Tag Archives: Social Enterprise

Enterprising answers to development

Tomato vendor, African market

A few good sources exploring the themes of social entrepreneurship and microcredit.

Beyond Good Intentions reproduces an article from the International Trade Forum on innovative approaches to reduce poverty through trade, which are bringing business, NGOs, government and aid agencies together. Examples include Bespoke Experience, a social enterprise creating high-end tourism lodges in Mozambique, and using its profits to enable communities to work their way out of poverty.

NOW and PBS review the debate on microcredit, and whether it’s really pro-poor or simply exploiting the most vulnerable, with a focus on Compartamos, the Mexican non-profit turned for-profit microfinance institution at the centre of a fierce debate. It contains an excellent interview on the subject with Muhammad Yunus, the world-renowned founder of the Grameen Bank and father of microcredit, who also wrote another good piece on Social Business Entrepreneurs here.

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A fourth sector?

 The Fourth Sector Network (courtesy: http://www.fourthsector.net)

While we’re still struggling to get the third sector officially recognised in most policy circles (the European Commission, for one, has no Directorate General dealing directly with this ever-expanding sector), there are some who are already envisaging the rise of a fourth one:

Over the past few decades, the boundaries between the public (government), private (business), and social (non-profit/non-governmental) sectors have been blurring, while a Fourth Sector of organization has been emerging. The archetypal Fourth Sector model is sometimes referred to as a For-Benefit organization, and the sector itself is also referred to as the For-Benefit Sector. There are a wide variety of other Fourth Sector models and approaches, bearing different names and emphasizing or embodying different aspects of the For-Benefit model.

Here‘s a comprehensive list of what typology of organisation is included in the sympathetic patterns of the fourth sector. The idea has triggered over-excited reviews in the American press, interest from educational circles, and of course the odd glance from the donor community.

Personally, I like the term and its ideal mash-up of exciting initiatives (triple bottom line, Open Source, sustainability, social enterprises, etc.) that are transforming the way the third sector operates. Yet, it is not very clear why an entire new classification is needed, especially for organisations like cooperatives and social enterprises, which have been around for ages.

Are we witnessing the rise of an entirely new sector, or the slow and painful transformation of the old third sector? And if a fourth sector were to emerge, shouldn’t we be more clear about which parts of the third sector are excluded, and why?