social world without being dependent on outside funding (Alliance, 2010). It can be said that, with the various aspects of their organizational goals in mind, to achieve some altruistic goals, the organizations runs similar to any ordinary business, too (or “intending to”) generating profit through trading in various kinds of goods and services. Social enterprises can be said to be crafting the solutions to the current social problems through the involvement of people who are bold in their entrepreneurial skills with the gallant visions and tactics full of repetitive solutions. (Alliance, 2013), says that the social enterprise business ranges widely; from healthcare to sanitation, to education and even housing and are highly assisted by the fact that various capital investment programs provide the opportunity to increase resources with the intention of achieving the much needed social impacts, and also through the involvement of venture capitalist.

In the market, there are several challenges or problems that the business people face. These challenges or problems in the market tend to reduce the pace at which the different people who engage in doing businesses expect to earn a profit. They, therefore, go through a difficult time for them to make any tangible profit that they expect. There are different markets that each and every individual is involved in (Defoumy, Hulgard, & Pestoff, 2014). Each and every market has its challenges or the problems that they face. Social Enterprise helps each and every person in each of their market to know or identify the various challenges or problems that they encounter.

(Bagnoli & Megali, 2011) ,argue that social enterprises incorporate the ideas of entrepreneurship but do not limit themselves only to innovation and job creation. The author also argues that social  fight to challenge the barriers to development with examples like;, environmental degradation, wrongful incarceration, economic inequality and hunger, and the established stigmas on the initial entrepreneurial principles and beliefs through the introduction of various new ideas and techniques that have a broader view and approach towards solving societal problems. She further illustrates that, many NGOs, governments, and the private sector were given an action call by the former United Nations Secretary-General Ban Ki-Moon in the year 2012, to join hands in the quest to eliminate hunger that is biting into the lives of many people, which was dubbed, “the Zero Hunger Challenge.”  It can be used to conclude that social enterprises are very crucial for the improvement of livelihoods of many people both socially and environmentally hence is a market-based solution provider as their activities eventually lead to the reduction of interesting problems like hunger, unemployment and poverty and the positive impacts it causes to the people.

The social enterprises craft their businesses to challenge the social issues in various countries, improve the life chances of the communities in which they are based and transform the whole world for the better (Defoumy, Hulgard, & Pestoff, 2014). The difference between it and the ethical type of businesses is that the latter attempts to reduce the level of negative impression it may create in the environment and society as a whole. According to a social media site, Social Enterprise UK, the social enterprises have various characteristics and mandates including some of these; Be able to sustainably obtain their income mainly through trade or other diversified sources from their projects because they are business oriented. They must not necessarily belong to a single individual but can be able to come up with pattern-breaking concepts of either how or what should be done in consideration to all the existing sectors and tirelessly works towards achieving social change sustainably.

 They should be able to meet their objectives either of social value, environmental neutrality and income by taking advantage of available and new opportunities, a heightened understanding of their customers, and incorporation of the necessary trained, skilled workforce with adequate equipment in good conditions and planned overhead funding and innovation thereby achieving long-term sustainability (Esposito, 2012). Their social mission should be controlled majorly by the interests of the society they are based despite some shares and equities they may be having in various organizations or the competition they might face from the government in the campaign advocating for the employee-ownership and multi-utilization of public services enthusiastically. They should be very much accountable and transparent in all their endeavors regarding their focus on the achievement of their vision along with their financial performance and not do things with any strings attached to their members, staff, and consumers.

They should reinvest their profits in their quest to achieve their missions as a clear indication that the organization is mainly set not for shareholders or owners’ value. But for the society and being autonomous of state and very much independent in their business and charitable activities (Granados, Hlupic, Coakes, & Mohamed, 2011). Their assets should be permanently retained and legally protected to avoid cases of recall or auctioning for those that were taken on loan and had not been fully paid for to reduce cases of disruption of an already ongoing activity which may put both the owners/stakeholders and the customers at risk. Their governing documents should be clear and be able to justify the social and environmental visions and missions they have set out to achieve.

The various categories that are tackled by these social enterprises according to Social Enterprise Alliance, in solving societal and environmental problems include; financial services and provision of loans for development, production of affordable and quality home appliances for the benefit of low-income eaters and the have-nots (Jefferess, 2012). Provision of drugs and other health requirements to the dispensaries available or those that they have established in the rural areas; making good use of the already used products like plastics through recycling to create newer products hence garbage reduction which enables the control of land and water pollution and the provision of technological services to all hence increasing literacy levels without discrimination of age, gender or disability.

