A quick version

A Social Enterprise is NOT a non-profit/ corporate social responsibility program/ charity/ voluntary welfare organisation… A Social Enterprise is a business with a social mission as its fundamental, rather private profit-making. A Social Enterprise upends the market mechanism to create social lasting impacts.

A three minutes version

Broadly speaking, a Social Enterprise can be very loosely defined as a business with a social mission. For a Social Enterprise, its social purpose is central to what it does, and wealth is just a means to an end, as opposed to their commercial counterparts.

In Singapore, The Ministry of Community Development, Youth and Sports defines social enterprises as “businesses which fulfill social causes. They use business principles and methods to achieve social change. Social enterprises are not charities, but are revenue-generating businesses.”

Take the example of our past winners:

• Give.sg
  Social mission: [insert info]
  Business model: [insert info]
• IDEA
  Social mission: [insert info]
  Business model: [insert info]

4 key social enterprise models have been identified in Singapore1…”

1. Work integration model: The Work Integration SEs (WISEs) provide skills training and/or employment opportunities to the needy disadvantaged (i.e. those who have higher than usual barriers to employment, such as ex-offenders) as a means to reintegrate them into society and encourage them to be self-reliant. They give an opportunity to people who may not find employment on the open market.
   Examples: Barista Express (no longer in operation), High Point Removal Services and Ikhlas Catering
2. Plough-back-profit model: The objective of these social enterprises is to generate profit to fund the social programmes of their affiliated or parent charities. This helps VWOs or charities reduce their reliance on donations and enhance their financial sustainability.
   Examples: O School and Ikhlas Catering
3. Subsidised services model: These social enterprises provide subsidized services to needy and/or disadvantaged clients, and charge commercial rates to mainstream customers. This ensures that the people who could not usually afford certain services have access to such services to improve their quality of life.
   Examples: Bridge Learning and Hua Mei Clinic
4. Social needs model: These social enterprises are designed to serve society’s social needs or address certain social issues. These issues can include community bonding, family bonding and racial harmony.
   Example: Asian Films Archive

1. Report of the Social Enterprise Committee (2007), http://www.mcys.gov.sg/MCDSFiles/download/1b%20CEF%20Report.pdf

The social enterprises surveyed typically employ a combination of these models, though the dominant operating models identified are the first three – work integration, plough-back-profit, and subsidised services models. Read the full report here.

One commonality that all 4 models share lies in expanding the market discipline to incorporate those who are usually left out of its net. For a more detailed look at the diversity of models available globally, check out Social Enterprise Typology.