Paradigm Shift of Social Enterprise in India

Abstract

A Social Enterprise can be defined as an enterprise/organization which undertakes commercial strategies benefiting social, financial, and sustainable well - being of society and mankind at large with major focus on profit maximization for all key stakeholders through social impact. The objective of social enterprise could be structured around for commercial or noncommercial. The social enterprise takes form depending upon which country its existence and legal form is available in. The legal form a social enterprise normally takes includes home based work, a cooperative, social enterprise, reserve industry, benefit cooperation, community based organization limited by guarantee, charity organization, an individual effort of a person, passion, social businesses, and many more. Obviously, social enterprises have both social and business objectives but normally both objectives are embedded within each other and it is this inter wounded objective which differentiates a social enterprise from a pure commercial enterprise. Since social enterprises normally provide income generation opportunities for less fortunate and vulnerable people living in societies, they are created for a special social purpose but in financially sustainable manner. The income generated from sales is further reinvested in the mission for which they were created. Social Organizations do not depend upon charities and generosity and can on their own sustain for long period in contrast to Not-for-Profit enterprises/organizations which do depend upon grant and charities. Social Enterprise model is thus replicable across other parts of the physical society. In the name of CSR (Corporate Social Responsibility), especially in today’s scenario, many major organizations are trying to show more for societal benefit than providing mere products or services. In India, the concept of social enterprises is increasing, and many organizations are pivoting to show more CSR and providing income opportunities to BPL (Below Poverty Line) community.