Take, for instance, a non-profit social enterprise that provides services to vulnerable young people and whose revenues mainly come in the form of annual contracts from the council. What is the difference between this and a charity doing similar work? Largely, it is in matters of culture. The social enterprise will think of the council as a customer, will expect contracts instead of grants, will perhaps have a less deferential relationship with the council. And what are the advantages of this? Charitable legislation can be a little clunky to work under, but it is wrong to suggest that charities per se are somehow less professional or efficient than other organisational forms. So, for a case like this it is a matter of choice – a social enterprise or a charity – with little real-world impact.
Erm, 'but it is wrong to suggest that charities per se are somehow less professional'... yep ok...
Much of the work undertaken by social enterprises in the education and health sector would not be needed if adequate public services were in place. This is an argument long levelled at charities, and social enterprises are no different; the challenge should also be made to them. When an organisation patches up such problems downstream, there is less incentive for the problems to be eliminated at source. If the only tools in our box are social enterprise or charity, then we are missing the opportunity to use other properly different levers, such as addressing disadvantage by reforming the benefit system or introducing innovations such as a universal basic income.
Well ABOUT THAT....