Like any other businesses, social enterprises in Singapore have to sustain themselves. The self-sustaining social enterprise usually represent a successful social enterprise. However, 1 out of 5 small business usually shut down. We are talk about businesses, that are profit driven. What about social enterprises which has a double or even triple bottom line? Having to juggle both profits and their beneficiaries'welfare, one would assume that social enterprises have it tougher.
A social enterprise that perhaps we can look at in Laksania. They are in the F&B industry, serving up different type of Laksas. Their beneficiaries consist of patients from Institute of Mental Health (IMH) and also from Movement for the Intellectually Disabled, which consist of the mentally challenged. They had outlets at East Coast, Bugis Plus and JEM.
However, Laksania unexpected lost its tender at their central kitchen that was based in IMH. They had to quickly find a new kitchen. Alas, they had to squeeze at the East Coast outlet, and eventually incurred higher cost for the new central kitchen located at Kampong Apat. This was a huge blow to them as they were planning to expand. However, due to all these changes, they had to delay and may even not expand anymore.
The outlet at JEM did not help either, as JEM was closed for about 2 weeks after the many mishaps that happened in JEM. Right now, the founder is pouring all she can into Laksania, hoping to keep it up and running. However, things are not looking good for them and they are hoping to find investors.
Social enterprises in Singapore generally receives help from the government and the many different organisaitons. Generally, businesses that doesn't rely on organisations or even donations tend not be stuck in such situations, such as a sudden lost of the location will cause more than just inconvenience for the employees and the owners.
Perhaps a way social enterprises can help to be more sustainable in Singapore is for them to see themselves more as a business that has to take care of then things on their own, rather than thinking that they may ave someone to rely on
Article: Laksania's uphill struggle against rising costs - Nur Asyiqin Mohamad Salleh
http://news.asiaone.com/news/soshiok/laksanias-uphill-struggle-against-rising-costs
Monday, January 20, 2014
Monday, January 13, 2014
Social enterprise, for-profit or non-profit?
Should a social enterprise be for-profit, or non-profit? This is a debate that has been going on for a long time. What's the big idea? Perhaps a better understanding of a for-profit and a non-profit social enterprise will help us understand why is there such a big debate.
A for-profit social enterprise are more inclined and required to give high-quality products or services. The reason is really simple, Being a for-profit social enterprise means it is conducting business for almost the same reason as a conversational business. They are constantly competing for customers.
But more than just competing, the social enterprise can issue share and dividends to shareholders and owners. In Singapore context, for-profit social enterprises are not an uncommon sight. the owners get to take back profits earned.
As for non-profit social enterprises, they do not take back profits but rather, those money are used for the business's expenses and improvement of the social enterprise. They may even rely on donation from time to time.
So once again, why should it matter whether it's for-profit or not? Firstly, we should understand that in the UK, social enterprises are all non-profit. Yet they are still very successful. The owners aren't allow to draw our any profits. Many argue that Singapore should follow their model, claiming that a social enterprise that takes profits are not true social enterprise.
However, should it ever be mandatory for social enterprises in Singapore to be non-profit, it will definitely deter people from wanting to set up a social enterprise. Yet, it gives us a feeling that people are setting up social enterprises for the wrong reasons if such a thing deter them from setting up a social enterprise.
Alas, I feel that for-profit social enterprises can better allocate their resources so that they can benefit their beneficiaries better with the excess profit that they have. They can keep the profits but they should also be used for the advancement of the social enterprise, as well as taking care of their beneficiaries.
At the end of the day, it depends on us as an individual, whether we want to earn profit or help society more. No matter what we choose, as long as we are accountable for our actions and are helping society in a good way and not doing any harm, it should be good enough for a start. Whether we wish to convert to a non-profit at a later date is a different story all together.
Article: What is the For-Profit Social Enterprise? - Jonathan Carson & Scott Griffith http://insights.som.yale.edu/insights/what-profit-social-enterprise
A for-profit social enterprise are more inclined and required to give high-quality products or services. The reason is really simple, Being a for-profit social enterprise means it is conducting business for almost the same reason as a conversational business. They are constantly competing for customers.
