How does social enterprise differ from the traditional business model Essay

How does social enterprise differ from the traditional business model - Essay Example This research will begin with the statement that Ridley-Duff et al defined social enterprise as an organization that directs its efforts towards the application of commercial strategies in improving environmental and humans’ well-being rather than maximizing shareholder profits. Unlike the traditional business model, social enterprises are flexible and capable of adopting either profit or non-profit structures, as their central agenda concerns advancing social, human justice and environmental agendas. The traditional business model advocated for concise distinctions with regard to a business’ primary intentions; for example, organizations defined themselves as either private profit-driven entities, governmental parastatals, or non-profit entities. Social enterprises organizations bypass this bureaucracy and are further differentiated from traditional business models by the following characteristics. Firstly, these organizations directly address social needs and direct t heir efforts towards ensuring the common good of the society via product output. Secondly, the business activities of these organizations are revenue driven whereby, generated revenue caters for the costs incurred in their social outreach programs. Finally, these organizations do not have to align their business strategies to encompass Corporate Social Responsibility (CSR) strategies, as their core mission and vision entails helping the society. Examined in the paper includes an example of services provided by social enterprises, implications of social enterprises and an analysis of two theoretical social enterprise frameworks and their implications. Social enterprise organizations exhibit diversity in the fields they specialize in; for example, retail contracted providers of human and social services, fee-based consultation and research services, community development and financing services, and sponsoring art and literal exhibitions. Unlike governments and non-profit organizations , social enterprise organizations address social concerns more efficiently, sustainably and fund their beneficiaries more generously. Efficiency results from these organizations ability to mitigate social problems suffocating the limited resources possessed by various governments. The healthcare sector features an increased prevalence of lifestyle diseases that are costly to manage and treat such as cancer and HIV/AIDS. Individuals belonging to the low socio-economic status lack the financial means to seek treatment from health care providers.