The enterprises work towards producing measurable returns that work towards the transformation of existing realities and unlocking of the obstacles that may prevent the potential of society to effect social change (Kerlin, 2010). Therefore, (Chell, Nicolopoulou, & Karatas-Ozkan, 2010), point out that policy makers and various leaders should embrace the fact that social enterprise has been the leading factor in the reduction of unemployment to the vulnerable and the have-nots which lead to growth in economies enabled by the fostering of diversity in their businesses, their increased ambition, and aspiration to prosper, international exportation and involvement of the private sector firms in their development agenda.

The social enterprises always have various legal frameworks in which they are created and expected to remain which may include; corporations, partnerships, proprietorships, non-profits, limited liability companies and for- profit organizations (Chell, Nicolopoulou, & Karatas-Ozkan, 2010). The rationale that defines its high growth levels is related to the fact that they have an objective that addresses the social and economic problems of the kind of legal framework on which it is based. According to (Coalition, 2010), the legal frameworks enable the social enterprises reflect and focus on their particular statutory mission and tradition, the leading economics and social issues that they deal with at the grassroots and the national level, the model outlining their welfare regime and envisage the diversity in view of their approaches to achieve social and environmental sustainability and change. Many of them are thus created under the legal cooperative forms with bright entrepreneurial objectives.

The governments in which they operate in and the different legislative bodies involved in the regulation functions of various business organizations, together with the public sectors’ ability in project approval and procurement powers, have very massive powers and resources to enable the establishment, running and development of the social enterprises, nurturing collaborative opportunities and networks for their success since when they succeed, then the whole country develops and high revenue collected (Czischke, Gruis, & Mullins, 2012).

Markets have been crucial for the development of many traders and business people, but have also caused a lot of social problems in the society and the environments that surround it. The high prices of commodities and services provided by businesses and the private sector have left many people especially in the rural areas where people are destitute, hungry and unable to get access to them, which the social enterprises have been able to come in and bridge the gap (Kerlin, 2013). The pollution of environments through a lot of accumulation of market wastes and other uncontrollable production of garbage that is not recycled has also been an environmental health hazard that the social enterprises have worked well in reducing (Teasdale, 2010). The best thing with the social enterprises is that they pursue the alleviation of these environmental issues with the passion of implementing their entrepreneurial concepts bearing in mind that they also have to overcome the traditional stigmas, initiate innovation and build strong, sustainable organizations, therefore, being the best ship to sail in the journey towards sustainability and betterment for all.

Advantages of the social enterprises in a community

According to (Defoumy & Nyssens, 2010), social enterprise has become of more significance to many communities in which they are based and has given some of the reasons for which they are currently of high value in the process of achieving sustainability and a solution to problems that are caused by markets as below; Social enterprises have been on the upper side of reducing the level of unemployment through the process of employing people who do not have jobs or are in the risk of remaining unemployed for a very extended period by delivering work experience and also training them on the job. Other charitable training activities with which they are also equipped with include those of hospitality and life skills.

Through their training, the enterprises initiate the level of creativity and many people are empowered and encouraged to be change makers who will, in turn, create and manage their businesses, and also employ others, therefore, increased developmental activities in the region and reduced level of unemployment (Levander, 2010). Apart from the very critical entrepreneurial knowledge that the trained people acquire, the social enterprises also equip them with various skills in the leadership area, empathy, and teamwork which they use in solving their daily problems that arise.

Both the incorporation of creativeness and market intelligence together with the background knowledge of the issue to be resolved has enabled the enterprises to involve the mixture of different notions in a way that will result in a unique approach to the service provision methods and the best production of goods that are going to directly create a difference in the life of the customers hence achieving customer satisfaction which is one of the aspects of achieving Total Quality Management(TQM) by organizations.

The social enterprises provide a listening ear and a helping hand in the venture to enable solving of the issues that may arise in the community through the effective provision of useful products or services that will have a significant effect on the customers and consumers directly (Teadale, Lyon, & Baldock, 2013). Social enterprise has enabled the community to be able to save a lot on their spending in the markets and also the improvement of value-added standards of life.

Various vulnerable groups have been able to be uplifted from their misery through the decisions of the social enterprises to come to their aid through profits earned from sales in the mainstream market (Luke & Chu, 2013). It also enables many people in other terms, receives services and goods in return for payment hence a greater motivation provider for individuals to use their money due to the enterprises’ level of sustainability without dependence on donors (Teadale, 2012). According to the social media site, Entrepreneurs, the general type of business has been able to sustainably create a very significant impact on the provision of very important products and services to a large number of poor people, thereby increasing their quality of living.

