Tag Archives: social enterprises

The Economist: missing the point, once again…

Shooting Pencils At Target @ JupiterImagesThe Economist reviews this week Forces for Good, a new book about exceptional NGOs, which according to the weekly are too few and rare to be worthy of the illustrious paper’s attention. The authors, Leslie Crutchfield and Heather McLeod Grant, surveyed thousands of (US) nonprofits, and finally concentrated their attention on a sample of 12, which they believe have achieved the highest levels of impact.

These included America’s Second Harvest, Habitat for Humanity and – much to the Economist’s delight – the notoriously right-wing Heritage Foundation, a proof that this was a “serious piece of research, not the usual sentimental tosh that gets written about left-leaning NGOs” [sic!].

The Economist once again shows its contempt towards the NGO sector and its lack of understanding of its internal diversity. Kicking off with a series of scathing (and unreferenced) remarks about social enterprises, which seem to reduce the debate to a pathetic comparison between the successes of Google and those of the Grameen Bank (apples and oranges, anyone?), it then sings the praises of the 12 selected nonprofits for their excellent achievements (data, anyone?). The fact that social enterprises and nonprofits might not actually be one and the same thing, or that being based (as the 12 selected organisations are) in the US as opposed to Bangladesh might offer considerable advantages to – for example – making the most of market forces does not seem to be a relevant piece of information for the illustrious weekly.

The Economist is not alone in displaying a lack of understanding towards the complexities of the third sector, and of social enterprises in particular. Roger L. Martin & Sally Osberg – echoing Muhammad Yunus – have already made a plea on the pages of the Stanford Social Innovation Review for strengthening the definition of social entrepreneurship [PDF], but definitions are not enough when we are facing the challenges of applying them to different cultural contexts. We might reach an agreement on what a social enterprise might be in the US (therefore what parameters we can adopt to evaluate its success), but this does not mean we can apply this model to the whole world.

Aside from these important theoretical considerations, “where is the social-entrepreneurial equivalent of a for-profit start-up like Google or Microsoft […]? where is the evidence of massive social change?” – asks an irritated Economist.

Kick Start Kenya - oilseed pressThe answer is Kick-Start, a Kenya-based organisation that develops and promotes technologies that can be used by dynamic entrepreneurs to establish and run profitable small scale enterprises. As reviewed by the MIT’s Innovations journal, Kick-Start has started 50,000 new businesses, generating $52 million a year in new profits and wages, and is directly responsible for a 0.6% increase of Kenya’s GDP. See a good video by the Schwab Foundation on Kick-Start’s successful water pump here.

Now, can someone at the Economist more interested in facts than in rhetorical preaching let me know if Google can be said to have had a comparatively similar impact on the US economy and on its social needs?