Opinion

Social Entrepreneurship

With recession looming, perhaps some of you are thinking about dusting off that long-cherished business idea. If you're struggling for exactly what to do, here is a free suggestion: why not save the world?

This is not as crazy as it sounds and is an elevator pitch I hear very often when I speak to young people. There is a definite a change in the zeitgeist of the nation, a natural swing from the 'greed is good' mentality of the eighties. In the sixties, the casual idealist took to the streets and flirted with left-wing politics; today they seem much more interested in saving the planet and solving problems like world hunger.

Clearly their mentors need to refine these ambitious goals to a more practical elevator pitch with the more realistic objective of 'making a difference', but the fire is definitely there. An increasing number of graduates and school-leavers carefully examine the corporate social responsibility credentials of a prospective employer, and many others are starting social enterprises, businesses that are actually structured to deliver on financial, social and environmental performance targets, often called the 'triple bottom line'.

Philanthropy is not an original idea, of course. Over a century ago Sir Titus Salt built the village of Saltaire to provide self-contained living space for the workers at his woollen mills. But the methods have changed with a new breed of social entrepreneur: regular people, not just successful business people with a social conscience.

One of these is Craig Dearden-Phillips who has written a book about his experiences, called 'Your Chance to Change the World - The No-fibbing guide to Social Entrepreneurship'. He is the founder of Speaking Up, an organisation that makes sure that people who have no say in their lives because of their learning difficulties or mental ill health get heard and involved, especially in finding useful employment.

Dearden-Phillips started his career in the social care sector but found the system, in his own words, "a very expensive way to destroy people's lives".. Like many an entrepreneur before him, he decided to start his own organisation and do it better. He faced the common challenge of the new start-up: creating enough credibility to start generating revenue, in his case from local authorities and other government sources.

Dearden-Phillips relied on help and support from his mentors and found the right 'Cornerstones' for his business, but still made a few mistakes along the way, inevitable when you are essentially making it up as you go along, the standard path of the first-time entrepreneur.

But he now has a highly successful enterprise with over 100 people, and has opened up offices around the country. This involved him winning competitive tenders from local authorities, with the added complication that success for him means taking on people as staff who used to be on the books as clients. .He talks about having a "double bottom line" in which social outcomes are measured as carefully as financial returns.

It is clear when speaking with Dearden-Phillips that a social enterprise has to be run in exactly the same way as any other business: `This is not the fluffy world that a lot of FT readers will imagine - its about taking a serious, business-like approach to urgent social issues'. He reminds me of his obligation to turn a profit every quarter and of his cast-iron insistence on recruiting and retaining only strong performers, regardless of their disability.

The main difference between a social enterprise and a regular entrepreneurial adventure is that all the profits are ploughed back into the business forever. So if your ambition is to be successful and eventually have a Ferrari and a big house, then social enterprise is not for you. But, insists, Dearden-Phillips "there is the sure-fire knowledge that others' lives are better because of what your company has achieved".

But if by now you are still wondering whether to start a social enterprise then the clues are in the book. Dearden-Phillips polled a number of social entrepreneurs who all said they felt utterly compelled to do it. Julie Stokes of Winston's Wish described "an overwhelming need that felt difficult to ignore." Owen Jarvis of Aspire Support UK says "it's the attraction of doing something new, setting your own course whilst doing things you feel passionately about.'

So if making a pile and leaving some to charity in your will doesn't appeal, maybe you maybe you should follow Dearden-Phillips, become a social entrepreneur and `give while you live'.

Your Chance to Change the World: The No-fibbing Guide to Social Entrepreneurship by Craig Dearden-Phillips is published by The Directory of Social Change - http://www.dsc.org.uk

More details of Craig's company Speaking Up here : http://www.speakingup.org/

By Mike Southon

This article is © Mike Southon 2008. All rights reserved.
The article originally published in the Financial Times www.ft.com/mikesouthon
Mike Southon can be contacted at mike@beermat.biz www.beermat.biz