How does a social enterprise really help an economy?

[Usman]

Would like to know how social enterprises key role within the economy. Are there any changing roles with social enterprises?

[William Hartanto]

Um. Wiki: A social enterprise is an organization that applies commercial strategies to maximize improvements in human and environmental well-being, rather than maximising profits for external shareholders

The key role within economy will differs depending on how they choose to go on with their social goals - if they run a business that employes homeless persons to sell magazine (like in Australia), then I suppose their key role is training the people who would otherwise be unemployable work skills and ethics. If they decide to provide micro-credit to poor people like in India, their key role will be banking and financing for very small businesses.

In my opinion (and many will disagree), mixing charity and business is rarely a good way to go. Business is tough enough without having charity mixed into it, and all you ever produce is second rate inefficient businesses that is financed by donors and government subsidies (but marketed as success stories). Micro credit charges 40% in yearly interest after government subsidies was pulled.

Corporate Social Responsibility (CSR) is all and good for profitable stable businesses to attract socially conscious consumers (being a cynics here, but corporate only do what is good for them, even when doing charity).