Daily Lessons from Life 11 September 2014 - More social enterprises in Singapore aim for profit and purpose

"More social enterprises in Singapore aim for profit and purpose - CNA 11 September 2014

SINGAPORE: For Ms Cassie Lim, the idea of starting a social enterprise took shape during a literal shake-up in her life - it happened during the 2011 earthquake in Tohoku, Japan, when she found herself trapped in a building.
The result was Be Movement, a publication aimed at raising awareness about the good people do. With a mission to connect and inspire, Ms Lim's enterprise is among a growing number of businesses in Singapore that believes making a social impact is as important as turning a profit.
"It is something like the Robin Hood system where we take from the rich and give to the poor," said Ms Lim of Be Movement. "We invite companies to create value-added CSR stories with us which are sponsored. From there, we take that revenue and use it to fund stories about courageous people, social enterprises, and experimental travel."

A-changin', another social enterprise, has a more direct approach. It offers high-quality garment alterations - with a difference. Founder Josephine Ng left the marketing industry to train and provide employment opportunities for women.

“By empowering the ladies that come to us, they become contributors to the organisation and that is a great opportunity," said Ms Ng. "You see the growth of the people you are nurturing, and that has been great for us."

Corporates are starting to jumping on board. DBS supports A-changin' and Be Movement, and is the first and only bank in Singapore to lend financial support to social enterprises.

Ms Karen Ngui, Managing Director and Head of Group Strategic Marketing and Communications for DBS said: "At the end of the day, banking is about making lives better. So it is not profits or purpose, it is about profits and purpose. That is what DBS believes in."

"There is no consensual understanding of what a social enterprise is", said Dr Lam Swee Sum, Director of the National University of Singapore's Asia Centre for Social Entrepreneurship and Philanthropy..

For Ms Ng, the view that an organisation which wants do good is a charity, rather than a viable business, is a misconception. "Sometimes people do think that - because you are helping people in need, you must be charity and you must be cheap."
The key to a successful social enterprise lies in delivering a good product or service consistently, she said. "People will support social enterprises on a long-term basis only if the social enterprise gives very good quality. Because quality of work still is the most important.""

I just spoke to someone from Malaysia and he told me that Singapore is more advance in the field of Social Enterprise than Malaysia, which surprised me a little. On 2nd thought, I guessed I should not as the developmental stage is different.

Lessons for me are:

1. it is NOT easy to run a profit making enterprise let alone a social enterprise that wants to generate profit as well as fulfilling a social purpose. So, I always salute anyone who genuinely starts a social enterprise;

2. some social enterprises just donate part of their revenue or profit to some favoured charities while some are more ambitious and want to create employment to the socially disadvantaged people to create products/services and solutions to paying customers on a sustainable basis. I always salute the one who want to attempt the more difficult latter version of social enterprises. As some of the beneficiaries or clients, as the People Sector folks will address this group of people, need special help due to their physical or mental or other attributes for them to be able to work a normal working day or half-a-day. So, it is double hard work!;

3. I have been involved with some students' social enterprises competition and realised that sustainable social enterprises CANNOT rely on 'sympathy selling'. Yes some generous people will gladly open their wallets and cheques to pay much high than what the products/services or solutions are worth on compassion ground. However, this will not be sustainable. Most of the students' projects initial paying customers are families and friends. They don't mind paying more as it is to 'support' their kids/nieces/nephews/friends on a one-off basis. But the 'normal' customers may not have the same compulsion.

It still goes down to the heart of running a sustainable business: who are your customers? what do they need and want? do you have the products/services/solutions that meet or exceed their need and want with good quality, best value, emotionally connected and competitive in all areas against competitors who are offering similar products/services/solutions? Do you have the People, Equipment, Materials, Space, Other Partners and the $$ to fund these business activities.

Interesting topic. May more business-minded do-gooders consider this option!