But more than just competing, the social enterprise can issue share and dividends to shareholders and owners. In Singapore context, for-profit social enterprises are not an uncommon sight. the owners get to take back profits earned.
As for non-profit social enterprises, they do not take back profits but rather, those money are used for the business's expenses and improvement of the social enterprise. They may even rely on donation from time to time.
So once again, why should it matter whether it's for-profit or not? Firstly, we should understand that in the UK, social enterprises are all non-profit. Yet they are still very successful. The owners aren't allow to draw our any profits. Many argue that Singapore should follow their model, claiming that a social enterprise that takes profits are not true social enterprise.
However, should it ever be mandatory for social enterprises in Singapore to be non-profit, it will definitely deter people from wanting to set up a social enterprise. Yet, it gives us a feeling that people are setting up social enterprises for the wrong reasons if such a thing deter them from setting up a social enterprise.
Alas, I feel that for-profit social enterprises can better allocate their resources so that they can benefit their beneficiaries better with the excess profit that they have. They can keep the profits but they should also be used for the advancement of the social enterprise, as well as taking care of their beneficiaries.
At the end of the day, it depends on us as an individual, whether we want to earn profit or help society more. No matter what we choose, as long as we are accountable for our actions and are helping society in a good way and not doing any harm, it should be good enough for a start. Whether we wish to convert to a non-profit at a later date is a different story all together.
Article: What is the For-Profit Social Enterprise? - Jonathan Carson & Scott Griffith http://insights.som.yale.edu/insights/what-profit-social-enterprise
Monday, January 6, 2014
Should you be a social entrepreneur?
Being in Business and Social Enterprise, it is only natural that we take up the social enterprise route and be a social entrepreneur, to build a better future for those in need. Things such as providing better education for people in Africa or providing employment opportunities for the underprivileged. But should every single one of us be a social entrepreneur, what will become of the world?
Although not much in Singapore, other countries such as the UK offers subjects and modules regarding social enterprise. What was alien to us a few years ago seem to have explode in our society today. Students these days want to make a difference to society, and this does not applies to just undergrad but also to high school students.
However, not everyone is suited to be a social entrepreneur, nor should they be one. Don't get me wrong. There are so many other ways we can contribute back to society. Social entrepreneur is just one of the many ways. If everyone of us became a social entrepreneur, who will be at the back doing the other work? A social enterprise require things such as volunteers, supporters, fundraiser, and so on. Basically, people who specialise in different areas. Their speciality will keep the social enterprise running or even do better than it already can.
There are many courses and scholarships offered to us if we are really interested to be a social entrepreneur. The Singapore government is also encouraging people to set up social enterprises and so on. But once again, we have to take into consideration of what we want to do. Do we really want to do this and is this our passion? We are at an age where everything seems attractive to us and we want to explore different options. But if we really wish to change the world, perhaps doing what we do best will at the very least,
At the end of the day, no matter what we may do, we should give our absolute best if we want to change the world. After all, we have to be the change we want to see in the world.
Article Reference: Not Everyone Should Be a Social Entrepreneur - Lara Galinsky
Although not much in Singapore, other countries such as the UK offers subjects and modules regarding social enterprise. What was alien to us a few years ago seem to have explode in our society today. Students these days want to make a difference to society, and this does not applies to just undergrad but also to high school students.
However, not everyone is suited to be a social entrepreneur, nor should they be one. Don't get me wrong. There are so many other ways we can contribute back to society. Social entrepreneur is just one of the many ways. If everyone of us became a social entrepreneur, who will be at the back doing the other work? A social enterprise require things such as volunteers, supporters, fundraiser, and so on. Basically, people who specialise in different areas. Their speciality will keep the social enterprise running or even do better than it already can.
There are many courses and scholarships offered to us if we are really interested to be a social entrepreneur. The Singapore government is also encouraging people to set up social enterprises and so on. But once again, we have to take into consideration of what we want to do. Do we really want to do this and is this our passion? We are at an age where everything seems attractive to us and we want to explore different options. But if we really wish to change the world, perhaps doing what we do best will at the very least,
At the end of the day, no matter what we may do, we should give our absolute best if we want to change the world. After all, we have to be the change we want to see in the world.
Article Reference: Not Everyone Should Be a Social Entrepreneur - Lara Galinsky
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