Alina Bocharnikova from Ukraine: the more social entrepreneurs, the less will be social problems

12 Feb

Alina Bocharnikova from Ukraine: the more social entrepreneurs, the less will be social problems

There are companies whose main goal – to solve social problems. It can provide assistance to people who are affected by the crisis, the employment of people with disabilities, to reduce the number of homeless people to overcome other challenges of life. This business is called social entrepreneurship.

Social Work Master of Social Entrepreneurship Consultant and Instructor FDA Alina Bocharnikova

What is the difference between social enterprises and ordinary commercial activities?

First, a social enterprise, in contrast to business as usual, has a social purpose of the activity. The founder has a desire to “fix reality, to solve a specific community, city problem. This is recorded in the company’s mission, establishing records and confirmed daily work.

Second, the distribution of profits. Simple businessman is free to dispose of the profits. Social benefits are reinvested in the company of the selected solution. So, the more social businesses earn, the more they invest in social influence.

Third, the staff. If the commercial business in the labor market selects only the best employees, social enterprises creates opportunities and employ vulnerable categories of persons.

Fourth, open to public accountability. Social enterprise openly show reports financial and non-financial performance, social impact. Compared to the classical business and social enterprise, the second set up it is difficult because it is first necessary to organize more processes that take into account the higher risk. Social entrepreneur immediately and will create a qualitatively same business, and its social component, which makes additional financial and procedural burdens.

However, sociability has many advantages. There is more confidence in the business people. It is even possible to involve the public in the general social enterprise development funding. Thus, there is a new Ukrainian phenomenon – social investment. Any person can become social enterprises have co-founder and invest your money in its activities in order to solve systemic problems, if they are relevant to him. And it’s not just a one-time offering of alms or “bread”. Social investment introducing deliberate, repaying working mechanism of promoting a qualitative change in the city. And this mechanism continues to operate in accordance with the principle of the pendulum eternal – all it takes is time, pushes the ball, the whole system running.

Read more on the Lithuanian information portal Pozicija