Rethinking Social Enterprise

By Elizabeth Lee | The Star (educate@thestar.com.my)

I WAS totally shocked to learn recently that social enterprise was labelled as a “dirty word”.

It was the subject of a panel discussion at the Transformational Business Network (TBN) Asia Conference held in Kuala Lumpur last month, of which I had the privilege to be a part.

I think this perception stems from the general misconception that social enterprises are just charities or nonprofits that rely on donations and grants.

To me, social enterprises are laudable and noble, as many use business strategies that are inclusive and community-conscious to solve social or environmental problems.

Unlike charities, social enterprises generate revenue through the sale of goods or services. Their goal is to be financially sustainable while creating measurable impact on society and the planet, based on the maxim of “doing good while doing business”.

The focus is on making social impact and finding solutions to various issues in the world today, such as poverty, education gaps, gender inequality, disability inclusion, access to healthcare, and environmental degradation.

For me, a social enterprise is about teaching people how to fish, while driving systemic change and ensuring sustainability.

Clearing misconceptions

Before we can achieve this, perceptions need to change. Let us take a look at some of the common misconceptions:

> If a business is focused on doing good, it cannot make money – wrong!

Social enterprises integrate social and economic values into business strategies and organisational missions.

Take for example TOMS shoes, which started with a “buy one, give one” model. It became a multimillion-dollar company while donating millions of shoes globally.

Since 2006, TOMS has helped support more than 105 million lives and given away more than 100 million pairs of shoes, besides offering the gift of better tomorrows.

> Businesses with corporate social responsibility programmes or occasional donations qualify as social enterprises – wrong!

Social enterprises are usually mission-driven from the core, with social or environmental goals embedded in the business model and not as a side initiative.

The institutions owned and governed by the Jeffrey Cheah Foundation are prime examples of social enterprises, where profits earned are channelled back to support research and scholarships, which are set to reach RM1bil by 2026.

Changing mindset

We need to recalibrate our perspectives from viewing social enterprise as a “dirty word” to recognising its impact and social transformation.

Gary Hopwood of TBN Americas, in his opening address, put it well by calling it a quiet revolution – a different kind of revolution led by social entrepreneurs who are driven not just by profit but also by purpose.

At the heart of this movement are social values like trust, respect, responsibility and integrity, which bind us together and serve as the true gold of our society.

Businesses built on these values are shifting their focus from traditional return on investment to social return on investment, aligning profit with purpose to create meaningful impact.

The question I wish to ask is: why can’t all businesses be social enterprises? Why not build companies that not only thrive economically but also aim to make the world a better place?

Changing the mindset around social enterprise can essentially unlock its full potential in addressing today’s complex social and economic challenges.

I have always believed in the transformative power of education, not just as a tool for personal development, but also as a catalyst for societal progression and innovation. Education addresses fundamental social issues such as inequality, poverty and access to opportunity.

By democratising education, we can make it accessible to more students, especially those from underserved populations.

We need to give those who need a hand the lift and opportunity to change their lives. By doing so, we are also encouraging them to live purposeful and meaningful lives by giving back positively to their communities and society.

I have seen that happen over and over again as the scholars we have supported return to empower other individuals and communities, breaking cycles of disadvantage.

Prof Datuk Dr Elizabeth Lee is the chief executive officer at Sunway Education Group. A veteran in the field of private higher education, Prof Lee is also an advocate for women in leadership. She has been recognised both locally and internationally for her contributions to the field of education. The views expressed here are the writer’s own.