Social Enterprise and Commercial Enterprise

Social opening move and Commercial EnterpriseINTRODUCTIONSocial trys ar businesses driven by a kindly or environmental mission ( fri remainderly enterprise coalition). They argon businesses primarily set out for social purpose. Whose principal documentary is to reinvest their surpluses in general for social purpose in the business or familiarity kind of than maximise gain for sh atomic number 18holders and owners (The Cabinet char spoter. Office of the third sector). Commercial enterprises be business organisations that are set up mainly for meshing. Their main objective is to maximise profit for their doweryholders and owners. It could be Mobil unlimited or publicly have companies like mercenaryized banks or limited li expertness companies. Social enterprise transcends traditional non-profit sector and applies to wellness, environment, education and social welfare. It also applies to scotch exploitation or job creation programmes (Virtue Ventures, 2007). An phys ical exercise is Southampton social council that is geared towards providing prize education for the children in its community. It is also regard in providing quality water supply for its citizens free from sodium, lead and impurities. It is also very proficient in its eat disposal by maintaining a clean environment. In suppose to strain this, it organises a programme called enviro_champs where university staff and their students are involved. University of Southampton and Southampton Solent University are involved in this programme.Differences and Similarities between Social Enterprise and Commercial Enterprise Social enterprises are discordent from a standard charity because they use a businesslike approach to tackling social problems instead of relying on grants (Virtue Ventures, 2007). Social enterprise are designed to meet social needs and also to achieve commercial viability similar to the private sector (Virtue Ventures, 2007). caper plans and other research tools bu rn down be utilised to design social enterprise policy by analysing an organisations congenital factors such as core managences, weaknesses and needs of its clients and external factors such as legal and regulatory environments, trades, demand and access to capital. Therefore social enterprise operational models are geared towards commercialize realities, organisational capabilities and social needs (Virtue Ventures, 2007).The environment Centre (trichloroethane) which is an arm of energy saving trust. Its aim is to encourage and organize slew about the benefit of sustainable alternative energy. The objective of tCE is to educate the people about the havoc cause by using dodo fuel for generating energy, and the pollution caused by the emission of carbon dioxide and other cyanogenic gases. This is achieved by helping people to apply for grant from government. In doing this people are encouraged to use solar energy, wind turbines, bio fuels and hydro energy to refund electri metropolis for their homes. Grants are also given for home insulation. This is purely a social service and not for profit (The Environment Centre, 2008). tCE mystify funding from European Union. Social enterprises raise standards for ethical business and unified social responsibilities (Social Enterprise East Midlands).Social enterprise plays a big role in delivering public service like provision of unemployed services, recycling services health and social care for council(Cabinet Office Office of the Third Sector) . Unlike social enterprise that are not for profit organisation. Commercial enterprises are not mainly into provision of public services the few that are in these areas are very expensive, because they are principally for profit maximisation. Commercial enterprises raise their capital from individuals and stock markets while social enterprise raise their capital from non governmental organisations. Social enterprise can also benefit funds from the same sources as com mercial enterprises. The simply difference is in the range of finances available which may differ depending on the function and manakin of social enterprise. It could be in the form of grant, debt, equity, social venture capital or philanthropy capital (Anglia Ruskin University, 2009). traffic enterprises and social enterprises read from different bottom line, one purely monetary while the other takes into account the social benefits derived from the enterprises operation. With these differences, they also share any(prenominal) similarities as follows, they are twain ambitious, they both have the ability to catch for resources in most remote settles, they are creative in their resolvent to problems, and they also build something out of nothing (School for Social Entrepreneurs). The enterprise act 2002 which relates to competition law and the legislation for the protection of consumers (Enterprise locomote Publication, 2002). The fair handle act 2003 all are legal laws reg ulating both commercial enterprise and social enterprise. Both commercial and social enterprises need to be legally registered according to the law of United Kingdom or anywhere in the world where they operate before they can start operations officially and legally. Commercial enterprise compete in the market place in order to maximise profit and also for the share of the market which is geared towards growth while social enterprise only compete to make profit in order to improve their services for their environment and their community. Companies like Primark competes in the market place with organisations like Matalan, Georges, Marks and Spencers for the share of the market. Their main purpose is to maximise profit and for growth in order to be the market leader. They employ business tools and models to gain competitive emolument and to achieve sustainable leading edge. In recent time social enterprise is becoming an integral of commercial enterprise. Commercial enterprises are touching towards philanthropic activities (Porter and Kramer, 2002). They form sister companies which are basically not for profit organisations. These not for profit organisations aim is to give something back to the community where they operate. This is popularly known as corporate social responsibilities. It could be in the health sector by subsidising health bills of the people in the area where they operate. few organisations focus on a particular area like liveliness diseases or cancer patients or leukaemia patients. While some are into delight of the environment. An example is Primark which embarked on beautifying parks around Southampton (Primark Stores Ltd, 2009).Primark supports community projects across the UK and Ireland (Primark Stores Ltd, 2009). wholly these are in an attempt to gain competitive gain.Philanthropy is used as a form of public relations or advertising. It is sometimes used to promote companies image or brand, through rigorous trade or high profile sponsorship (Porter and Kramer, 2002). True strategic giving addresses both social and economic goals simultaneously unlike cause related marketing. They show areas of competitive context, where the company and society both benefit this is because the firm brings strange asset and expertise (Porter and Kramer, 2002). Organisations uses their philanthropic posture to enhance competitive advantage by aligning social and economic goals thereby bringing emolument in a companys long term business prospects. This gives rise to sustainable competitive advantage (Porter and Kramer, 2002). By addressing corporate social responsibility a company is not only giving back to the society only also leveraging its capabilities and relationship in support of charitable organisations. An example is Marks and Spencer start programme that gives opportunity for work experience to a range of people including the young unemployed, the disabled, the homeless. Parents returning to work. Also for student s who are the offset printing in their families are encouraged to aim for higher education (Marks and Spencer CSR). Companies do not operate in isolation from the society around them. Their ability to compete depends on the circumstances of the location where they exist. Improving education is seen as a social issue. The educational level of the local work wildness greatly affects a companys potential competitiveness. The much a company is involved in corporate social responsibility the better it is positioned for economic benefits. apple is a company that is positioned as an innovative organisation therefore it develops its professionalism in its work place by developing and training its work big businessman (Apple, 2009). Also by giving them sound health packages and housing benefits. This is because investment funds in the work force is paramount to productivity combined with finance and materials. This gives Apple a sustainable competitive advantage in the market against it s competitors. Conclusion In conclusion the long run of social and economic goals are not conflicting, instead they are integrally connected. Competitiveness in recent time depends on how organisations can combine labour, capital and rude(a) resources to produce high quality goods and services. Productivity depends on having workers who are educated, safe, healthy, mighty housed and motivated by sense of opportunity (Porter and Kramer, 2002). My placement in Southampton city council as a volunteer has thought me a lot of Copernican things I need to know about active community group. fundamentally what I have gained is not much because Im still doing a research, on how to know what the community wants from the council, which I believe it will be accurate soon. Also, I went for a Conference in Birmingham about community engagement, which was unbelievable, group clashing up with different regions and met the Chief Executive,CDF. Nevertheless it was a tremendous meeting which they talk about several programms like Business case for community engagement, Working with the third sector and Take part etc.It was an excellent congregation because everybody had to introduce themselves and their position in city council from different county.I would gain more idea from city council because I might stay with them till end of January 2010.BibliographyAnglian Ruskin University (2009). Creating Social Enterprises.A guide to Social Enterprise for University Staff. 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