Social enterprise - the much needed catalyst..

On a continuum, social purpose - and business for profit have been separated and positioned at two extreme ends. Never to be brought together, as it would be impossible to serve a human need and make profit at the same time - even if it was possible, it would be exploitative.

Entrepreneurs of course respect no such perceptions. Bold new models, hybrid collaborations, breakthrough products and services designed for the 'bottom of the pyramid' have signified a new breed of social purpose enterprises that blend social impact with business - under the phenomenon of social entrepreneurship!

If you step back and look at development and growth of people and economy - The government initiated development in the early years of independence across agriculture and infrastructure. Large enterprises in conjunction with liberal policies of trade brought in the next wave of development and economic prosperity into India. I firmly believe that it will be Social Entrepreneurs who, with their bold vision and enterprise, will lead the next wave of socio-economic development in our country.

Some really interesting and inspiring models like Vatsalya Hospitals, Selco Solar Solutions, Vision Entrepreneurs at Vision Spring - give an indication of whats possible once entrepreneurs find the link between a real need - and the capacity to convert it into a set of viable solutions.

Are these exploitative? Are micro-lending institutions charging too much interest? Should poor people have to pay for services? These are interesting questions - depending on who is asking them.

For a poor family, with no access to potable drinking water - spending Rs. 5.00 every day to purchase water from a local entrepreneur (who is funded by an MFI and equipped with innovative low cost equipment) - is an economic activity. Clean water keeps his family healthy - more people can earn and be productive. Rs. 5.00 is payable.

Should the government be providing it? Yes. But can this family wait till the government reaches them - or is he better of finding more enterprising solutions that help him increase the productivity of his family? He cannot wait. He must not.


I know that this is probably an over simplification of the challenges. But Exploitation, I find, is becoming an inclusion-phobic term. It stays as an excuse for allowing a lot of people to continue having debates on what is good and what is not, and what should be done..and should not be allowed. Arm chair dialogue in true democratic style, leading nowhere.

Aid is on its way out - as many non-profits realize the sustained viability of having independent revenue models. More non-profits are investing time in becoming self-sustaining. Beyond Good Intentions follows 10 interesting cases across the world that are demonstrating this trend. Bill Gates calls it creative capitalism. And the jury is still out on whether this form of enterprise is healthy for the larger good.

Not withstanding, social enterprise is becoming the much needed catalyst for bold new initiatives, new breakthrough models, rapid innovations that can bridge sustained impact - and economic viability. More power to them.

What do you think? Would be interested to hear a different point of view on this. And also hear of examples where you believe social enterprise has been the change agent...