Despite the benefits received from the services provided by the social enterprises, various challenges and accounts of obstruction and struggle are scattered all over  on their success path. Some of these include but not limited to some of the following;

The environments on which they are based and operate in is very unreceptive, and they also receive a lot of objection and indifferences, and little commitment values by those who feel they are not directly affected by the business as they are considered a threat to the mainstream market, and according to the social media site, the entrepreneur, a study conducted majorly in Africa had shown that only about 13% of these enterprises had achieved any scale in their objectives.

The businesses face a lot of logistical challenges in their desire to deliver lifesaving services especially in the rural areas and also accompanied by the unavailability of other supplementary specialized social services hence their targets and goals not fully met (Lyon & Fermandez, 2012). Despite their quest to be independent and provide sustainable services, the capital they invest in such activities may not be sufficient due to the fact that they are often established in destitute areas of a country thereby facing a lot of financial constraints which may also lead to massive losses and a disruption in the supply chain, especially if their products do not reach the customer at the required time.  

The ignorance and hostility of the society together with the lack of education and civilization on the use of some of these goods provided by the upcoming social enterprises have been a bottleneck towards its growth and achievement of its intended goal (Lyon & Fermandez, 2012). Difficulties in achieving 100% sales due to market problems that are catalyzed by introduction of a kind of service or product at a fee where residents were used to getting them for free, lack of trust on a new commodity that increases the reluctance to change and poverty that causes the inability to pay for such services, and the high illiteracy levels both in general education and in technology

The ruling government of a particular country in which the enterprise is sometimes set may also prove to be a barrier to its growth and development by introduction of very excessive taxes to the goods or services they are providing or production of similar goods and services at a very low price to stake their products (Teadale, 2010). Lack of proper outlined legal procedures to guide and protect the social enterprises from any form of harassment and external attacks in their activities and businesses.

Social enterprises can ensure they achieve long-term sustainability through ensuring that the management structure in place is well trained and qualified for the position where they will have to use sound judgment and decision making in all their business planning, their operation tactics in the marginal markets and how to gauge their performance and influence against the social indicators available (Munoz, 2010). The social value created by the social enterprises, the economic, financial returns received, and the best strategies for selling their products and services to the vulnerable groups encourage many people to buy from them hence they realize their mission (Smith, Gronin, & Besharov, 2013). It will be possible if the social enterprises overcome their various market fiascos that omit their target crowds from market participation and consumption.

The indirect market strategies also encourage the value creation by the enterprises through the generation of a lot of income for self-sufficiency, since they are supposed to generate their income specifically from the businesses they operate in and enable them to solve environmental and poverty issues (Ridley & Bull, 2015). Lowering their strategies on costs of the products and services offered will increase the affordability levels of the vulnerable groups hence increasing the purchasing power of the people but also in consideration of the organization’s sustainability hence achieve their target of sustainable service provision and betterment for all through businesses.

Customization of the products and services to meet the particular endowment, skills, needs or living conditions of the target group will increase their market-based strategies of value creation. Enabling them easy access to finances and loans for their personal development at affordable interest rates will mostly enhance the value created by these social enterprises (Renz, 2016). False knowledge, ignorance, traditional activities, ecological and social obstacles can be overcome through general mass civil education, provision and engineering of incentives with the aim of self-rearrangement regarding the market preferences for a beneficial reason for achieving its mission (Page & Katz, 2010). The method of mass education chosen should also be carefully decided upon bearing in mind the age of the target group, accessibility, and economic sanctions’ involved and the geographical area to be covered.

Conclusion:

The innovative or social enterprises have been proved to be the best factors for change in the society and the best tool to fight the levels of poverty and therefore, external facilitators like aid donors, impact investors, multilateral development agencies, nonprofit foundations, or government agencies in conjunction with the industry facilitators to push for the finding of the solutions to the barriers on their path to success. Their acceptance and harmonization will lead towards solving acute problems and the enhancement of inclusion mechanisms in economic representation and the resultant of a population that gives more productive labor. Various governments are at this moment encouraged to embrace the development of the social enterprises and providing them with an enabling tax and legal conditions, provision of favorable conditions for the interaction of these enterprises with other organizations in the civil society and fellow enterprises.

References:

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