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Definition of Social Enterprise (SE): Basic Characteristic and Examples (Claudio Di Benedetto) - YouTube
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According to Alter the concept of Social Enterprise
can be defined as any business venture created
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for a social purpose mitigating reducing
a social problem or a market failure
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and to generate social value while operating with the financial discipline, innovation and determination
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of a private sector business.
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Hence, social enterprise operate in the free
Market pursuing a primary social or environmental aim.
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Despite different definitions and different legal framework across European and non European countries,
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the three key features that can
be used to characterize the essence of SE are:
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SE is multi objective organization, since
they are committed to three different
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but equal important objectives.
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Indeed, social enterprise pursuis with equal importance social, economic and environmental objectives.
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SE has a multi-stakeholder governance where the external players assume a more relevant role
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compared to what happen in the profit sector.
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Indeed is expected the involvement of different
stakeholders in the decision-making process.
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SE is multi-sector system, it can originate from the for profit, the non-profit and public sector.
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In the last 20 years, the debate about social
enterprise is increasingly focused on its
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specific aims and its role in the socio-economic
systems leading to the emergence of a complex
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and diversified legislative framework.
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At present, no specific legislation exists
at the European Community level.
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There are very different concepts of SE and
different legislative framework regulating
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its governance, activities and ownership.
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Indeed, from a legal point of view the umbrella
of social enterprise includes different type of organization.
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Indeed, in many countries a specific regulation
is lacking and social enterprises can be developed
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in the form of social cooperatives, associations,
foundations, service-delivery NGO, micro-finance institutions,
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or community-based organizations.
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According to the variety of forms and sectors in which social enterprises have appearedand grown,
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they can potentially provide a
response to complex social problems
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in a wide range of field of actions, from energy
to education, from work integration, to food security.
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In order to better understand the heterogeneous
nature of social enterprise some examples
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are provided in the fields of Work Integration,
Access to Water and Health care:
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The first example is Fifteen Restaurant:
Jamie Oliver is a famous chef in London who starred
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in several television series
and is the author of many cookbooks.
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At the height of his fame and success
Jamie has decided to give something back to society.
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His idea was to use his talent and name
to give to marginalized boys and girls,
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with problems related to alcohol and drugs abuse,
a second chance.
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Thus he founded Fifteen Restaurant.
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The restaurant offers two years training
as a chef to help marginalized boys and Girls.
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After this learning experience, with a Master Chef
like Jamie, some guys are now working
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at Fifteen Restaurant, while others have found
work in other London restaurants.
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A second examples of social enterprise is
Grameen Veolia Water Ltd.
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Grameen and Veolia Water decided to create
a Social Enterprise, in the form of joint venture,
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to solve the problem of water contamination
in Bangladesh.
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Indeed, every day in Bangladesh, millions
of people consume water that contains arsenic.
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This toxin is naturally present in the ground water in聽many parts of the country
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and has led to skin聽lesions and cancers for millions
Bangladeshis.
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Grameen Veolia Ltd. provide clean and safe
water to people living in rural areas of Bangladesh,
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using a water treatment method based on low-cost traditional filtration
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and a distribution system based on public pipes
easily accessible within the village.
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Another example of social enterprise in the
Health Sector is Distance Healthcare Advancement.
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By the development of Remote Diagnostic Tool, Distance Healthcare Advancement provides
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high-quality, low-cost diagnostics and care services to low-income people living in rural communities
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that are excluded by the existing health care
system.
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Social Enterprise can contribute to local
socio-economic development by:
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Providing access to basic services to local
communities;
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Contributing to a more balanced and sustainable
use of local resources;
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Creating new employment;
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Breaking poverty traps by allowing financial
inclusion for self-employment;
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Contributing to regularizing the situation
of illegal workers on the black market;
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Contributing to the promotion of inclusive
governance models that empower the local community
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in the strategic decision-making.
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