Q: Individuals and groups, which focus, not on profits but on the social good, have entered the open space of policy failure, trying to help
Civic engagement, or the commitment of one’s time, energy and other resources to provide solutions to community problems, is now a growing field of endeavour, attracting talents and capital for improving society.
Why are so many young people and entities devoting their time, talents and treasures for social research, advocacy and philanthropy, even in environments where volunteerism is not a deeply rooted culture? Undoubtedly, humanity is passing through some of the most momentous times in its history. More and more global events are proving to be significantly beyond the capacity of national governments to handle. While outside help comes in trickles and sometimes too late, there is now a growing army of entrepreneurs driven by the desire for socially responsible behaviour and philanthropic giving, combing the landscape for opportunity to help. Who are these so-called social entrepreneurs, and what is it that motivates them, especially in a rent-seeking, egoistic and profit-driven world?
As the world gets smaller through globalization, the fruits of interconnectivity and seamless transnationalism are manifesting in different forms – good and bad. While it has afforded many economic agents a wider domain of play, others have become marginalized and penalized both socially and economically, having been structured to the periphery of life. The consequences of global warming and policy failure across national boundaries, especially in the Less Developed Countries (LDCs), have crystalized in the form of high and rising levels of unemployment, endemic poverty and, in some cases, rampant criminality.
Evidently, the pay day for many years of policy missteps, corruption and impunity, particularly in public office among LDCs, has arrived and is manifesting in massive disarray in economic fundamentals, and widespread deprivation – issues at which public policy response has proved decidedly impotent. As a result, individuals and groups, which focus, not on profits but on the social good, have entered the open space of policy failure, trying to help. These entities, which seek to do business and do good simultaneously, are regarded as Social Enterprises – commercially viable entities working for the benefit of society instead of their owners.
Clearly, social enterprise is about helping to provide those basic needs of society, which governments are unable to provide, including jobs and education, healthcare and community wellbeing. The fundamental feature of a social enterprise is that it seeks to earn legitimate profit, which it uses to improve the lot of the community. Profit is therefore sought, not for its own sake but for the betterment of society, and usually reinvested in the business for future growth and not shared among the entrepreneur and his friends.
Social entrepreneurs know that society is better as a cohesive entity; than a fractured wreck. They understand that society often lacks social protection, inclusiveness, equity, and social justice. Besides, wrong policy design and application have exacerbated, rather than mitigate these dysfunctionalities, and therefore cannot be relied upon to cure them. There is need therefore, for a system that seeks to protect the most vulnerable in a sustainable manner based on the deliberate pursuit of profit and social harmony – the basis of social enterprise.
Social entrepreneurs are fired by an understanding of the enormous challenges of Social Repair, which must be undertaken when society allows itself to be fractured – a much higher cost to the society. If drug abuse leads to higher crime rate, for instance, society will spend more on policing, rehabilitation and management of addicts. The United States spends over $740 billion a year on substance abuse (healthcare, work productivity and crime). Of this sum, illicit drug abuse costs $193 billion, while prescription opioid takes another $78.5 billion. These costs arise because an increase in drug addiction for instance, could cause increases in crime, jail houses, police personnel, court cases and even migration away from dangerous cities, with attendant loss of reputation and economic activity. It is, therefore, harder to rebuild such a society than to prevent it from descending to pervasive drug abuse.
Clearly, social entrepreneurs have their work cut out for them but in what kind of environment do they operate, while helping to sustain the ideals of good community living. The environment for social enterprise is still uncharted in most climes, being a new business idea. There is need therefore to promote the culture of volunteerism, which underlies this genre of enterprise. We also need some conceptual clarification and legal framework for improved operation. Improving the landscape will advance social entrepreneurship beyond its current largely pastime and passion preoccupation of a few kind hearted fellows. It will create another institutionalized strategy of poverty reduction and socioeconomic cohesion.
Dr Osuji is an Associate Professor and pioneer Head, Department of Economics, Pan Atlantic University, Lagos
